Which of the following diagrams represents a situation where items rented by a
customer must be returned intact, and several rented items could be returned at the same
time?
A)
B)
C)
D)
Which of the following control design considerations is concerned with whether data
processing is complete, accurate, timely, and authorized?
A) Integrity.
B) Security.
C) Validity.
D) Audit trail.
Identify the year the SEC will require American companies to switch from U.S.-based
GAAP to IFRS as the basis for preparing financial statements.
A) 2016
B) 2018
C) 2020
D) At this point it is unclear when the SEC will require American companies to
implement IFRS, though the SEC remains committed to requiring U.S. companies use
IFRS at some point.
Paid time-off policies, job descriptions, and procedures manuals are examples of
information needed to support key decisions in what business process?
A) hire and train employees
B) acquire inventory
C) sell merchandise
D) collect payment from customers
How is expected loss calculated when performing risk assessment?
A) Impact times expected loss.
B) Impact times likelihood.
C) Inherent risk times likelihood.
D) Residual risk times likelihood.
All of the following are benefits of the database approach except
A) data integration and sharing.
B) decentralized management of data.
C) minimal data redundancy.
D) cross-functional analysis and reporting.
A demilitarized zone
A) routes electronic communications within an organization.
B) connects an organization’s information system to the Internet.
C) permits controlled access from the Internet to selected resources.
D) serves as the main firewall.
A fraud technique that uses a back door into a system that bypasses normal system
controls is called the ________ technique.
A) Trojan horse
B) man-in-the-middle
C) salami
D) trap door
Flowchart symbols
A) are divided into four categories.
B) are unique to the organization creating the flowchart.
C) are normally drawn using a flowcharting template.
D) eliminate the need for narrative descriptions or explanations.
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 not be an attribute in the Purchases table?
A) Address where purchase was made.
B) Person’s name or company name from whom the purchase was made.
C) Date of purchase.
D) Total amount of purchase.
Which of the following accurately represents typical cardinalities for two entities in the
production cycle?
A)
B)
C)
D)
Expanding a firm’s operations to include a manufacturing facility overseas will
A) reduce inherent risk.
B) reduce control risk.
C) increase inherent risk.
D) increase control risk.
The packing slip
A) lists the quantity, price, and description of each item included in the shipment.
B) lists the price and description of each item included in the shipment.
C) lists the quantity and description of each item included in the shipment.
D) lists the quantity and price of each item included in the shipment.
Ideally, inventory purchases occur in response to ________ in a JIT inventory system.
A) customer demand
B) optimal demand
C) forecast demand
D) supplier demand
In a data flow diagram that depicts a company’s internal controls, where is each internal
control typically explained in detail?
A) in an annotation on the same page as the internal control
B) inside the symbol used to represent the internal control
C) on a table that accompanies the internal control data flow diagram
D) Internal controls are not typically explained in detail in an internal control data flow
diagram.
Requiring all packing slips be reconciled to purchase orders before accepting a delivery
of inventory would be most likely to prevent which of the following situations?
A) A supplier delivers more inventory than ordered at the end of the year and sends an
invoice for the total quantity delivered.
B) An employee mails a fake invoice to the company, which is then paid.
C) The inventory records are incorrectly updated when a receiving department
employee enters the wrong product number on the receiving report.
D) Receiving department employees steal inventory and then claim the inventory was
received and delivered to the warehouse.
An auditor examines all documents related to the acquisition, repair history, and
disposal of a firm’s delivery van. This is an example of collecting audit evidence by
A) confirmation.
B) reperformance.
C) vouching.
D) analytical review.
Which type of control is associated with making sure an organization’s control
environment is stable?
A) general
B) application
C) detective
D) preventive
What is a test data generator?
A) It is an application that records how well systems personnel have performed on
company competency examinations.
B) It is an application that prepares data that can be used for auditing the effectiveness
of computer processing.
C) It is an application that records which professional examinations systems personnel
have obtained.
D) It is a backup generator application that can be used to generate data if the original
storage device fails.
The general ledger account that corresponds to a subsidiary ledger account is known as
a(n)
A) dependent account.
B) control account.
C) credit account.
D) attribute account.
In an REA diagram for the HR/Payroll cycle, the ________ relationship between Skills
and Recruiting reflects the fact that one specific advertisement may list several specific
skills and, over time, there may be several advertisements for one specific skill.
A) 1:1
B) 1:N
C) M:N
D) 1:M
Which of the following is a primary activity in the value chain?
A) infrastructure
B) technology
C) purchasing
D) marketing and sales
Identify the item below that is not generally part of an implementation plan.
A) Implementation tasks.
B) Expected completion dates.
C) Cost estimates.
D) Budgeted savings.
Following is the result of batch control totals on employee Social Security numbers in a
payroll processing transaction:
The difference in the control totals is 720,000. Which data entry control would best
prevent similar data entry errors in the future?
A) Batch check.
B) Validity check.
C) Check digit.
D) Sequence check.
In which phase of the systems development life cycle where analysts decide how to
meet user needs, identify and evaluate design alternatives, and develop detailed
specifications for what the system is to accomplish and how it is to be controlled?
A) Conceptual design.
B) Implementation and conversion.
C) Physical design.
D) Systems analysis.
Approximately what percentage of software development projects were late?
A) 70%
B) 30%
C) 66%
D) 54%
A newly installed robotic vacuuming system stopped working. A service technician was
called to repair the robots. The technician found that water had been placed into the
robot’s path, causing it to malfunction. This is an example of dealing with change by
A) deterrence.
B) projection.
C) avoidance.
D) aggression.
The ________ method of gathering information helps to determine how a system
should work.
A) interview
B) observation
C) questionnaire
D) system documentation
________ is not a basic activity of the revenue cycle.
A) Sales order entry
B) Shipping
C) Receiving
D) Billing
Pat Owen is chair of the National Grizzly Society, which maintains a database of all
grizzly bears within the United States. One table will store the name, birth date, and
other characteristics of all of the grizzly bears that have been registered. Each grizzly
bear is uniquely identified by a registration number. A second table will contain data
that link each grizzly bear to its male and female parents by means of their registration
numbers. The entities described by the second table are
A) grizzly bears.
B) parental relationships.
C) registration numbers.
D) names.