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Budgets used for internal planning purposes and performance evaluation should be
developed on the basis of
A) responsibility accounting.
B) generally accepted accounting principles.
C) financial accounting standards.
D) managerial accounting standards.
Which of the following is not a factor of internal environment according to the COSO
Enterprise Risk Management Framework?
A) Analyzing past financial performance and reporting.
B) Providing sufficient resources to knowledgeable employees to carry out duties.
C) Disciplining employees for violations of expected behavior.
D) Setting realistic targets for long-term performance.
Hunter Carr is an accountant with AcctSmart. The firm has a very strict policy of
requiring all users to change their passwords every sixty days. In early March, Hunter
received an e-mail claiming that there had been an error updating his password and it
provided Hunter with a link to a website with instructions for re-updating his password.
Something about the e-mail made Hunter suspicious, so he called AcctSmart's
information technology department and found that the e-mail was fictitious. The e-mail
was an example of
A) social engineering.
B) piggybacking.
C) spamming.
D) phishing.
An auditor finds that employee absentee rates are significantly higher on Mondays and
Fridays than on other work days. This is an example collecting audit evidence by
A) confirmation.
B) reperformance.
C) vouching.
D) analytical review.
The relationship between the Disburse Cash and Issue Stock events is modeled as being
________ because each stock issuance may be linked to many dividend payments and,
conversely, a particular dividend payment may be related to multiple different issuances
of stock.
A) 1:1
B) 1:N
C) M:N
D) 1:M.
The ________ audit examines the reliability and integrity of accounting records.
A) financial
B) informational
C) information systems
D) operational
The process that allows a firewall to be more effective by examining the data in the
body of an IP packet, instead of just the header, is known as
A) deep packet inspection.
B) stateful packet filtering.
C) static packet filtering.
D) an intrusion prevention system.
The batch processing data entry control that sums a field that contains dollar values is
called
A) record count.
B) financial total.
C) hash total.
D) sequence check.
Which of the following is generally not a major source of input to a payroll system?
A) Payroll rate changes.
B) Time and attendance data.
C) Checks to insurance and benefits providers.
D) Withholdings and deduction requests from employees.
A frantic Barney Rubble lost a large sale because he could not access the system to
verify the inventory was in stock and ready to be shipped. Which of the following
characteristics of useful information is absent in the situation described above?
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible
Which is the correct label for the blank transformation process circle in the data flow
diagram below?
A) 1.2 Check Credit
B) 1.2 Enter Order in Sales Journal
C) 1.2 Does Customer Have Credit?
D) 1.2 Salesperson Approves
A picking ticket is generated by the
A) shipping process.
B) sales order entry process.
C) packing process.
D) billing process.
An entity-relationship diagram represents entities as ________ and the relationships
between them as lines and ________.
A) circles; squares
B) squares; diamonds
C) rectangles; diamonds
D) rectangles; circles
Which of the following graphical symbols represents a minimum cardinality of one and
a maximum cardinality of one?
A)
B)
C)
D)
What is the minimum number of external agents that must participate in each REA
event?
A) 0
B) 2
C) 1
D) 3
________ information reduces uncertainty, improves decision makers' ability to make
predictions, or confirms expectations.
A) Timely
B) Reliable
C) Relevant
D) Complete
Intentional or reckless conduct that results in materially misleading financial statements
is called
A) financial fraud.
B) misstatement fraud.
C) fraudulent financial reporting.
D) audit failure fraud.
Whitewater Rapids provides canoes to tourists eager to ride Whitewater River's rapids.
Management has determined that there is one chance in a thousand of a customer being
injured or killed. Settlement of resulting lawsuits has an average cost of $850,000.
Insurance with a $100,000 deductible is available. It covers the costs of lawsuits, unless
there is evidence of criminal negligence. What is the impact of this risk without
insurance?
A) $10
B) $850
C) $100,000
D) $850,000
At a movie theater box office, all tickets are sequentially prenumbered. At the end of
each day, the beginning ticket number is subtracted from the ending number to calculate
the number of tickets sold. Then, ticket stubs collected at the theater entrance are
counted and compared with the number of tickets sold. Which of the following
situations does this control detect?
A) Some customers presented tickets purchased on a previous day when there wasn't a
ticket taker at the theater entrance (so the tickets didn't get torn.)
B) A group of kids snuck into the theater through a back door when customers left after
a show.
C) The box office cashier accidentally gives too much change to a customer.
D) The ticket taker admits his friends without tickets.
Inability to add new data to a database without violating the basic integrity of the
database is referred to as the
A) update anomaly.
B) insert anomaly.
C) integrity anomaly.
D) delete anomaly.
An electronic document that certifies the identity of the owner of a particular public
key.
A) Asymmetric encryption.
B) Digital certificate.
C) Digital signature.
D) Public key.
Why does COBIT5 DSS-05.06 stress the importance of restricting physical access to
network printers?
A) because hackers can use them to print out sensitive information
B) because hackers often hide inside large network printers until night
C) because document images are often stored on network printers
D) because network printers are easier to hack into than computers
Procurement cards differ from corporate credit cards in which of the following ways?
A) Credit limits can be set for procurement cards, but not corporate credit cards.
B) Credit cards can be used to make purchases without an explicit sign off by
supervisors, but procurement cards require a sign off.
C) Procurement cards can only be used with approved vendors, but credit cards can be
used anywhere.
D) Procurement card invoices are sent separately for each card, whereas corporate
credit cards are consolidated into a single invoice.
Detailed data about reasons for warranty and repair costs is considered an applicable
control used to mitigate the threat of
A) underproduction.
B) overproduction.
C) poor product design.
D) suboptimal investment of fixed assets.
Using the database depicted above, how many primary keys are in the database?
A) 0
B) 3
C) 4
D) 5
The basic premise of ________ is that it is easier for people to express what they like or
dislike about an existing system than to imagine what they would like in a system.
A) modified software
B) outsourcing agreements
C) prototyping
D) turnkey systems
Using an REA database design, which of the below is false with regards to cost data?
A) Cost information is stored in several tables.
B) Standard cost is stored as an attribute of the Inventory table because it is the same
for all units of a given inventory item for a fiscal year.
C) In contrast, the actual cost of inventory is stored in a relationship table because
prices can vary over time.
D) Actual cost can be stored as an attribute of the Inventory table for organizations that
value inventory based on the most recent amount paid.
Which of the following is least likely to be a major criterion in vendor selection?
A) prices of goods
B) credit rating of the vendor
C) quality of goods
D) ability to deliver on time
Executable code that attaches itself to software, replicates itself, and spreads to other
systems or files. When triggered, it makes unauthorized alterations to the way a system
operates, which is called a
A) virus.
B) logic bomb.
C) trap door.
D) data diddle.
Reducing management layers, creating self-directed work teams, and emphasizing
continuous improvement are all related to which aspect of internal environment?
A) Organizational structure.
B) Methods of assigning authority and responsibility.
C) Management philosophy and operating style.
D) Commitment to competence.
Corrections are entries made to correct errors found in
A) all journals.
B) special journals.
C) the general ledger.
D) the financial statements.
The ________ is responsible for the database.
A) database master
B) database manager
C) database administrator
D) data coordinator
