Which of these is not a general systems goal?
a) Relevant output
b) Cost awareness
c) Flexible structure
d) Higher salaries
Answer:
One form of access security is determining authentic users by “who they are.” Which of
the following is an example of such authentication?
a) Verifying a password
b) Biometric tests such as retina scans
c) Requesting that the user provide his or her mother’s maiden name
d) Requiring the user to show a valid driver’s license
Answer:
Which of the following symbols represents the standard system flowcharting symbol
for a screen display?
Answer:
Which of the following is a group collaboration tool that allows anyone with a Web
browser and some easy-to-use software to publish a personalized diary online?
a) Electronic conferencing
b) Blogs
c) Firewalls
d) e-mail
Answer:
Most computer criminals who have been caught:
a) Have inferior educational backgrounds
b) Have superior educational backgrounds
c) Work for organized crime
d) Are ill suited to their jobs
Answer:
All of the following are inputs (source documents) to the sales process except:
a) Sales order
b) Shipping notice
c) Remittance advice
d) all of the above are source documents to the sales process
Answer:
A virtual currency is money that:
a) Doesn’t actually exist
b) Cannot actually be purchased by anyone who is not authorized to buy it
c) Operates as a medium of exchange despite the fact that no company or country
stands behind it
d) No one has ever seen, but that Internet junkies believe exists
Answer:
When creating system flowcharts, the requirement that a processing symbol should
always be placed between an input symbol and an output symbol is known as the:
a) Processing rule
b) Input/output rule
c) Sandwich rule
d) Cycle rule
Answer:
If the same employee is responsible for authorizing a business transaction and recording
the transaction in the accounting records, this indicates a weakness in which element of
a company’s internal control system?
a) A good audit trail
b) Separation of duties
c) Internal review of controls
d) Competent employees
Answer:
Which of these is likely to appear last in a report?
a) Page header
b) Group header
c) Detail lines
d) Report header
e) any of these could be last
Answer:
The top ten technologies discussed in the chapter results from an annual survey
conducted by the AICPA.
Answer:
In its automated data processing system, a company might use selfchecking numbers
(check digit) to enable detection of which of the following errors?
a) Assigning a valid identification code to the wrong customer
b) Recording an invalid customer’s identification charge account number
c) Losing data between processing functions
d) Processing data arranged in the wrong sequence
Answer:
This item creates relationships by linking the date in one file (e.g., customer) to an item
in a second file (e.g., a sales order:
a) Foreign key
b) Data dictionary
c) Relationships link bit
d) Index file
Answer:
An expense report was prepared by a company’s cost center. One executive questioned
one of the amounts and asked for “the source documents which support the total.” Data
processing was not able to routinely do so. The best control procedure would be:
a) An error listing
b) An audit trail
c) Transmittal control
d) Documentation
Answer:
Which of these comes closest in structure to that of a hierarchical database?
a) Organization chart
b) List of students and their classes
c) List of specialty doctors and their patients
d) A map of a city
Answer:
Which of the following would lessen internal control in an automated data processing
system?
a) The computer librarian maintains custody of computer program instructions and
detailed listings
b) Computer operators have access to operator instructions and detailed program
listings
c) The data control group is solely responsible for the distribution of all computer
output
d) Computer programmers write and debug programs which perform routines designed
by the systems analyst
Answer:
Thwarting computer abuse can be enhanced by all of the following except:
a) Enlisting top-management support
b) Increasing employee awareness and education
c) Allowing only 10% of employees access to computers
d) Using strong passwords
Answer:
Fault-tolerant systems are typically based on the concept of:
a) Redundancy
b) Consistency
c) Materiality
d) Fairness
Answer:
All of these are advantages of a virtual currency except:
a) The ability of a company to do more business if they accept the currency
b) No need to pay credit-card charges or large clearing house fees
c) The support of the issuer’s central bank in the event of default
d) all of these are advantages of a virtual currency
Answer:
Which of these is not a common dimension in a feasibility study?
a) Technical
b) Operational
c) Schedule
d) all of these are common dimensions
Answer:
A sales transaction document was coded with an invalid customer account code (7
digits rather than 8). The error was not detected until the updating run when it was
found that there was no such account to which the transaction could be posted. The best
control procedure would be:
a) Parity checks
b) Keypunch verification
c) A hash total check
d) A check digit
Answer:
Three common techniques auditors use to test computer programs are:
a) Test data, integrated test facilities, and parallel simulation
b) Test data, edit checks, and integrated test facilities
c) Test data, program change control, and parallel simulation
d) Program change control, edit checks, and parallel simulation
Answer:
A database management system is:
a) A set of computer files
b) A set of one or more computer programs
c) A set of data to be processed by a computer
d) A manual accounting information system
Answer:
In the E-R model, this symbol represents a database entity such as a customer:
a) Diamond
b) Rectangle
c) Arrow
d) Parallelogram
Answer:
An example of an assurance service for a company engaged in electronic commerce is:
a) XBRL
b) Trust US
c) CITP
d) CPA Trust Services
Answer:
The 1992 COSO report identifies five components for an effective internal control
system. Which of those five establishes the tone of a company and influences the
control awareness of the company’s employees?
a) Control procedures
b) Control environment
c) Control activities
d) Information and communication
Answer:
All of these are examples of action queries that you can create in Microsoft Access
except:
a) Append query
b) Update query
c) Make table query
d) Delete query
e) Validation query
Answer:
Many organizations have an internal audit function that makes periodic reviews of each
department within the organization. The focus of these reviews is to:
a) Conduct an investigation of each department to be sure fraud is not taking place
b) Evaluate the efficiency and effectiveness of the department
c) Evaluate the performance of the manager of the department
d) Report to the organization’s top managers and board of directors
Answer:
Which of the following statements is true regarding preventive control procedures and
detective control procedures?
a) They should be interrelated
b) If preventive controls exist, detective controls are unnecessary
c) If detective controls exist, preventive controls are unnecessary
d) Preventive controls should be cost effective, but detective controls do not need to be
cost effective
Answer:
A software package at the entry-level, such as Peachtree:
a) Is likely to cost a few thousand dollars to implement fully
b) Is scalable
c) Is unlikely to incorporate Internet connectivity
d) Is suitable for many businesses with less than $5 million in revenues
e) Will include sample, customizable Charts of Accounts
Answer:
Which of these is not an acronym normally associated with cloud computing?
a) SaaS
b) PaaS
c) IDEA
d) all of these are cloud computing acronyms
Answer:
When designing a form for an Access database, the term “Inheritance” refers to:
a) The propagation of properties and restrictions from the data field in the underlying
table to the field in the form
b) The propagation of properties and restrictions from the underlying table itself
c) The ability of all the fields of the form to assume the same color
d) none of these
Answer:
In a data flow diagram, an open-ended rectangle is used to represent:
a) A process
b) A data stream
c) A data source or destination
d) A data store
Answer:
Transactions which were erroneous and had been previously rejected by the computer
system apparently were not being reentered and reprocessed once they had been
corrected. This erroneous condition is best controlled by:
a) Comparing a record count of transactions input into the system
b) A comparison of the batch control totals
c) Scanning the error control log
d) Scanning the console log
e) Desk checking
Answer:
The term information overload refers to providing too much data to management, often
resulting in managers ignoring it.
Answer:
When the costs of protecting against a business risk exceed the cost of the risk
multiplied by its probability, an auditor will generally recommend against installing the
specific control.
Answer:
Using Microsoft Access, “referential integrity” enables you to delete a record on the
“one” side of a one-to-many relationship.
Answer:
Discuss the elements of the Sarbanes-Oxley Act of 2002 that affect auditing.
Answer:
The three conditions for fraud in the fraud triangle include pressure, rationalization, and
opportunity.
Answer:
An example of a social networking site is eBay.
Answer:
Outsourcing can help a company avoid seasonal fluctuations in its business.
Answer:
Microsoft Access is an example of a database management system, not a database.
Answer:
Calculated fields are not possible when creating reports in Access.
Answer:
A dashboard for an ERP displays current information about important operations of a
company- for example, sales for a given store.
Answer:
One of the motivations for SAR is to identify money laundering activities.
Answer:
The human resource management process is the same thing as the payroll process.
Answer:
When developing the specifications for a new AIS, designers begin with outputsnot
inputs or processing requirements.
Answer:
Unless the human element of a systems change is considered, the best designed system
“on paper” will often be an operational failure when it is implemented.
Answer:
An example of a social networking site is FaceBook.
Answer:
The greatest advantage of an integrated test facility is that it enables an auditor to
examine both manual and computerized steps companies use to process business
transactions.
Answer: