AIS CHAPTER 2
102) The goal of work measurement is to create a benchmark or yardstick to use in measuring the efficiency of an operation. The first step taken in work measurement is to A) identify the tasks. B) analyze requirements C) examine IPO and HIPO documentation. D) obtain time estimates for performing the tasks.
A
103) The formula used to compute total task time for work measurement purposes is A) (average time / unit + idle time / unit) × average volume. B) total time available / total task time. C) (average volume / unit + average time / unit) × average volume. D) total task time / total time available.
A
106) In an application control matrix, row entries are A) controls. B) processing actions. C) either controls or processing actions. D) neither controls nor processing actions
A
114) An annotation or comment may be represented in a flowchart using a A) brace. B) flowline. C) square. D) diamond.
A
61) Audit tests that follow compliance tests and rely on the interim audit's results are called A) substantive tests. B) follow-up tests. C) internal control tests. D) evaluation tests.
A
64) Which of the following symbols should not be used to specify an input/output operation? A) Decision symbol B) Document symbol C) Off line storage symbol D) Communication link
A
75) Which of the following analytic flowcharting symbols is most appropriate to represent the accounts receivable subsidiary records? A) The basic input/output symbol B) The basic manual operation symbol C) The document symbol D) None of these answers are correct.
A
76) In a HIPO chart of a payroll system, which of the following activities would appear higher in the chart than the other activities? A) Calculate gross pay B) Accumulate hours worked C) Find correct pay rate D) Look up authorized deductions
A
80) In a logical data flow diagram for a payroll system, the employees' time cards would best be represented by which of the following symbols? A) The terminator symbol B) The process symbol C) The data store symbol D) The data flow symbol
A
83) The symbol which is used to link other symbols and indicate the sequence of information and operations is the A) flowline symbol. B) annotation symbol. C) input/output symbol. D) process symbol.
A
85) Which of the following is not a specialized process symbol? A) The connector symbol B) The manual operation symbol C) The decision symbol D) The preparation symbol
A
89) Which of the following would not be appropriate to head a column in an analytic flowchart? A) Remittance advice B) Production department C) Purchasing department D) Cashier
A
97) The component of an audit whose objective is to establish the degree of reliance that can be placed on the organization's internal control structure is called A) the interim audit. B) the financial statement audit. C) work paper verification.D) the internal audit.
A
100) The first step in preparing a flowchart is to A) select the symbols to be used. B) analyze the system. C) sketch a rough draft of the system. D) consult the work papers from previous audits.
B
101) How many general guidelines should be followed when preparing a flowchart? A) Three B) Five C) Seven D) Four
B
104) A branching table may be used to A) validate the degree of reliance placed on an organization's internal controls. B) document the decision logic in a computer program. C) document work measurement analysis. D) validate the computing speed of a program.
B
110) Flowchart symbols that represent the I/O function and the medium upon which the information is recorded, and/or the manner of handling such information, are known as A) basic input/output symbols. B) specialized input/output symbols. C) LDFD symbols. D) HIPO hierarchy chart modules.
B
112) Connector symbols may be used in place of A) comment symbols. B) long flowlines. C) data flow symbols. D) communications links.
B
116) UML is a(n) ________ standard. A) United States B) international C) ANSI D) AICPA
B
60) The acronym for the organization responsible for standardizing flowchart symbols is A) FASB. B) ANSI. C) AICPA. D) CMA.
B
62) Which of the following is a procedure included in systems design? A) Computer program documentation B) Forms design C) Training personnel D) Document review
B
67) In an analytic flowchart, the symbol which could be used to indicate the payroll data is the A) connector symbol. B) magnetic disk symbol. C) terminator symbol. D) decision symbol.
B
72) In the preparation of a logical data flow diagram for a payroll system, which of the following symbols could be used to indicate the payroll data? A) Magnetic disk symbol B) Data store symbol C) Terminator symbol D) Input/output symbol
B
74) An internal auditor wants to flowchart a file of (hardcopy) purchase orders. Which of the following would be the best symbol to use for the file? A) The on-line storage symbol B) The off-line storage symbol C) The terminal symbol D) The auxiliary operation symbol
B
79) In a logical data flow diagram for a payroll system, the employees would best be represented by which of the following symbols? A) The process symbol B) The terminator symbol C) The data store symbol D) The data flow symbol
B
82) Which of the following is not one of the basic symbols used in analytic flowcharting? A) Input/output B) Manual input C) Flowline D) Annotation
B
87) The technique that is characterized by a series of charts that represent the system at increasing levels of detail is called A) analytic flowcharting. B) HIPO. C) IPO. D) logical data flow diagram.
B
91) A type of resource utilization technique which is used to rationally assign work activities to particular individuals, departments, or other entities is A) work measurement B) work distribution analysis. C) branching table. D) decision table.
B
95) Which of the following is not true with respect to the use of systems techniques by auditors? A) Systems techniques assist the auditor in evaluating a client's internal control. B) Systems techniques replace audit working papers. C) Auditors rely on systems techniques to assist with compliance testing. D) Auditors use systems techniques as part of their documentation for their audit working papers.
B
105) A decision table format generally uses a(n) A) &;OR&; premise. B) &t;SOME-MANY; premise. C) &t;IF-THEN; premise. D) &t;ALL-NONE; premise.
C
111) The principle behind the "sandwich rule" states that A) flowcharts should leave as little white space as possible on each page to minimize waste. B) annotations should be placed between each key input and output symbol. C) every process symbol should be placed between an input and output symbol. D) flowcharts should use as many different types of symbols as possible to thoroughly document basic I/O functions.
C
113) The on-line storage symbol would be used to represent A) a deck of cards. B) a magnetic tape. C) an optical disk. D) a punched tape.
C
115) Which part of the Sarbanes-Oxley Act requires annual filings of publicly traded companies to include a statement of management's responsibility for establishing and maintaining an adequate internal control structure and procedures for financial reporting? A) ISO 404 B) ANSI X3.5 C) Section 404 D) Section X3.5
C
63) In an analytic flowchart, the symbol which could be used to indicate unclaimed payroll checks is the A) connector symbol. B) terminal symbol. C) document symbol. D) process symbol.
C
66) In an analytic flowchart, the symbol which could be used to indicate unclaimed payroll checks is the A) connector symbol. B) terminal symbol. C) document symbol. D) process symbol.
C
70) The "hierarchy" aspect of HIPO charts refers to the fact that this technique factors a task into modules by A) using the entity's organization chart. B) utilizing a horizontal approach. C) going from the general to the specific. D) None of these answers are correct.
C
71) The charting technique which emphasizes a logical rather than a physical description of a system is a(n) A) analytic flowchart. B) forms distribution flowchart. C) data flow diagram. D) document flowchart.
C
77) Which of the following would not appear in a HIPO chart of a payroll system? A) Data preparation B) Calculate gross pay C) Payroll master file D) Look up authorized deductions
C
78) In an IPO chart of a payroll system, the payroll master file would A) appear as an input B) appear as an output. C) Answers A and B are correct. D) not be represented in the chart
C
84) Which of the following is not a specialized input/output symbol that represents a particular medium? A) The magnetic tape symbol B) The magnetic disk symbol C) The connector symbol D) The document symbol
C
90) Which of the following would generally not be appropriate in preparing a document flowchart? A) Columnar headings B) Flowlines C) Process symbols D) Connector symbols
C
93) The decision analysis techniques that are similar because both are tabular representations of decision-making processes are A) work measurement and work distribution analysis. B) work distribution and decision tables. C) branching and decision tables. D) None of these answers are correct.
C
98) To confirm the existence and assess the effectiveness of an organization's internal controls, Auditors A) create systems techniques. B) perform substantive testing. C) perform compliance testing. D) create HIPO and IPO charts.
C
99) The flowchart which is most similar to a document flowchart is the A) IPO chart. B) DFD. C) analytic flowchart. D) HIPO chart.
C
107) A block flowchart is also known as a(n) A) data flow diagram. B) HIPO chart. C) analytic flowchart. D) program flowchart.
D
108) A tabular technique used to represent a decision function in a flowchart is known as a A) block flowchart.B) logical data flow diagram. C) decision table. D) branching table.
D
109) The display symbol in a flowchart represents information displayed for human use using a device such as a A) video monitor. B) plotter. C) console printer. D) All of these answers are correct.
D
117) UML includes techniques that are the functional equivalents of A) data flow diagrams. B) document flowcharting. C) analytical flowcharting. D) All of the above are included in the UML standard.
D
118) UML version 2.4 defines ________ types of diagrams, divided into two categories. A) two B) five C) ten D) more than a dozen
D
65) In an analytic flowchart, the symbol which could be used to indicate the computation of gross pay is the A) connector symbol. B) terminal symbol. C) input/output symbol. D) process symbol.
D
68) The manual input symbol could be used to represent A) the entering of data at an on-line keyboard. B) the entering of data using switch settings. C) the entering of data using touch screens. D) All of these answers are correct.
D
69) The off-line storage symbol could be used to represent data stored A) on a USB thumb drive. B) on a magnetic tape or disk. C) in paper form. D) on all of these named media.
D
73) Instead of using the on-line storage symbol, a systems analyst wants to use an analytic flowcharting symbol that represents the medium that is used for the file. Which of the following would be the best symbol to use in place of the on-line analytic storage symbol? A) The display symbol B) The magnetic tape symbol C) The document symbol D) None of these answers are correct.
D
81) Which of the following systems development activities may require the use of systems techniques? A) Systems analysis B) Systems design C) Systems implementation D) All of these answers are correct.
D
86) Which of the following flow directions is(are) assumed in a flowchart? A) From top to bottom B) From left to right C) Neither answer A nor B is correct. D) Answers A and B are both correct.
D
88) Which of the following is not a basic symbol used in logical data flow diagrams? A) Terminator B) Data store C) Data flow D) Manual input
D
92) Which of the following is an example of narrative techniques? A) In-depth interviews B) Open-ended questionnaires C) Document reviews D) All of these answers are correct.
D
94) Systems techniques may be used to A) assist in designing computer programs. B) give an overall picture of transaction processing in the organization. C) assist a systems analyst in organizing facts about a system. D) All of these answers are correct.
D
96) Systems techniques may be used by A) internal auditors. B) external auditors. C) systems personnel. D) All of these answers are correct
D
11) Systems analysis involves formulating a blueprint for a completed system.
FALSE
12) Auditors primarily use IPO and HIPO charts.
FALSE
14) Section 404 of the Sarbanes-Oxley Act requires that monthly filings of publicly traded companies include a statement of management& responsibility for establishing and maintaining adequate internal control as well as an assessment of the effectiveness of that internal control.
FALSE
15) Manual input/output and connector symbols are among the basic flowchart symbols.
FALSE
16) In the United States, the AICPA is responsible for establishing standard flowchart symbols.
FALSE
18) If no special symbol exists to depict a function, verbal descriptions are used in the flowchart.
FALSE
19) The decision symbol represents a named procedure consisting of one or more operations or program steps that are not specified within the set of flowcharts.
FALSE
2) The interim audit requires some type of substantive testing.
FALSE
22) The triangle is a specialized symbol representing a decision process.
FALSE
23) When the flow is bidirectional, it can only be shown by double lines.
FALSE
26) An IPO chart can provide much detail concerning the processing function.
FALSE
27) HIPO structures a "bottom-up" strategy in structured systems analysis and design.
FALSE
29) A systems flowchart is more detailed concerning individual processing functions than a program flowchart.
FALSE
31) A DFD may consist of either DFD or ANSI flowchart symbols.
FALSE
32) A document flowchart is similar to a systems flowchart.
FALSE
35) UML is a United States standard, not yet supported by the International Standards Organization.
FALSE
37) In UML, use case diagrams model the flow of activities involved in a single process.
FALSE
4) When evaluating internal controls, auditors are usually not concerned with the flow of processing and distribution of documents within an application system.
FALSE
40) BPMN basic symbols include input/output, process, flowline, and annotation symbols.
FALSE
41) All BPDs contain at least two pools.
FALSE
8) Analytic and system flowcharts are seldom found in the working papers of auditors.
FALSE
1) Tools used in the analysis, design, and documentation of system and subsystem relationships are known as system techniques.
TRUE
10) Systems techniques assist the analyst in the collection and organization of facts.
TRUE
13) Section 404 of the Sarbanes-Oxley Act requires that annual filings of publicly traded companies include a statement of management& responsibility for establishing and maintaining adequate internal control as well as an assessment of the effectiveness of that internal control.
TRUE
17) The four basic symbols corresponding to basic data processing functions are the input/output symbol, the process symbol, the flowline symbol, and the annotation or comment symbol.
TRUE
20) The decision symbol represents a decision or switching type of operation that determines which of a number of alternative paths is to be followed.
TRUE
21) The normal flow direction of a flowchart is from left to right and top to bottom.
TRUE
24) An IPO chart provides a narrative description of the inputs needed to generate desired system outputs.
TRUE
25) A HIPO chart contains two segments: a hierarchy chart and one or more IPO charts.
TRUE
28) A program flowchart is also known as a block flowchart.
TRUE
3) Substantive testing involves direct verification of financial statement figures.
TRUE
30) The intent of using DFDs is to clearly separate the logical process of systems analysis from the physical process of systems design.
TRUE
33) The forms distribution chart is closely related to the document flowchart.
TRUE
34) The sandwich rule states that every process symbol should be placed between an input and output symbol.
TRUE
36) UML is a collection of modeling tools used to model the specifics of software development including functional equivalents of data flow diagrams, document flowcharting, and analytical flowcharting.
TRUE
38) The business process diagram focuses on the sequence of activities in a business process.
TRUE
39) BPMN basic symbols include the task, sequence flow, gateway, and event symbols.
TRUE
5) Auditors undertake compliance testing to determine the degree of reliance of existing internal controls.
TRUE
6) It is desirable for auditors to have a basic understanding of systems techniques.
TRUE
7) The usual focus of an audit is to review an existing system rather than design a new system.
TRUE
9) A systems development project generally consists of three main phases.
TRUE
