A “flying-start site” for disaster recovery purposes is a location that includes:
a) A computer system configured similarly to the system normally used
b) A computer system configured similarly to the system normally used plus up-to-date
backup data and software
c) Power and environmentally controlled space to install equipment on short notice
d) none of the above
Answer:
All of these are advantages of prototyping except:
a) Involves end users and therefore obtains a better definition of user needs
b) Involves top management and therefore better achieves strategic goals
c) Requires a comparatively short period of time
d) all of these are typically advantages of prototyping
Answer:
According to the chapter, which of these statements is most accurate?
a) Today, most computers are safe from computer abuse
b) Today, very few computers are completely safe from computer abuse
c) Today, “hacking” is no longer possible
d) Today, all of these statements are accurate
Answer:
One problem with accounting packages for small businesses is that:
a) There are so few of them
b) The absence of cloud computing capabilities in most of them
c) Their inability to interface with internet shopping cart applications
d) The cost of a package is just the beginning of “total costs”
Answer:
In preparing payroll checks, the computer omitted 24 of a total of 2,408 checks which
should have been processed. The error was not detected until the supervisor distributed
the checks. The best control procedure would be:
a) A parity check
b) A module N check
c) Control totals
d) Desk checking
Answer:
To forecast cash receipts, information must be collected from:
a) The purchasing process
b) Payroll processing
c) Inventory control systems
d) The sales process
Answer:
All of the following are advantages of cloud computing except:
a) The client only pays for resources that it actually uses
b) The client gains additional control over its data
c) The provider, not the client, handles changes in processing volume
d) all of these are advantages of cloud computing
Answer:
Which of the following is not a primary objective of coding systems today?
a) To compress data
b) To uniquely identify objects
c) To convey special meanings that are not apparent to the public-at-large
d) To use numbers instead of alphabetic characters in order to save on computer data
storage costs
Answer:
This term describes the technique of stealing small amounts of money from a large
number of accounts over time.
a) Salami technique
b) Buffet system
c) Baloney method
d) Dialing for dollars
Answer:
Which of the following is least likely to be a member of a study team?
a) CEO of a company
b) Internal auditor or accountant
c) IT specialist
d) Middle-level manager who uses the system
Answer:
An example of a transitive dependency in a database is:
a) Student –> grade
b) Telephone area code –> phone number
c) Airline –> flight number
d) Parking Code –> parking fine amount
Answer:
For performance reports to achieve their control objectives, they must:
a) Include relevant information so that necessary action may be taken to accomplish
organizational goals
b) Be timely so that minimal time elapses between an activity’s occurrence and the
feedback reflecting the activity’s efficient or inefficient performance
c) Provide subsystem managers with suggestions as to how they can operate their
subsystems more efficiently
d) all of the above
e) a and b only
Answer:
MICR is most closely associated with:
a) The airline industry
b) The data communications industry
c) Manufacturing
d) The banking industry
Answer:
Jonkers, Inc., a large retail chain, is installing a computerized accounts receivable
system employing a batch mode of processing with sequential files. The program which
will process receipts on account should include an input edit routine to assure:
a) Proper sequencing of data
b) Header and trailer label accuracy
c) The amount received is recorded correctly
d) The existence of control totals
e) Proper operator intervention
Answer:
For the following terms find the correct definition below and place the letter of that
response in the blank space next to the term. Each definition is used only once there are
two terms that are not used.
1) ______ modular conversion
2) ______ direct conversion
3) ______ legal feasibility
4) ______ scope creep
5) ______ applications portfolio
6) ______ feasibility evaluation
7) ______ critical path
8) ______ operational feasibility
9) ______ prototype
10) ______ slack time
11) ______ technical feasibility
12) ______ change management
13) ______ parallel conversion
14) ______ Gantt chart
15) ______ benchmark test
16) ______ economic feasibility
17) ______ PERT
18) ______ preliminary investigation
19) ______ schedule feasibility
20) ______ turnkey system
Definitions:
A. Computer experts typically work on this phase of the feasibility evaluation because a
thorough understanding of IT is essential
B. The design team attempts to assess whether the anticipated benefits of the system
exceed its projected costs
C. Systems work where the design team determines the practicality of alternative
proposals
D. This phase of a systems study requires the design team to estimate how long it will
take a new or revised system to become operational
E. Software that interfaces with suppliers and customers
F. Software from independent vendors that comes bundled (i.e., combined) with
hardware
G. Includes an enterprise system, any specialized information systems, or other separate
systems for functional areas such as accounting, marketing, and human resources
H. The longest-path to project completion and also the shortest completion time of the
entire project
I. Conversion to a new system where the new system is implemented in stages
J. A scaled-down, experimental version of a nonexistent information system that a
design team can develop cheaply and quickly for user-evaluation purposes
K. A new or revised system should comply with all applicable federal and state statutes
about financial reporting requirements, as well as the company’s contractual obligations
L. For this phase of the system study, the design team must analyze the capabilities of
current employees to perform the specific functions required by each proposed system
and determine to what extent employees will require specialized training
M. A project leader first prepares a list of systems implementation activities, identifies
the prerequisite activities that must be completed before others can start, and estimates
the amount of time required to complete each activity
N. The most difficult issue in implementing a new system
O. The phrase used to describe delays in meeting the schedule for delivering a systems
project
P. Conversion to a new system where the organization operates both the new and the old
system for some period of time
Q. Conversion to a new system where the organization immediately discontinues use of
the old system and uses the new system
R. The amount of delay time that can occur in each non-critical activity and still not
delay the project
S. Useful for both scheduling and tracking the activities of systems implementation
projects because actual progress can be contrasted with the planned progress
T. One way to examine the operating efficiency of a particular system
U. One important part of this work is to separate symptoms from causes
V. One of the four stages in the SDLC
Answer:
The 1992 COSO report identifies five components for an effective internal control
system. These are:
a) Control environment, risk assessment, control activities, information and
communication, and monitoring
b) Control environment, control procedures, control activities, communication, and
monitoring
c) Control procedures, control activities, information, communication, and monitoring
d) Control procedures, risk assessment, control activities, information and
communication, and monitoring
Answer:
Documentation includes:
a) All flowcharts, narratives, and other written communications associated with the
information system
b) All written communications associated with an accounting information system
except flowcharts and data flow diagrams
c) All flowcharts, narratives, and other written communications associated with an
accounting information system, except for program flowcharts or decision tables
d) Flowcharts and data flow diagrams only
Answer:
According to the chapter, which of these comes closest in meaning to the term ‘systems
approach?”
a) Narrow point of view
b) Broad point of view
c) Focus on achieving those goals important to computerized systems
d) Focus first and foremost on computerization
Answer:
The TRW Case is notable because:
a) The amount of dollars involved was so large
b) No one got caught
c) The real victims were TRW customers
d) A routine audit was responsible for detecting the fraud
Answer:
It would be appropriate for the payroll accounting department to be responsible for
which of the following functions?
a) Approval of employee time records
b) Maintenance of records of employment, discharges, and pay increases
c) Preparation of periodic governmental reports as to employees’ earnings and
withholding taxes
d) Distribution of paychecks to employees
Answer:
Third party assurance:
a) Provides online purchasers with some assurance regarding the security and privacy
of a web site
b) Is unlikely to concern auditors
c) Is a service offered only by the American Institute of Certified Public Accountants
d) Is a service offered only by the Better Business Bureau
Answer:
A company’s disaster recovery site that includes a computer system configured similarly
to the system used regularly by the company for data processing purposes is called:
a) A cold site
b) A recovery site
c) A disaster site
d) A hot site
Answer:
If a manager suffers “information overload”:
a) He or she must press the reset button on his or her computer
b) It means that this person needs a larger hard drive
c) The “information” is really data
d) He or she must forget some facts in order to remember others
Answer:
Which of these is not a secondary storage medium?
a) Hard disk
b) Flash drive
c) Random access memory (RAM)
d) CD-ROM
Answer:
This is an example of an RFID system with a very limited range (less than 8 inches):
a) LAN system
b) NFC system
c) WAN system
d) MICR system
Answer:
Which one of the following would be mosteffective in deterring the commission of
fraud?
a) Policies of strong internal control, segregation of duties, and requiring employees to
take vacations
b) Policies of strong internal control and punishments for unethical behavior
c) Employee training, segregation of duties, and punishment for unethical behavior
d) Hiring ethical employees, employee training, and segregation of duties
Answer:
Which section of SOX requires CEOs and CFOs to ‘sign off” on their company’s
financial statements?
a) Section 404
b) Section 201
c) Section 103
d) Section 302
Answer:
Which of the following is not a component of the balanced scorecard?
a) Customer knowledge
b) Internal business processes
c) Transaction processing
d) Financial performance
Answer:
The acronym ERP stands for:
a) Electronic relative payment
b) Electronic relational planning
c) Enterprise resource planning
d) Planning for enterprise resources
Answer:
Which of these is not an example of application software?
a) Operating systems
b) Spreadsheet packages
c) Accounting packages
d) Database management systems
e) all of these are examples of application software
Answer:
Some firms and governmental organizations use ethical hackers to help find any
vulnerabilities that could be exploited by a malicious hacker. Which of the following is
also used to refer to ethical hacking?
a) Denial of service
b) Intrusion service
c) Penetration testing
d) Executable testing
Answer:
Companies such as Backblaze, DropBox, and Mozy are examples of companies that
perform this type of cloud service:
a) Backup services
b) Payroll processing
c) Janitorial services
d) Tax preparation services
e) Web hosting
Answer:
The audit trail is easier to follow in an online computerized system as compared to a
batch system.
Answer:
No record of transactions is made in an online computerized system.
Answer:
Extended enterprise systems bring customers, suppliers, and other business partners
together.
Answer:
Most computer criminals are individuals of questionable background, little education,
and no morals.
Answer:
The acronym ERP stands for “enterprise resource management.”
Answer:
An e-business portal is a gateway to outside web sites and services.
Answer:
The “application-logic” component of a client/server system refers to where the
processing logic of the system takes place.
Answer:
An auditing around the computer approach pays little or no attention to the control
procedures within an IT environment.
Answer:
An example of a source document is an employee payroll check.
Answer:
XBRL is a type of XML.
Answer:
DDL is an acronym for “data definition language.”
Answer:
One method of studying a current AIS is to observe the system in operation.
Answer:
An example of a transitive relationship in a medical application is the one between
“medical procedure code” and “cost of treatment.”
Answer:
When organizations discover a cybercrime, the cost of auditing and investigating the
loss often exceeds the actual monetary loss.
Answer:
CPU is an acronym for “computerized peripheral unit.”
Answer:
One of the “fallback” procedures of a computing center is the
“grandfather-parent-child” file arrangement.
Answer:
If you change an underlying value used in the calculated field of a report, the value of
this calculated field in any subsequent copy of the report will also change.
Answer:
A report must contain all the information found in the records of the underlying table on
which it is based.
Answer:
One advantage of an ERP’s centralized database is that data are consistent for one user
to another, even if they work in different parts of the country.
Answer:
An example of a database cardinality is “one-to-many.”
Answer: