In which entity would an item’s actual cost information most likely be maintained?
A) Inventory entity.
B) Order_Inventory entity.
C) Inventory-Order_Inventory entity.
D) Cost entity.
Firms should consider preparing a software prototype if the application
A) will be used for a critical function like inventory management.
B) automates a structured task.
C) can be produced using outside developers.
D) inputs and outputs are not clearly defined.
________ involves copying only the data items that have changed since the last partial
backup.
A) Archive
B) Cloud computing
C) Differential backup
D) Incremental backup
In the time-based model of information security, R represents
A) the time it takes to respond to and stop the attack.
B) the time it takes for the organization to detect that an attack is in progress.
C) the time it takes an attacker to break through the various controls that protect the
organization’s information assets.
D) the time it takes to assess threats and select risk response.
Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers. Helge
purchases inventory from distributors at trade conventions. Each time Helge makes a
purchase, the company records the suppliers name, address, date, specific items
purchased, price paid for each, and the total amount spent. Helge later researches the
inventory items to set the customer price. The company assigns an inventory number to
each item purchased and records the customer price for each item. Helge buys price
tags and display supplies from Alwin Incorporated, a company that sells them at all
trade conventions. All inventory and supplies purchases are immediately paid for with
cash or with checks from a bank account in Helge’s name. All cash received from sales
are also deposited to the same bank account. Several times a year Helge rents display
space at dealer conventions. A deposit is always required, and the entire fee is due the
day the convention starts. Helge records the deposit and final payment, along with the
convention’s name and address, in the same worksheet on which purchases of inventory
and supplies are recorded.
Which of the following would be an attribute in the table for Display Space Rental?
A) Convention name.
B) Deposit paid.
C) Balance paid.
D) Convention address.
Identify the statement below that is false with regards to effective coding practices.
A) Codes should allow for growth.
B) Codes should be consistent with intended use.
C) Codes should be customized for each division of an organization.
D) Codes should be as simple as possible.
The chart of accounts of a fast-food restaurant would probably include
A) a list of vendors.
B) a list of financial statement accounts.
C) a list of customers.
D) a list of employees.
Acting under false pretenses to gain confidential information is called
A) superzapping.
B) tabnapping.
C) pretexting.
D) piggybacking.
A store policy that allows retail clerks to process sales returns for $1,000 or less, with a
receipt dated within the past 30 days, is an example of
A) general authorization.
B) specific authorization.
C) special authorization.
D) generic authorization.
Who is responsible for maintaining existing computer programs?
A) Management.
B) System programmers.
C) Systems analysts.
D) Accountants.
Which of the following is not true regarding virtual private networks (VPN)?
A) VPNs provide the functionality of a privately owned network using the Internet.
B) Using VPN software to encrypt information while it is in transit over the Internet in
effect creates private communication channels, often referred to as tunnels, which are
accessible only to those parties possessing the appropriate encryption and decryption
keys.
C) It is more expensive to reconfigure VPNs to include new sites than it is to add or
remove the corresponding physical connections in a privately owned network.
D) The cost of the VPN software is much less than the cost of leasing or buying the
infrastructure (telephone lines, satellite links, communications equipment, etc.) needed
to create a privately owned secure communications network.
Firms should consider preparing a software prototype if the software
A) will be used for a critical function like accounts receivable.
B) automates an unstructured or semi-structured task.
C) can be produced using expertise available in-house.
D) is available as a canned package.
________ are one example of a cloud computing solution.
A) Application service providers
B) Turnkey vendors
C) SDLC implementations
D) Canned software providers
The organization chart for Renata Corporation includes a controller and an information
processing manager, both of whom report to the vice president of finance. Which of the
following would be a control weakness?
A) Assigning the programming and operating of the computer system to an independent
control group which reports to the controller
B) Providing for maintenance of input data controls by an independent control group
which reports to the controller
C) Periodically rotating assignment of application processing among machine
operators, who all report to the information processing manager
D) Providing for review and distribution of system-generated reports by an independent
control group which reports to the controller
The problem of changes being incorrectly recorded in a database is known as
A) an update anomaly.
B) an insert anomaly.
C) a delete anomaly.
D) a memory anomaly.
For each of the following items, discuss which of the four data gathering methods
would be most appropriate and why.
a. Eliciting 300 employees’ opinions on a new incentive program to replace the current
bonus program.
b. Identifying how the credit approval process for new customers is supposed to be
conducted and by whom.
Which of the following diagrams represents the cardinality pairs in a situation where
customer orders are individually filled, but not all the items on a customer order are
always available?
A)
B)
C)
D)
Refer to the diagram below, where the numbers next to the arrows refer to the number
of days required for completion of the corresponding activity. What is the critical path?
A) A-B-D-F
B) A-C-E-F
C) A-B-D-E-F
D) A-C-B-D-F
E) A-C-B-D-E-F
Nancy Kempf has been hired by Andersen Manufacturing as a staff accountant in the
internal audit department. She has been asked to thoroughly document the existing
accounting information system in preparation for making recommendations for
improvements to internal controls. She decides to begin with a description of the
information stored in paper records, their sources, and their destinations. The
documentation tool that he should employ for this purpose is a
A) data flow diagram.
B) document flowchart.
C) system flowchart.
D) program flowchart.
Use the chart below to answer the following questions regarding flow chart symbols.
Which symbol would be used in a flowchart to represent a file of paper documents?
A) #7
B) #8
C) #9
D) #15
Form design is one example of a(n)
A) output control.
B) processing control.
C) input control.
D) data entry control.
In a relational database designed according to the REA model, where is information
about an organization’s liabilities generally stored?
A) Resource entities.
B) Agent entities.
C) Event entities.
D) All of the above.
Identify the item below that would be classified as a resource by the REA data model.
A) An IOU from a customer.
B) The customer.
C) A customer sale.
D) A loan from a vendor.
Which of the following is not a requirement of effective passwords?
A) Passwords should be changed at regular intervals.
B) Passwords should be no more than 8 characters in length.
C) Passwords should contain a mixture of upper and lowercase letters, numbers and
characters.
D) Passwords should not be words found in dictionaries.
________ includes carefully monitoring system performance and user satisfaction to
determine the
need for making system enhancements and modifications.
A) Operation and maintenance
B) Conceptual design
C) Physical design
D) Implementation and conversion
________ identifies costs with the corporation’s strategy for production of goods and
services.
A) Activity-based costing
B) Job-order costing
C) Process costing
D) Manufacturing costing
Identify the company below that CAATS would likely provide the most value.
A) A local car dealership.
B) A local floral shop.
C) A large grocery store that uses an ERP system.
D) A medium-sized restaurant chain with restaurants in many cities.
Identify the business activity below that cannot be modeled using an REA diagram.
A) Purchase requisitions.
B) Rental transactions.
C) Intangible assets.
D) All of the above can be modeled by an REA diagram.
Asymmetric key encryption combined with the information provided by a certificate
authority allows unique identification of
A) the user of encrypted data.
B) the provider of encrypted data.
C) both the user and the provider of encrypted data.
D) either the user or the provider of encrypted data.
The correct label for Shape 2 in the flowchart below is
A) 1
B) Purchase Requisition 1
C) Receiving Report 1
D) 2
Describe the importance of the master plan in systems development.
What is a RFP and how can management use it to improve its production operations?
Explain the process and key decisions involved in receiving goods and services,
identify the threats to those activities, and describe the controls that can mitigate those
threats.
Describe what is an event using the COSO definition and provide an example.
Describe the steps that should be taken as a final accuracy check for designing a
well-structured relational database.
Describe the five commonly used concurrent audit techniques.
Discuss how different types of encryption systems work, and explain how digital
signatures provide the means for creating legally-enforceable contracts.
Describe the function of an imprest fund.
What is activity-based costing (ABC)? How does it compare with the traditional costing
methods? What are the benefits of activity-based costing?
Discuss the components of a supply chain.
Describe a major advantage of database systems over file-oriented transaction
processing systems.
Compare the advantages and disadvantage of symmetric and asymmetric encryption.
Seacrest Bedding is changing from a file-oriented system to a relational database
system. Identify and design at least three tables that would be needed to capture data for
a sales transaction. Each table should include a primary key, three non-key attributes,
and foreign keys as necessary. Make up data values for two records within each table.
Describe benefits and threats of incentive and bonus programs.
1 )Explain the five phases of the systems development life cycle, and discuss the people
involved in systems development and the roles they play.
Discuss the relative advantages and disadvantages of the four different methods for
gathering data during a systems survey.
How many labor hours should the company budget in week three to produce all side
panels needed? Round to the nearest hour, if necessary.
Bill of Materials
Why might an REA diagram show relationships between resources and agents?
Describe the relationship between the general and subsidiary ledgers.
