aisss
1. Accounting professionals should understand database systems for all of the following reasons except: Accountants have a strong understanding of risks, controls and business processes. Accountants increasingly participate in creating internal control systems. Accountants typically manage organizations' operational databases. Accountants frequently help improve business and IT processes.
Accountants typically manage organizations' operational databases.
1. Which of the following best describes continuous auditing? Audit-related activities are peformed throughout the period under review. The full audit team remains on the client site for the entire fiscal year. The database extracts every 10th transaction and flags it for audit review. Auditors can generate greater fees by increasing the amount of manual testing performed for the client.
Audit-related activities are peformed throughout the period under review.
1. Which of the following statements is wrong regarding continuous audit? Continuous audit is used to perform audit-related activities on a continuous basis Testing in continuous audits often consists of continuous controls monitoring and continuous data assurance Technology plays a key role in continuous audit in analyzing trends and patterns of transactions, identifying exceptions and anomalies, and testing controls Continuous audit is frequently used to perform substantive tests and is used for testing of controls through transactional-data analysis
Continuous audit is frequently used to perform substantive tests and is used for testing of controls through transactional-data analysis
1. Which of the following strategies will a CPA most likely consider in auditing an entity that processes most of its financial data only in electronic form, such as a paperless system? Continuous monitoring and analysis of transaction processing with an embedded audit module. Increased reliance on internal control activities that emphasize the segregation of duties. Verification of encrypted digital certificates used to monitor the authorization of transactions. Extensive testing of firewall boundaries that restrict the recording of outside network traffic.
Continuous monitoring and analysis of transaction processing with an embedded audit module.
1. For a firm considering AIS and IT initiatives, accountants can play an important role in which of the following ways? Auditing the financial statement reports created by the new system. Implementing the controls in the new technology. Developing and reviewing the business case for the initiatives. Entering transactions into the new system.
Developing and reviewing the business case for the initiatives.
1. Which of the following best describes how using structured strategic management processes such as the Balanced Scorecard can have an impact on companies? Allows firms to more accurately estimate the cost of implementing new technologies. Enhances the efficiency and speed of supply chain transactions. Helps tie the use of supporting technologies to successful performance. Allows executives to have a dashboard view of key performance metrics.
Helps tie the use of supporting technologies to successful performance.
1. Which of the following is the best reason that companies find it hard to assess the benefit of IT investments? Difficult to assess costs Difficult to tie IT investments to company strategy IT investments become embedded in business processes None of the above
IT investments become embedded in business processes
1. Which of the following is not a reason that large IT projects require economic justification? IT is a commodity, every firm makes IT investments IT investments require large amounts of capital Capital resources are limited Major IT projects can affect substantial portions of the organization
IT is a commodity, every firm makes IT investments
1. Which of the following best explains the cause-and-effect relationships portrayed by the Balanced Scorecard? Improvements in the Process perspective leads to improvements in the Learning & Growth perspective. Improvements in the Learning & Growth and Customer perspectives lead to improvements in the Process perspective. Improvements in areas related to Customer and Process perspectives lead to improvements in the Financial perspective. Improvements in the Financial and Process perspectives lead to improvements in the Customer perspective.
Improvements in areas related to Customer and Process perspectives lead to improvements in the Financial perspective.
1. Which of the following is an example of project risk? The technology will not work as expected. The IT project is not aligned with the company's strategy. The financial benefits may not be delivered. The IT project may exceed budget.
The IT project may exceed budget.
1. What is data mining? A particular attribute of information. A common term for the representation of multidimensional data. The process of analyzing data to extract information that is not affected by the raw data alone. None of the above is correct.
The process of analyzing data to extract information that is not affected by the raw data alone.
1. The International Federation of Accountants recommends that the business case for IT investments should answer which of the following questions? Will this project require new skills? What are the risks of not doing the project? Is this project possible? Are competitors undertaking similar projects?
What are the risks of not doing the project?
1. Which of the following is the best description of the balanced scorecard? A strategic planning and management system A performance measurement framework A formal, structured approach to link IT investment to business performance All are descriptions of the balanced scorecard
all
1. Which of the following control frameworks most closely corresponds to the phases of the SDLC? COBIT. COSO 2014. COSO ERM. ISO 27000.
cobit
1. Which of the following is a key advantage of the Net Present Value metric for evaluating an IT initiative? It relates estimates using accrual accounting. It is easy to calculate. It considers the time value of money. It is sensitive to the discount rate applied.
consider Tvm
1. Which of the following best describes the core principal of accountability in the SDLC? Ensuring the presence of a verifiable audit trail in the new system. Ensuring that identification of the people responsible for implementing the IT plan is explicitly clear. Ensuring that account balances faithfully represent the underlying transactions in the new system. Ensuring that the chart of accounts in the new system conforms to GAAP.
explicitly clear
1. Which of the following is not a question that businesses should answer before making major IT investments? What key business issues does it address? What are the risks of doing the project? How will success be measured? None of the above
none
1. Which of the following risks considers the possibility that the new IT system will not be implemented on time or within budget? Solution risk. Change risk. Alignment risk. Project risk.
project risk
1. Benefits of IT initiatives should be measured in comparison to which of the following? The amount of information available. Current inputs of the existing IT processes. Revenues and costs that will occur without implementing the initiative. Non-financial aspects of the project.
rev and cos
1. Benefits of IT initiatives should be measured in comparison to which of the following? The amount of information available. Current inputs of the existing IT processes. Revenues and costs that will occur without implementing the initiative. Non-financial aspects of the project.
rev and cost
1. Organizations have developed techniques for evaluating IT projects for several reasons. Which of the following is not one of those reasons? Selecting one investment often means forgoing other potentially value-increasing investments. IT projects often require new sets of skills, which may not be readily available, or may be cost-prohibitive to build. IT projects often require large amounts of capital, and for most firms, capital resources are limited. IT projects often involve changes in business processes that will affect substantial portions of the organization.
set of skills
1. Which of the following best describes the planning phase of the systems development life cycle? Plan the detailed steps that will take place during the implementation phase. Systems analysts outline all features required in the new system, including screen layouts and business process diagrams. Summarize the business needs of the company with a high-level view of the project. The business determines its information needs and designs the system to meet those needs.
summarizes business needs