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Consider the following systems flowchart as you respond to the question:
Which of the following statements is most true?
A. The company has adequate separation of duties.
B. The company uses all documents commonly associated with the process depicted.
C. Both the company has adequate separation of duties and the company uses all
documents commonly associated with the process depicted are true.
D. Neither the company has adequate separation of duties nor the company uses all
documents commonly associated with the process depicted is true.
Accounting information systems have five basic elements. Within the context of the
human resource process, "inputs" include:
A. Job applications.
B. Payroll-related data.
C. Both job applications and payroll-related data.
D. Neither job applications nor payroll-related data.
Which of the following statements about human judgment and information technology
in the AIS is most true?
A. Information technology is a substitute for human judgment.
B. Human judgment is a substitute for information technology.
C. Information technology can enhance human judgment.
D. Both information technology and human judgment are essential in any AIS.
Raul was leading a team charged with developing a new system for budgeting. Which
of the following questions is best paired with the most appropriate phase of the systems
development life cycle?
A. Initiation/planning: Should we use Excel or some other information technology tool?
B. Requirements analysis: Should we use Excel or some other information technology
tool?
C. Requirements analysis: What goals should the new budgeting system achieve?
D. Initiation/planning: How many people should be on the team?
Ahmed was writing a paper summarizing three processes common in most
organizations; his specific focus was on for-profit manufacturing organizations. In
terms of the UMUC criteria for information evaluation, Ahmed's paper is most likely to
violate:
A. Coverage, because it discusses only three processes.
B. Currency, because it does not focus on dollar amounts.
C. Authority, because Ahmed has no authority to write such a paper.
D. Relevance, because it focuses on for-profit manufacturing organizations.
Which of the following statements about B2B e-business is most true?
A. Companies engaged in B2B can benefit from the COSO internal control and
enterprise risk management frameworks.
B. Companies engaged in B2B must be at
C. The weighted-rating technique is irrelevant to companies engaged in B2
B.
D. Expansion into B2B is based on requirements analysis, the first step in the systems
development life cycle.
In what way is the fifth step in the accounting cycle different from the seventh step in
the accounting cycle?
A. The fifth step comes before preparing financial statements; the seventh step comes
afterward.
B. The fifth step focuses only on permanent accounts; the seventh step focuses only on
temporary accounts.
C. The fifth step focuses only on temporary accounts; the seventh step focuses only on
permanent accounts.
D. The seventh step includes the results of internal transactions; the fifth step does not.
COSO's Internal Control--Integrated Framework comprises a total of ___ categories.
A. Three
B. Four
C. Five
D. Six
Consider the following short case as you respond to the question:
ELM Corporation sells durable medical equipment, such as wheelchairs and hospital
beds; each salesperson at ELM specializes in a specific type of medical equipment.
When a prospective client comes into their store, a greeter does a preliminary needs
assessment to determine what type(s) of equipment the client requires. Based on that
preliminary assessment, the greeter will match the client with a member of the sales
staff. The staff specialist does a more detailed needs assessment, the results of which go
into a computerized database along with the client's name, address, phone number and
other related information. After the needs assessment, the staff specialist determines the
client's budget, as well as whether the client has insurance coverage for the desired
equipment; clients without insurance coverage receive a 10% discount on all equipment
purchased up to $1,000, and a 20% discount for any sales over $1,000. The staff
specialist makes recommendations based on the client's needs and budget. If the client
chooses to purchase from ELM, the store fills out any necessary insurance paperwork
and collects the client's portion of the bill. For example, if an insured client purchases a
wheelchair with a price of $2,000 and the insurance covers 80%, ELM collects $400
from the client at the time of the sale. ELM accepts cash, checks and major credit cards
from clients. Insurance payments go directly to ELM's bank account and normally
arrive within 60 days of the sale. If the client needs more than one type of durable
medical equipment, the first staff specialist introduces the client to a subsequent staff
specialist, who repeats the process until all the client's equipment needs are met.
A REA model of ELM's sales/collection process would include how many internal
agents in its rightmost column?
A. Two
B. Three
C. Four
D. More than four
At the end of 2014, CNC Corporation's accounting information system produced the
following trial balance:
CNC completed the following transactions in January 2015:
a. Purchased inventory on account, $300.
b. Collected cash from customers for prior year sales, $500.
c. Paid current month's wages, $900.
d. Had land appraised. Cost of doing the appraisal (paid in cash), $700. Appraised value
of land, $3,000.
e. Sold inventory with a cost basis of $200 on account, $800.
f. Declared dividends, $50.
g. Hired additional sales staff. Expected monthly salaries, $80.
h. Purchased supplies for cash, $150.
i. Paid creditors for previous purchases, $150.
j. Signed a contract for annual employee retreat, $450.
The accounting cycle includes three different versions of the trial balance. For CNC, the
totals of the trial balance prepared in the seventh step at the end of January will be:A.
$17,650.B. some other amount.C. CNC cannot complete the seventh step in the
accounting cycle at the end of January.D. Cannot be determined from the information
given.
Which of the following pairs provides examples of integrating knowledge from other
disciplines in accounting?
A. Completes the steps in the systems development life cycle, applies expectancy
theory to improve motivation
B. Selects software using the weighted-rating model, analyzes internal controls in the
sales/collection process
C. Analyzes internal controls in the sales/collection process, applies expectancy theory
to improve motivation
D. Prepares a schedule of cash receipts in Excel, gives two examples of COSO
documents
Consider the following short case as you respond to the question:
Melissa is an internal auditor for the County of Bufflufia. Her job responsibilities
include providing training on information systems security and checking the work of
data entry clerks. Melissa is also part of a team that responds to denial-of-service
attacks on the county's information system. Her co-worker, Eugene, ensures that all the
county's computers have the most up-to-date antivirus software; he also enforces the
county's policy of backing up sensitive data, such as employee social security numbers
and other payroll information, at least once a day. The back-ups are dated and stored in
a locked filing cabinet.
Which of the following statements is most true?
A. Eugene's responsibilities span both physical and technical controls.
B. Melissa's responsibilities are related to at least one element of the CIA triad.
C. Both Eugene's responsibilities span both physical and technical controls and
Melissa's responsibilities are related to at least one element of the CIA triad are true.
D. Neither Eugene's responsibilities span both physical and technical controls nor
Melissa's responsibilities are related to at least one element of the CIA triad is true.
TNG Corporation implemented an ERP system using the steps in the systems
development life cycle. Which of the following statements is most true?
A. The systems development life cycle is an inappropriate tool for implementing an
ERP system.
B. TNG is unlikely to suffer from poor project management.
C. Top management leadership is unnecessary when a company uses the systems
development life cycle.
D. TNG can omit requirements analysis as a step in the systems development life cycle.
Consider the following REA diagram as you respond to the question:
Which of the following is an external agent in the model?
A. Vendor
B. Purchasing agent
C. Both vendor and purchasing agent
D. Neither vendor nor purchasing agent
Please refer to the following short case as you respond to the question:
A painter accepts orders for original works from customers in person or via the Internet.
Based on the order, the painter creates an initial sketch, which must be approved by the
customer; the customer may make changes to the initial sketch. After customer
approval, the painter selects appropriate materials and gives the customer a price quote.
If the customer accepts the price quote, the painter creates the original work; if not, the
project is abandoned. The painter stores data about customers, previous orders and
previously completed works in an electronic database.
Data flow diagrams incorporate four symbols. Which of the following pairs of items
would be represented with the same symbol in a DFD of the case?
A. Painter, customer
B. Initial sketch, price quote
C. Customer, initial sketch
D. Painter, price quote
In Brown's taxonomy, systems risk is a form of:
A. Financial risk
B. Operational risk
C. Strategic risk
D. Hazard risk
Consider the following short case as you respond to the question:
ELM Corporation sells durable medical equipment, such as wheelchairs and hospital
beds; each salesperson at ELM specializes in a specific type of medical equipment.
When a prospective client comes into their store, a greeter does a preliminary needs
assessment to determine what type(s) of equipment the client requires. Based on that
preliminary assessment, the greeter will match the client with a member of the sales
staff. The staff specialist does a more detailed needs assessment, the results of which go
into a computerized database along with the client's name, address, phone number and
other related information. After the needs assessment, the staff specialist determines the
client's budget, as well as whether the client has insurance coverage for the desired
equipment; clients without insurance coverage receive a 10% discount on all equipment
purchased up to $1,000, and a 20% discount for any sales over $1,000. The staff
specialist makes recommendations based on the client's needs and budget. If the client
chooses to purchase from ELM, the store fills out any necessary insurance paperwork
and collects the client's portion of the bill. For example, if an insured client purchases a
wheelchair with a price of $2,000 and the insurance covers 80%, ELM collects $400
from the client at the time of the sale. ELM accepts cash, checks and major credit cards
from clients. Insurance payments go directly to ELM's bank account and normally
arrive within 60 days of the sale. If the client needs more than one type of durable
medical equipment, the first staff specialist introduces the client to a subsequent staff
specialist, who repeats the process until all the client's equipment needs are met.
Which of the following is most likely to be depicted as an external entity in a leveled
set of data flow diagrams for ELM's sales/collection process?
A. Insurance company
B. Credit card company
C. Both insurance company and credit card company
D. Neither insurance company nor credit card company
COBIT's enablers include organizational processes. Which of the following best pairs a
common process with an output of the process?
A. conversion process, cost of production report
B. financing process, depreciation schedule for long-term bonds
C. Both conversion process, cost of production report and financing process,
depreciation schedule for long-term bonds
D. Neither conversion process, cost of production report nor financing process,
depreciation schedule for long-term bonds
The fifth step in the acquisition/payment process promotes strong internal control
through:
A. Bank reconciliations.
B. Separation of duties.
C. Both bank reconciliations and separation of duties.
D. Neither bank reconciliations nor separation of duties.
The items and activities commonly associated with the acquisition/payment process can
be seen in:
A. The income statement only.
B. The balance sheet only.
C. The statement of cash flows only.
D. All of these.
