IS-Week 1
An organization's computer help desk function is usually a responsibility of the Applications development unit. Systems programming unit. Computer operations unit. User departments.
Computer operations unit.
In an accounting information system, which of the following types of computer files most likely would be a master file? Inventory subsidiary. Cash disbursements. Cash receipts. Payroll transactions.
Inventory subsidiary.
In an accounting information system, which of the following types of computer files most likely would be a master file? Inventory subsidiary. Cash disbursements. Cash receipts. Payroll transactions.
Inventory subsidiary.
Acme Corp. uses data on the strength of a user's touch on a keyboard to partially authenticate users. This is an example of: Big data. Biometrics. Multifactor authentication. Integrated authentication.
Multifactor authentication.
Jody's Hardware Store developed a new module for the accounting system to monitor and forecast contractor purchases by vendor month. The old system was a manual. The most important risk related to the new system is Idiosyncratic processing errors. Systematic processing errors. Automated processing of transactions. Computer-initiated transactions.
Systematic processing errors.
Which of the following employees normally would be assigned the operating responsibility for designing a computer installation, including flowcharts of data processing routines? Computer programmer. Data processing manager. Systems analyst. Internal auditor.
Systems analyst.
Morgan Property Management, Inc. recently switched from a manual accounting system to a computerized accounting system. The system supports online real-time processing in a networked environment, and six employees have been granted access to various parts of the system in order to perform their jobs. Relative to the manual system, Morgan can expect to see That functions that had previously been spread across multiple employees have been combined. An increase in the incidence of clerical errors. A decrease in the incidence of systemic errors. A decrease in the need for access controls to the accounting records.
That functions that had previously been spread across multiple employees have been combined.
Jones and Willy recently implemented an automated accounting system to replace their manual accounting system. While setting up the system, they find that: They need to permanently run the manual and automated accounting systems as a control over processing. The automated system requires controls related to people, software, and hardware. Access controls are of less importance in the new system. The company's external auditors are best qualified to set up the new system.
The automated system requires controls related to people, software, and hardware.
Governance is primarily the responsibility of: Top management. The board. The CEO. Those individuals who are identified by SOX Section 404 as responsible for the system of internal control.
The board.
Real-time processing is most appropriate for which of the following bank transactions? Credit authorizations for consumer loan applicants Biweekly payroll for bank employees Purchases of fixed assets Expiration of prepaid liability insurance
Credit authorizations for consumer loan applicants
Concerns about the IoT include all of the following except: Reduced privacy. Cycle times. Data storage. Risk exposure.
Cycle times.
Which of the following factors has the greatest impact on the design of an effective management reporting system? Number of transactions to be processed Types of decisions to be made Number of authorized users Number of regulatory agencies to be satisfied
Types of decisions to be made
Which of the following is an advantage of a computer-based system for transaction processing over a manual system? A computer-based system Does not require as stringent a set of internal controls. Will produce a more accurate set of financial statements. Will be more efficient at producing financial statements. Eliminates the need to reconcile control accounts and subsidiary ledgers.
Will be more efficient at producing financial statements.
At Mega-Construction, secured payments are sent to suppliers as soon materials are received and scanned. Many attributes of the received goods are also scanned and recorded immediately on receipt (e.g., time received, quality indicators, item location through GPS functionality). This information is shared through a distributed ledger. Mega-Construction is likely using _______________. Blockchain TCP/IP Bitcoin STMP
Blockchain
___ is the name of the processes and structures, implemented by the board, to achieve organizational goals. Governance Matching Oversight Strategy
Governance
Big data: Is similar to automated authentication. Changes an entity's risk profile. Is unrelated to financial reporting. Is the monetization of data assets.
Changes an entity's risk profile.
This system is most likely to include external data. Operational system. MIS. DSS. ESS.
ESS.
Which of the following is an example of applications software that a large client is most likely to use? Enterprise resource planning. Operating system. Central processing unit. Value-added network.
Enterprise resource planning.
Haufinger buys one widget each day for use in his factory and pays for the widget using one bitcoin. On three recent days, the value of one bitcoin was: Day 1: $2,200 US Day 2: $2,400 US Day 3: $2,500 US According to the IRS, what is the cost of the widgets purchased for these three days for tax purposes? 1 bitcoin $2,200 $2,367 $7,100
$2,367 (average)
Which of the following is least likely to be an advantage of an automated accounting system? A distinct, easily followed audit trail Processing speed Fewer idiosyncratic errors Less likelihood of intrusion
A distinct, easily followed audit trail
Which of the following examples shows the highest level of intelligence of an AI system? User identification Translating financial statements into the structure and format of international financial reporting standards A fleet of drones monitors a client's inventory of livestock and reports on the health and well-being of the herd Analyzing financial statements for a client
A fleet of drones monitors a client's inventory of livestock and reports on the health and well-being of the herd
The best starting point for an organizational big data initiative is: Data mining. A social media data assessment. A governance structure. Assessing controls
A governance structure.
Which of the following statements is correct regarding information technology (IT) governance? A primary goal of IT governance is to balance risk versus return over IT and its processes. IT governance is an appropriate issue for organizations at the level of the board of directors only. IT goals should be independent of strategic goals. IT governance requires that the Control Objectives for Information and related Technology (COBIT) framework be adopted and implemented.
A primary goal of IT governance is to balance risk versus return over IT and its processes.
Which of the following is least likely to be a source of big data? Wearables A thermostat A single-page pdf document A cow
A single-page pdf document
Which of the following types of systems would you use to record the number of hours worked during the current pay period for each of your employees? An office automation system (OAS). A decision support system (DSS). A transaction processing system (TPS). A partitioned system (PS).
A transaction processing system (TPS).
The IT Steering Committee at Henry Flower's Flower shop is assessing whether to purchase, or internally develop, a new CRM (customer relationship management) system. In the COBIT model, this is best classified as an example of Planning and Organization. Acquisition and Implementation. Delivery and Support. Monitoring.
Acquisition and Implementation.
The fixed assets and related depreciation of a company are currently tracked on a password-protected spreadsheet. The information technology governance committee is designing a new enterprise-wide system and needs to determine whether the current fixed asset process should be included because the current system seems to be working properly. What long-term solution should the committee recommend? Continuing to use the current spreadsheet process because there have been no issues in this area. Developing a new fixed asset system to manage the assets and related depreciation. Purchasing a stand-alone fixed asset program for managing the assets and related depreciation. Adopting the fixed-asset module of the new system for integration.
Adopting the fixed-asset module of the new system for integration.
The CPU includes all of the following except ALU. RAM. Control unit. All of the above are part of the CPU.
All of the above are part of the CPU.
A client would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application? A decision support system. An executive support system. An office automation system. An enterprise resource planning system.
An enterprise resource planning system.
Winthrop P. Snigledorf calls about his outrageous cable bill and is greeted by the "voice" of an AI program. This system is probably best described as an example of Machine learning. A robot. An intelligent agent. An expert system.
An intelligent agent.
During the annual audit, it was learned from an interview with the controller that the accounting system was programmed to use a batch processing method and a detailed posting type. This would mean that individual transactions were Posted upon entry, and each transaction had its own line entry in the appropriate ledger. Assigned to groups before posting, and each transaction had its own line entry in the appropriate ledger. Posted upon entry, and each transaction group had a cumulative entry total in the appropriate ledger. Assigned to groups before posting, and each transaction group had a cumulative entry total in the appropriate ledger.
Assigned to groups before posting, and each transaction had its own line entry in the appropriate ledger.
Challenges of big data include all of the following except: Storage. Quality. Integration. Attrition and retention.
Attrition and retention.
Authorization in an automated system is likely to be Parallel, Tagged. Unnecessary. Automated.
Automated.
Bloomsdale wants to determine if the company from whom she buys seafood is buying only sustainable seafood. Bloomsdale may be able to use ____________ to find this information. Bitcoin Multifactor identification Blockchain OLTP
Blockchain
The ledger that tracks bitcoins is a(n) ____________ ledger while the network that accounts for bitcoins is a(n) ___________________ network. Accounting; centralized Centralized; client-server Bit furcated; peer-to-peer Blockchain; peer-to-peer
Blockchain; peer-to-peer
Selling a digitized product can: Decrease its cost. Improve its quality. Both A and B. Neither A nor B.
Both A and B.
Roles for accountants in big data include all of the following except: Assessing the quality and integrity of big data. Integrating big data into evaluations of internal control. Building big data systems. Data scientists.
Building big data systems.
A marketing manager at Hubert Humbert Fashion Designers is using a component of its organization-wide ERP system to determine which accounts generate the most profitable returns to the company. The manager is most likely using the _________ component of the system. CRM OLAP OLTP Supply chain management
CRM
Vindaloo Corporation wants data storage for a large volume of data that is unlikely to change often. They should consider using A hard disk. Magnetic tape. Cloud storage. Memory (RAM).
Cloud storage.
To maintain effective segregation of duties within the information technology function, an application programmer should have which of the following responsibilities? Modify and adapt operating system software. Correct detected data entry errors for the cash disbursement system. Code approved changes to a payroll program. Maintain custody of the billing program code and its documentation.
Code approved changes to a payroll program.
Which of the following would lessen internal control in a computer processing system? The computer librarian maintains custody of computer program instructions and detailed listings. Computer operators have access to operator instructions and detailed program listings. The control group is solely responsible for the distribution of all computer output. Computer programmers write and debug programs which perform routines designed by the systems analyst.
Computer operators have access to operator instructions and detailed program listings.
Which of the following characteristics distinguishes computer processing from manual processing? Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing. Errors or fraud in computer processing will be detected soon after their occurrences. The potential for systematic error is ordinarily greater in manual processing than in computerized processing. Most computer systems are designed so that transaction trails useful for audit purposes do not exist.
Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing.
Rootin' Roberta of Sharpie Shooters Range Corp. is charged with replacing the computer used in the accounting system. She wants a quick boot time and fast access to storage. She doesn't need a lot of storage, but she wants maximum security in storage. She should consider purchasing: Computers that primary rely on optical disks. A system that primary rely on RAID storage. A system that primarily relies on cloud-based storage. Computers that primary rely on SSD storage.
Computers that primary rely on SSD storage.
When erroneous data are detected by computer program controls, such data may be excluded from processing and printed on an error report. The error report should most probably be reviewed and followed up by the Supervisor of computer operations. Systems analyst. Control group. Computer programmer.
Control group.
Today organizations are using microcomputers for data presentation because microcomputer use, compared to mainframe use, is more Controllable. Conducive to data integrity. Reliable. Cost effective.
Cost effective.
Today organizations are using microcomputers for data presentation because microcomputer use, compared to mainframe use, is more Controllable. Conducive to data integrity. Reliable. Cost effective.
Cost effective.
The position responsible for managing the flow of documents and reports in and out of the computer operations department is the Data entry clerk. Computer operator. Data control clerk. File librarian.
Data control clerk.
Which of the following information technology (IT) departmental responsibilities should be delegated to separate individuals? Network maintenance and wireless access. Data entry and antivirus management. Data entry and application programming. Data entry and quality assurance.
Data entry and application programming.
Walmart analyzes point-of-sale data to determine sales trends, develop marketing campaigns, and predict customer loyalty. Walmart is engaged in _____________ using __________. Online marketing; social media data Industrial espionage; internal data Data mining; big data Audit analytics; a database
Data mining; big data
Each of the following is an enabler of big data except: Data warehousing. Analytics. Dark data. IoT.
Data warehousing.
Peetie's Pet Care has a system that examines large data sets to determine patterns in clients' use of its facilities. This is most likely an example of: Operational systems. Management information systems (MISs). Data-driven DSSs. Model-driven DSS.
Data-driven DSSs.
The ability to add or update documentation items in data dictionaries should be restricted to Database administrators. System programmers. System librarians. Application programmers.
Database administrators.
Internal auditors at Henry Flower's Flower shop are undertaking a comprehensive review of outsourcing contracts and policies as part of improving service quality. In the COBIT model, this is best classified as an example of Planning and Organization. Acquisition and Implementation. Delivery and Support. Monitoring
Delivery and Support.
An internal audit manager requested information detailing the amount and type of training that the IT department's staff received during the last year. According to COSO, the training records would provide documentation for which of the following principles? Exercising oversight of the development and performance of internal control Demonstrating a commitment to retain competent individuals in alignment with objectives Developing general control activities over technology to support the achievement of objectives Holding individuals responsible for their internal control responsibilities in the pursuit of objectives
Demonstrating a commitment to retain competent individuals in alignment with objectives
Most client/server applications operate on a three-tiered architecture consisting of which of the following layers? Desktop client, application, and database. Desktop client, software, and hardware. Desktop server, application, and database. Desktop server, software, and hardware.
Desktop client, application, and database.
Bitcoin uses a(n) ______________ ledger on a ______________ network. Accounting; reticulated spline Centralized; client-server. Distributed; peer-to-peer Wallet; peer-to-peer
Distributed; peer-to-peer
Which of the following is not an example of gamification? Building graphics and video displays into simulations to teach workers about dangers at a factory A competition among salespeople to earn points Dressing up as a cow to promote a fast food restaurant Creating a game to teach students about managerial accounting
Dressing up as a cow to promote a fast food restaurant
Checkpoint auto leasing is a small company with six employees. The best action that it can take to increase its internal control effectiveness is Hire temporary employees to aid in the segregation of duties. Hire a bookkeeper to perform monthly "write up" work. Clearly delegate responsibilities to each employee for the functions that they are assigned. Engage the owner in direct participation in the activities, including financial record-keeping, of the business.
Engage the owner in direct participation in the activities, including financial record-keeping, of the business.
A company has a significant e-commerce presence and self-hosts its website. To assure continuity in the event of a natural disaster, the firm should adopt which of the following strategies? Back up the server database daily. Store records off-site. Purchase and implement RAID technology. Establish off-site mirrored Web server.
Establish off-site mirrored Web server.
Business transformation through blockchain is likely to occur __________________ and requires ___________ adoption. Quickly; supplier Eventually; widespread Eventually; supplier Quickly; widespread
Eventually; widespread
The Board of Directors of Martin Manufacturing Enterprises, Inc. is meeting to consider whether they should expand their manufacturing facilities to include a product line. Although the company's current financial position and sales potential for existing products are part of the information the Board must consider, of even greater importance is external information concerning economic conditions, market projects for the new product, the cost of long-term financing alternatives, and information about potential competitors. The Board of Directors' decision process would be best supported by a Management information system (MIS). Knowledge management system (KMS). Decision support system (DSS). Executive support system (ESS).
Executive support system (ESS).
Monster Lorenzo Sneakers has a division that combines information from several sources into one comprehensive database. The included data relates to customer information from a company's point-of-sale systems (the cash registers), its website, its mailing lists, and its comment cards. It also includes separate data about employees, including time cards, demographic data, and salary. If Monster Lorenzo Sneakers decided to launch a big data initiative, what is the most likely effect on this division? Expansion Contraction Elimination Refurbishing
Expansion
AI depends heavily on __________ and _________. RPA, predictive analytics Fast computers, big data Privacy, confidentiality Analytics, machine learning
Fast computers, big data
HMDs: Are fully immersive. Include three optical displays. Partly result from the IoT. Depend on an unoccluded field of vision.
Partly result from the IoT.
Spirit Line Beverages sponsors a contest for its programmers with prizes for the winning teams. This is an example of ______________ that is intended to __________________. Online marketing; build social media data Industrial espionage; build internal data Data mining; use big data Gamification; build motivation and team rapport
Gamification; build motivation and team rapport
Alejandro uses Amazon "one-click." This is an example of: IoT. Big data. Smart data. Payment processing
Payment processing
All of the following are potential applications of HMDs except: Real-time system monitoring. Generating system logs. Visualizing. Video conferencing.
Generating system logs.
Which of the following risks increases the least with cloud-based computing compared with local server storage for an organization that implements cloud-based computing? Data loss. Vendor security failure. Global visibility. System hacks.
Global visibility.
One important purpose of COBIT is to Guide managers, users, and auditors to adopt best practices related to the management of information technology. Identify specific control plans that should be implemented to reduce the occurrences of fraud. Specify the components of an information system that should be installed in an e-commerce environment. Suggest the type of information that should be made available for management decision making.
Guide managers, users, and auditors to adopt best practices related to the management of information technology.
Hubert Humbert Fashion Designers implemented an organization-wide ERP system that failed. Which of the following is the least likely reason for the failure of such a system? A poor system development process Lack of management support Hardware failures Underestimating system implementation time and complexity
Hardware failures
Big data initiatives should: Be independent of existing IT initiatives. Have a strong governance structure. Be a subset of the event response plan. Be overseen by the internal audit department.
Have a strong governance structure.
Management of a financial services company is considering a strategic decision concerning the expansion of its existing local area network (LAN) to enhance the firm's customer service function. Which of the following aspects of the expanded system is the least significant strategic issue for management? How the expanded system can contribute to the firm's long-range business plan. How the expanded system would support daily business operations. How indicators can be developed to measure how well the expanded system achieves its business objectives. How the expanded system will contribute to the reduction of operating costs.
How the expanded system will contribute to the reduction of operating costs.
Which of the following is true of enterprise resource planning (ERP) systems? I. The online analytical processing system (OLAP) provides data warehouse capabilities for the ERP system. II. The ability of an ERP system to provide an integrated view of transactions in all parts of the system is a function of the online transaction processing (OLTP) system. I only. II only. Both I and II. Neither I nor II.
I only.
Which of the following procedures would enhance the control of a computer operations department? I. Periodic rotation of operators. II. Mandatory vacations. III. Controlled access to the facility. IV. Segregation of personnel who are responsible for controlling input and output. I, II. I, II, III. III, IV. I, II, III, IV.
I, II, III, IV.
Which of the following is true of batch processing? I. In batch processing, data is captured in a transaction file as transactions occur. II. Periodically (once a day, once a week, etc.), the group of transactions in the transaction file are edited, sorted, and then the transactions are used to update the master file. I only. II only. Both I and II. Neither I nor II.
II only.
Which of the following statements is (are) true. I. A greater level of control is necessary in automated than manual systems. II. The uniformity of transaction processing is higher in automated than manual systems. Both I and II. I only. II only. Neither I or II.
II only.
Which of the following is least likely to be a benefit of a big data initiative? IT cost savings. Targeted marketing. Improved system monitoring. Better compliance.
IT cost savings.
Control Objectives for Information and Related Technology (COBIT) provides a framework for Internet-based systems. IT governance and management of enterprise IT. Auditing IT Systems. The implementation for new technology.
IT governance and management of enterprise IT.
What is an example of the use of the cloud to access hardware? IaaS PaaS SAP ERP
IaaS
An accountant at Holly Golightly Tattoos builds a spreadsheet to manage the customer database. Because of the rapid growth of the business, the spreadsheet quickly becomes unmanageably complex. This problem illustrates which of the following issues? Inadequate scope and scalability Lack of strategic focus Lack of strategic investment Digitization
Inadequate scope and scalability
An enterprise resource planning (ERP) system has which of the following advantages over multiple independent functional systems? Modifications can be made to each module without affecting other modules. Increased responsiveness and flexibility while aiding in the decision-making process. Increased amount of data redundancy, since more than one module contains the same information. Reduction in costs for implementation and training.
Increased responsiveness and flexibility while aiding in the decision-making process.
An enterprise resource planning (ERP) system has which of the following advantages over multiple independent functional systems? Modifications can be made to each module without affecting other modules. Increased responsiveness and flexibility while aiding in the decision-making process. Increased amount of data redundancy, since more than one module contains the same information. Reduction in costs of implementation and training.
Increased responsiveness and flexibility while aiding in the decision-making process.
Compared to manual systems, automated systems have ____ risks related to remote access, ____ risks related to the concentration of information, and, ______ opportunities for directly observing processes: Increased, increased, increased Decreased, decreased, decreased Increased, increased, decreased Increased, decreased, increased
Increased, increased, decreased
An enterprise resource planning system is designed to Allow nonexperts to make decisions about a particular problem. Help with the decision-making process. Integrate data from all aspects of an organization's activities. Present executives with the information needed to make strategic plans.
Integrate data from all aspects of an organization's activities.
The primary target audience of COBIT includes ___________ while the primary target audience of COSO includes __________________. Internal auditors; external auditors Board of directors; management Board of directors; external auditors Management; internal auditors
Internal auditors; external auditors
Automating security systems changes: Human error. Biometrics. Oversight. Internal controls.
Internal controls.
Gus McCrae, an accountant at Lonesome Dove Cattle Ranch, builds a spreadsheet to track cow movements between locations. However, there are so few movements of cattle between locations that the spreadsheet is unhelpful. This problem illustrates which of the following issues? Inadequate scope and scalability Lack of strategic focus Lack of strategic engagement Digitization
Lack of strategic focus
____, ______, and ______ are all elements of a manual accounting system. Journals; ledgers; e-vouchers Ledgers, automated transactions, assets Journals, receivables ledgers, concentration of information Ledgers, journals, invoices
Ledgers, journals, invoices
Which of the following internal control procedures would prevent an employee from being paid an inappropriate hourly wage? Having the supervisor of the data entry clerk verify that each employee's hours worked are correctly entered into the system. Using real-time posting of payroll so there can be no after-the-fact data manipulation of the payroll register. Giving payroll data entry clerks the ability to change any suspicious hourly pay rates to a reasonable rate. Limited access to employee master files to authorized employees in the personnel department.
Limited access to employee master files to authorized employees in the personnel department.
A hospital that is launching a big data initiative should initially consider all the following except Privacy law. Qualitative characteristics of the data. Roles and responsibilities. Load at capacity.
Load at capacity.
The state of emerging online payment systems is: Increasing reliance on financial institutions. Improved security. Improved privacy. Lower costs to sellers.
Lower costs to sellers.
The system that most resembles a managerial accounting, budgeting system is: Operational system. MIS. DSS. ESS.
MIS.
Potential short- and medium-term risks of AI include all the following except Machine learning. Confirmation bias. Privacy issues. Prediction bias
Machine learning.
Which of the following constitutes a weakness in the internal control of a computer system? One generation of backup files is stored in an off-premises location. Machine operators distribute error messages to the control group. Machine operators do not have access to the complete systems manual. Machine operators are supervised by the programmer.
Machine operators are supervised by the programmer.
Roberta is a programmer who writes applications for Parsnips Health Care. She also has access to the file library. This is a concern because she may: Grant system access inappropriately to others. Make changes in applications. Make changes to both the live and archive copies of programs. Fail to follow system change protocols.
Make changes to both the live and archive copies of programs.
In a large multinational organization, which of the following job responsibilities should be assigned to the network administrator? Managing remote access. Developing application programs. Reviewing security policy. Installing operating system upgrades.
Managing remote access.
In a computer-based system, the equivalent of a subsidiary ledger is a Transaction file. Archive file. Master file. Reference file.
Master file.
Which of the following is true about master files? Master files contain a historical record of all transactions processed by the system. To maintain a manageable file size, master files are periodically purged from the system. Master files contain both processed and unprocessed transactions. Master files are the computerized counterpart of ledgers found in manual systems.
Master files are the computerized counterpart of ledgers found in manual systems.
Which of the following is not considered a secondary storage device? Magnetic disk. Microcomputers. Flash drives. Optical disc.
Microcomputers.
In COBIT, the process of reviewing system response time logs falls within the _______ control process domain. Acquire and implement. Deliver and support. Monitor and evaluate. Plan and organize.
Monitor and evaluate.
Internal auditors at Henry Flower's Flower Shop are undertaking a comprehensive review to determine if the company has complied with privacy regulations regarding customer data. In the COBIT model, this is best classified as an example of Planning and Organization. Acquisition and Implementation. Delivery and Support. Monitoring.
Monitoring.
Which of the following is NOT true of online/real-time transaction processing systems? Records are usually updated as transactions occur. Random access storage devices are normally required. Network access is not usually required to implement online/real-time systems. Errors are captured and corrected as the transaction occurs.
Network access is not usually required to implement online/real-time systems.
Who is responsible for managing and maintaining bitcoin? The U.S. Treasury The President's Council of Economic Advisors NSA No one
No one
A data analyst at Hubert Humbert Fashion Designers is using a component of its organization-wide ERP system to analyze customer sales to determine the optimal opening and closing times for its retail stores. The analyst is most likely using the _________ component of the system. CRM OLAP OLTP Supply chain management
OLAP
Simone works as an airline reservations agent. She mostly likely interacts with a: Batch system. Batched, online system. POS system. OLRT system.
OLRT system.
An accountant at Hubert Humbert Fashion Designers is using a component of its organization-wide ERP system to prepare a payroll tax return. The accountant is most likely using the _________ component of the system. CRM OLAP OLTP Supply chain management
OLTP
A general type of IT system that is designed to improve the productivity of daily office work is referred to as a(n) Office automation system. Transaction processing system. Decision support system. Executive information system.
Office automation system.
Credit Card International developed a management reporting software package that enables members interactively to query a data warehouse and drill down into transaction and trend information via various network set-ups. What type of management reporting system has Credit Card International developed? On-line analytical processing system. On-line transaction-processing system. On-line executive information system. On-line information storage system.
On-line analytical processing system.
Which of the following statements about processing methodologies is true? Batch systems, though inexpensive to develop, are much more expensive to operate than online real-time databases. Online real-time processing is especially desirable when transactions occur continuously and are interdependent. The implementation of both batch processing and online real-time processing require access to a networked computer system. Although designed to help ensure accuracy in a batch processing environment, batch control totals are frequently used to control accuracy in online real-time systems as well.
Online real-time processing is especially desirable when transactions occur continuously and are interdependent.
Which of the following transaction processing modes provides the most accurate and complete information for decision making? Batch. Distributed. Online. Application.
Online.
Which of the following areas of responsibility are normally assigned to a systems programmer in a computer system environment? Systems analysis and applications programming. Data communication hardware and software. Operating systems and compilers. Computer operations.
Operating systems and compilers.
Which of the following devices "burns" data onto a surface? Magnetic tape reader. Supercomputer. ROM. Optical disc recorder.
Optical disc recorder.
What is an example of the use of the cloud to create software and programs? IaaS PaaS SaaS SAP
PaaS
The IT Steering Committee at Henry Flower's Flower Shop is determining whether the basic infrastructure of the company should include a significant component of cloud computing. In this exercise, the committee is primarily using the company's IT strategic plan to conceptually consider how cloud computing advances or detracts from the company's business objectives. In the COBIT model, this is best classified as an example of Planning and Organization Acquisition and Implementation Delivery and Support Monitoring
Planning and Organization
Which of the following is least likely to be an example of accounting work in the AI era? Working with an AI system to harvest and clean data for use in predicting fraud risk. Working on a legacy system, with AI assistance, that is uneconomical to replace with AI technology. Developing an AI system to analyze the risk of investing in the extraction industry. Preparing financial statements for a client.
Preparing financial statements for a client.
Which of the following is not a part of the central processing unit? Control unit. Arithmetic unit. Logic unit. Printer unit.
Printer unit.
A company that sells hand-carved statues from rural Indonesia online is using a ___________ strategy: Digitization Product differentiation Cost leadership Integrated
Product differentiation
What is the computer process called when data processing is performed concurrently with a particular activity and the results are available soon enough to influence the particular course of action being taken or the decision being made? Batch processing. Real-time processing. Integrated data processing. Random access processing.
Real-time processing.
What type of computerized data processing system would be most appropriate for a company that is opening a new retail location? Batch processing. Real-time processing. Sequential-file processing. Direct-access processing.
Real-time processing.
Which of the following is an important outcome of the use of blockchain? Closed-form accounting Reduced auditing and compliance costs Increased centralization of accounting systems Impenetrable authentication
Reduced auditing and compliance costs
Which of the following is a major motivation for the adoption of new payment systems? Generating real-time data streams. Monitoring physical processes. Improving privacy. Reducing abandonment rates.
Reducing abandonment rates.
Hubert Humbert Fashion Designers is considering implementing an organization-wide ERP. Which of the following is least likely to be a motivation for implementing such a system? Reducing and eliminating data redundancy Improving organizational agility Improving data analytic capabilities Reducing system complexity
Reducing system complexity
Which of the following artificial intelligence information systems cannot learn from experience? Neural networks. Case-based reasoning systems. Rule-based expert systems. Intelligent agents.
Rule-based expert systems.
What is an example of the use of the cloud to access software and programs? IaaS PaaS SaaS SAP
SaaS
Which of the following is least likely to be an example of big data? Dark data. Multifactor identification data. Sales data. Video conferencing data.
Sales data.
Which of the following is an example of a non-financial transaction? Sending a purchase order to a vendor to purchase items for re-sale. Creating a cash receipt to mark receipt of a customer payment. Preparing a payroll check to send to an employee in payment of the current month's wages. Approving a vendor invoice for payment.
Sending a purchase order to a vendor to purchase items for re-sale.
An accountant at Henry Higgins Language Lessons must sort the master file before processing recent transactions to update the master file. Henry Higgins uses ______ file storage. Sequential RAID Optical disk Data mart
Sequential
A computer sitting on a user's desk that includes a keyboard and a mouse is unlikely to be a(n): Desktop. Laptop. Server. Thin client.
Server.
The widespread adoption of the IoT will: Speed the adoption of automated authentication. Reduce the need for monitoring. Reduce security. Reduce costs.
Speed the adoption of automated authentication.
In the COBIT model, __________ is an (are) example(s) of an information criterion while _________ is an example of (an) IT resource(s). Penetration testing results; routers Acquisition and Implementation; a capacitor Standards for user response times, network structure IT staff, computer servers
Standards for user response times, network structure
Compared to online real-time processing, batch processing has which of the following disadvantages? A greater level of control is necessary. Additional computing resources are required. Additional personnel are required. Stored data are current only after the update process.
Stored data are current only after the update process.
Which of the following most likely represents a significant deficiency in the internal control? The systems analyst reviews applications of data processing and maintains systems documentation. The systems programmer designs systems for computerized applications and maintains output controls. The control clerk establishes control over data received by the information systems departments and reconciles totals after processing. The accounts payable clerk prepares data for computer processing and enters the data into the computer.
The systems programmer designs systems for computerized applications and maintains output controls.
Compared to batch processing, real-time processing has which of the following advantages? Ease of auditing. Ease of implementation. Timeliness of information. Efficiency of processing.
Timeliness of information.
When a client's accounts payable computer system was relocated, the administrator provided support through a dial-up connection to a server. Subsequently, the administrator left the company. No changes were made to the accounts payable system at that time. Which of the following situations represents the greatest security risk? User passwords are not required to be in alphanumeric format. Management procedures for user accounts are not documented. User accounts are not removed upon termination of employees. Security logs are not periodically reviewed for violations.
User accounts are not removed upon termination of employees.
Encryption protection is least likely to be used in which of the following situations? When transactions are transmitted over local area networks. When wire transfers are made between banks. When confidential data are sent by satellite transmission. When financial data are sent over dedicated leased lines.
When transactions are transmitted over local area networks.
Winthrop P. Snigledorf pays his employees in bitcoins to avoid paying payroll taxes and so that his employees don't have to pay income taxes on these earnings. Which of the following is an accurate assessment of these actions? Winthrop is correct—neither payroll taxes nor income taxes are due on wages paid in bitcoins. Winthrop is incorrect—payroll taxes need not be paid on wages paid in bitcoins; employees must pay income taxes on these earnings. Winthrop is incorrect—payroll taxes must be paid on wages paid in bitcoins; employees do not need to pay income taxes on these earnings. Winthrop is incorrect—both payroll taxes and income taxes must be paid on these earnings.
Winthrop is incorrect—both payroll taxes and income taxes must be paid on these earnings.
