Compared to top management’s system information goals, obtaining the information
needs of operating management is normally:
a) Easier
b) More difficult
c) No different
d) Not required
Answer:
Which of the following is not an objective of a computerized database?
a) Minimize data redundancy
b) Make efficient use of storage media
c) Distribute information to end users
d) Eliminate the data-gathering responsibilities of some subsystems within the
organization
e) Reduce the decision-making functions of subsystem managers
Answer:
Sorting and Indexing database records are similar in that:
a) Neither require underlying table records
b) Both require the user to first define data validation rules
c) Both reorganize the way record data appear in outputs
d) None of these
Answer:
SQL is:
a) An example of an integrated test facility
b) A generalized audit software program
c) A tool used for continuous auditing
d) A tool query language used by auditors to retrieve and manipulate data
Answer:
In the E-R model, the primary record key of a file is indicated by:
a) An asterisk
b) Underlining
c) Using a square
d) Printing the term (e.g., part number) in italics
Answer:
Hacking involves:
a) Stealing carbons of credit cards
b) Destroying computer hardware
c) Gaining illegal entry to computer files from remote locations
d) Inserting a logic bomb in a computer program
Answer:
Increased use of big data by organizations is causing internal audit functions:
a) Tto increase recruiting of IT specialists
b) Tto abandon the CISA certification
c) Tto stop using cloud computing
d) Tto increase their focus on debits and credits
Answer:
In each one of the following four questions, you are given a well-recognized procedure
of internal control. You are to identify the irregularity that will be discovered or
prevented by each procedure.
The voucher system requires that invoices be compared with receiving reports and
express bills before a voucher is prepared and approved for payment.
a) Unrecorded checks appear in the bank statement
b) The treasurer takes funds by preparing a fictitious voucher charging “Miscellaneous
General Expenses”
c) An employee in the purchasing department sends through fictitious invoices and
receives payment
d) A cash shortage is covered by underfooting outstanding checks on the bank
reconciliation
e) A cash shortage is covered by omitting some of the outstanding checks from the bank
reconciliation
Answer:
Which of the following is not an advantage of decision tables?
a) They document the logic of the computer program
b) They show the order in which data conditions are tested and/or processing actions are
taken
c) They increase computer programmer productivity
d) They summarize the data processing tasks to be performed for a large number of data
conditions in a compact format
Answer:
This organization assigns the official registry of Internet domain names.
a) TCP
b) URL
c) ICANN
d) HTTP
Answer:
An integrated test facility is used to:
a) Test only the computer programs of an AIS
b) Test only the manual operations of an AIS
c) Test both the programs and the manual operations of an AIS in an operational setting
d) Test the computer programs, the manual operations, and the auditing procedures of a
company using a computerized AIS
Answer:
Which of the following are most likely to be used by accountants as documentation?
a) Program flowcharts
b) Document flowcharts
c) Decision tables
d) System flowcharts
Answer:
Normalizing accounting data refers primarily to eliminating errors and outliers, thus
creating “normal data.”
Answer:
A control procedure that may be established within the sales department of a company’s
marketing subsystem is the addition of the sales invoice amounts before these invoices
are sent to the information processing subsystem. This control total of invoice amounts
is called a:
a) Checksum
b) Random total check
c) Redundant control amount
d) Batch control total
Answer:
Which of the following is not one of the four parts of a decision table?
a) The condition stub
b) Condition entries
c) Decision symbols
d) Action entries
Answer:
Which of these statements is true?
a) Accountants need not bother with systems studiesthey are mostly performed by IT
specialists
b) System studies enable bright accountants to express ideas for improving a system
c) Systems studies rarely involve accounting information systems
d) all of these are true
Answer:
Healthcare organizations:
a) Are always not-for-profit enterprises
b) Do not include nursing homes in their industry segment
c) Have great difficulty in measuring outputs
d) Do not include patient scheduling functions in their AISs
Answer:
An example of a check-digit technique that includes “ordering of digits” in the
construction of check-digit values is the:
a) Odd-even technique
b) Modulus 11 technique
c) Value-digit technique
d) Orion technique
Answer:
An important input to the sales process is:
a) A customer sales order
b) The cash forecast
c) Aged accounts receivable information
d) A receiving report
Answer:
Hardware or software that protects organizational information from external sources
best describes which of the following?
a) Intranets
b) Extranets
c) Firewalls
d) ISDN servers
Answer:
Printers and video monitors are examples of:
a) Output devices
b) Input devices
c) Processing devices
d) Storage devices
Answer:
Which of the following is a primary reason why accountants should be concerned about
cybercrime?
a) They might lose their job if they don’t detect cybercrime in their organization
b) They might lose their professional credibility and license if cybercrime continues for
a long time in their organization and they do not detect it
c) They are responsible for designing, implementing, and monitoring the control
procedures for AISs
d) all of the above are equally important
Answer:
Due to data errors occurring from time to time in processing the Albert Company’s
payroll, the company’s management is considering the addition of a data validation
control procedure that is projected to reduce the risk of these data errors from 13% to
2%. The cost of the payroll reprocessing is estimated to be $11,000. If the data
validation control procedure is implemented, the cost of this procedure is expected to be
$700 per pay period (employees are paid biweekly). Based on the above data, which of
the following statements is true?
a) The data validation control procedure should be implemented because its net
estimated benefit is $1,210
b) The data validation control procedure should be implemented because its net
estimated benefit is $510
c) The data validation control procedure should not be implemented because the $700
expected cost per pay period exceeds the procedure’s expected benefit
d) The data validation control procedure should not be implemented because its net
estimated benefit is a negative $1,210, thereby causing the control procedure to fail in
terms of being cost effective
Answer:
This type of survey instrument best allows employees to answer in their own words:
a) Open-ended questionnaire
b) Closed-ended questionnaire
c) Multiple-choice questionnaire
d) Fill-in-the-blank questionnaire
Answer:
Which of the following is not true regarding user authentication?
a) One level of authentication is who you know
b) An information system may require more than one level of authentication for access
c) One level of authentication is what you know
d) An example of authentication would be use of a password
Answer:
In the REA framework, a database designer should create a ____ for each entity.
a) Record
b) Table
c) Secondary key
d) all of these
Answer:
Which of these is not an Internet search engine?
a) Google
b) Bing
c) Yahoo
d) MySpace
Answer:
What is the first step to be performed by most organizations in their accounting cycles?
a) Recording business transactions in a journal
b) Preparing a trial balance
c) Recording closing entries in a journal
d) Preparing transaction source documents
e) none of the above
Answer:
Under wWhich audit technique examines is the way transactions are processed
examined?
a) Exception reporting technique
b) Transaction tagging technique
c) Snapshot technique
d) Parallel simulation technique
Answer:
In each one of the following four questions, you are given a well-recognized procedure
of internal control. You are to identify the irregularity that will be discovered or
prevented by each procedure.
Both cash and credit customers are educated to expect a sales ticket. Tickets are serially
numbered. All numbers are accounted for daily.
a) Customers complain that their monthly bills contain items that have been paid
b) Some customers have the correct change for the merchandise purchased; they pay
and do not wait for a sales ticket
c) Customers complain that they are billed for goods they did not purchase
d) Customers complain that goods ordered are not received
e) Salesclerks destroy duplicate sales tickets for the amount of cash stolen
Answer:
The totality of computer systems in a firm is called its:
a) Applications portfolio
b) Systems burden
c) BPR collection
d) IT department
Answer:
Edit checks are very rarely used because they are not cost-effective controls.
Answer:
An advantage of using a LAN is the ability to distribute information among the
employees in the same building.
Answer:
No one really knows how much is lost each year as the result of cybercrime.
Answer:
The processing power of the CPU in a mainframe computer is greater than in a
minicomputer.
Answer:
A useful guideline for drawing decision trees is to begin on the right and draw branches
to the left.
Answer:
Public key encryption requires the use of a pair of public/private encryption keys.
Answer:
Because most accounting software is standardized and straightforward, most packages
can be purchased “off the shelf” from shopping mall sellers.
Answer:
An update query in Microsoft Access is an example of an action query that enables you
to increase the prices by ten percent for all those products starting with product code
“123.”
Answer:
You can draw documentation charts of various types using Microsoft Word or Excel.
Answer:
The technology commonly used to read turnaround documents is OCR.
Answer:
As used in this chapter, the acronym SAR stands for ‘suspicious accounting reports.”
Answer:
Processor speeds are very important to AIS applications because faster processors
automatically lead to greater throughput.
Answer:
The smallest unit of information in the data hierarchy is a data field.
Answer:
Block codes are commonly used in constructing charts of accounts.
Answer:
An important drawback of an ERP system is that a failure can be catastrophic.
Answer:
A limit check in a computer program is comparable to a decision that an individual
makes in a manual system to judge a transaction’s reasonableness.
Answer:
The conventional prefix for the name of a table is “tbl.”
Answer:
How is “integrated accounting software” integrated?
Answer: