AIS- Chapter 11, Acc 250 - 3, AIS Chapter 7, AIS Ch 4, AIS Chapter 15, f

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Which of the following duties could be performed by the same individual without violating segregation of duties controls? A) approving accounting software change requests and testing production scheduling software changes B) programming new code for accounting software and testing accounting software upgrades C) approving software changes and implementing the upgraded software D) managing accounts payable function and revising code for accounting software to more efficiently process discount due dates on vendor invoices

approving accounting software change requests and testing production scheduling software changes

A flowchart that depicts the relationships among the input, processing, and output of an AIS is A) an internal control flowchart. B) a document flowchart. C) a system flowchart. D) a program flowchart.

A DFD created at the highest-level or summary view is referred to as a A) process diagram. B) overview diagram. C) content diagram. D) context diagram.

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a A) preventive control. B) detective control. C) corrective control. D) authorization control.

preventative control

17X. MRP applications are: A. Management resource programs software B. Manufacturing resources planning software C. Management reporting programs software D. Manufacturing reporting programs software

18X. ERP modules include all EXCEPT: A. Financial. B. Operational database. C. Sales and services. D. Product development and manufacturing.

96C. One of the greatest risks of ERP cloud systems is the potential service outage that might cause the system to be unavailable.

20X. Interfaces between modules of ERP systems would be accepted for all of the following EXCEPT: A. Sales and inventory. B. Sales and human resources. C. Sales and accounts receivable. D. Sales and manufacturing.

The SEC and FASB are best described as external influences that directly affect an organization's A) hiring practices. B) philosophy and operating style. C) internal environment. D) methods of assigning authority.

C) internal environment.

8) A low-level view of the database that describes how the data are actually stored and accessed is the A) conceptual-level schema. B) subschema. C) internal-level schema. D) external-level schema.

C) internal-level schema.

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questions 2,3,4,5 look at tb

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1. Which of the following advantages is least likely to be experienced by a company implementing an enterprise resource planning (ERP) system? A. Reduced cost B. Improved efficiency C. Broader access to information D. Reduced errors

12. Which of the following statements best describes the risks of ERP systems? A. The risks of implementing and operating ERP systems are nearly identical to the risks of implementing and operating IT systems. B. The risks of operating and implementing ERP systems are greater than the risks of implementing and operating IT systems, due to the scope, size, and complexity of ERP systems. C. The risks of implementing ERP systems are greater than the risks of implementing IT systems, but the operating risks are nearly identical. D. The risks of operating ERP systems are greater than the risks of operating IT systems, but the implementation risks are nearly identical.

22X. The purpose of MRP II was to integrate all of the following into a single database EXCEPT: A. Human resources. B. Manufacturing. C. Marketing. D. Finance.

25. Select the correct statement from those provided below. A. MRP II allows interaction between suppliers and their customers via the internet or other electronic means. B. While MRP II provides automatic inventory reordering, it does not allow suppliers to see customer inventory levels. C. MRP II systems preclude e-commerce and e-business transactions due to internal security measures to protect data. D. To increase operational response times, MRP II systems utilize operational databases but not data warehouses.

26A. Which of the following is NOT one of the reasons for the increased spending on ERP systems since 2004? A. Bigger IT budgets replaced leaner budgets as economic conditions improved. B. Many companies needed upgraded systems to enhance compliance with the Sarbanes-Oxley Act. C. Business processes were separated and standardized. D. ERP has become so important to daily operations that many companies cannot allow their ERP system to become outdated.

26X. Spending on ERP systems increased or decreased based on several factors. These factors include all of the following EXCEPT: A. Y2K compliance concerns. B. The need for better customer service. C. Multi-national sites of operation. D. Compliance with the Sarbanes-Oxley Act.

27X. The financials module of an ERP such as SAP would include all of the following components EXCEPT: A. Inventory. B. Financial accounting. C. Management accounting. D. Corporate governance.

35. Critical factors of CRM success include: A. Successful software implementation and effective employee utilization. B. Effective use of the analytics module's data. C. The effective use by employees of the sales and services module's data. D. All of the above, A, B, and C, are correct.

39X. ERP tier two software applications include: A. Axapta, Epicor, MAS 500 ERP, Microsoft Dynamics ERP, and Macola ERP. B. Axapta, Epicor, MAS 500 ERP, JD Edwards, and Macola ERP. C. Axapta, Epicor, MAS 500 ERP, Microsoft Access, and Macola ERP. D. Axapta, Epicor, SAP R/1, Microsoft Dynamics ERP, and Macola ERP.

54X. Benefits of an ERP system include all of the following EXCEPT: A. The real-time nature of processing increases the total processing time. B. The interactive nature of the modules allows processes to interact with each other. C. ERP systems have evolved from many years of software experience so the software reflects tried and true practices. D. There is the capability to analyze large amounts of data in a single database.

56X. Organizational benefits of ERP implementation include all EXCEPT: A. Retaining long-held work patterns and work focus. B. Facilitating organizational learning. C. Building a common vision. D. Increased employee morale and satisfaction

57X. Factors which adversely affect the implementation of an ERP system do NOT include: A. Cost. B. Complexity. C. Size. D. Scope.

26) Discuss the ways in which a well-designed DBMS will facilitate the three basic functions of creating, changing, and querying data.

A DBMS will use data definition, data manipulation, and data query languages in order to perform the three basic, essential data functions. Data definition is achieved using DDL (data definition language); data manipulation is achieved using DML (data manipulation language) which includes operations such as updating, inserting, and deleting portions of the database. DQL (data query language) is used to retrieve, sort, order, and present subsets of data in response to user queries. A DBMS will probably also include a report writer, which is a language that simplifies report creation.

25) Describe a data dictionary.

A data dictionary is a means by which information about the structure of a database is maintained. For each data element stored in the database, there is a corresponding record in the data dictionary that describes it. The DBMS usually maintains the data dictionary. Inputs to the dictionary include various new data, changed data, and deleted data. Output from the data dictionary may include a variety of reports useful to programmers, database designers, and other users of the information system. Accountants have a very good understanding of the data elements that exist in a business organization, so when an organization is developing a database, accountants should be allowed to participate in the development of the data dictionary.

16) Explain the relational database data model.

A data model is an abstract representation of the contents of a database. The majority of new DMBS use what is called the relational data model, developed by Dr. E. F. Codd in 1970. Using this model, everything in the database is stored in the form of tables, known as relations. Keep in mind that this is the conceptual- and external-level schemas (which describes the logical structure of a database), not the actual physical structure of the database itself. In the concept of relations, both rows and columns comprise the database tables. Each row in a relation (table) is called a tuple. Tuples contain data about a specific occurrence of the type of entity represented by that table. For example, in a sales table, each tuple may contain all of the information about a specific customer. Each column in a relation contains information about one specific attribute of that entity. Using the sales example again, the columns in such a table may represent specific characteristics about each sales transaction.

24) Describe the different schemas involved in a database structure. What is the role of accountants in development of schemas?

A schema describes the logical structure of a database. There are three levels of schemas. First, the conceptual-level schema is an organization-wide view of the entire database listing all data elements and relationships between them. Second, an external-level schema is a set of individual user views of portions of the database, each of which is referred to as a subschema. Finally, an internal-level schema provides a low-level view of the database includes descriptions about pointers, indexes, record lengths, etc. Accountants are primarily involved in the development of conceptual- and external-level schemas; however, database knowledgeable accountants may participate in developing an internal -level schema.

20) Which of the following is false regarding a well-structured relational database? A) A foreign key cannot be null. B) A primary key cannot be null. C) Every column in a row must be single valued. D) All nonkey attributes in a table must describe a characteristic of the object identified by the primary key.

A) A foreign key cannot be null.

Which of the following is not a basic principle of the COSO ERM framework? A) Companies are formed to create value for society. B) Management must decide how much uncertainty it will accept to create value. C) Uncertainty results in risk. D) Uncertainty results in opportunity.

A) Companies are formed to create value for society.

16) Creating an empty table in a relational database requires use of the ________, and populating that table requires the use of ________. A) DDL; DML B) DQL; SQL C) DDL; DQL D) DML; DDA

A) DDL; DML

18) If a national sales tax were implemented, which language would be used to add a new field in the sales table to track the sales tax due? A) Data Definition Language B) Data Manipulation Language C) Data Query Language D) Data Update Language

A) Data Definition Language

9) Identify one potential drawback in the design and implementation of database systems for accounting. A) Double-entry accounting relies on redundancy as part of the accounting process, but well-designed database systems reduce and attempt to eliminate redundancy. B) Relational DBMS query languages will allow financial reports to be prepared to cover whatever time periods managers want to examine. C) Relational DBMS provide the capability of integrating financial and operational data. D) Relational DBMS can accommodate multiple views of the same underlying data; therefore, tables storing information about assets can include data about both historical and replacement

A) Double-entry accounting relies on redundancy as part of the accounting process, but well-designed database systems reduce and attempt to eliminate redundancy.

The largest differences between the COSO Integrated Control (IC) framework and the COSO Enterprise Risk Management (ERM) framework is A) IC is controls-based, while the ERM is risk-based. B) IC is risk-based, while ERM is controls-based. C) IC is required, while ERM is optional. D) IC is more applicable to international accounting standards, while ERM is more applicable to generally accepted accounting principles.

A) IC is controls-based, while the ERM is risk-based.

Identify the statement below that is not true of the 2013 COSO Internal Control updated framework. A) It more efficiently deals with control implementation and documentation issues. B) It more effectively deals with control implementation and documentation issues. C) It provides users with more precise guidance. D) It adds many new examples to clarify the framework concepts.

A) It more efficiently deals with control implementation and documentation issues.

4) Identify the statement below that is false with regards to basic requirements of a relational database model. A) Primary keys can be null. B) Foreign keys, if not null, must have values that correspond to the value of a primary key in another table. C) All non-key attributes in a table should describe a characteristic about the object identified by the primary key. D) Every column in a row must be single-valued.

A) Primary keys can be null.

14) Which statement below concerning the database management system (DBMS) is false? A) The DBMS automatically creates application software for users, based on data dictionary parameters. B) The DBMS automatically maintains the data dictionary. C) Users' requests for information are transmitted to the DBMS through application software. D) The DBMS uses special languages to perform specific functions.

A) The DBMS automatically creates application software for users, based on data dictionary parameters.

22) Suppose a relational database contained two linked tables. Assuming the organization wants the database to be normalized, which of the following items represents a problem to normalization? A) The database contains only one primary key. B) The database contains two foreign keys. C) The database contains two primary keys. D) The database contains only one foreign key.

A) The database contains only one primary key.

15) Which would not generally be considered a data dictionary output report? A) a list of cash balances in the organization's bank accounts B) a list of all programs in which a data element is used C) a list of all synonyms for the data elements in a particular file D) a list of all data elements used by a particular user

A) a list of cash balances in the organization's bank accounts

2) 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.

A) an update anomaly.

Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework? A) analyzing past financial performance and reporting B) providing sufficient resources to knowledgeable employees to carry out duties C) disciplining employees for violations of expected behavior D) setting realistic targets for long-term performance

A) analyzing past financial performance and reporting

12) The data dictionary usually is maintained A) automatically by the DBMS. B) by the database administrator. C) by the database programmers. D) by top management.

A) automatically by the DBMS

13) The use of a data warehouse in strategic decision making is often referred to as A) business intelligence. B) managerial accounting. C) data analysis. D) analytical modeling.

A) business intelligence.

21) In a well-designed and normalized database, which of the following attributes would be a foreign key in a cash receipts table? A) customer number B) cash receipt date C) remittance advice number D) customer check number

A) customer number

Independent checks on performance include all the following except A) data input validation checks. B) reconciling hash totals. C) preparing a trial balance report. D) supervisor review of journal entries and supporting documentation.

A) data input validation checks.

4) The ________ handles the link between the way data are physically stored and each user's logical view of that data. A) database management software (DBMS) B) database manager C) data warehouse D) data dictionary

A) database management software (DBMS)

1) In a relational database, requiring that every record in a table have a unique identifier is called the A) entity integrity rule. B) referential integrity rule. C) unique primary key rule. D) foreign key rule.

A) entity integrity rule.

12) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vineyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. His unique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. As you look over his records, you notice that some customer last names have different first names in different records. For example, R. Framington Farnsworth, Bob Farnsworth, and Snake Farnsworth all seem to be the same person. You explain to Kai that every customer must be identified by a unique customer number in the AIS. You are referring to the A) entity integrity rule. B) referential integrity rule. C) update anomaly. D) insert anomaly.

A) entity integrity rule.

According to The Sarbanes-Oxley Act of 2002, the audit committee of the board of directors is directly responsible for A) hiring and firing the external auditors. B) performing tests of the company's internal control structure. C) certifying the accuracy of the company's financial reporting process. D) overseeing day-to-day operations of the internal audit department.

A) hiring and firing the external auditors.

3) The logical view of a database system refers to A) how a user or programmer conceptually organizes and understands the data. B) how the DBMS accesses data for a certain application program. C) how and where the data are physically arranged and stored. D) how master files store data values used by more than one application program.

A) how a user or programmer conceptually organizes and understands the data.

Which component of the COSO Enterprise Risk Management Integrated Framework is concerned with understanding how transactions are initiated, data are captured and processed, and information is reported? A) information and communication B) internal environment C) event identification D) objective setting

A) information and communication

12) A data warehouse A) is primarily used for analysis rather than transaction processing. B) stores transaction processing records in hard copy. C) replaces traditional transaction processing databases. D) increases the speed of transaction processing.

A) is primarily used for analysis rather than transaction processing.

12) Kekoa Konani is chairman of the Chatty Chihuahua Club, where he maintains a database of registered purebred Chihuahuas and their breeding history. One table will store the name, birth date, and other characteristics of all of the registered Chihuahuas. Each Chihuahua is uniquely identified by a registration number. A second table will contain data that link each Chihuahua to its male and female parents by means of their registration numbers. The entities described by the first table are A) marmosets. B) parental relationships. C) registration numbers. D) names.

A) marmosets.

8) The update anomaly in non-normalized database tables A) occurs because of data redundancy. B) restricts addition of new fields or attributes. C) results in records that cannot be updated. D) is usually easily detected by users.

A) occurs because of data redundancy.

According to the COSO Enterprise Risk Management Framework, the risk assessment process incorporates all of the following components except A) reporting potential risks to auditors. B) identifying events that could impact the enterprise. C) evaluating the impact of potential events on achievement of objectives. D) establishing objectives for the enterprise.

A) reporting potential risks to auditors.

The COSO Enterprise Risk Management Integrated Framework stresses that A) risk management activities are an inherent part of all business operations and should be considered during strategy setting. B) effective risk management is comprised of just three interrelated components; internal environment, risk assessment, and control activities. C) risk management is the sole responsibility of top management. D) risk management policies, if enforced, guarantee achievement of corporate objectives.

A) risk management activities are an inherent part of all business operations and should be considered during strategy setting.

10) Describe what you think will be the main impact of database technology in your career.

Answers to this question could cover a wide range. Most likely the following items will be discussed or mentioned: — the probable demise of the double-entry system as the need for such redundancy is much less in a database system. — financial reporting may become more of accessing a database of corporate data in the format desired by the user than relying on financial reports prepared by accountants. — accountants will no longer need to be the filter for accounting data as users will be able to do this themselves, thus the accountants may become more decision makers and managers. — the whole notion of internal controls will become more important in the future if the accountants' role changes in relation to financial reporting.

11. Which of the following ERP approaches accomplishes the ERP implementation beginning with one department? A. The pilot method B. The modular implementation approach C. The big bang approach D. The location-wise implementation method

21. Material requirements planning (MRP) software: 1. Calculated raw materials quantities needed for manufacturing. 2. Calculated lead times on raw materials orders. 3. Calculated material needs on accounts payable data. A. 1, 2, and 3. B. 1 and 2 only. C. 2 and 3 only. D. 1 and 3 only.

23X. SAP R/3 operates on a: A. Mainframe environment with closed architecture. B. Client-server environment with open architecture. C. Client-server environment with closed architecture. D. Mainframe environment with open architecture.

28X. The sales and services module of an ERP such as SAP would include all of the following components EXCEPT: A. Sales order management. B. Procurement. C. Professional service delivery. D. Incentive and commissions management.

32. Supply chain management is: 1. The management and control of all materials. 2. The management and control of all funds related to purchasing. 3. The management of information related to the logistics process. 4. Limited to the flow of materials from vendors into the production cycle. A. 1, 2, 3, and 4 are all correct. B. 1, 2, and 3 are correct. C. 1, 2, and 4 are correct. D. 1, 3, and 4 are correct.

37. The ERP program that uses the term "back office" in reference to managerial functions and "front office" in reference to customer and sales functions is: A. SAP R/3. B. Oracle Applications. C. Peoplesoft. D. mySAP.

3X. Which of the following is NOT a feature of an ERP system's database? A. Increased efficiency B. Increased need for data storage within functional areas C. Increased customer service capability D. Increased data sharing across functional areas

42. Best of breed means: A. Picking the best ERP software on the market for the particular type of business or organization. B. Picking the best software on the market for a particular type of business process for this size of an organization. C. Picking the best consulting firm to accomplish implementation of the ERP software. D. Utilizing the most capable employees within the organization work with the implementation of the ERP application.

43. The advantage of "best of the breed" is: A. The best functionality of the ERP system as a result of total implementation. B. The best functionality of a unique process of the organization. C. Best cost of implementation of the ERP system. D. Total integration of the ERP modules

45. When computerized technology is introduced into processes, the processes A. Must utilize standardized forms and screens for data entry. B. Can be radically redesigned to take advantage of the speed and efficiency of computers to improve processing efficiency. C. Data retrieval from the databases will be restricted to upper management for analysis. D. Both B and C are correct.

5. What company developed the first true ERP systems? A. Microsoft B. Peoplesoft C. SAP D. IBM

50X. The big bang approach to implementation means that the company: A. Will buy one integrated system to accomplish all business processes. B. Implements all modules and all function areas of the ERP system at one time. C. Commences training and data cleansing throughout the organization on one date. D. Implements the business process reengineering process on a predetermined date.

53X. The advantages and disadvantages of modular implementation are: A. Full system integration is available but hardware incompatibilities exist. B. Reduces the risks associated with installation and operation of the system, but full system integration is not available. C. All employees are exposed to some portion of the ERP system but critical information is still in the legacy system. D. Critical information is still available in the legacy system but technical support is not readily available for the legacy system.

55X. ERP system benefits include all EXCEPT: A. ERP systems are built to interact with the IT systems of trading partners such as customers and suppliers. B. ERP systems are configured upon implementation to exceed any reasonable business growth in the future. C. The ERP systems incorporate modules to conduct e-commerce and e-business. D. Analytical tools that enable detailed analysis of the data are incorporated into ERP systems.

58X. If one module in the ERP system fails, A. The rest of the system will operate correctly. B. It has the potential to stop or disrupt all processes across the entire enterprise C. That one module will automatically revert to the legacy system. D. Will result in the entire system reverting to the legacy system.

59X. Operation risks with an ERP system includes all of the following EXCEPT: A. Security is a greater risk because processes are integrated. B. An unauthorized user can affect more processes in the legacy system. C. Incorrect data generated in a given process can automatically post flawed data to other processes. D. Online privacy and confidentiality risks are magnified.

6. In the late 1990s, the Y2K compatibility issue was concerned primarily with computer systems' A. File retrieval capability. B. Data storage. C. Human resource comparisons. D. Capital budgeting.

60X. As required by Sarbanes-Oxley, enhanced ERP systems provide feedback to management regarding internal controls. To effectively use the function, there are important steps that need to be taken. 1. Establish and maintain a list of compatible duties. 2. Insure that employees are given access and authority only to those parts of the system required. 3. Periodically review the user profile and change any access and authority levels as necessary. 4. Configure the ERP system to track and report any instances where an employee initiated or records any event. 5. Monitoring the periodic reports or real-time reports by the appropriate manager to determine if user profiles have changed. A. 1, 2, 3, 4, 5 B. 2, 3, 5 C. 1, 2, 4, 5 D. 2, 3, 4, 5

61. With the proper implementation of an ERP system: A. Fraud due to inappropriate transaction recording is eliminated. B. Employee IDs, passwords, and segregated duties aid in internal control measures. C. Audit trails are not necessary due to ID and password security concepts. D. All of the above, A, B, and C, are correct answers.

Which internal control framework is widely accepted as the authority on internal controls? A) COBIT B) COSO Integrated Control C) COSO Enterprise Risk Management D) Sarbanes-Oxley Control Framework

B) COSO Integrated Control

17) When the human resources manager wants to gather data about salary and start date by employees and by departments, the manager would use which language? A) Data Manipulation Language B) Data Query Language C) Data Report Language D) Data Definition Language

B) Data Query Language

3) Which statement is true regarding file systems? A) Transaction files are similar to ledgers in a manual AIS. B) Multiple master files create problems with data consistency. C) Transaction files are permanent. D) Individual records are never deleted in a master file.

B) Multiple master files create problems with data consistency.

16) Helen Fume is a recruiter with The Ladders in Nome, Alaska. The Ladders success is largely attributable to its accounting information system. When a client is hired by an employer, Helen creates a record that identifies the employment relationship. Helen follows up on placements by surveying both employers and clients about the employment experience and then entering the results into the AIS. Clients are uniquely identified by social security number. In records that contain client survey data, the social security number is likely to be A) the primary key. B) a foreign key. C) combined with other data fields to form a primary key. D) null.

B) a foreign key.

5) A relational database in which customer data is not maintained independently of sales invoice data will most likely result in A) an update anomaly. B) an insert anomaly. C) a delete anomaly. D) an integrity anomaly.

B) an insert anomaly.

Identify the preventive control below. A) reconciling the bank statement to the cash control account B) approving customer credit prior to approving a sales order C) maintaining frequent backup records to prevent loss of data D) counting inventory on hand and comparing counts to the perpetual inventory records

B) approving customer credit prior to approving a sales order

18) How do users retrieve data stored in a database? A) by viewing the appropriate data tables B) by executing a query C) by performing a search D) by specifying the primary keys

B) by executing a query

10) The ________ contains information about the structure of the database. A) data definition language B) data dictionary C) data warehouse D) database management system

B) data dictionary

4) 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.

B) decentralized management of data.

Duplicate checking of calculations is an example of a ________ control, and procedures to resubmit rejected transactions are an example of a ________ control. A) corrective; detective B) detective; corrective C) preventive; corrective D) detective; preventive

B) detective; corrective

20) Which of the following elements link rows in one table to rows in another table? A) primary keys B) foreign keys C) semantic keys D) link keys

B) foreign keys

15) Which of the following is not a violation of the Sarbanes-Oxley Act (SOX)? The management at Oanez Dinnerware A) asked their auditors to make recommendations for the redesign of their information technology system and to aid in the implementation process. B) hired the manager from the external audit team as company CFO twelve months after the manager had worked on the audit. C) selected the company's Chief Financial Officer to chair the audit committee. D) did not mention to auditors that the company had experienced significant losses due to fraud during the past year.

B) hired the manager from the external audit team as company CFO twelve months after the manager had worked on the audit.

4) Inability to add new data to a database without violating the basic integrity of the database is referred to as the A) update anomaly. B) insert anomaly. C) integrity anomaly. D) delete anomaly.

B) insert anomaly.

6) Shahnaz Vijaya is a new graduate who has been hired by a family-owned furniture manufacturing company in the south. She has been asked to analyze the company's accounting information system and to recommend cost-effective improvements. After noting that the production and sales departments use database systems that are entirely separated, she recommends that they be combined. Implementation of her recommendation would benefit the company by contributing to data A) independence. B) integration. C) redundancy. D) qualifications.

B) integration.

20) A ________ is an abstract representation of a database's contents. A) schema B) logical data model C) physical view D) data dictionary

B) logical data model

11) Ama Afolayan is chair of the National Owl Society, which maintains a database of all rare owls within the United States. One table will store the name, birth date, and other characteristics of all of the owls that have been registered. Each owl is uniquely identified by a registration number. A second table will contain data that link each owl to its male and female parents by means of their registration numbers. The entities described by the second table are A) owls. B) parental relationships. C) registration numbers. D) names.

B) parental relationships.

11) Which of the following would not be found in a data dictionary entry for a data item? A) records containing a specific data item B) physical location of the data C) source of the data item D) field type

B) physical location of the data

2) The database requirement that foreign keys must be null or have a value corresponding to the value of a primary key in another table is formally called the A) entity integrity rule. B) referential integrity rule. C) unique primary key rule. D) foreign key rule.

B) referential integrity rule.

3) In a well-structured database, the constraint that ensures the consistency of the data is known as the A) entity integrity rule. B) referential integrity rule. C) unique primary key rule. D) foreign key rule.

B) referential integrity rule.

13) Kekoa Konani is chairman of the Chatty Chihuahua Club, where he maintains a database of registered purebred Chihuahuas and their breeding history. One table will store the name, birth date, and other characteristics of all of the registered Chihuahuas. Each Chihuahua is uniquely identified by a registration number. A second table will contain data that link each Chihuahua to its male and female parents by means of their registration numbers. The primary key in the first table is A) name. B) registration number. C) date of birth. D) relationship number.

B) registration number.

5) The logical structure of a database is described by the A) data dictionary. B) schema. C) database management system. D) context diagram.

B) schema.

Which of the following is a control related to design and use of documents and records? A) locking blank checks in a drawer or safe B) sequentially prenumbering sales invoices C) reconciling the bank statement to the general ledger D) comparing physical inventory counts with perpetual inventory records

B) sequentially prenumbering sales invoices

22) Cornelia Cassidy is a telecom equipment sales representative. Her company has provided her with a laptop computer that uses wireless connectivity to access the accounting information system from virtually anywhere in the country. She, and other sales reps, have access to view customer and product information. All sales reps also have access that allows them to enter and cancel customer orders. The permissions for Cornelia define a ________ in the company's database management system. A) conceptual-level schema B) subschema C) data dictionary D) physical view

B) subschema

11) Databases were originally developed to address which problem? A) to replace the double entry-system B) to address the proliferation of master files C) to increase the speed that an organization could process transactions D) to decrease the costs associated with manual accounting systems

B) to address the proliferation of master files

Why did COSO develop the Enterprise Risk Management framework? A) to improve the audit process B) to improve the risk management process C) to improve the financial reporting process D) to improve the manufacturing process

B) to improve the risk management process

The primary purpose of the Foreign Corrupt Practices Act of 1977 was A) to require corporations to maintain a good system of internal control. B) to prevent the bribery of foreign officials by American companies. C) to require the reporting of any material fraud by a business. D) All of the above are required by the act.

B) to prevent the bribery of foreign officials by American companies.

21) Suppose a relational database contained two linked tables. Which of the following items is not necessarily present in the database? A) two primary keys B) two foreign keys C) at least one column D) one foreign key

B) two foreign keys

38. The first "pure Internet" architecture, with no programming code residing on the client computer was: A. SAP R/3. B. Oracle Applications. C. Peoplesoft. D. mySAP.

19. Within an ERP program: A. The operational database contains five to ten years of transaction histories. B. The data warehouse is updated as daily transactions are recorded. C. The data warehouse contains five to ten years of transaction histories. D. The data warehouse information is available to sales personnel for customer histories.

24. Y2K compatibility issues arose because: A. Older computer systems recorded dates in mm/dd/yyyy formats and memory for these was expense. B. Older computer systems recorded dates in mm/dd/yyyy formats and memory in older systems was unreliable. C. Old computer systems kept dates in mm/dd/yy formats. D. Memory in older systems would fail when challenged with a mm/dd/yy formatted date.

29X. The analytics module of an ERP system such as SAP would include all of the following EXCEPT: A. Financial analysis B. Strategic enterprise management C. Project portfolio management D. Workforce analysis

31. To employ analytical processes on the organization's data: A. Data mining is performed on the operational database. B. Data is uploaded to the analytics module's database. C. Data mining is performed on the data warehouse. D. Data is uploaded to the financials module's database.

40A. One of the largest risks of ERP systems in the cloud is: A. The potential service outage that might cause the system to be unavailable. B. The risk of hacking into the system by competitors. C. The intense cost of training employees to work in the cloud environment. D. The high cost of the investment in hardware to handle the systems in the cloud.

46. Business process reengineering means: A. Configuring the business processes to conform to the functionality of the IT system. B. Configuring the IT system to the business process for best processing speed. C. Matching the IT and business processes to achieve the greatest mutual benefit from each. D. Configuring both IT and business processes to meet the goals of ERP.

49X. Data conversion will: 1. Require an appropriate amount of time be devoted to the conversion. 2. Be done at a minimal cost. 3. Import data from many legacy systems into a single RDBMS. 4. Require cleansing of errors and configuration inconsistencies. A. 1, 2, 3, and 4. B. 1, 2, and 4 only. C. 1, 3, and 4 only. D. 1, 2, and 3 only.

51X. All of the following are implementation of software systems EXCEPT: A. The big bang implementation. B. Location-wise implementation. C. Progressive implementation. D. Modular implementation.

52X. When one site is utilized as the pilot approach to ERP, the implementation method is referred to as: A. Big bang implementation. B. Hardware implementation. C. Location-wise implementation. D. Modular implementation.

6) How many principles are there in the 2013 updated COSO - Internal Control Framework? A) 5 B) 8 C) 17 D) 21

C) 17

5) Identify the aspect of a well-structured database that is incorrect. A) Data is consistent. B) Redundancy is minimized and controlled. C) All data is stored in one table or relation. D) The primary key of any row in a relation cannot be null.

C) All data is stored in one table or relation.

1) ________ in a well-structured relational database. A) Every table must be related to all other tables B) One table must be related to at least one other table C) Every table must be related to at least one other table D) One table must be related to all other tables

C) Every table must be related to at least one other table

Identify the statement below which is true. A) Requiring two signatures on checks over $20,000 is an example of segregation of duties. B) Although forensic specialists utilize computers, only people can accurately identify fraud. C) Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes. D) Re-adding the total of a batch of invoices and comparing the total with the first total you calculated is an example of an independent check.

C) Internal auditors, rather than external auditors, can conduct evaluations of effectiveness of Enterprise Risk Management processes.

________ is not a risk responses identified in the COSO Enterprise Risk Management Framework. A) Acceptance B) Avoidance C) Monitoring D) Sharing

C) Monitoring

Which of the following is not a principle related to information and communicating in the updated COSO Integrated Control framework? A) Communicate relevant internal control matters to external parties. B) Obtain or generate relevant, high-quality information to support internal control. C) Surround internal control processes with information technology that enables discrepancies to be identified. D) Internally communicate the information necessary to support the other components of internal control.

C) Surround internal control processes with information technology that enables discrepancies to be identified.

11) Congress passed this federal law for the purpose of preventing financial statement fraud, to make financial reports more transparent and to strengthen the internal control of public companies. A) Foreign Corrupt Practices Act of 1977 B) The Securities Exchange Act of 1934 C) The Sarbanes-Oxley Act of 2002 D) The Control Provision of 1998

C) The Sarbanes-Oxley Act of 2002

6) The schema that provides an organization-wide view of the entire database is known as the A) external-level schema. B) internal-level schema. C) conceptual-level schema. D) logical view of the database.

C) conceptual-level schema.

7) Merlin Frodo has been doing custom piercings and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He keeps meticulous records of every job he has ever completed. These have been entered into a computerized accounting information system that his accountant refers to as a "data warehouse." Merlin is considering adding scarification to his service offerings and has asked his accountant to identify past customers who might be likely candidates for this service. Merlin wants his accountant to engage in A) customer auditing. B) customer resource management. C) data mining. D) enterprise resource planning.

C) data mining.

3) The ________ is responsible for the database. A) database master B) database manager C) database administrator D) data coordinator

C) database administrator

2) The combination of the database, the DBMS, and the application programs that access the database through the DBMS is referred to as the A) data warehouse. B) database administrator. C) database system. D) database management system.

C) database system.

6) The problem of losing desired information from a database when an unwanted record is purged from the database is referred to as the ________ anomaly. A) purge B) erase C) delete D) integrity

C) delete

19) In a well-structured relational database, A) foreign keys cannot be null. B) there must be at least two foreign keys. C) every column in a row must be single valued. D) one table must be related to all other tables.

C) every column in a row must be single valued.

6) In the database design approach known as normalization, the first assumption made about data is A) there is no redundancy in the data. B) the delete anomaly will not apply since all customer records will be maintained indefinitely. C) everything is initially stored in one large table. D) the data will not be maintained in 3NF tables.

C) everything is initially stored in one large table.

23) Cornelia Cassidy is a telecom equipment sales representative. Her company has provided her with a laptop computer that uses wireless connectivity to access the accounting information system from virtually anywhere in the country. She has access to view customer and product information. She also has access that allows her to enter and cancel customer orders. The permissions for Cornelia (and other sales reps) define a ________ in the company's database management system. A) conceptual-level schema B) data dictionary C) external-level schema D) physical view

C) external-level schema

7) A set of individual user views of the database is called the A) conceptual-level schema. B) internal-level schema. C) external-level schema. D) meta-schema.

C) external-level schema.

1) The physical view of a database system refers to A) how a user or programmer conceptually organizes and understands the data. B) how the DBMS accesses data for a certain application program. C) how and where the data are physically arranged and stored. D) how master files store data values used by more than one application program.

C) how and where the data are physically arranged and stored.

The first step of the risk assessment process is generally to A) identify controls to reduce all risk to zero. B) estimate the exposure from negative events. C) identify the threats that the company currently faces. D) estimate the risk probability of negative events occurring.

C) identify the threats that the company currently faces.

Best Friends, Incorporated is a publicly traded company where three BFF's (best friends forever) serve as its key officers. This situation A) is a violation of the Sarbanes-Oxley Act. B) violates the Securities and Exchange Act. C) increases the risk associated with an audit. D) must be changed before your audit firm could accept the audit engagement.

C) increases the risk associated with an audit.

9) Record layouts, definitions, addresses, and indexes will be stored at the ________ level schema. A) external B) conceptual C) internal D) meta

C) internal

1) Using a file-oriented approach to data and information, data is maintained in A) a centralized database. B) many interconnected files. C) many separate files. D) a decentralized database.

C) many separate files.

12) Which of the following was not an important change introduced by the Sarbanes-Oxley Act of 2002? A) new roles for audit committees B) new rules for auditors and management C) new rules for information systems development D) the creation of the Public Company Accounting Oversight Board

C) new rules for information systems development

Internal control is often referred to as a(n) ________, because it permeates an organization's operating activities and is an integral part of management activities. A) event B) activity C) process D) system

C) process

The audit committee of the board of directors A) is usually chaired by the CFO. B) conducts testing of controls on behalf of the external auditors. C) provides a check and balance on management. D) does all of the above.

C) provides a check and balance on management.

The Director of Information Technology for the city of Tampa, Florida formed a company to sell computer supplies and software. All purchases made on behalf of the City were made from her company. She was later charged with fraud for overcharging the City, but was not convicted by a jury. The control issue in this case arose because the Director had both ________ and ________ duties. A) custody; authorization B) custody; recording C) recording; authorization D) management; custody

C) recording; authorization

Which attribute below is not an aspect of the COSO ERM Framework internal environment? A) enforcing a written code of conduct B) holding employees accountable for achieving objectives C) restricting access to assets D) avoiding unrealistic expectations

C) restricting access to assets

29) The REA is an example of a database that uses a ________ data modeling approach to database design. A) schema B) logical C) semantic D) normalization

C) semantic

COSO requires that any internal deficiencies identified through monitoring be reported to whom? A) the external auditor B) appropriate federal, state, or local authorities C) the board of directors D) the audit committee

C) the board of directors

Why was the original 1992 COSO - Integrated Control framework updated in 2013? A) Congress required COSO to modernize. B) U.S. stock exchanges required more disclosure. C) to more effectively address technological advancements D) to comply with International accounting standards

C) to more effectively address technological advancements

7) Identify one potential outcome of the delete anomaly. A) inconsistent data B) inability to add new data C) unintentional loss of data D) none of the above

C) unintentional loss of data

10) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vineyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. His unique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. As you look over his records, you realize that sometimes the same customer is recorded by a slightly different name. For example, Mike Mulligan bought a horse statue, M. Mulligan bought a pig statue, and Mike M. all seem to be the same person. This is an example of what type of problem in the existing records? A) entity integrity B) referential integrity C) update anomaly D) insert anomaly

C) update anomaly

40. Select the true statement from the following: A. The strength of SAP is its human resources capabilities. B. The strength of Peoplesoft is its manufacturing capabilities. C. The strength of SAP is its financial reporting capabilities. D. The strength of Peoplesoft is its human resources capabilities.

44. Business process reengineering (BPR): 1. Aligns business processes with IT systems to record processes. 2. Reengineer the underlying processes to be more effective. 3. Improves the efficiency of the underlying process through automation. 4. Requires significant investment in IT resources. 5. Does not have a mutual enhancement effect with IT. A. 1, 2, 3, 4, and 5. B. 1, 3, 4, and 5 only. C. 1, 2, 3, and 5 only. D. 1, 3, and 4 only.

48. Customizing an ERP system: 1. Will tailor the ERP system to the user. 2. May have a prohibitive cost. 3. May hinder future system upgrades. 4. Is recommended wherever possible. A. 1, 2, 3, and 4. B. 1, 2, and 4 only. C. 1, 3, and 4 only. D. 1, 2, and 3 only.

Nolwenn Limited has been diligent in ensuring that their operations meet modern control standards. Recently, they have extended their control compliance system by incorporating policies and procedures that require the specification of company objectives, uncertainties associated with objectives, and contingency plans. Nolwenn Limited is transitioning from a ________ to a ________ control framework. A) COSO-Integrated Framework; COBIT B) COBIT; COSO-Integrated Framework C) COBIT; COSO-ERM D) COSO-Integrated Framework; COSO-ERM E) COSO-ERM; COBIT

D) COSO-Integrated Framework; COSO-ERM

19) ________ is a feature in many database systems that simplifies the creation of reports by allowing users to specify the data elements desired and the format of the output. A) Report printer B) Report creator C) Report generator D) Report writer

D) Report writer

8) Which of the statements below is incorrect? A) Semantic data modeling facilitates the efficient design of databases. B) Semantic data modeling facilitates communicating with the intended users of the system. C) Semantic data modeling allows a database designer to use knowledge about business processes to design the database. D) Semantic data modeling follows the rules of normalization in the design of a database.

D) Semantic data modeling follows the rules of normalization in the design of a database.

10) Ama Afolayan is chair of the National Owl Society, which maintains a database of all rare owls within the United States. One table will store the name, birth date, and other characteristics of all of the owls that have been registered. Each owl is uniquely identified by a registration number. A second table will contain data that link each owl to its male and female parents by means of their registration numbers. The primary key in the second table is A) name. B) birth date. C) the same as the primary key in the first table. D) a combination of primary keys in the first table.

D) a combination of primary keys in the first table.

9) Ama Afolayan is chair of the National Owl Society, which maintains a database of all rare owls within the United States. One table will store the name, birth date, and other characteristics of all of the owls that have been registered. Each owl is uniquely identified by a registration number. A second table will contain data that link each owl to its male and female parents by means of their registration numbers. The primary key in the first table is A) name. B) birth date. C) the primary key in the second table. D) a foreign key in the second table.

D) a foreign key in the second table.

Applying the COBIT5 framework, monitoring is the responsibility of A) the CEO. B) the CFO. C) the board of directors. D) all of the above

D) all of the above

The COBIT5 framework primarily relates to A) best practices and effective governance and management of private companies. B) best practices and effective governance and management of public companies. C) best practices and effective governance and management of information technology. D) best practices and effective governance and management of organizational assets.

D) best practices and effective governance and management of organizational assets.

Which of the below is not a component of the COSO ERM? A) monitoring B) control environment C) risk assessment D) compliance with federal, state, or local laws

D) compliance with federal, state, or local laws

1) What acts as an interface between the database and the various application programs? A) data warehouse B) database administrator C) database system D) database management system

D) database management system

Which of the following is not one of the five principles of COBIT5? A) meeting stakeholder needs B) covering the enterprise end-to-end C) enabling a holistic approach D) improving organization efficiency

D) improving organization efficiency

11) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vineyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. His unique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. As you look over his records, you realize that some customers bought multiple statues at the same time. For example, Yasmeen Ghuari bought a Tin Man Status, a flying horseman statue, and a terrier statue. You realize that in these cases, a single written record will have to be translated into multiple sales records. This is an example of what type of problem in the existing records? A) entity integrity B) referential integrity C) update anomaly D) insert anomaly

D) insert anomaly

2) File-oriented approaches create problems for organizations because of A) multiple transaction files. B) a lack of sophisticated file maintenance software. C) multiple users. D) multiple master files.

D) multiple master files.

15) Kai Keoni has created custom statues made out of scrap metal for over ten years. He lives above his shop in Martha's Vinyard, Maryland. Kai is an accounting fanatic and has kept detailed records of every statue he has ever created. For every sale, he obtains the customer's name and address, a description of the statue, and a picture of the statue sold to the customer. His unique style has recently attracted the attention of several celebrities. Ready to take his business to the next level, Kai has hired you to construct an accounting information system, which he wants modeled after his paper records. You begin development of the relational database that will form the core of the AIS by envisioning the record stored in a single table with a column that represents each attribute. You then begin to break this table down into smaller tables. This process is called A) integration. B) optimization. C) minimization. D) normalization.

D) normalization.

5) Which is probably the most immediate and significant effect of database technology on accounting? A) replacement of the double entry-system B) change in the nature of financial reporting C) elimination of traditional records such as journals and ledgers D) quicker access to and greater use of accounting information in decision-making

D) quicker access to and greater use of accounting information in decision-making

14) Kekoa Konani is chairman of the Chatty Chihuahua Club, where he maintains a database of registered purebred Chihuahuas and their breeding history. One table will store the name, birth date, and other characteristics of all of the registered Chihuahuas. Each Chihuahua is uniquely identified by a registration number. A second table will contain data that link each Chihuahua to its male and female parents by means of their registration numbers. The primary key in the second table is A) name. B) registration number. C) date of birth. D) relationship number.

D) relationship number.

7) The database design method in which a designer uses knowledge about business processes to create a diagram of the elements to be included in the database is called A) normalization. B) decentralization. C) geometric data modeling. D) semantic data modeling.

D) semantic data modeling.

Applying the COBIT5 framework, governance is the responsibility of A) internal audit. B) external audit. C) management. D) the board of directors.

D) the board of directors

13) Reports produced using the data dictionary could include all of the following except a list of A) programs where a data item is used. B) synonyms for the data items in a particular file. C) outputs where a data element is used. D) the schemas included in a database.

D) the schemas included in a database.

3) The ________ occurs when more than one occurrence of a specific data item in a database exists. A) inconsistency anomaly B) insert anomaly C) delete anomaly D) update anomaly

D) update anomaly

27) List the four DBMS "languages" and describe who uses each and for what purpose.

DDL is the data definition language used by the DBA (database administrator) to create, initialize, describe logical views, and specify security limits. The DML is the data manipulation used by application programmers who embed these action commands into applications to access data in the database. The DQL is the data query language used by IT professionals and users to interrogate the database by retrieving and presenting data in novel ways often on an ad hoc basis. The report writer is a language used by IT professionals and users that simplifies report creation so reports can be created according to user-specified format.

8) Describe a major advantage of database systems over file-oriented transaction processing systems.

Database systems separate logical and physical views. This separation is referred to as program-data independence. Such separation facilitates developing new applications because programmers can concentrate on coding the application logic (what the program will do) and do not need to focus on how and where the various data items are stored or accessed. In the file-oriented transaction systems, programmers need to know physical location and layout of records which adds another layer of complexity to programming.

17) What are the basic requirements when logically designing a relational database model?

Every row in every table must have a unique key known as a primary key. Tables may also have a key known as a foreign key; such a key will have a value corresponding to the primary key in another table. Each column in a table must be single-valued (the same data type) and describe an attribute of the entity identified by the primary key; neither column nor row order is significant in the relational model. Keep in mind that the relational model is a logical model, and the physical model may have a different structure to it to facilitate the storage and access to data.

102. Customizing an ERP system is recommended wherever the business has an existing process to accomplish a goal and that process is not compatible with the ERP system.

110X. Modular implementation and pilot implementation are both considered methods of implementation.

113. The real-time nature of processing increases the total processing time and precludes immediate feedback to management.

122. Due to their level of integration, ERP systems have difficulties in properly segregating duties.

65. An enterprise resource planning (ERP) system would update accounts receivable and inventory when purchased goods are received from a vendor.

68X. ERP applications use modules such as financials, human resources, data warehouse, and analytics.

73. The purpose of MRP II was to integrate manufacturing, engineering, marketing, finance, and human resources units to run on the same information system.

74. SAP R/3 had tremendous growth due to the use of closed architecture and client-server hardware compatibility.

78. Spending for ERP and ERP II systems has been consistently growing since the mid 1990s and the Y2K events.

81. ERP systems such as SAP normally batch their financial transactions for processing due to the large amounts of data.

86. Sales and service is a term for software solutions that help businesses manage customer relationships in an organized way.

93. Peoplesoft uses the terms "back office" in reference to managerial functions and "front office" in reference to customer and sales functions.

94X. SAP was the first "pure Internet" architecture, with no programming code residing on the client computer.

96A. The differences between Tier One and Tier Two software are becoming more definitive as the Tier One vendors attempt to attract larger companies.

96D. One of the greatest risks of ERP cloud systems is their vulnerability to hackers.

9) Explain the difference between file-oriented transaction processing systems and relational database systems. Discuss the advantages and disadvantages of each system.

In file-oriented approaches, different users (or departments, units, etc.) maintain their own data and use different application programs. This results in a significant increase in number of master files stored by an organization. The various disadvantages of file-oriented organization include data redundancy, data inconsistencies, lack of data integration, a large number of data files, substantial program-data dependence, lack of compatibility, and lack of data sharing. The database approach views data as an organizational resource that should be used and managed for the entire organization. The program that manages and controls the data and the interfaces between data and application programs is called the database management system (DBMS). The various advantages of database approach include the following: minimal data redundancy, fewer data inconsistencies, data integration, data sharing, reporting flexibility, central management of data, cross-functional analysis, and data independence.

13) Explain the types of attributes that tables possess in a relational database.

Primary key — the attribute, or combination of attributes, that uniquely identify a specific row in a table. Foreign key — an attribute appearing in one table that is a primary key in another table. Nonkey attributes found in tables — For example, an inventory table may contain information about the description, quantity on hand, and list price of each item a company sells.

15) Discuss redundancy as it applies to database design.

Redundancy has been called an enemy of relational databases. There are several problems that may occur when redundant data is stored in a database. First, the database becomes larger than it needs to be, since duplicate facts are being stored within it. Second, a situation may occur where only one instance of redundant data is updated or purged. The result is that the accuracy and integrity of the database suffers, since users may be relying on such inaccurate or incorrect redundant data. Redundancy can also make file maintenance unnecessarily time consuming and error-prone when human intervention is required. The problems discussed above have been identified as anomalies of a relational database. There are three specific anomalies connected with redundancy: the update anomaly, the insert anomaly, and the delete anomaly. A well-designed relational database will attempt to reduce or eliminate the number of instances of redundant data. The best way to achieve such a goal is proper design of the database for the needs of a specific organization.

14) Explain the two advantages semantic data modeling has over normalization when designing a relational database.

Semantic data modeling takes advantage of a system designer's knowledge about the business policies and practices of an organization. This is of great benefit in the design of transaction processing databases. Also, since the database model is created around the policies and practices of an organization, communications with the future database users is facilitated. The result is that the system will more closely meet the needs of the intended users.

100. Business process reengineering (BPR) is the purposeful and organized changing of business processes to make them more efficient.

103. Customizing an ERP system should be limited due to cost and upgrading to the system in the future.

111X. Location-wise implementation and pilot implementation are both considered methods of implementation.

112. The real-time nature of processing decreases the total processing time and allows more immediate feedback to management.

114. ERP systems are built to interact with the IT systems of trading partners such as customers and suppliers.

118. Since the sale of goods in an ERP system may automatically trigger more production, which in turn would trigger the purchase of raw materials there is a significant need to ensure that these integrated processes are triggered at the correct time and in the correct amounts.

121A. The assigning of access and authority for a specific user ID is referred to as a user profile.

62. The intent of an ERP (enterprise resource planning) system is to provide a single software application for revenue, expenditures, conversion, and administrative processes.

64. An enterprise resource planning (ERP) system integrates all business processes and functions into a single software system using a single database.

72. Early MRP applications utilized sales forecasts to compute material requirements for production.

76X. ERP II has additional modules including customer relationship management and supply chain management for enhanced e-commerce transactions.

84. Supply Chain Management integrates supply and demand management within and across companies.

96B. All ERP vendors have developed cloud-based ERP products.

28) Describe the information that is contained in the data dictionary.

The data dictionary contains information about the structure of the database. For each data element stored in the database, the data dictionary contains all the descriptive information about it, such as its name, description, where it is recorded, its source, field length, type of field, programs it is used in, outputs that contain it, and authorized users.

2) What is the difference in logical view and physical view?

The logical view is how the user or programmer conceptually organizes and understands the data, such as data organized in a table. The physical view, on the other hand, refers to how and where the data are physically arranged and stored in the computer system

A data flow diagram A) is a graphical description of the source and destination of data that shows how data flow within an organization. B) is a graphical description of the flow of documents and information between departments or areas of responsibility. C) is a graphical description of the relationship among the input, processing, and output in an information system. D) is a graphical description of the sequence of logical operations that a computer performs as it executes a program.

A well-planned and drawn context data flow diagram will include how many processes? A) One B) Between 5 and 7 C) Between 2 and 7, but no more than 7 D) As many as are needed to accurately depict the process being documented

All of the following are guidelines for preparing data flow diagrams except A) show the most detail in the highest-level DFD. B) include all storage files, even if they are only temporary. C) uniquely name all data flows. D) sequentially number process bubbles.

Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to document the existing accounting information system, and focus on the activities and flow of data between activities. He decides to begin with a summary description of the sources and uses of data in the organization and how they are processed by the system. 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.

Chuck and Jill Scruggs travel in their motor home six months of the year and buy unique artifacts. Within hours after the Scruggs make a purchase, they have photographed it, written a description of it, and posted it for sale on eBay with a reservation price. Anything that does not sell is shipped back to Austin, Texas, for display in The House of Curiosities, a retail business that the Scruggs operate during the balance of the year. Which symbol should be used to -represent- eBay in a context diagram of this process? A) rectangle B) circle C) arrow up and right D) parallel horizontal lines

Data flow diagrams depict A) processes, but not who is performing the processes. B) processes, but not the data that flows between processes. C) who is performing processes, but not how they perform the process. D) who is performing processes, but not the data that flows between processes.

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.

In a data flow diagram of the customer payment process, "Customer" will appear above or in A) a square. B) a circle. C) two horizontal lines. D) none of the above

In a payroll processing DFD, the "prepare reports" activity will be represented by ________, the "employee payroll file" will be represented by ________, and the "management" will be represented by ________. A) a circle; two horizontal lines; a square B) a circle; two horizontal lines; two horizontal lines C) a rectangle; a square; a circle D) a square; two horizontal lines; a circle

In preparing a DFD, when data are transformed through a process, the symbol used should be A) a circle. B) an arrow. C) a square. D) two horizontal lines.

The Union Soup Kitchen is a non-profit organization that collects, stores, prepares and provides food to the homeless in Erie, Pennsylvania. Donations of food are recorded in a database and a receipt is provided to the donor. When food is used, the database is updated so that it always reflects the amounts and types of food that are available. In a data flow diagram, which type of symbol would be used to represent donors? A) rectangle B) circle C) arrow up and right D) parallel horizontal lines

When preparing a document flowchart, the names of organizational departments or job functions should appear in the A) column headings. B) right-hand margin. C) written narrative accompanying the flowchart. D) title of the flowchart.

Which of the following is not true about program flowcharts? A) Program flowcharts are a high-level overview of all business processes. B) Program flowcharts document the processing logic of computer programs. C) A program flowchart will exist for every computer process symbol on a system flowchart. D) Program flowcharts increase computer programmer productivity.

Auditors of ERP systems a. are concerned about segregation of duties just as they would be in traditional systems. b. focus on output controls such as independent verification because internal processing controls are known to be correct since best practices are used. c. routinely audit data in the data warehouse because it is know to be clean and free from errors. d. need not review access levels granted to users since these are determined when the system is configured and never change.

a. are concerned about segregation of duties just as they would be in traditional systems.

Which of the following is usually not part of an ERP's OLAP applications? a. logistics b. decision support systems c. ad hoc analysis d. what-if analysis

a. logistics

Separating the data warehouse from the operations databases occurs for all of the following reasons except a. to make the management of the databases more economical b. to increase the efficiency of data mining processes c. to integrate legacy system data into a form that permits entity-wide analysis d. to permit the integration of data from diverse sources

a. to make the management of the databases more economical

Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to thoroughly document the existing accounting information system in preparation for making recommendations for improvements to internal controls. He 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.

Chuck and Jill Scruggs travel in their motor home six months of the year and buy unique artifacts. Within hours after the Scruggs make a purchase, they have photographed it, written a description of it, and posted it for sale on eBay with a reservation price. Anything that does not sell is shipped back to Austin, Texas, for display in The House of Curiosities, a retail business that the Scruggs operate during the balance of the year. Which symbol should be used to represent the preparation of data for -submission- to eBay in a context diagram of this process? A) rectangle B) circle C) arrow up and right D) parallel horizontal lines

Graphical representations of information are often supplemented by A) product specifications. B) narrative descriptions. C) logic charts. D) oral descriptions from management.

In a data flow diagram of the customer payment process, "update receivables" will appear above or in A) a square. B) a circle. C) two horizontal lines. D) none of the above

In general, a data destination will be shown by A) an arrow pointing away. B) an arrow pointing in. C) arrows pointing both ways. D) no arrows, only two horizontal lines.

More than one arrow is needed between symbols on a DFD if A) data elements always flow together. B) data elements flow at different times. C) data elements flow to different locations. D) there is no guideline on use of single or multiple arrows.

The Union Soup Kitchen is a non-profit organization that collects, stores, prepares and provides food to the homeless in Erie, Pennsylvania. Donations of food are recorded in a database and a receipt is provided to the donor. When food is used, the database is updated so that it always reflects the amounts and types of food that are available. In a data flow diagram, which type of symbol would be used to represent the -processing- of donations? A) rectangle B) circle C) arrow up and right D) parallel horizontal lines

The Union Soup Kitchen is a non-profit organization that collects, stores, prepares and provides food to the homeless in Erie, Pennsylvania. Donations of food are recorded in a database and a receipt is provided to the donor. When food is used, the database is updated so that it always reflects the amounts and types of food that are available. In a data flow diagram, which type of symbol would be used to represent the process of -updating- inventory records in the system? A) rectangle B) circle C) arrow up and right D) parallel horizontal lines

Which is a true statement regarding a document flowchart? A) A document flowchart illustrates the sequence of logical operations performed by a computer. B) A document flowchart is particularly useful in analyzing the adequacy of internal control procedures. C) A document flowchart should ignore control processes and actions. D) A document flowchart is not normally used in the systems design process.

Which is a true statement regarding the use of the manual processing symbol in a flowchart? A) If a document is moved from one column to another, show the document only in the last column. B) Each manual processing symbol should have an input and an output. C) Do not connect two documents when moving from one column to another. D) Use a manual processing symbol to indicate a document being filed.

Which of the following statements is least likely to be true about a data warehouse? a. It is constructed for quick searching and ad hoc queries. b. It was an original part of all ERP systems. c. It contains data that are normally extracted periodically from the operating databases. d. It may be deployed by organizations that have not implemented an ERP.

b. It was an original part of all ERP systems.

Closed database architecture is a. a control technique intended to prevent unauthorized access from trading partners. b. a limitation inherent in traditional information systems that prevents data sharing. c. a data warehouse control that prevents unclean data from entering the warehouse. d. a technique used to restrict access to data marts. e. a database structure that many of the leading ERPs use to support OLTP applications.

b. a limitation inherent in traditional information systems that prevents data sharing.

Most ERPs are based on which network model? a. peer to peer b. client-server c. ring topology d. bus topology

b. client-server

Data warehousing processes do not include a. modeling data b. condensing data c. extracting data d. transforming data

b. condensing data

Legacy systems are a. old manual systems that are still in place. b. flat file mainframe systems developed before client-server computing became standard. c. stable database systems after debugging. d. advanced systems without a data warehouse.

b. flat file mainframe systems developed before client-server computing became standard.

Goals of ERP include all of the following except a. improved customer service b. improvements of legacy systems c. reduced production time d. increased production

b. improvements of legacy systems

Supply chain management software a. is typically under the control of external partners in the chain. b. links all of the partners in the chain, including vendors, carriers, third-party firms, and information systems providers. c. cannot be integrated into an overall ERP. d. none of the above

b. links all of the partners in the chain, including vendors, carriers, third-party firms, and information systems providers.

Auditors of ERP systems a. need not worry about segregation of duties. b. may feel that the data warehouse is too clean and free from errors. c. find independent verification easy. d. need not worry about system access since the ERP determines it.

b. may feel that the data warehouse is too clean and free from errors.

Data cleansing involves all of the following except a. filtering out or repairing invalid data b. summarizing data for ease of extraction c. transforming data into standard business terms d. formatting data from legacy systems

b. summarizing data for ease of extraction

A well-planned and drawn level 0 data flow diagram for the expenditure cycle would show which of the following processes? A) 0.1 Order Goods; 1.1 Receive and Store Goods; 2.1 Pay for Goods B) 0.1 Order Goods; 0.2 Receive and Store Goods; 0.3 Pay for Goods C) 1.0 Order Goods; 2.0 Receive and Store Goods; 3.0 Pay for Goods D) 1.0 Order Goods; 1.1 Receive and Store Goods; 1.2 Pay for Goods

Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to thoroughly document the existing accounting information system in preparation for making recommendations for improvements. He decides to begin by meeting with the information technology staff in order to develop an understanding of the overall operation of the AIS, including data entry, storage, and output. 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.

Chuck and Jill Scruggs travel in their motor home six months of the year and buy unique artifacts. Within hours after the Scruggs make a purchase, they have photographed it, written a description of it, and posted it for sale on eBay with a reservation price. Anything that does not sell within a week is shipped back to Austin, Texas, for display in The House of Curiosities, a retail business that the Scruggs operate during the balance of the year. Which symbol should be used to represent the transfer of data to eBay in a context diagram of this process? A) rectangle B) circle C) arrow up and right D) parallel horizontal lines

Most processes on a DFD can be identified by A) data in-flows only. B) data out-flows only. C) data flows both into or out of a process. D) always being followed by a data store.

The Sarbanes-Oxley Act requires independent auditors to A) create flowcharts using specialized software. B) establish and maintain adequate controls in the client's information system. C) understand a client's system of internal controls. D) prepare and understand all types of system documentation.

The Union Soup Kitchen is a non-profit organization that collects, stores, prepares and provides food to the homeless in Erie, Pennsylvania. Donations of food are recorded in a database and a receipt is provided to the donor. When food is used, the database is updated so that it always reflects the amounts and types of food that are available. In a data flow diagram, which type of symbol would be used to represent the flow of data from the donor into the system? A) rectangle B) circle C) arrow up and right D) parallel horizontal lines

Which of the following statements is not true? a. In a typical two-tier client server system, the server handles both application and database duties. b. Client computers are responsible for presenting data to the user and passing user input back to the server. c. In three-tier client server architecture, one tier is for user presentations, one is for database and applications, and the third is for Internet access. d. The database and application functions are separate in the three-tier model.

c. In three-tier client server architecture, one tier is for user presentations, one is for database and applications, and the third is for Internet access.

Which statement about ERP installation is least accurate? a. For the ERP to be successful, process reengineering must occur. b. ERP fails because some important business process is not supported. c. When a business is diversified, little is gained from ERP installation. d. The phased-in approach is more suited to diversified businesses.

c. When a business is diversified, little is gained from ERP installation.

Auditors of ERP systems a. need not be concerned about segregation of duties because these systems possess strong computer controls. b. focus on output controls such as independent verification to reconcile batch totals. c. are concerned that managers fail to exercise adequate care in assigning permissions. d. do not view the data warehouse as an audit or control issue at all because financial records are not stored there. e. need not review access levels granted to users because these are determined when the system is configured and never change.

c. are concerned that managers fail to exercise adequate care in assigning permissions.

On-line transaction processing programs a. are bolt-on programs used with commercially available ERPs. b. are available in two models-two-tier and three-tier. c. handle large numbers of relatively simple transactions. d. allow users to analyze complex data relationships.

c. handle large numbers of relatively simple transactions.

Extracting data for a data warehouse a. cannot be done from flat files. b. should only involve active files. c. requires that the files be out of service. d. follows the cleansing of data.

c. requires that the files be out of service.

Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to thoroughly document the existing accounting information system in preparation for making recommendations for improvements. He decides to begin by meeting with the information technology staff in order to develop an understanding of the computer programs used by the system. 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.

Chuck and Jill Scruggs travel in their motor home six months of the year and buy unique artifacts. Within hours after the Scruggs make a purchase, they have photographed it, written a description of it, and posted it for sale on eBay with a reservation price. Anything that does not sell is shipped back to Austin, Texas, for display in The House of Curiosities, a retail business that the Scruggs operate during the balance of the year. Which symbol should be used to represent the remote server that is used to store data while the Scruggs are traveling? A) rectangle B) circle C) arrow up and right D) parallel horizontal lines

In a DFD, a "data sink" is also known as a A) data store. B) transformation process. C) data flow. D) data destination.

In a data flow diagram of the customer payment process, "Customer payment" will appear above or in A) a square. B) a circle. C) two horizontal lines. D) an arrow.

In a document flowchart of a manual payroll processing system, "update employee file" will be shown by a(n) ________ symbol, and "prepare payroll check" will be shown by a(n) ________ symbol. A) input; output B) input; manual operation C) manual operation; output D) manual operation; manual operation

In a program flowchart, branching to alternative paths is represented by A) a terminal. B) data/information flow. C) computer operation. D) decision diamond.

The Union Soup Kitchen is a non-profit organization that collects, stores, prepares and provides food to the homeless in Erie, Pennsylvania. Donations of food are recorded in a database and a receipt is provided to the donor. When food is used, the database is updated so that it always reflects the amounts and types of food that are available. In a data flow diagram, which type of symbol would be used to represent the storage location of data in the system? A) rectangle B) circle C) arrow up and right D) parallel horizontal lines

The passage of the Sarbanes Oxley Act A) made documentation skills even more important. B) requires public companies to prepare an annual internal control report. C) mandates that auditors must be able to prepare, evaluate and read documentation tools such as flowcharts. D) all of the above

Which of the following is not a true statement? A) Documentation tools save an organization both time and money. B) Documentation tools are used extensively in the systems development process. C) Data flow diagrams and flowcharts are the two most frequently used systems development documentation tools. D) Data flow diagrams and flowcharts are difficult to prepare and revise using software packages.

Which statement is LEAST accurate? a. Implementing an ERP system has as much to do with changing the way an organization does business than it does with technology. b. The big-bang approach to ERP implementation is generally riskier than the phased in approach. c. To take full advantage of the ERP process, reengineering will need to occur. d. A common reason for ERP failure is that the ERP does not support one or more important business processes of the organization

d. A common reason for ERP failure is that the ERP does not support one or more important business processes of the organization

Which statement is true? a. ERPs are infinitely scalable. b. Performance problems usually stem from technical problems, not business process reengineering. c. The better ERP can handle any problems an organization can have. d. ERP systems can be modified using bolt-on software.

d. ERP systems can be modified using bolt-on software.

Which statements about data warehousing is not correct? a. The data warehouse should be separate from the operational system. b. Data cleansing is a process of transforming data into standard form. c. Drill-down is a data-mining tool available to users of OLAP. d. Normalization is a requirement of databases included in a data warehouse.

d. Normalization is a requirement of databases included in a data warehouse.

Which of the following is usually not part of an ERP's core applications? a. OLTP applications b. sales and distribution applications c. business planning applications d. OLAP applications

d. OLAP applications

A data mart is a. another name for a data warehouse. b. a database that provides data to an organization's customers. c. an enterprise resource planning system. d. a data warehouse created for a single function or department.

d. a data warehouse created for a single function or department.

Core applications are a. sales and distribution b. business planning c. shop floor control and logistics d. all of the above

d. all of the above

The setup of a data warehouse includes a. modeling the data b. extracting data from operational databases c. cleansing the data d. all of the above

d. all of the above

Which of the following is NOT as a risk associated with ERP implementation? a. A drop in firm performance after implementation because the firm looks and works differently than it did while using a legacy system. b. Implementing companies have found that staff members, employed by ERP consulting firms, do not have sufficient experience in implementing new systems. c. Implementing firms fail to select systems that properly support their business activities. d. The selected system does not adequately meet the adopting firm's economic growth. e. ERPs are too large, complex, and generic for them to be well integrated into most company cultures.

e. ERPs are too large, complex, and generic for them to be well integrated into most company cultures.

Which statement is most correct? a. SAP is more suited to service industries than manufacturing clients. b. J.D. Edwards's ERP is designed to accept the best practices modules of other vendors. c. Oracle evolved from a human resources system. d. PeopleSoft is the world's leading supplier of software for information management. e. SoftBrands provides enterprise software for the hospitality and manufacturing sectors.

e. SoftBrands provides enterprise software for the hospitality and manufacturing sectors.

AIS- Chapter 11, Acc 250 - 3, AIS Chapter 7, AIS Ch 4, AIS Chapter 15, f

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