acct 752 exam 1
1. The four major tasks that any system must perform are A. Input, transformation, output and storage B. Input, backup, output and storage C. Input, transformation, output and maintenance D. Input, transformation, storage and feedback
A
13. A commonly used measure of the activity in a master file during a specified time period is: A. Volatility B. The index ratio C. The frequency ratio D. The volume ratio
A
16. Using standard procedures developed by information center personnel, staff members download specific subsets of financial and operating data, as they need it. The staff members analyze the data on their own personal computers and share results with each other. Over time, the staff members learn to modify the standard procedures to get subsets of financial and operating data that were not accessible through the original procedures. The greatest risk associated with this situation is that A. The data obtained might be incomplete or lack currency B. The data definition might become outdated C. The server data might be corrupted by staff members updates D. Repeated downloading might fill up storage space on staff members personal computers
A
20. An enterprise resource planning (ERP) system integrates the organizations computerized subsystems and may also provide links to eternal parties. An advantage of ERP is that A. The reengineering needed for its implementation should improve business processes B. Customizing the software to suit the unique needs of the organization will facilitate upgrades C. It can be installed by organizations of all sizes D. The comprehensiveness of the system reduces resistance to change
A
25. Which of the following is the best example of the use of a decision support system (DSS)? A. A manager uses a personal-computer-based simulation model to determine whether one of the company's ships would be able to satisfy a particular deliver schedule B. An auditor uses a generalized audit software package to retrieve several purchase orders for detailed vouching C. A manager uses the query language feature of a database management system (DBMS) to compile a report showing customers whose average purchase exceeds $2,500. D. An auditor uses a personal- computer-based word processing software package to modify an internal control questionnaire for a specific audit engagement.
A
32. XML A. Is focused on the content of the data B. Has become less important as new languages on the internet are developed C. Uses standardized tags D. Is useful to display highly unstructured data
A
40. Of the following, the greatest advantage of a database (server) architecture is that A. Data redundancy can be reduced B. Conversion to a database system is inexpensive and can be accomplished quickly C. Multiple occurrences of data items are useful for consistency checking D. Backup and recovery procedures are minimized.
A
43. In an inventory system on a database, one stored record contains part number, part name, part color, and part weight. These individual items are called: A. Fields B. Stored files C. Bytes D. Occurrences
A
46. An overall description of a database, including the names of data elements, their characteristics, and their relationship to each other, is defined by using a: A. Data definition language B. Data control language C. Data manipulation language D. Data command interpreter language
A
53. Two phases of systems planning are project definition and project initiation. All of the following are steps in the project initiation phase except: A. Preparing the project proposal B. Informing managers and employees of the project C. Assembling the project team D. Training selected personnel
A
58. Which of the following best describes the primary reason that organizations develop contingency plans for their computer-based information systems operations? A. To ensure that they will be able to process vital transactions in the event of a disaster B. To ensure the safety of important records C. To help hold down the cost of insurance D. To plan for sources of capital for recovery from any type of disaster
A
60. If High Tech Corporations disaster recovery plan requires fast recovery with little or no downtime, which of the following backup sites should it choose? A. Hot site B. Warm site C. Cold site D. Quick site
A
61. A local area network (LAN) is best described as an: A. Computer system that connects computers of all sizes, workstations, terminals and other devices within a limited proximity B. System to allow computer users to meet and share ideas and information C. Electronic library containing millions of items of data that can be reviewed, retrieved and analyzed D. Method to offer specialized software, hardware, and data-handling techniques that improve effectiveness and reduce costs
A
70. The internet consist of a series of networks that include: A. Gateways to allow networks to connect to each other B. Bridges to indirect messages through the optimum data path C. Repeaters to physically connected separate local area networks(LANs) D. Routers to strengthen data signals between distant computers
A
71. An employee uses her company-issued ID and password to log into her employers human resources system from home and change her choices of benefits. This is an example of: A. E-business B. Data warehouse C. Transmission protocol D. Extensible markup language
A
81. The emergence of electronic data interchange (EDI) as standard operation practice increases the risk of A. Unauthorized third-party access to systems B. Systematic programming errors C. Inadequate knowledge bases D. Unsuccessful system use
A
82. Electronic data interchange (EDI) offers significant benefits to organizations, but it is not without certain major obstacles. Successful EDI implementation begins with which of the following? A. Mapping the work processes and flows that support the organizations goals B. Purchasing new hardware for the EDI system C. Selecting reliable vendors for translation and communication software D. Standardizing transaction formats and data
A
84. Before sending or receiving electronic data interchange (EDI) messages, a company should, A. Execute a trading partner agreement with each of its customers and suppliers B. Reduce inventory levels in anticipation of receiving shipments C. Demand that all its suppliers implement EDI capabilities D. Evaluate the effectiveness of its use of EDI transmissions
A
89. To ensure privacy-key encryption system, knowledge of which of the following keys is required to decode the received message? I. Private II. Public A. I only B. II only C. Both I and II D. Neither I nor II
A
9. In traditional information systems, computer operations are generally responsible for backing up software and data files on a regular basis. In distributed or cooperative systems, ensuring that adequate backups are taken is the responsibility of A. User management B. Systems programmers C. Data entry checks D. Data librarians
A
90. Which improvement in IT control specifically addresses the authentication issue? A. A digital certificate B. A firewall C. An intelligent router D. Encryption
A
94. As a result of technological developments facing businesses and CPAs A. System boundaries are becoming less distinct B. Computer programmers and operators have eliminated the need for accounts C. Internet use has spread, and e-business control over user interaction has been simplified D. Better controls have resulted in a reduction in threats
A
95. Attacks on computer networks may take many forms. Which of the following uses the computers of innocent parties infected with Trojan horse programs? A. A distributed denial-of-service attack B. A man-in-the-middle attack C. A brute-force attack D. A password-cracking attack
A
98. Which of the following statements is inconsistent with the key principles of the COBIT 5 framework? A. Enterprise governance and management are treated as the same activity B. The needs of stakeholders are the focus of all organizational activities C. Information technology controls are considered to be intertwined with those of the organizations everyday operations D. COBIT 5 can be applied even when other IT-related standards have been adopted
A
Which of the following is not a reason for a company to use EFT and an EDI system? A. To take advantage of the time lag associated with negotiable instruments B. To allow the company to negotiate discounts with EDI vendors based upon prompt payment C. To improve its cash management program D. To reduce input time and input errors
A
100. Authentication is the process by which the A. System verifies that the user is entitled to enter the transaction requested B. System verifies the identity of the user C. User identifies himself or herself to the system D. User indicates to the system that the transaction was processed correctly
B
34. A computer program processes payrolls. The program is an A. Operating system B. Application program C. Report generator D. Utility program
B
35. Fourth-generation computer programming languages are represented by A. Procedure-oriented languages, which describe processing procedures B. Query languages, which allow direct access to a computer database C. Symbolic languages, which allow direct access to a stored database D. Machine languages, which describe processing procedures
B
39. Which one of the following correctly depicts the hierarchy of storage commonly found in computerized databases, from least complex to most complex? A. Byte, field, file, record B. Byte, field record, file C. Field, byte, record, file D. Field, byte, file, record
B
41. A database is A. Essential for the storage of large data sets B. A collection of related files C. A real-time system D. A network of computer terminals
B
47. Which of the following is a false statement about a database management system application environment? A. Data are used concurrently by multiple users B. Data are shared by passing files between programs or systems C. The physical structure of the data is independent of user needs D. Data definition is independent of any one program
B
48. The function of a data dictionary is to A. Mark the boundary between two consecutive transactions B. Describe and share information about objects and resources C. Specify system users D. Specify privileges and security rules for objects and resources
B
49. The increase use of database processing systems makes managing data and information a major service function. Because the databases of an organization are used for many different applications, they are coordinated and controlled by a database administrator. The functions of a database administrator are: A. Data input preparation, database design, and database operations B. Database design, database operation, and database security C. Database design, database operation, and equipment operations D. Database design, software support, and database security
B
52. The process of learning how the current system functions, determining the needs of users, and developing the logical requirements of a proposed system is referred to as: A. Systems maintenance B. Systems analysis C. Systems feasibility study D. System design
B
54. The least risky strategy for converting from a manual to a computerized accounts receivable system would be a: A. Direct conversion B. Parallel conversion C. Pilot conversion D. Database conversion
B
59. Which of the following procedures would an entity most likely include in its computer disaster recovery plan? A. Develop an auxiliary power supply to provide uninterrupted electricity B. Store duplicate copies of critical files in a location away from the processing facility. C. Maintain a listing of all entity passwords with the network manager D. Translate data for storage purposes with a cryptographic secret code
B
65. Which of the following networks provides the least secure means of data transmission? A. Value- added B. Public switched C. Local area D. Private
B
66. Kelly Corporation needs an internal communication network that provides high-speed communication among nodes. Which of the following is appropriate for Kelly? A. Wide area network (WAN) B. Local area network (LAN) C. File server D. Value added network (VAN)
B
67. Appropriate uses of an organizations internal communications network, or intranet, include all of the following except: A. Making the human resources policy manual available to employees B. Information potential investors about company operations and financial results C. Providing senior management with access to the executive support system D. Enable a project team that crosses departments to collaborate
B
69. A company has abandoned the large array of dedicated servers it formerly used to store and provide access to its database. The company has entered into a contract with a provider who will guarantee storage of the database at its own location along with access over the internet. This arrangement is an example of: A. Distributed computing B. Cloud computing C. Wide area network D. Ethernet
B
74. Which of the following is not an advantage of business-to-business (B2B)? A. Reduced purchasing costs B. Reduced information technology costs C. Increased market efficiency D. Decreased Inventory levels
B
88. Which of the following IT developments poses the least risk to organizational security? A. Adoption of wireless technology B. Use of public-key encryption C. Outsourcing of the IT infrastructure D. Enterprise-wide integration of functions
B
93. Innovations in IT increase the importance of risk management because: A. The objective of complete security is becoming more attainable B. Information system security is continually subject to new threats C. Closed private systems have proliferated D. Privacy is a concern for only a very few users
B
24. Enterprise resources planning ( ERP) software packages , such as SAP R/3 and Oracle, are all- inclusive systems that attempt to provide entity wide information. ERP systems provide advantages to an organizations auditors because they A. Have proven difficult for some firms to install B. Typically require firms to reduce the division of duties and responsibilities found in traditional systems. C. Typically have built-in transaction logs and ability to produce a variety of diagnostics reports. D. Have been installed by smaller firms so, to date, few auditors have encountered them
C
26. Which one of the following terms best describes a decision support system (DSS)? A. Management reporting system B. Formalized system C. Interactive system D. Accounting information system
C
27. The processing in expert systems is characterized by A. Algorithms B. Deterministic procedures C. Heuristics D. Simulations
C
11. An insurance company that has adopted cooperative processing is planning to implement new standard software in all its local offices. The new software has a fast response time, is very user friendly, and was developed with extensive user involvement. The new software captures, consolidates, edits, validates, and finally transfers standardized transaction data to the headquarters server. Local managers, who were satisfied with existing locally written personal computer applications, opposed the new approach because they anticipated. A. Increased workloads B. Centralization of all processing tasks C. More accountability D. Less computer equipment
C
12. A file containing relatively long-term information used as a source of reference and periodically updated with detail is termed a: A. Transaction file B. Record layout C. Master file D. Dump
C
15. Management is concerned that data uploaded from a personal computer to the company's server may be erroneous. Which of the following controls would best address this issue? A. Server data should be backed up on a regular basis B. Two persons should be present at the personal computer when it is uploading data C. The data uploaded to the server should be subject to the same edits and validation routines that online data entry would require D. The users should be required to review a random sample of processed data.
C
19. Which one of the following statements about an accounting information system (AIS) is false? A. AIS supports day to day operations by collecting and sorting data about an organizations transactions B. The information produced by AIS is made available to all levels of management for use in planning and controlling organizations activities. C. AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements D. AIS is often referred to as a transaction processing system.
C
21. In a traditional ERP system, the receipt of a customer order may result in I. Customer tracking of the orders progress II. Automatic replenishment of inventory by a supplier III. Hiring or reassigning of employees IV. Automatic adjustment of output schedules A. I, II, and IV only B. I and III only C. III and IV only D. I, II, III, and IV
C
23. The current generation of ERP software (ERP II) may include an advanced planning and scheduling system that A. Determines the location of retail outlets B. Connects the organization with other members of a joint venture C. Controls the flow of a manufacturers materials and components through the supply chain D. Permits tracking of orders by customers
C
29. For which of the following applications would the use of a fuzzy logic system be the most appropriate artificial intelligence (AI) choice? A. Assigning airport gates to arriving airline flights B. Forecasting demand for spare auto parts C. Performing indoor climate control D. Diagnosing computer hardware problems
C
3. Batch processing: A. Is not used by most businesses because it reduces the audit trail B. Allows users to inquire about groups of information contained in the system C. Accumulates transaction records into groups for processing against the master file on a delayed basis D. Can only be performed on a centralized basis
C
31. Which of the following is a false statement about XBRL? A. XBRL is freely licensed B. XBRL facilitates the automatic exchange of information C. XBRL is used primarily in the U.S D. XBRL is designed to work with a variety of software applications
C
33. C++, BASIC, FORTRAN, and COBOl are all examples of A. Application programs B. Machine languages C. Procedural Languages D. Operating systems
C
44. A database has three record type: (1) for suppliers, a type that contains a unique supplier number, a supplier name and a supplier address; (2) for parts, a type that contains a unique part number, a part name, a description, and a location; (3) for purchases, a type that contains a unique supplier number referencing the supplier number in the supplier record, a part number referencing the part number in the part record, and a quantity. This database has a A. Single flat-file structure B. Hierarchical structure C. Relational structure D. Network structure
C
55. The process of monitoring, evaluating, and modifying a system as needed is referred to as: A. Systems analysis B. Systems feasibility study C. Systems maintenance D. Systems implementation
C
62. The most distinguishing feature of the use of a client-server processing model over an old mainframe configuration is: A. Digital processing over analog B. Less need for data backup C. Decentralization over centralization D. Ability to connect remote locations
C
63. Which one of the following network configurations is distinguished by the possibility of spreading the costs of ownership among multiple organization? A. Value-added network B. Baseband network C. Wide area network D. Local area network
C
68. Large organizations often have their own telecommunications networks for transmitting and receiving voice, data, and images. Small organizations, however, also can have remote locations that need to communicate. Such organizations are more likely to use: A. Public -switched lines B. Fast packet switches C. Internet D. A WAN
C
7. The relationship between online, real-time database systems and batch processing systems is that: A. A firm will have only one processing mode because a single computer cannot do both B. A firm will not use batch processing if it has a large computer C. A firm may use both processing modes concurrently. D. A firm will always prefer an online, real-time processing system because batch processing is slow.
C
75. Which of the following risks is not greater in an electronic funds transfer (EFT) environment than in a manual system using paper transactions? A. Unauthorized access and activity B. Duplicate transaction processing C. High cost per transaction D. Inadequate backup and recovery capabilities
C
78. A system that permits suppliers and buyers to have direct access to portions of each other's databases, including inventory data, to enhance service and deliverers is A. Electronic mail B. Interactive processing C. Electronic data interchange D. Distributed processing
C
79. Companies now can use electronic transfers to conduct regular business transactions. Which of the following terms best describes a system in which an agreement is made between two or more parties to electronically transfer purchase orders, sales orders, invoices, and/or other financial documents? A. Electronic mail (email) B. Electronic funds transfer(EFT) C. Electronic data interchange(EDI) D. Electronic data processing (EDP)
C
83. After company implements electronic data interchange (EDI) to communicate with its customers, an appropriate control for ensuring authenticity of the electronic orders it receives is to A. Encrypt sensitive messages such as electronic payments for raw materials received B. Perform reasonableness checks on quantities ordered before filing orders C. Verify the identity of senders and determine whether orders correspond to contract terms D. Acknowledge receipt of electronic payments with a confirming message
C
86. The use of message encryption software A. Guarantees the secrecy of data B. Requires manual distribution of keys C. Increases system overhead D. Reduces the need for periodic password changes
C
92. Which of the following statements most accurately describes the impact that automation has on the controls normally present in a manual system? A. Transaction trails are more extensive in a computer-based system than in a manual system because a one-for-one correspondence always exists between data entry and output. B. Responsibility for custody of information assets is more concentrated in user departments in a computer-based system than it is in a manual system C. Controls must be more explicit in a computer-based system because many processing points that present opportunities for human judgment in a manual system are eliminated D. The quality of documentation becomes less critical in a computer-based system than it is in a manual system because data records are stored in machine-readable files
C
97. Which of the following is a computer program that appears to be legitimate but performs some illicit activity when it is run? A. Hoax virus B. Web crawler C. Trojan horse D. Killer application
C
99. A client installed the sophisticated controls using the biometric attributes of employees to authenticate user access to the computer system. This technology most likely replaced which of the following controls? A. Use of security specialists B. Reasonableness tests C. Passwords D. Virus protection software
C
Based only on the database file excerpt presented below, which one of the fields or combinations of fields is eligible for use as a key? A. Column I and Column II in combination B. Column I and Column V in combination C. Column III alone D. Column IV and Column V in combination
C
10. The system that permits the computers in a distributed network to share the use of another end-users application program is: A. Electronic data interchange B. Interactive processing C. Executive support system D. Cooperative processing
D
14. At a remote computer center, management installed an automated scheduling system to load data files and execute programs at specific times during the day. The best approach for verifying that the scheduling system performs as intended is to A. Analyze job activity with a queuing model to determine workload characteristics B. Simulate the resource usage and compare the results with actual results of operations C. Use library management software to track changes to successive versions of applications programs D. Audit job accounting data for file accesses and job initiation/termination messages
D
17. Advanced electronic point-of-scale (POS) systems allow instant capture and transmission of information for which purposes? I. Instant updating of accounting records II. Accumulation of marketing information III. Tracking of information about specific customers IV. Facilitation of warehousing A. I and II only B. III and IV only C. I,II, and III only D. I, II, III and IV
D
18. An accounting information system (AIS) must include certain source documents in order to control purchasing and accounts payable. For a manufacturing organization, the best set of documents should include: A. Purchase requisitions, purchase orders, inventory reports of goods needed, and vendor invoices B. Purchase orders, receiving reports, and inventory reports of goods needed C. Purchase orders, receiving reports, and vendor invoices D. Purchase requisitions, purchase orders, receiving reports, and vendor invoices.
D
2. An interactive system environment is best characterized by: A. Data files with records arranged sequentially B. The processing of groups of data at regular intervals C. Sorting the transaction file before processing D. The processing of data immediately on input.
D
22. A principal advantage of an ERP system is A. Program-data dependence B. Data redundancy C. Separate data updating for different functions D. Centralization of data
D
28. Which of the following features is classified as part of an expert system? A. Use of electronic mail to route and approve purchase requisitions B. Automatic obligation of budget funds as soon as an order is issued C. Issuance of purchase requisition notices as soon as the on-hand balance reaches the reorder point D. Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and delivery time.
D
30. Business intelligence (BI) has all of the following characteristics except? A. Focusing on strategic objectives B. Giving immediate information about an organizations critical success factors C. Displaying information in graphical format D. Providing advice and answers to top management from a knowledge-based system
D
36. Which of the following programming languages supports object-oriented programming? A. Pascal B. FORTRAN C. XBRL D. C++
D
38. Computers understand codes that represent letters of the alphabet, numbers, or special characters. These codes require that data be converted into predefined groups of binary digits. Such chains of digits are referred to as: A. Registers B. ASCII code C. Input D. Bytes
D
4. Information processing made possible by a network of computers dispersed throughout an organization is called: A. Online processing B. Interactive processing C. Time sharing D. Distributed data processing
D
42. The primary purpose of a database system is to have a single storage location for each A. File B. Record C. Database D. Item of data
D
45. One advantage of a database management system (DBMS) is A. Each organizational unit takes responsibility and control for its own data B. The cost of the data processing department decreases as users are now responsible for establishing their own data handing techniques C. A decreased vulnerability as the database management system has numerous security controls to prevent disasters D. The independence of the data from the application programs, which allows the programs to be developed for the users specific needs without concern for data capture problems
D
5. A new purchasing system for just-in-time production requirements has been proposed. Users want access to current master file information at all times. To satisfy user needs, master file changes should be implemented with A. Periodic entry with subsequent batch processing B. Periodic entry with immediate batch processing C. Only entry with subsequent batch processing D. Online entry with immediate processing
D
50. An insurance firm that follows the systems development life cycle concept for all major information system projects is preparing to start a feasibility study for a proposed underwriting system. Some of the primary factors the feasibility study should include are: A. Possible vendors for the system and their reputation for quality B. Exposure to computer viruses and other intrusions C. Methods of implementation, such as parallel or cutover. D. Technology and related costs
D
51. Ordinarily, the analysis tool for the systems analyst and steering committee to use in selecting the best system alternative is: A. Pilot testing B. User selection C. Decision tree analysis D. Cost -benefit analysis
D
56. An information system (IS) project manager is currently in the process of adding a systems analyst to the IS staff. The new systems analyst will be involved with testing the new computerized system. At which stage of the systems development life cycle will the analyst be primarily used? A. Cost- benefit analysis B. Requirements definition C. Flowcharting D. Development
D
57. A benefit of using computer-aided software engineering (CASE) technology is that it can ensure that A. No obsolete data fields occur in files B. Users become committed to new systems C. All programs are optimized for efficiency D. Data integrity rules are applied consistently
D
6. The concept of timeliness of data availability is most relevant to A. Computerized systems B. Payroll systems C. Manual systems D. Online systems
D
64. Which of the following control risks is more likely with personal computers than in a mainframe environment with dedicated terminals? A. Copyright violations due to the use of unauthorized copies of purchased software B. Applications written by one department that cannot share data with existing organization-wide systems C. Lack of data availability due to inadequate data retention policies D. All of the answers are correct
D
72. Which of the following represents the greatest exposure to the integrity of electronic funds transfer data transmitted from a remote terminal A. Poor physical access controls over the data center B. Network viruses C. Poor system documentation D. Leased telephone circuits
D
73. A customer places an order for a sweater over the internet using a mobile phone. This is an example of: A. Authentication B. Business intelligence C. Electronic funds transfer D. E-commerce
D
77. Which of the following significantly encouraged the development of electronic funds transfer (EFT) systems? I. Response to competition II. Cost containment III. Advances in information technology A. I and II B. I and III C. II only D. I, II, and III
D
8. Devices that are used only to perform sequential file processing will not permit A. The use of a database structure B. Data to be edited in an offline mode C. Batch processing to be initiated from a terminal D. Data to be edited on a real-time basis
D
80. Which of the following is an accepted example of electronic data interchange (EDI)? A. Request for an airline reservation by a travel agent B. Withdrawal of cash from an automated teller by a banks customer C. Transfer of summary data from a local area network to a centralized mainframe D. Placement of order entry transactions from a customer to its supplier
D
85. A client communicates sensitive data across the Internet. Which of the following controls will be most effective to prevent the use of the information if it were intercepted by an unauthorized party? A. A firewall B. An access log C. Passwords D. Encryption
D
87. Which of the following is an encryption feature that can be used to authenticate the originator of a document and ensure that the message is intact and has not been tampered with? A. Heuristic terminal B. Perimeter switch C. Default settings D. Digital signatures
D
91. Your firm has recently converted its purchasing cycle from manual process to an online computer system. Which of the following is probable result associated with conversion to the new automatic system? A. Processing errors are increased B. The firms risk exposures are reduced C. Processing time is increased D. Traditional duties are less segregated
D
96. Spoofing is one type of malicious online activity. Spoofing is A. Trying large numbers of letter and number combinations to access a network B. Eavesdropping on information sent by user to the host computer of a website C. Accessing packets flowing through a network D. Identity misrepresentation in cyberspace
D
