A general rule that should be followed when developing control procedures for a
company’s assets is:
a) The cost of the control procedure will likely exceed the procedure’s benefit
b) The procedure should not be designed and implemented unless an asset’s cost
exceeds $5,000
c) The more liquid an asset is, the greater the risk of its misappropriation
d) The procedure should not be designed and implemented in situations where a risk
assessment has been previously performed
Answer:
Data warehouses are only used for analyzing current accounting data.
Answer:
End-user computing is common in firms because:
a) It is free
b) It is well-documented
c) It allows employees to rapidly develop applications
d) It prevents employees from altering systems
Answer:
In conducting a feasibility study, operational feasibility refers to whether:
a) A proposed system is attainable given the existing technology
b) A manager can coordinate and control the activities of the systems department
c) An adequate computer site exists for the proposed system
d) The proposed system will produce economic benefits that exceed its costs
e) The system can be used effectively within the operating environment of an
organization
Answer:
Which of these best describes the current state of XBRL?
a) It now lacks standards, but the hope is that we will get some soon
b) The language is completely standardized
c) The language is dynamic and standards are still being developed
d) The language now awaits official sanction by the United Nations before being
released for use
Answer:
An ideal control is:
a) A control procedure that reduces to practically zero the risk of an error or an
irregularity taking place and not being detected
b) A control procedure that is anticipated to have the lowest possible cost in relation to
its benefits
c) A control procedure that should always be implemented into a company’s system due
to the efficiency and effectiveness that will result from its implementation
d) A control procedure that is always cost effective
Answer:
Which of these is likely to be the best source for acquiring accounting software for a
medium-sized company?
a) Shopping mall store
b) Value-added reseller (VAR)
c) ERP consultant
d) BPR consultant
Answer:
Which of these is one of the five interacting components of an AIS?
a) Fuzzy logic
b) Testing
c) Certification
d) Procedures
e) Internet
Answer:
The user’s view of a client/server system best describes which component of a
client/server system?
a) Application-logic component
b) Data-management component
c) Presentation component
d) Data-transmission component
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
four terms that are not used.
1) ______ business process
2) ______ BPM software
3) ______ BPO
4) ______ business-without-boundaries
5) ______ CRM software
6) ______ off-shoring
7) ______ RFID tags
8) ______ sales process
9) ______ mnemonic codes
10) ______ exception report
11) ______ group code
Definitions:
A. Organizational structure for the general ledger
B. Codesthathelp the user remember what they represent
C. A sequential set of numbers used to identify customer accounts, employee payroll
checks, customer sales invoices, and so forth
D. A list of conditions for example, a purchase order has an authorization signature but
contains some inaccurate or missing information
E. A collection of activities and work flows in an organization that creates value
F. Combining two or more codes to create a new code
G. Maintaining customer records is an important function
H. Softwareto gather, maintain, and use these data to provide better customer service
and customer loyalty
I. Begins with a request (or an order) for goods or services
J. List of differences between quantities or amounts on the purchase order, the receiving
report, and the purchase invoice
K. A new technology that is used in the sales and the purchasing processes
L. This business model is a result of networked enterprises and globalization
M. When companies have production or work completed in countries like India, China,
Canada, Mexico, or Malaysia
N. When companies contract with other companies to do certain tasks, such as human
resources, finance and accounting, customer services, training, and IT
O. Software that collects corporate knowledge, data, and business rules to improve core
processes
Answer:
An apparent error in input data describing an inventory item received was referred back
to the originating department for correction. A week later the department complained
that the inventory in question was incorrect. Data processing could not easily determine
whether or not the item had been processed by the computer. The best control procedure
would be:
a) Input edit checks
b) Missing data validity check
c) Transmittal control
d) An error log
Answer:
Which of these is not generally a reason to outsource:
a) Retain control over data
b) Attractive business solution
c) Lower data processing costs
d) Avoid seasonal fluctuations
Answer:
Which of the following symbols represents the standard system flowcharting symbol
for a computer-generated document?
Answer:
A trend in low- and mid-level accounting software is:
a) Most sellers now come from China
b) Decreasing prices for packages
c) Consolidation of vendors
d) The availability of fewer product lines, per vendor
e) Their disappearance, because ERP systems are replacing them
Answer:
Extended ERP systems are ones that:
a) Can process higher volumes of transactions
b) Customers can access and use as though they were employees
c) Can perform such front-office tasks as working with customers
d) Were due for retirement, but whose life has been extended
Answer:
The P in the acronym KPI stands for:
a) Processing
b) Performance
c) Planning
d) Personnel
e) none of these
Answer:
When an individual prepares a document flowchart, the names of the various
organizational departments involved in the accounting information system should be
listed:
a) Along the right-hand margin of the flowchart
b) Along the left-hand margin of the flowchart
c) In the title of the flowchart
d) In the column headings of the flowchart
Answer:
Which of the following is an objective of a systems survey?
a) To understand management information needs
b) To understand the human element and gain cooperation from people involved with
the system
c) To enlist management participation and cooperation
d) all of the above are objectives of a systems survey
Answer:
When designing a computer-based information system, the initial step in the systems
design process is to identify:
a) The required outputs
b) The source documents that serve as the basis for input
c) The processing required
d) The computers that will be used
e) The data required for input
Answer:
Numbers to the right of equal signs are in “weeks.”
In this chart, the circles represent:
a) Activities
b) Milestones
c) Employees
d) Data values
e) References to other charts
Answer:
Third party billing refers to:
a) Billing to clients by professional service organizations
b) Billing to insurance companies by health care organizations
c) The fact that the customer often does not pay directly for goods purchased in the
health care industry
d) both b and c are correct
Answer:
The database of an ERP system is best described as:
a) Limited
b) Bolt-on
c) Centralized
d) Distributed
Answer:
Which of the following services is not prevented bydoes SOX not prevent auditors from
for an auditor to performing for their own clients?
a) Internal auditing outsourcing services
b) Expert services related to the audit
c) Actuarial services
d) Implementation of a financial information system
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
three terms that are not used.
1) _____ shoulder surfing
2) _____ ACL
3) _____ CSI
4) _____ data diddling
5) _____ DDoScookie
6) _____ dumpster diving
7) _____ EnCcase
8) _____ CFAA
9) _____ salami technique
10) _____ Trojan horse
11) _____ VoIPfirewall
12) _____ worm
Definitions:
A. Malicious software similar to a computer virus
B. An acronym for security institute that studies computer crime activities
C. The act of altering data that are entered into, or used by, a computer
D. A software program specifically designed for computer forensic investigations
E. Federal legislation aimed specifically at computer crime
F. A type of fraud in which the perpetrator steals small amounts from many different
accounts
G. A technique for luring individuals to reveal their personal identification information
H. A technique for transmitting telephone conversations over the Internetsoftware
program or hardware device designed to prevent unauthorized data communications
I. A malicious software program embedded in another innocent-looking one
J. A type of bait used to lure computer users into sending money overseas
K. A hacking attack that uses zombie computersA small text file that stores information
about your browsing habits and interests
L. Stealing personal information from trash cans
M. Auditing software often used to test computer data
N. Observing users as they enter passwords or other personal information to a computer
O. A strong computer password named after a Greek statue
Answer:
Which of the following is normally more important for a not-for-profit organization
compared to a profit-oriented organization?
a) Long-range goals
b) Earning an adequate level of income each accounting period
c) Long-range budgetary planning and controlling system
d) Short-range budgetary planning and controlling system
Answer:
Which of the following captures the same idea as the term “GIGO?”
a) Computers cannot turn straw into gold
b) Too much information is the same as garbage
c) Great investments lead to great returns
d) Too many cooks spoil the broth
Answer:
The 80-20 rule, when applied to accounting software states that:
a) On average, a business can satisfy about 80 percent of its accounting needs with
packaged software
b) On average, a business can satisfy about 20 percent of its accounting needs with
packages software
c) On average, about 80 percent of employees hate ERP systems
d) On average, about 80 percent of customers hate ERP systems
Answer:
The maintenance of backup copies of a company’s important transaction and master
files is an example of a:
a) Preventive control procedure
b) Detective control procedure
c) Corrective control procedure
d) Management-by-exception control procedure
Answer:
Much of what has been termed cybercrime has merely involved the computer but
probably would be more accurately classified as other types of crimes. A notable
exception to this involves:
a) Raiding dormant bank accounts
b) Inventory misappropriation
c) Embezzlement
d) Theft of computer time
Answer:
Which of the following is not a concern of the financing process?
a) Effective cash management
b) Optimizing an organization’s cost of capital
c) Minimizing an organization’s borrowings
d) Projecting cash flows
Answer:
When associated with CD-ROMs, the letters “rw” mean:
a) Raw
b) Rewind
c) Rewriteable
d) Regular width
Answer:
Which of the following is true regarding ERP costs?
a) Enterprise systems tend to be less costly than integrated accounting software
b) Enterprise systems are always less costly than best of breed software solutions
c) Costs associated with reassigned employees have nothing to do with the true cost of
an enterprise system
d) There may be many costs that continue after systems implementation
Answer:
Clicking the ▌◄ button on the navigation bar of a form causes Access to display:
a) The last record
b) The record with the lowest primary key
c) The record with the highest primary key
d) The first record
Answer:
The COSO report failed to define internal control.
Answer:
Digital signatures can never be as secure as written signatures.
Answer:
A Value-Added Reseller can help install and customize software, along with selling it.
Answer:
Existing paper-based forms can help guide the creation of electronic database forms.
Answer:
An example of a data type for a data field in the record of an Access table is “Number.”
Answer:
The purpose of CPA Trust Services is to provide assurance that a company engaged in
electronic commerce can provide the goods or services it promises.
Answer:
The tasks involved in ‘systems maintenance” are normally performed by external
vendors, and rarely by a company’s internal information systems department.
Answer:
When developing a new AIS, it is important for designers to delay developing controls
for it so that they can retrofit controls after the new system is best understood.
Answer:
Describe some consequences to a company that makes a poor decision when selecting
an ERP system.
Answer:
The term “Patriot” is an acronym for “providing appropriate tools required to intercept
and obstruct terrorism.”
Answer:
Bluetooth is actually a wireless data communications standard that allows unlike
communications devices to communicate with one another.
Answer:
Automated accounting information systems are a particularly important potential target
of cybercrime.
Answer:
The inability to delete a parent record if it has subordinate or “child records” in a
relational database is enforced by using “Referential Integrity” in Microsoft Access.
Answer:
SAS No. 99 Consideration of Fraud in a Financial Statement Audit guides auditors in
being more proactive in detecting fraud than did the predecessor standard, SAS No. 82.
Answer:
IDEA uses XBRL-coded data of corporate financial statements.
Answer: