AIS FINAL
Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows. Cosgrove purchases inventory from individuals and other dealers at garage sales, flea markets, antique malls, and estate sales. Each time Cosgrove makes a purchase, she records the person's name, address, date, specific items purchased and price paid, and total amount spent. Later at home, Cosgrove cleans, researches and prices the inventory items. She assigns an inventory number to each item and records the "asking" price. Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows. All inventory and supplies purchases are paid immediately with cash, or with checks from a bank account in the business' name, to which sales are also deposited. Several times a year Cosgrove rents a booth at an antique show. A deposit is always required, with the balance due at the start of the show. Cosgrove records the deposit and final payment, along with the show organizer's name and address, in the same worksheet on which purchases of inventory and supplies are recorded. Which of the following would not be an attribute in the Purchases table? A) Address of place purchase was made B) Person's name from whom the purchase was made. C) Date of purchase D) Total amount of purchase
A) Address of place purchase was made
Which entity is likely to be part of both the payroll cycle and the revenue cycle? A) Cash B) Customer C) Receive Goods D) Inventory
A) Cash
Information traditionally found in journals are stored where in an REA database? A) Event entity B) Agent entity C) Relationship D) Resource entity
A) Event entity
Regarding program modifications, which statement below is incorrect? A) Only material program changes should be thoroughly tested and documented. B) When a program change is submitted for approval, a list of all required updates should be compiled and then approved by management and program users. C) During the change process, the developmental version of the program must be kept separate from the production version. D) After the modified program has received final approval, the change is implemented by replacing the developmental version with the production version.
A) Only material program changes should be thoroughly tested and documented.
Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows. Cosgrove purchases inventory from individuals and other dealers at garage sales, flea markets, antique malls, and estate sales. Each time Cosgrove makes a purchase, she records the person's name, address, date, specific items purchased and price paid, and total amount spent. Later at home, Cosgrove cleans, researches and prices the inventory items. She assigns an inventory number to each item and records the "asking" price. Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows. All inventory and supplies purchases are paid immediately with cash, or with checks from a bank account in the business' name, to which sales are also deposited. Several times a year Cosgrove rents a booth at an antique show. A deposit is always required, with the balance due at the start of the show. Cosgrove records the deposit and final payment, along with the show organizer's name and address, in the same worksheet on which purchases of inventory and supplies are recorded. Which of the following would be an attribute in the table for booth rental? A) Organizer's name B) Deposit paid C) Balance paid D) Organizer's address
A) Organizer's name
In a relational database, which of the following attributes would typically be represented by a foreign key in the table that stores data about a Receive Inventory entity? A) Purchase order number B) Payment terms C) Product code D) Date
A) Purchase order number
Cosgrove Art & Antiques sells unique art and antiques exclusively at antique shows. Cosgrove purchases inventory from individuals and other dealers at garage sales, flea markets, antique malls, and estate sales. Each time Cosgrove makes a purchase, she records the person's name, address, date, specific items purchased and price paid, and total amount spent. Later at home, Cosgrove cleans, researches and prices the inventory items. She assigns an inventory number to each item and records the "asking" price. Cosgrove buys price tags and display supplies from a company that sells at flea market and antique shows. All inventory and supplies purchases are paid immediately with cash, or with checks from a bank account in the business' name, to which sales are also deposited. Several times a year Cosgrove rents a booth at an antique show. A deposit is always required, with the balance due at the start of the show. Cosgrove records the deposit and final payment, along with the show organizer's name and address, in the same worksheet on which purchases of inventory and supplies are recorded. Which of the following would not be an attribute in the Inventory table? A) Total amount of purchase B) Price paid C) Asking price D) Inventory number
A) Total amount of purchase
The risk-based audit approach is A) a four-step approach to internal control evaluation. B) a four-step approach to financial statement review and recommendations. C) a three-step approach to internal control evaluation. D) a three-step approach to financial statement review and recommendations.
A) a four-step approach to internal control evaluation.
A type of software that auditors can use to analyze program logic and detect unexecuted program code is A) a mapping program. B) an audit log. C) a scanning routine. D) program tracing.
A) a mapping program.
The use of a secure file library and restrictions on physical access to data files are control procedures used together to prevent A) an employee or outsider obtaining data about an important client. B) a data entry clerk from introducing data entry errors into the system. C) a computer operator from losing or corrupting files or data during transaction processing. D) programmers making unauthorized modifications to programs.
A) an employee or outsider obtaining data about an important client.
In an integrated REA diagram, every resource must be must be linked to A) at least two events. B) at least two agents. C) at least one other resource. D) at least two other resources.
A) at least two events.
The purpose of ________ is to determine why, how, when, and who will perform the audit. A) audit planning B) the collection of audit evidence C) the communication of audit results D) the evaluation of audit evidence
A) audit planning
With which stage in the auditing process are the consideration of risk factors and materiality most associated? A) audit planning B) collection of audit evidence C) communication of audit results D) evaluation of audit evidence
A) audit planning
Integrating separate REA diagrams into a single comprehensive enterprise-wide model of the organization requires understanding what the ________ in each separate diagram reveal about the organization's business policies and activities. A) cardinalities B) data C) events D) transactions
A) cardinalities
Auditing involves the A) collection, review, and documentation of audit evidence. B) planning and verification of economic events. C) collection of audit evidence and approval of economic events. D) testing, documentation, and certification of audit evidence.
A) collection, review, and documentation of audit evidence.
When integrating separate REA diagrams, A) common resources are placed between the events that affect them. B) each resource is connected to two agents. C) resources are duplicated to show the give and get of economic duality relationships. D) resources are merged if both events in the stockflow relationship are modeled.
A) common resources are placed between the events that affect them.
An auditor might use which of the following to convert data from several sources into a single common format? A) computer assisted audit techniques software B) Windows Media Converter C) concurrent audit technique D) Adobe Professional
A) computer assisted audit techniques software
The primary key for a Sales-Inventory table that consists of the Sales Invoice Number and the Inventory Item Number, is known as a A) concatenated key. B) condensed key. C) double key. D) dual key.
A) concatenated key.
An integrated REA diagram could contain multiple copies of A) customers. B) sales. C) inventory. D) sales-inventory.
A) customers.
REA diagrams for different organizations may be similar, but will likely result in different relationship cardinalities because of A) differences in business policies. B) different designers of REA diagrams. C) different methods of drawing REA diagrams. D) errors in drawing REA diagrams.
A) differences in business policies.
The ________ audit examines the reliability and integrity of accounting records. A) financial B) informational C) information systems D) operational
A) financial
Which of the following is not one of the steps in implementing an REA diagram in a relational database? A) implement many-to-many relationships with foreign keys B) create tables for entities C) assign attributes to tables and identify primary keys D) implement one-to-many relationships with foreign keys
A) implement many-to-many relationships with foreign keys
In an REA-based relational database, the information normally found in a ________ is contained in the tables used to record data about ________. A) journal, events B) journal, resources C) ledger, events D) ledger, resources
A) journal, events
The type of relationship between two entities is determined by A) maximum cardinalities only. B) minimum cardinalities only. C) minimum and maximum cardinalities. D) median cardinalities.
A) maximum cardinalities only.
An integrated REA diagram merges multiple copies of ________ and ________ entities but retains multiple copies of ________ entities. A) resource; event; agent B) event; agent; resource C) resource; agent; event D) None of the above. An integrated REA diagram merges multiple copies of all entities.
A) resource; event; agent
The ________ to auditing provides auditors with a clear understanding of possible errors and irregularities and the related risks and exposures. A) risk-based approach B) risk-adjusted approach C) financial audit approach D) information systems approach
A) risk-based approach
How many tables are needed to implement an REA data model that has five distinct entities, two M:N relationships and three 1:N relationships in a relational database? A) 5 B) 7 C) 8 D) 10
B) 7
How many tables are needed to implement an REA data model that has six distinct entities, three M:N relationships and four 1:N relationships in a relational database? A) 6 B) 9 C) 11 D) 13
B) 9
Concerning REA models, which of the following is false? A) Many financial statement accounts are represented as resources in the REA model. B) Accounts such as Accounts Receivable show up as entities in the REA model. C) Some accounts represent an imbalance between two related events in the REA model. D) Much of the information about an organization's assets that is traditionally recorded in ledgers is stored in resource tables in an REA-based relational database.
B) Accounts such as Accounts Receivable show up as entities in the REA model.
An audit software program that generates programs that perform certain audit functions, based on auditor specifications, is referred to as a(n) A) input controls matrix. B) CAATS. C) embedded audit module. D) mapping program.
B) CAATS.
Which entity is likely to be part of the payroll cycle, expenditure cycle, and the revenue cycle? A) Customer B) Cash C) Supplier D) Inventory
B) Cash
What is the first step to implementing an REA diagram in a relational database? A) Assign attributes to appropriate tables. B) Create a table for each distinct entity in the diagram and for each many-to-many relationship. C) Identify cardinalities. D) Use foreign keys to implement one-to-one and one-to-many relationships.
B) Create a table for each distinct entity in the diagram and for each many-to-many relationship.
In a relational database, which of the following attributes would typically be included in the table that stores data about the Customer entity? A) Invoice number B) Credit limit C) Product code D) Backorder
B) Credit limit
Which of the following is not part of a "final accuracy check" when creating relational tables from an REA diagram? A) Every attribute in every table is single-valued (i.e., each table is a flat file). B) Every event must be linked to at least one resource. C) Every table must have a primary key. D) Other non-key attributes in each table must be either a fact about the thing designated by the primary key or foreign keys used to link that table to another table.
B) Every event must be linked to at least one resource.
In a relational database, which of the following attributes would typically be included in the table that stores data about the Vendor entity? A) Invoice number B) Outstanding balance C) Product code D) Inventory
B) Outstanding balance
What is the purpose of an information systems audit? A) To determine the inherent risk factors found in the system B) To review and evaluate the internal controls that protect the system C) To examine the reliability and integrity of accounting records D) To examine whether resources have been used in an economical and efficient manner in keeping with organization goals and objectives
B) To review and evaluate the internal controls that protect the system
A query that extracts, for a given time period, all sales events for which there is no corresponding receive cash event on the date of the sales event will yield A) a cash account ledger. B) a credit sales journal. C) an accounts receivable ledger. D) an accounts payable journal.
B) a credit sales journal.
Determining whether the necessary control procedures are in place is accomplished by conducting A) a systems overhaul. B) a systems review. C) tests of controls. D) both B and C
B) a systems review.
The primary key for M:N relationship tables A) is a single attribute. B) always consists of two attributes. C) is the primary key of the most important entity linked to that relationship. D) does not exist. Many-to-many relationship tables only use foreign keys.
B) always consists of two attributes.
Auditors have several techniques available to them to test computer-processing controls. An audit technique that immediately alerts auditors of suspicious transactions is known as A) a SCARF. B) an audit hook. C) an audit sinker. D) the snapshot technique.
B) an audit hook.
In an integrated REA diagram, every event must be linked to A) at least two resources. B) at least two agents. C) at least one other event. D) at least two other events.
B) at least two agents.
The ________ stage of the auditing process involves (among other things) the auditors observing the operating activities and having discussions with employees. A) audit planning B) collection of audit evidence C) communication of audit results D) evaluation of audit evidence
B) collection of audit evidence
Verifying the accuracy of certain information, often through communication with third parties, is known as A) reperformance. B) confirmation. C) substantiation. D) documentation.
B) confirmation.
The possibility that a material error will occur even though auditors are following audit procedures and using good judgment is referred to as A) control risk. B) detection risk. C) inherent risk. D) investigating risk.
B) detection risk.
When combining two REA diagrams by merging common entities, changes in the cardinality of the merged entity is needed when it is a(n) A) agent. B) event. C) relationship. D) resource.
B) event.
Because information about temporal imbalances between two ________, such as accounts receivable and accounts payable, is needed so frequently, such calculated values are sometimes stored as ________ in the appropriate tables. A) events, agents B) events, attributes C) resources, agents D) resources, attributes
B) events, attributes
The ________ audit reviews the general and application controls of an AIS to assess its compliance with internal control policies and procedures and its effectiveness in safeguarding assets. A) financial B) information systems C) management D) internal control
B) information systems
An integrated REA diagram merges multiple copies of some entities in order to A) minimize the repetition of agent entities. B) maximize the legibility of the diagram by avoiding the need to have relationship lines cross one another. C) Both A and B are true. D) Both A and B are false.
B) maximize the legibility of the diagram by avoiding the need to have relationship lines cross one another.
Organizing the audit team and the physical examination of assets are components of which two separate audit stages? A) planning; evaluating audit evidence B) planning; collecting audit evidence C) collecting audit evidence; communicating audit results D) communicating audit results; evaluating audit evidence
B) planning; collecting audit evidence
Strong ________ controls can partially compensate for inadequate ________ controls. A) development; processing B) processing; development C) operational; internal D) internal; operational
B) processing; development
Control risk is defined as the A) susceptibility to material risk in the absence of controls. B) risk that a material misstatement will get through the internal control structure and into the financial statements. C) risk that auditors and their audit procedures will not detect a material error or misstatement. D) risk auditors will not be given the appropriate documents and records by management who wants to control audit activities and procedures.
B) risk that a material misstatement will get through the internal control structure and into the financial statements.
When comparing REA diagrams used to design an AIS with a traditionally designed AIS, A) traditional AIS information, such as journals and ledgers no longer exist. B) similar information is present as in a traditional AIS, but stored in a different format. C) queries are used to input data into the AIS. D) an REA designed AIS cannot recreate a traditional journal.
B) similar information is present as in a traditional AIS, but stored in a different format.
The ________ procedure for auditing computer process controls uses a hypothetical series of valid and invalid transactions. A) concurrent audit techniques B) test data processing C) integrated test facility D) dual process
B) test data processing
The evidence collection method that examines all supporting documents to determine the validity of a transaction is called A) review of documentation. B) vouching. C) physical examination. D) analytical review.
B) vouching.
How could auditors determine if unauthorized program changes have been made? A) By interviewing and making inquiries of the programming staff B) By examining the systems design and programming documentation C) By using a source code comparison program D) By interviewing and making inquiries of recently terminated programming staff
C) By using a source code comparison program
Which of the following is the first step in the risk-based audit approach? A) Identify the control procedures that should be in place. B) Evaluate the control procedures. C) Determine the threats facing the AIS. D) Evaluate weaknesses to determine their effect on the audit procedures.
C) Determine the threats facing the AIS.
Which entity is likely to be part of both the payroll cycle and the expenditure cycle? A) Receive Goods B) Customer C) Disburse Cash D) Inventory
C) Disburse Cash
Concerning a correctly drawn enterprise-wide REA diagram, which of the following statements is not true? A) Every event must be linked to at least one resource. B) Merging two transaction cycles on a common event may affect the minimum cardinalities between the merged event and the other events. C) Events can only be merged if they share the same resources and events. D) Creating a set of tables from an REA diagram automatically results in a well-structured relational database.
C) Events can only be merged if they share the same resources and events.
Which of the following is not one of the three steps to implementing an REA diagram in a relational database? A) Assign attributes to appropriate tables. B) Create a table for each distinct entity in the diagram and for each many-to-many relationship. C) Every event must be linked to at least one resource. D) Use foreign keys to implement one-to-one and one-to-many relationships.
C) Every event must be linked to at least one resource.
Combining REA diagrams for individual transaction cycles into a single, enterprise-wide model adds two more rules to the three basic principles for drawing REA diagrams. Which of the following is not one of those two new rules? A) Every resource must be linked to at least one event that increments that resource and to at least one event that decrements that resource. B) If a specific event can be linked to more than one other type of event, but cannot be linked simultaneously to all of those other events, then the minimum cardinality between that event and every other event with which it may be associated must be 0. C) If a specific event can be linked to more than one other type of event, but cannot be linked simultaneously to all of those other events, then the maximum cardinality between that event and every other event with which it may be associated must be 0. D) All of the above are new rules for drawing integrated REA diagrams.
C) If a specific event can be linked to more than one other type of event, but cannot be linked simultaneously to all of those other events, then the maximum cardinality between that event and every other event with which it may be associated must be 0.
Which auditing technique will not assist in determining if unauthorized programming changes have been made? A) Use of a source code comparison program B) Use of the reprocessing technique to compare program output C) Interviewing and making inquiries of the programming staff D) Use of parallel simulation to compare program output
C) Interviewing and making inquiries of the programming staff
Concerning the generation of financial statements from an REA-based relational database, which of the following is false? A) It is possible to use a completed REA diagram to guide the writing of queries to produce the information that would be included in financial statements. B) Many financial statement items can be displayed by querying a single table. C) It is unnecessary to understand the REA data model to know which tables need to be included in each query to generate the correct answers to financial statement questions. D) A major advantage of the REA data model is that it integrates non-financial and financial data.
C) It is unnecessary to understand the REA data model to know which tables need to be included in each query to generate the correct answers to financial statement questions.
Concerning tables for M:N relationships, which of the following statements is false? A) Non-key attributes may be included. B) Multiple attribute primary keys are used. C) Single attribute primary keys may be used. D) Concatenated keys are used.
C) Single attribute primary keys may be used.
Concerning the creation of tables from an REA diagram, which of the following is false? A) A properly designed relational database has a table for each distinct entity in an REA diagram. B) A properly designed relational database has a table for each many-to-many relationship in an REA diagram. C) To reduce confusion, table names should not duplicate REA diagram entities' names. D) Many-to-many relationships will be shown in tables with hyphenated concatenations of the entities' names.
C) To reduce confusion, table names should not duplicate REA diagram entities' names.
In a relational database, which of the following attributes would typically be represented by a foreign key in the table that stores data about a Disburse Cash entity? A) Amount B) Date C) Vendor number D) Product number
C) Vendor number
A query that extracts, for a given time period, the total amount of all sales events for which there is no corresponding receive cash event will yield A) a cash account ledger. B) a credit sales journal. C) an accounts receivable ledger. D) an accounts payable journal.
C) an accounts receivable ledger.
The auditor's role in systems development should be as A) an advisor and developer of internal control specifications. B) a developer of internal controls. C) an independent reviewer only. D) A and B above
C) an independent reviewer only.
One tool used to document the review of source data controls is A) a flowchart generator program. B) a mapping program. C) an input control matrix. D) a program algorithm matrix.
C) an input control matrix.
In an integrated REA diagram, every agent must be must be linked to A) at least one resource. B) at least two resources. C) at least one event. D) at least two events.
C) at least one event.
Attributes other than the primary key are A) included to satisfy transaction processing requirements. B) included to meet management's information needs. C) both A and B D) none of the above
C) both A and B
The auditor uses ________ to continuously monitor the system and collect audit evidence while live data are processed. A) test data processing B) parallel simulation C) concurrent audit techniques D) analysis of program logic
C) concurrent audit techniques
Which table is most likely to have a concatenated key? A) customer B) sales C) customer-sales D) accounts receivable
C) customer-sales
Assessing the quality of internal controls, the reliability of information, and operating performance are all part of which stage of the auditing process? A) audit planning B) collection of audit evidence C) evaluation of audit evidence D) communication of audit results
C) evaluation of audit evidence
Which type of work listed below is not typical of internal auditors? A) operational and management audits B) information system audits C) financial statement audit D) financial audit of accounting records
C) financial statement audit
A system that employs various types of advanced technology has more ________ risk than traditional batch processing. A) control B) detection C) inherent D) investing
C) inherent
What is not a typical responsibility of an internal auditor? A) helping management to improve organizational effectiveness B) assisting in the design and implementation of an AIS C) preparation of the company's financial statements D) implementing and monitoring of internal controls
C) preparation of the company's financial statements
An auditor must be willing to accept some degree of risk that the audit conclusion is incorrect. Accordingly, the auditor's objective is to seek ________ that no material error exists in the information audited. A) absolute reliability B) reasonable evidence C) reasonable assurance D) reasonable objectivity
C) reasonable assurance
In comparing the REA model to the traditional AIS, which of the following is false? A) Traditional AISs contain only data about the financial aspects of transactions. B) A major advantage of the REA data model is that it integrates non-financial and financial data in the AIS and makes both types of data easily accessible to management. C) In the REA model, many financial statement items can be displayed by querying a single table. D) Accounts in the traditional AIS are analogous to resources in the REA-based relational database.
D) Accounts in the traditional AIS are analogous to resources in the REA-based relational database.
Concerning enterprise-wide REA diagrams, which of the following is false? A) Merging two or more REA diagrams that contain the same resource entity does not require any changes to the cardinality pairs in the individual diagrams. B) Merging two or more diagrams that contain a common event entity, however, often requires changing the minimum cardinalities associated with the other events to 0, to reflect the fact that the merged event may be connected to any one of several different events, but not to all of them simultaneously. C) The minimum cardinalities associated with agents may also have to be changed to 0. D) All of the above are true.
D) All of the above are true.
Concerning the creation of tables from an REA diagram, which of the following is false? A) M:N relationships must be implemented as separate tables. B) 1:N relationships are implemented with the primary key of the 1 side becoming a foreign key on the N side. C) 1:1 relationships are implemented with the primary key of either entity included as a foreign key in the table representing the other entity. D) All of the above are true.
D) All of the above are true.
Integrating separate REA diagrams developed for individual transaction cycles into a single, comprehensive enterprise-wide data model A) is possible. B) requires understanding what the cardinalities in each separate diagram reveal about the organization's business policies and activities. C) provides a single comprehensive enterprise-wide model of the organization. D) All of the above are true.
D) All of the above are true.
Which entity is likely to be part of both the revenue cycle and the expenditure cycle? A) Receive Goods B) Customer C) Receive Cash D) Inventory
D) Inventory
Which of the following is a redundant entity that would be merged when two cycles are combined? A) Customer B) Employee C) Vendor D) Inventory
D) Inventory
Much of the information about an organization's assets that is traditionally recorded in ledgers is stored in ________ tables in an REA-based relational database. A) Account B) Agent C) Event D) Resource
D) Resource
Concerning REA diagrams and relational databases, which of the following is true? A) A well-designed relational database is the starting point for creating an REA diagram. B) A well-designed REA diagram minimizes update, insert or delete anomaly problem when the diagram is implemented into a relational database. C) REA diagrams and database design are generic across organizations. D) The design of a relational database is specific to the organization being modeled.
D) The design of a relational database is specific to the organization being modeled.
Concerning REA diagrams for individual transaction cycles, which of the following is false? A) They depict basic give-to-get economic duality relationships. B) They usually provide only a partial view of resources. C) They need to be combined in order to provide a comprehensive enterprise-wide data model. D) They show both how resources are acquired and how they are used.
D) They show both how resources are acquired and how they are used.
Concerning the use of REA diagrams to retrieve information from a database A) although neither journals nor ledgers appear explicitly in an REA diagram, each can be created through appropriate queries. B) the information normally found in a journal is contained in the tables used to record data about events. C) much of the information about an organization's assets that is traditionally recorded in ledgers is stored in resource tables in an REA-based relational database. D) all of the above
D) all of the above
A query that extracts, for a given time period, all purchases for which there is no corresponding disburse cash event will yield A) a cash account ledger. B) a credit sales journal. C) an accounts receivable ledger. D) an accounts payable journal.
D) an accounts payable journal.
The evidence collection method that considers the relationships and trends among information to detect items that should be investigated further is called A) review of the documentation. B) vouching. C) physical examination. D) analytical review.
D) analytical review.
Nonfinancial information should be collected because A) it may indicate events that may affect resources. B) it can be used to plan other activities. C) it can be used in transaction processing. D) both A and B
D) both A and B
When using an REA diagram to develop a database, many-to-many relationships must be A) broken into multiple one-to-one relationships. B) combined into a single one-to-one relationship. C) combined into a one-to-many relationship. D) broken into multiple one-to-many relationships.
D) broken into multiple one-to-many relationships.
According to the risk-based auditing approach, when a control deficiency is identified, the auditor should inquire about A) tests of controls. B) the feasibility of a systems review. C) materiality and inherent risk factors. D) compensating controls.
D) compensating controls.
To maintain the objectivity necessary for performing an independent evaluation function, auditors should not be involved in A) making recommendations to management for improvement of existing internal controls. B) examining system access logs. C) examining logical access policies and procedures. D) developing the information system.
D) developing the information system.
The ________ audit is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives. A) financial B) informational C) information systems D) operational
D) operational
One type of audit that is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives is known as a(n) ________ audit. A) financial B) information systems C) internal control D) operational or management
D) operational or management
The information systems audit objective that pertains to source data being processed into some form of output is known as A) overall security. B) program development. C) program modifications. D) processing.
D) processing.
Concatenated keys are A) only needed when combining two or more REA diagrams. B) foreign keys used to implement 1:N or 1:1 relationships. C) multiple attribute keys used to implement 1:N relationships. D) required to implement M:N relationships.
D) required to implement M:N relationships.
Explicitly identifying the different employees who participate in each event by their job functions is helpful when verifying A) internal controls. B) job descriptions. C) proper supervision. D) segregation of duties.
D) segregation of duties.
The major benefits of using the REA model as the basis for designing an AIS include all of the following except A) the REA data model integrates non-financial and financial data in the AIS. B) the REA data model makes both non-financial and financial data easily accessible to management. C) the REA data model provides the basis for building the kind of flexible AIS that is responsive to management's changing information needs. D) the REA data model reduces the need for accountants to understand the underlying accounting journals and ledgers.
D) the REA data model reduces the need for accountants to understand the underlying accounting journals and ledgers.
When assigning attributes to each table, A) the database designer must interview users to identify which facts should be included in the database. B) the database designer must interview management to identify which facts should be included in the database. C) the database designer must use the REA diagram to help determine in which tables those facts belong. D) the database designer must do all of the above.
D) the database designer must do all of the above.
