AIS Chapter 10 Exam4
33) A ________ determines the correctness of the logical relationship between two data items. A) field check B) alpha-numeric check C) range check D) reasonableness test
D
What are key processing integrity input controls
- Input Process Stage Forms design Sequentially prenumbered Turnaround documents Cancelation and storage of source documents Data entry controls
What are key availability controls
-Minimize risk of system downtime -Quick and complete recovery and resumption of normal operations
What are processing controls
1.Data matching Two or more items must be matched before an action takes place 2.File labels Ensures correct and most updated file is used 3.Recalculation of batch totals 4.Cross-footing Verifies accuracy by comparing two alternative ways of calculating the same total 5.Zero-balance tests For control accounts (e.g., payroll clearing) 6.Write-protection mechanisms Protect against overwriting or erasing data 7.Concurrent update controls Prevent error of two or more users updating the same record at the same time
Know the data entry controls
1.Field check Characters in a field are proper type 2.Sign check Data in a field is appropriate sign (positive/negative) 3.Limit check Tests numerical amount against a fixed value 4.Range check Tests numerical amount against lower and upper limits 5.Size check Input data fits into the field 6. Completeness check Verifies that all required data is entered 7. Validity check Compares data from transaction file to that of master file to verify existence 8. Reasonableness test Correctness of logical relationship between two data items 9. Check digit verification Recalculating check digit to verify data entry error has not been made 10.Batch processing - Sequence check Test of batch data in proper numerical or alphabetical sequence - Batch totals Summarize numeric values for a batch of input records Financial total Hash total Record count 11. Prompting System prompts you for input (online completeness check) 12. Closed-loop verification Checks accuracy of input data by using it to retrieve and display other related information (e.g., customer account # retrieves the customer name
46) Modest Expectations Investment Services (MEIS) allows customers to manage their investments over the Internet. If customers attempt to sell more shares of a stock than they have in their account, an error message is displayed. This is an example of a A) reasonableness test. B) field check. C) validity check. D) limit check.
A
How can a company minimize system downtime
1.Preventive maintenance 2.Fault tolerance Use of redundant components 3.Data center location and design Raised floor Fire suppression Air conditioning Uninterruptible power supply (UPS) Surge protection 4.Training 5.Patch management and antivirus software For quick and complete recovery and resumption of normal processing controls include: 1.Backup procedures Incremental Copies only items that have changed since last partial backup Differential backup Copies all changes made since last full backup 2.Disaster recovery plan (DRP) Procedures to restore organization's IT function Cold site Hot site 3.Business continuity plan (BCP) How to resume all operations, not just IT
What are output controls
1.ser review of output 2.Reconciliation procedures Procedures to reconcile to control reports (e.g., general ledger A/R account reconciled to Accounts Receivable Subsidiary Ledger) External data reconciliation 3.Data transmission controls Checksums Parity bits
10) A copy of a database, master file, or software that will be retained indefinitely as a historical record is known as a(n) A) archive. B) cloud computing. C) differential backup. D) incremental backup.
A
12) ________ is a data entry input control that requests each input data item and waits for an acceptable response, ensures that all necessary data are entered. A) Prompting B) Duplicate data check C) Closed-loop verification D) Check digit verification
A
13) All of the following controls for online entry of a sales order would be useful except A) check digit verification on the dollar amount of the order. B) validity check on the inventory item numbers. C) field check on the customer ID and dollar amount of the order. D) concurrent update control.
A
15) A payroll clerk accidentally entered an employee's hours worked for the week as 380 instead of 38. The data entry control that would best prevent this error would be A) a limit check. B) a check digit. C) batch total reconciliation. D) a field check.
A
15) The maximum acceptable down time after a computer system failure is determined by a company's A) recovery time objective. B) recovery point objective. C) recovery objective. D) maximum time recovery objective.
A
16) The data entry control that would best prevent entering an invoice received from a vendor who is not on an authorized supplier list is A) a validity check. B) an authorization check. C) a check digit. D) closed-loop verification.
A
2) The best example of an effective payroll transaction file financial total would most likely be A) sum of net pay. B) total number of employees. C) sum of hours worked. D) total of employees' social security numbers.
A
21) A validity check is an example of A) a data entry control. B) an output control. C) a data transmission control. D) an input control.
A
22) Identify the statement below which is true. A) Cloud computing is a control technique for system availability. B) Cloud computing eliminates the need for backup of applications and data. C) Cloud computing eliminates the need for companies to own their own software and servers. D) Cloud computing refers to the practice of storing application files and backup data on satellites "in the clouds."
A
25) A hash total is an example of which control below? A) Data entry control. B) Data transmission control. C) Processing control. D) Output control.
A
25) What is the primary objective of ensuring systems and information are available for use whenever needed? A) To minimize system downtime. B) To minimize system expense. C) To maximize system processing speed. D) To maximize sales.
A
26) Cancellation and storage of documents means A) documents are defaced and stored. B) documents are defaced before being shredded. C) cancellation data are copied from documents before they are stored. D) data are copied from a document and stored before it is being shredded.
A
28) With regards to systems availability, deploying and using multiple components provides an AIS with A) fault tolerance. B) cost savings. C) enhanced processing speed. D) maximum sales.
A
31) A ________ determines if all required data items have been entered. A) completeness check B) field check C) limit check D) range check
A
31) Which of the following is a key control regarding the minimization of system downtime? A) fault tolerance B) disaster recovery plans C) backup procedures D) all of the above
A
33) Which COBIT5 management practice addresses the importance of locating and designing the data centers housing mission-critical servers and databases so as to minimize the risks associated with natural and human-caused disasters? A) DSS01.04 B) DSS04.07 C) DSS03.05 D) DSS04.04
A
4) Error logs and review are an example of A) data entry controls. B) data transmission controls. C) output controls. D) processing controls.
A
42) A computer operator accidentally used the wrong master file when updating a transaction file. As a result, the master file data is now unreadable. Which control could best have prevented this from happening? A) Header record. B) Validity check. C) Trailer record. D) Parity check.
A
44) The control that protects records from errors that occur when two or more users attempt to update the same record simultaneously is called A) concurrent update controls. B) cross-footing balance test. C) data conversion controls. D) recalculation of batch totals.
A
47) Modest Expectations Investment Services (MEIS) allows customers to manage their investments over the Internet. If customers attempt to spend more money than they have in their account, an error message is displayed. This is an example of a A) reasonableness test. B) field check. C) validity check. D) limit check.
A
6) A facility that is pre-wired for necessary telecommunications and computer equipment, but doesn't have equipment installed, is known as a A) cold site. B) hot site. C) remote site. D) subsidiary location.
A
7) When a computer system's files are automatically duplicated on a second data storage system as they are changed, the process is referred to as A) real-time mirroring. B) batch updating. C) consistency control. D) double-secure storage.
A
7) Which of the following data entry controls would not be useful if you are recording the checkout of library books by members? A) Sequence check. B) Prompting. C) Validity check. D) Concurrent update control.
A
8) A customer forget to include her account number on her check, and the accounts receivable clerk credited her payment to a different customer with the same last name. Which control could have been used to most effectively to prevent this error? A) Closed-loop verification. B) Duplicate values check. C) Reasonableness test. D) Reconciliation of a batch control total.
A
9) If invoices are processed in groups of fifty, which fields from the document shown below would not be used to create a hash control total? A) Amount. B) Item Number. C) Quantity Ordered. D) Sales Order number.
A
Which data entry application control would detect and prevent entry of alphabetic characters as the price of an inventory item? a. field check b. limit check c. reasonableness check d. sign check
A
Which of the following statements is true? a. Incremental daily backups are faster to perform than differential daily back- ups, but restoration is slower and more complex. b. Incremental daily backups are faster to perform than differential daily backups, and restoration is faster and simpler. c. Differential daily backups are faster to perform than incremental daily back- ups, but restoration is slower and more complex. d. Differential daily backups are faster to perform than incremental daily backups, and restoration is faster and simpler.
A
1) What is the most effective way to ensure information system availability? A) High bandwidth. B) Maintain a hot site. C) Maintain a cold site. D) Frequent backups.
B
14) The inventory tracking system shows that 12 laptop were on hand before a customer brings two laptops to the register for purchase. The cashier accidentally enters the quantity sold as 20 instead of 2. Which data entry control would most effectively prevent this error? A) Limit check. B) Sign check. C) Field check. D) Validity check.
B
14) The maximum amount of time between backups is determined by a company's A) recovery time objective. B) recovery point objective. C) recovery objective. D) maximum time recovery objective.
B
22) Checksums is an example of a(n) A) data entry control. B) data transmission control. C) output control. D) processing control.
B
28) A ________ ensures input data will fit into the assigned field. A) limit check B) size check C) range check D) field check
B
29) Which of the following is not a common design feature of housing mission-critical servers and databases? A) Adequate air-conditioning systems to reduce the likelihood of damage due to overheating. B) Overhead sprinklers to provide protection from fire. C) Cables with special plugs that cannot be easily removed. D) Surge-protection devices to provide protection against temporary power fluctuations.
B
3) The best example of an effective payroll transaction file record count would most likely be A) sum of net pay. B) total number of employees. C) sum of FICA. D) total of employees' social security numbers.
B
3) Which of the following is not an objective of a disaster recovery plan? A) Minimize the extent of the disruption, damage or loss. B) Establish a permanent alternative means of processing information. C) Resume normal operations as soon as possible. D) Train employees for emergency operations.
B
32) A ________ determines the correctness of the logical relationship between two data items. A) range check B) reasonableness test C) sign check D) size check
B
32) To minimize the risk of system downtime, Grizzly Corporation stores its data on multiple disk drives simultaneously. This practice is called A) downtime minimization plan. B) redundant arrays of independent drives. C) redundant arrays of independent backups. D) patch backup management.
B
34) A ________ tests a numerical amount to ensure that it does not exceed a predetermined value. A) completeness check B) limit check C) range check D) sign check
B
34) Whose responsibility is it to determine the amount of time an organization can afford to be without its information system? A) The board of directors. B) Senior management. C) External auditors. D) COBIT.
B
35) The batch processing data entry control that sums a field that contains dollar values is called A) record count. B) financial total. C) hash total. D) sequence check.
B
45) The control that verifies accuracy by comparing two alternative ways of calculating the same total is called A) concurrent update controls. B) cross-footing balance test. C) data conversion controls. D) recalculation of batch totals.
B
5) A facility that contains all the computing equipment the organization needs to perform its essential business activities is known as a A) cold site. B) hot site. C) remote site. D) subsidiary location.
B
51) Which of the following is an example of a turnaround document? A) A receipt a customer must use to return the goods purchased. B) A telephone bill the customer must return with payment. C) A paycheck stub that must be used in the employee's tax return. D) A customer loyalty card used every time a customer purchases goods or services.
B
52) Which of the following is an important control to prevent buffet overflow vulnerabilities? A) Limit check. B) Size check. C) Range check. D) Field check
B
8) ________ enables a system to continue functioning in the event that a particular component fails. A) An incremental backup procedure B) Fault tolerance C) Preventive maintenance D) A concurrent update control
B
9) ________ is a plan that specifies how to resume not only IT operations but all business processes in the event of a major calamity. A) Disaster recovery plan B) Business continuity plan C) Real-time monitoring plan D) Business contingency plan
B
11) ________ is a data entry input control that involves checking the accuracy of input data by using it to retrieve and display other related information. A) Validity check B) Duplicate data check C) Closed-loop verification D) Check digit verification
C
Information that needs to be stored securely for 10 years or more would most likely be stored in which type of file? a. backup b. archive c. encrypted d. log
B
Which disaster recovery strategy involves contracting for use of a physical site to which all necessary computing equipment will be delivered within 24 to 36 hours? a. virtualization b. cold site c. hot site d. data mirroring
B
Which of the following is an example of the kind of batch total called a hash total? a. the sum of the purchase amount field in a set of purchase orders b. the sum of the purchase order number field in a set of purchase orders c. the number of completed documents in a set of purchase orders d. all of the above
B
Which of the following measures the amount of data that might be potentially lost as a result of a system failure? a. recovery time objective (RTO) b. recovery point objective (RPO) c. disaster recovery plan (DRP) d. business continuity plan (BCP)
B
Which of the following provides detailed procedures to resolve the problems resulting from a flash flood that completely destroys a company's data center? a. backup plan b. disaster recovery plan (DRP) c. business continuity plan (BCP) d. archive plan
B
13) ________ copies all changes made since the last full backup. A) Archive B) Cloud computing C) Differential backup D) Incremental backup
C
three quarters of its revenue from orders taken over the Internet. The revenue clearing account is debited by the total of cash and credit receipts and credited by the total of storefront and Internet sales. This is an example of a A) data integrity test. B) zero-balance test. C) trial balance audit. D) cross-footing balance test.
B
17) Form design is one example of a(n) A) output control. B) processing control. C) input control. D) data entry control.
C
18) Cancellation and storage of documents is one example of a(n) A) output control. B) processing control. C) input control. D) data entry control.
C
What are the different types of batch totals
Batch totals Summarize numeric values for a batch of input records -Financial total -Hash total -Record count
11) While this type of backup process takes longer than the alternative, restoration is easier and faster. A) archive B) cloud computing C) differential backup D) incremental backup
C
18) The accounting department at Aglaya Telecom records an average of 8,000 transactions per hour. A cost-benefit analysis leads management to conclude that the maximum acceptable amount of data loss is 32,000 transactions. If the firm's recovery time objective is 240 minutes, then the worst case recovery time objective is A) 4 hours. B) 8 hours. C) 16 hours. D) 24 hours.
C
19) The accounting department at Aglaya Telecom records an average of 8,000 transactions per hour and have a recovery time objective of 240 minutes. Aglaya recently suffered a hardware malfunction and it took the company 16 hours to recover their lost data. How many transactions did Aglaya recover? A) 52,000 transactions. B) 5,200 transactions. C) 32,000 transactions. D) 3,200 transactions.
C
23) Reconciliation procedures is an example of A) a data entry control. B) a data transmission control. C) an output control. D) a processing control.
C
24) Data matching is an example of a(n) A) data entry control. B) data transmission control. C) processing control. D) input control.
C
35) Is it best practice for an organization to practice periodically restoring a system from its backup files? A) No, doing so might introduce errors into the system's data. B) No, doing so takes the system offline and prevents customers from being able to access the system. C) Yes, doing so verifies the procedure and backup media are working correctly. D) Yes, doing so improves the efficiency of the system.
C
36) The batch processing data entry control that sums a non-financial numeric field is called A) record count. B) financial total. C) hash total. D) sequence check.
C
37) When the staff accountant enters a correct customer number, the data entry screen displays the customer name and address. This is an example of A) prompting. B) preformatting. C) closed-loop verification. D) error checking.
C
37) Which of the following is incorrect with regards to a data archive? A) Archives can be a copy of a database. B) Archives should be stored in different locations. C) Archives are usually encrypted. D) Physical and logical controls are the primary means of protecting archive files.
C
38) A ________ control ensures that the correct and most current files are being updated. A) cross-footing balance test B) data matching C) file labels D) write-protect mechanism
C
39) Identify the most important component of a disaster recovery plan below. A) Documentation. B) Operating instructions. C) Periodic testing. D) On-site and off-site storage.
C
39) The batch processing data entry control that sums the number of items in a batch is called A) financial total. B) hash total. C) record count. D) sequence check.
C
4) A disaster recovery plan typically does not include A) scheduled electronic vaulting of files. B) backup computer and telecommunication facilities. C) a system upgrade due to operating system software changes. D) uninterruptible power systems installed for key system components.
C
40) Identify one organization that quickly recovered from September 11th, 2001 due to its disaster recovery and business continuity plan. A) New York Stock Exchange B) NASDAQ C) New York Fire Department D) United Airlines
C
41) What control are zero balance tests an example of? A) Data entry controls. B) Output controls. C) Processing controls. D) Source data controls.
C
43) When opening an Excel file, Sonja received a message saying that the file is locked for editing. This is happening because A) the file is corrupted due to a computer virus. B) Sonja opened the file as read-only. C) concurrent update controls have locked the file. D) there is no problem. Sonja is editing the file, so it is locked.
C
49) A ________ control entails verifying that the proper number of bits are set to the value 1 in each character received. A) echo check B) field check C) parity check D) trailer record
C
5) Following is the result of batch control totals on employee Social Security numbers in a payroll processing transaction: Correct Values From Masterfile Values Entered During Processing 487358796 487358796 534916487 534916487 498374526 498374526 514873420 514873420 534196487 534916487 678487853 678487853 471230589 471230589 3719438158 3720158158 The difference in the control totals is 720,000. Which data entry control would best prevent similar data entry errors in the future? A) Batch check. B) Validity check. C) Check digit. D) Sequence check.
C
53) Prompting is a control that helps ensure A) transaction data are not lost. B) transactions data are accurate. C) transactions data are complete. D) transaction data are valid.
C
Which of the following controls would prevent entry of a nonexistent customer number in a sales transaction? a. field check b. completeness check c. validity check d. batch tota
C
Which of the following is a control that can be used to verify the accuracy of information transmitted over a network? a. completeness check b. check digit c. parity bit d. size check
C
21) Probably the most important change management control is A) monitoring user rights and privileges during the change process. B) testing all changes thoroughly prior to implementation on a stand-alone computer. C) updating all documentation to reflect changes made to the system. D) management's careful monitoring and review.
D
27) A completeness check is an example of a(n) A) data transmission control. B) output control. C) processing control. D) input control.
D
29) A ________ determines whether the input data are of the proper type. A) limit check B) size check C) range check D) field check
D
30) To protect against malware, it is important that antivirus software automatically examine ________ introduced into a system. A) CDs B) e-mail C) flash drives D) all of the above
D
1) The best example of an effective payroll transaction file hash total would most likely be A) sum of net pay. B) total number of employees. C) sum of hours worked. D) total of employees' social security numbers.
D
10) ________ is a data entry input control that involves summing the first four digits of a customer number to calculate the value of the fifth digit, then comparing the calculated number to the number entered during data entry. A) Validity check B) Duplicate data check C) Closed-loop verification D) Check digit verification
D
12) ________ involves copying only the data items that have changed since the last partial backup. A) Archive B) Cloud computing C) Differential backup D) Incremental backup
D
17) The accounting department at Synergy Hydroelectric records an average of 12,500 transactions per hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in the event of a system failure is 50,000 transactions. If the firm's recovery time objective is 120 minutes, then the worst case recovery time objective is A) 2 hours. B) 4 hours. C) 6 hours. D) 8 hours.
D
19) Sequentially prenumbered forms are an example of a(n) A) data entry control. B) data transmission control. C) processing control. D) input control.
D
2) Which of the following statements is true with regards to system availability? A) Human error does not threaten system availability. B) Threats to system availability can be completely eliminated. C) Proper controls can maximize the risk of threats causing significant system downtime. D) Threats to system availability include hardware and software failures as well as natural and man-made disasters.
D
20) The accounting department at Aglaya Telecom records an average of 5,000 transactions per hour and have a recovery time objective of 120 minutes. Aglaya recently suffered a hardware malfunction and it took the company 20 hours to recover their lost data. How many transactions did Aglaya recover? A) 20,000 transactions. B) 30,000 transactions. C) 40,000 transactions. D) 50,000 transactions.
D
20) Turnaround documents are an example of a(n) A) data entry control. B) output control. C) processing control. D) input control.
D
30) ________ tests a numerical amount to ensure that it does not exceed a predetermined value nor fall below another predetermined value. A) Completeness check B) Field check C) Limit check D) Range check
D
38) Loreen Tina is the chief lawyer for Tamara Incorporated. The CEO of Tamara Incorporated asks Loreen whether the company should periodically delete all company e-mail. If Loreen is well-versed in AIS best practices, she would mostly likely respond, A) Yes, if we are ever sued, the other attorney will not be able to comb through our e-mail for evidence. B) Yes, since e-mail requires a lot of storage space, deleting it periodically will reduce the amount of information we need to store. C) No, deleting an organization's e-mail is against the law. D) No, if we are ever sued we will not be able to draw upon our e-mail records to defend ourselves.
D
40) A ________ is a data entry control that compares the ID number in transaction data to a master file to verify that the ID number exists. A) reasonableness test B) user review C) data matching D) validity check
D
50) Which of the following is not a risk associated with the data input process? A) Data is invalid. B) Data is incomplete. C) Data is inaccurate. D) Data is corrupted.
D
Employee Name Overtime Hours Mary Jones 10 Tom Davis -5 Amy Dunn 3 Kate Smith 2 Kevin White -4 Jill Brown 800 The total overtime hours is 806. Which data entry control would best prevent similar data entry errors in the future? A) Sequence check. B) Validity check. C) Check digit. D) Reasonableness test.
D
Which of the following statements is true? a. Virtualization significantly reduces RTO for hardware problems. b. Cloud computing reduces the risk that a single catastrophe from either a natural disaster or terrorist attack would result in significant downtime and loss of availability. c. Backups still need to be made when using either virtualization or cloud computing. d. All of the above are true.
D
36) Best practice requires backups be retained indefinitely
False
16) The recovery point objective is inversely related to the frequency of backups
True
26) It is impossible to eliminate the risk of downtime.
True
27) Training can also reduce the risk of system downtime
True
