The principal cause for more timely performance reports in the typical modern
organization is due to:
a) Better educated management
b) Adoption of progressive management philosophies which stress participative
management (e.g., MBO)
c) Information processing systems
d) Need for less information
Answer:
All of these are reasons why databases are important to AISs except:
a) AIS databases store valuable information
b) Many AISs are large and therefore potentially unwieldy
c) The databases of some organizations are very complex
d) The hard disk space used to store AIS databases is comparatively expensive
e) all of these are reasons why databases are important to AISs
Answer:
The foreign key in one database table will always be a _______ key in a linked table.
a) Secondary key
b) Domestic key
c) Primary key
d) all of these are always true
Answer:
Edit tests that catch data entry errors are examples of:
a) Data integrity controls
b) Corporate ethics
c) Concurrency controls
d) Privacy controls
Answer:
Within a database context, the relationship between “doctor” and “patient” would most
likely be:
a) oneOne-to-one
b) oneOne-to-many
c) manyMany-to-one
d) manyMany-to-many
Answer:
In an E-R model created using the REA framework, a customer would often be linked
to inventory with a relationship that is:
a) Direct between the customer and inventory
b) Indirect through a cash resource
c) Indirect through an employee agent
d) Indirect through a sale event
Answer:
Note to Instructor: The following questions are drawn from past AICPA
examinations.
In recent years many businesses have formed a common information source within their
business organization called a database. One of the advantages of building databases is
the simultaneous updating of files with common data elements. Another major
advantage of the database concept is that:
a) Database systems can be used in microcomputers as well as on large computers
b) Database systems are simple to install and maintain
c) Database systems are generally less expensive than separate file systems
d) More duplication of data occurs with a database system
e) Fewer skilled people are required to run a database system than another system
Answer:
Note to Instructor: The following questions are drawn from past AICPA
examinations.
In recent years many businesses have formed a common information source within their
business organization called a database. One of the advantages of building databases is
the simultaneous updating of files with common data elements. Another major
advantage of the database concept is that:
a) Database systems can be used in microcomputers as well as on large computers
b) Database systems are simple to install and maintain
c) Database systems are generally less expensive than separate file systems
d) More duplication of data occurs with a database system
e) Fewer skilled people are required to run a database system than another system
Answer:
Note to Instructor: The following questions are drawn from past AICPA
examinations.
Ander and Company has designed an electronic data processing system utilizing the
database systems concept. In this system, transactions are entered into the system only
once. In order to accomplish this Ander’s files:
a) Must utilize magnetic tape
b) Must be separated by function (e.g., marketing has a set of files, production has a set,
etc.)
c) Must be located in an integrated file located in online storage
d) Must be updated in a real-time environment
e) Must be handled in some other manner than described above
Answer:
Note to Instructor: The following questions are drawn from past AICPA
examinations.
An important data field found in a typical computer record of an inventory file that
would be vital to purchasing agents would be the inventory item’s:
a) Inventory number
b) Assembly code
c) Vendor code
d) Assembly pointer address
Answer:
The Oxford Corporation has the following eleven master files:
* Accounts payable * Raw materials inventory
* Accounts receivable * Sales summary
* Bill of materials * Vendor history
* Finished goods inventory * Work in process inventory
* Open production orders * Operations list (labor operations and
* Open purchase orders machine requirements for production)
Master files maintained as part of the sales order processing system are:
a) Accounts receivable, bill of materials, sales summary
b) Accounts payable, accounts receivable, finished goods inventory
c) Accounts receivable, sales summary, operations list
d) Accounts receivable, finished goods inventory, sales summary
e) Accounts receivable, sales summary, vendor history
Answer:
The Oxford Corporation has the following eleven master files:
* Accounts payable * Raw materials inventory
* Accounts receivable * Sales summary
* Bill of materials * Vendor history
* Finished goods inventory * Work in process inventory
* Open production orders * Operations list (labor operations and
* Open purchase orders machine requirements for production)
Master files that are maintained as part of the processing of purchase transactions are:
a) Accounts payable, bill of materials, finished goods inventory, open purchase orders
b) Accounts payable, open purchase orders, raw materials inventory, work in process
inventory
c) Accounts payable, bill of materials, open purchase orders, vendor history
d) Accounts payable, finished goods inventory, open purchase orders, vendor history
e) Accounts payable, open purchase orders, raw materials inventory, vendor history
Answer:
The Oxford Corporation has the following eleven master files:
* Accounts payable * Raw materials inventory
* Accounts receivable * Sales summary
* Bill of materials * Vendor history
* Finished goods inventory * Work in process inventory
* Open production orders * Operations list (labor operations and
* Open purchase orders machine requirements for production)
Master files used to plan and report on the resources required for the coming period are:
a) Bill of materials, open production orders, work in process inventory, operations list
b) Finished goods inventory, open production orders, open purchase orders, work in
process inventory
c) Finished goods inventory, open purchase orders, raw materials inventory, work in
process
d) Bill of materials, open production orders, vendor history, operations list
e) Accounts payable, bill of materials, open production orders, raw materials inventory
Answer:
Explain the difference between Primary Record Keys, Secondary Record Keys, and
Foreign Record Keys
Answer:
Explain the difference between REA and traditional accounting views of data collection
and storage.
Answer:
Imagine that you created a database for storing information about inventory for a small
retail store that you own, but assume that you had never learned about normalization.
As a result, the database you created included only one table that stored information
about sales, customers, and inventory items. Think about the normalization rules and
describe what types of problems your business will face when you attempt to change or
delete records from your database.
Answer:
To create a query that calculates the total amount for a sale, you would likely need to
include the following tables in your query:
a) Customers, Employees, and Cash Receipts
b) Customers, Employees, and Sales
c) Sales, Inventory, and Cash Receipts
d) Sales, Inventory, and the relationship table Sales/Inventory
Answer:
One way to create a subform is to:
a) Simply create a new table
b) Identify the subform when you use the Form Wizard
c) Utilize MySQL databases
d) Add a subform to a printed report
Answer:
Reports enable users to:
a) See a paper output of database information
b) Change information in the underlying database tables
c) Limit the distribution of the information
d) Tab from one data field to another at run time
Answer:
Controls that specifically encourage operating efficiency are often called preventive
controls.
Answer:
Answer:
Answer:
A report can combine the information from various tables in a database.
Answer:
For most businesses, cloud computing is an example of outsourcing.
Answer:
Answer:
Answer:
Which one of the following best describes the performance elements contained in most
balanced scorecards?
Financial Nonfinancial
Answer:
An advantage of E-wallets is that:
a) Users do not need to re-enter personal information each time they make an online
purchase
b) Most E-wallet information is maintained on vendor file servers
c) They ensure the completion of a purchase transaction over the Internet
d) none of the above are advantages of E-wallets
Answer:
The most important advantage of an integrated test facility is that it:
a) Allows auditors to evaluate transactions in an operational setting
b) Can test every exception transaction as opposed to test data which includes only a
limited set of such transactions
c) Works best at evaluating input controls
d) Has no disadvantages
Answer:
The letter “p” in the acronym http stands for:
a) Page
b) Provider
c) Protocol
d) Parity
Answer:
Which of these is an acronym for computer crime legislation?
a) ACL
b) BART
c) CFAA
d) DDoS
Answer:
All of the following are true concerning embedded audit modules except:
a) They provide for continuous auditing of application processing
b) The auditor does not have to be involved in the development of these programs
c) Once implemented, the system can capture information that is useful to the auditor
on an ongoing basis
d) With this approach, the application program incorporates subroutines for audit
purposes
Answer:
A major objective of professional service organizations is to:
a) Decrease billable hours
b) Increase billable hours
c) Increase time spent training employees
d) Bill customers as frequently as possible
Answer:
Much of the input and output related to business processes is now electronic. Which of
the following technologies is becoming increasingly popular to manage inventory?
a) EDI
b) RFID tags
c) Magnetic ink characters that can be quickly and easily scanned
d) Bluetooth and wireless-enabled laptop computers
Answer:
A responsibility that should be assigned to a specific employee and not shared jointly is
that of:
a) Access to the company’s safe deposit box
b) Placing orders and maintaining relationships with a prime supplier
c) Attempting to collect a particular delinquent account
d) Custodianship of the petty cash fund
Answer:
The acronym SDLC stands for
a) Systems design and logic for computers
b) Study, dedication, life, and conviction
c) Systems development life cycle
d) Secondary development and allocation
Answer:
All of the following are associated with data encryption except:
a) Plaintext
b) Cyphertext
c) DES
d) URL
Answer:
Numbers to the right of equal signs are in “weeks.”
This diagram is an example of a:
a) PERT chart
b) Gantt chart
c) System flowchart
d) Waterfall model
Answer:
A waitress brings cold food to a customer, who complains. Which of these is most
likely to be the cause of the problem and not a symptom of this problem?
a) The angry customer
b) An irritable waitress
c) The cold food itself
d) The inability of the kitchen staff to keep up with many orders at once
Answer:
Information technology governance is the process of using information technology
resources:
a) Iin governmental agencies
b) Tto audit accounting systems
c) Tto achieve organizational objectives
d) Tto hire the board of directors
Answer:
The purpose of a company firewall is to:
a) Guard against spoofing
b) Assist the IETF
c) Deny computer hackers access to sensitive data
d) all of the above
Answer:
One advantage of XBRL tags is that:
a) They always contain links to other web pages
b) Optional entries allow users to specify units of currency, such as Euros
c) They are now fixed standards
d) They cannot be used by hackers
Answer:
The greatest drawback of an integrated test facility is that:
a) It requires the construction of a high volume of test data
b) It introduces artificial transactions into the transaction stream
c) It produces overkill in the audit function
d) It is not broad enough to cover the entire spectrum of activities involved in the AIS
Answer:
The accounting subsystem must continually interact with the:
a) Personnel subsystem
b) Information processing subsystem
c) Production subsystem
d) Only information processing and production subsystems
e) all of the above
Answer:
Group codes are very flexible in identifying accounting data.
Answer:
Which of these is a certification that accountants can earn that focuses on proficiency in
information technology?
a) CPA
b) CMA
c) CISA
d) CITP
Answer:
The letters “E-R” in the term E-R diagram refer to:
a) Entity relationship
b) Economic relationship
c) Enterprise resource
d) none of these
Answer:
The term cloud computing refers to:
a) Fuzzy computing logic
b) Hidden computer data, which are obscured in some way
c) Purchasing computing services on the Internet
d) Undetected errors in data processing
Answer:
With the use of this, a company hires an outside organization to handle all or part of its
data processing services.
a) Turnkey system
b) Gantt chart
c) Slack time
d) Outsourcing
Answer:
A 5-inch plastic disk used to store information up to 17 gigabytes describes which of
the following?
a) CD-ROM
b) Flash memory
c) Zip disk
d) DVD disk
Answer:
Which of the following flowcharting symbols is correctly identified?
a) Process
b) Document
c) Decision
d) Display
Answer:
The term ‘smishing” means:
a) Conducting identify theft by using text messages on cell phones
b) Attempting to appear unnoticeable for an illegal act
c) Stealing small amounts of monies from several computer accounts
d) Masquerading as a corporate manager in order to obtain useful information
Answer:
Which one of the following functions performed in an organization is a violation of
internal control?
a) A mail clerk opening the mail compares the check received with the source document
accompanying the payment, noting the amount paid, then forwards the checks daily
(along with a listing of the cash receipts) to the Cashier for deposit
b) A mail clerk opening the mail compares the check received with the source document
accompanying the payment, noting the amount paid, then forwards the source
documents that accompany the payments (along with a listing of the cash receipts) to
Accounts Receivable, on a daily basis, for posting to the subsidiary ledger
c) At the end of the week the Cashier prepares a deposit slip for all of the cash receipts
received during the week
d) The General Ledger clerk compares the summary journal entry, received from the
Cashier for cash receipts applicable to outstanding accounts, with the batch total for
posting to the Subsidiary Ledger by the Accounts Receivable clerk
Answer:
A company is considering the implementation of an activity-based costing and
management program. The company:
a) Should focus on manufacturing activities and avoid implementation with
service-type functions
b) Would probably find a lack of software in the marketplace to assist with the related
recordkeeping
c) Would normally gain added insights into causes of cost
d) Would likely use fewer cost pools than it did under more traditional accounting
methods
Answer:
Which of the following fundamental concepts is stressed by the COSO report?
a) Internal control is not affected by people
b) Internal control is geared to the achievement of a company’s objectives in the
financial reporting area only
c) Internal control is designed to detect all errors and irregularities that occur within a
company’s system
d) Internal control is a process
Answer:
Which of the following is a benefit to corporate executives when a process is
outsourced?
a) Day-to-day process management responsibilities are deleted
b) More time to explore new revenue generation activities
c) More time to focus on recruiting and training personnel
d) Changing customer demands are no longer a problem
Answer:
A decision tree comes closest to which of the following alternate documentation aides?
a) Document flowchart
b) System flowchart
c) Context diagram
d) Decision table
Answer:
A data field could pass all editing tests and still be invalid. Additional controls to cope
with this would include:
a) Check digit
b) Unfound record test
c) Valid code test
d) both a and b could validate after editing tests
Answer:
Microsoft uses this symbol to represent the “many” side of a “one-to-many”
relationship:
a) &
b) N
c) √
d) ∞
Answer:
Which of these is a drawback of cloud computing?
a) Inability to handle periods of peak processing loads
b) Users must still invest heavily in computer resources of their own
c) Requires users to pay for services, whether they use them or not
d) May require users to trust service provider with sensitive data
e) none of these are drawbacks of cloud computing
Answer:
It is better to use connector symbols in flowcharts than to cross lines.
Answer:
All controls available for the computerized accounting information system of a
company should be implemented regardless of cost due to the high rate of computer
crime.
Answer:
Worm programs are viruses that insert themselves into computer systems and disrupt
operations or files.
Answer:
If creating a data mart is not cost effective, management should consider creating a data
warehouse, which typically uses less money and time to design.
Answer:
If you wish to create a select query with alternate criteria using Microsoft Access (e.g.,
you wish to see a list of all customers living in zip codes 12345 or 12366), you should
specify them on separate Criteria lines of the query.
Answer:
Validation rules are useful to prevent data entry errors in databases.
Answer:
Employee behavioral problems are rarely important in systems analysis and design
work because most systems are computer-based, not human-based.
Answer:
The mechanism for transferring data between components of the CPU is called a
TRAIN (Transfer Random Accessed Instructions Now).
Answer:
An advantage of a proxy server is the ability to store commonly-requested web pages in
memory, thereby enabling it to respond quickly to internal user requests for them.
Answer:
The purchasing process begins with a request for goods or services and ends with
payment to the vendor.
Answer:
Use of electronic procurement systems typically raises purchasing costs.
Answer:
A characteristic of mashups when used with ERPs is their ability to combine the
internal data of an organization with external data such as interest rates.
Answer:
A DBMS is a type of software.
Answer:
A data flow diagram represents a physical, rather than logical, view of an accounting
information system.
Answer:
What is end user documentation? Who creates it? Why is it important?
Answer:
One important personal category of cloud computing for accountants is educational
services.
Answer:
Using Microsoft Access, you can delete a record from the “many” side of a one-to-many
relationship, even if referential integrity is enforced.
Answer: