ACCT 307 Final Review
Which of the following is not one of the elements to be identified when developing business rules? - Important business events. - Conditions that affects the intention/objective for an event. - Access controls that limit who can use information. - Actions to be taken based on conditions.
Access controls that limit who can use information.
XBRL style sheets: - Add presentation elements to instance documents. - Add stylized notation to instance documents. - Provide technical data to pull appropriate data elements. - Provide the appropriate XBRL taxonomy to the instance documents.
Add presentation elements to instance documents.
Which of the following describes the purpose of the Labor Operations event? - Add the cost of direct labor to work in process inventory - Control the specific labor activities - Ensure that labor is performed - Identify production employees - None of the choices are correct
Add the cost of direct labor to work in process inventory
Which of the following is an activity in the conversion process? - Authorize production - Issue raw material - Perform work - Transfer completed work to finished goods - All are activities in the conversion process.
All are activities in the conversion process.
The framework to be used by management in its internal control assessment under requirements of SOX is the: - COSO internal framework. - COSO enterprise risk management framework. - COBIT framework. - All of the above are correct.
All of the above are correct
American Airlines may use business intelligence to: - track the cost of snacks on its airplanes. - monitor the cost of its pilots and flight attendants. - track the cost of its airplane fuel. - monitor prices on competitive routes. - All of the choices are correct.
All of the choices are correct.
Which of the following best describes the use of type images in UML class modeling? - Allow companies to include graphic images in class models. - Used to enumerate a many-to-many association between two REA classes. - Allow modelers to distinguish between types of activities in an activity diagram. - Allow categorization of REA classes based on management's information needs.
Allow categorization of REA classes based on management's information needs.
In Access, system designers sometimes set range limits for values of attributes so users can't enter unreasonable values; this is an example of what kind of controls? - Application. - Access. - Internal. - Management.
Application
XBRL assurance is generally expected to include all of the following except: - Assurance that the most current, standardized XBRL taxonomy is used. - Assurance that the underlying financial and nonfinancial data that is used in XBRL tagging is reliable. - Assurance that the XBRL tagging is accurate and complete. - Assurance that reports include all relevant financial and nonfinancial information.
Assurance that reports include all relevant financial and nonfinancial information.
The AICPA developed standards called ADS for the formatting of data files and fields typically needed to support an external audit in a given financial business process area. What does the acronym ADS stand for? - Accounting Doctoral Scholars - Accounting Data Standards - Audit Data Standards - Auditor Data Standards
Audit Data Standards
Which duties should be completed by different people to achieve strong separation of duties? - Journalizing and posting - Receivables and payables - Authorization, custody and recordkeeping - Document numbering and document completion
Authorization, custody and record keeping
Consider a UML class diagram of the conversion process that uses the REA framework. Which of the following events begins a typical conversion process? - Assign employees to departments - Authorize production - Issue raw material into work in process - Sell finished goods - None of the choices are correct
Authorize production
Which of the following is not an activity in the purchases and payments process? - Request prices - Receive items - Pay for items - Bill customers - All of the choices are activities in the purchases and payments process.
Bill Customers
The computer-based technique to provide real-time information on business processes is called: - Business intelligence. - Data Warehouse. - Digital Dashboard. - XBRL.
Business intelligence
Which of the following is an event in a purchases and payments structure model? - Cash - Inventory - Employee - Cash disbursement - None of the choices are correct.
Cash disbursement
Internal Databases that might be included in a data warehouse would not include: - General Ledger. - Competitor Information. - Sales Information. - Purchases Information.
Competitor Information
Which of the following activities results in work-in-process moving to finished goods inventory? - Authorize production - Inspect work - Complete production - Issue raw material - None of the choices are correct
Complete production.
Which of the following is not one of the five essential components in the COSO 2013 framework? - Control activities - Control assessment - Monitoring activities - Control environment
Control assessment
Which of the following, on their own, is explicitly considered to be personally identifying information? - Credit Card Number - Business Telephone Number - Date of Birth - Religion
Credit Card Number
All of the following are examples of internal control procedures except: - Using pre-numbered documents. - Reconciling the bank statement. - Customer satisfaction surveys. - Insistence that employees take vacations.
Customer satisfaction surveys
DATA (2009) created a national standard for privacy and data protection. The acronym DATA stands for: - Data Accountability and Trust Act of 2009. - Data Accounting and Trust Act of 2009. - Data Accessibility and Trust Act of 2009. - Data Audit and Trust Act of 2009.
Data Accountability and Trust Act of 2009
Which term is used to describe the science of examining raw data, removing excess noise from the dataset, and organizing the data with the purpose of drawing conclusions for decision making? - Big Data - Data Analytics - Information Analytics - Extract, Transform and Load
Data Analytics
A subset of a data warehouse for a specific purpose is called a: Small Data Warehouse. Data Mart. Data Convenience Store. Business Intelligence.
Data Mart.
Which technique or tool is used to analyze data for business intelligence purposes? - Data mining - Decision support systems - Big Data - Data marts
Data mining
Review of the audit log is an example of which of the following types of security control? - Governance. - Detective. - Preventive. - Corrective.
Detective
Which of these is not part of the security program required by DATA to prevent compromise of critical information? - Develop, document and maintain a security policy for the collection, use, sale, dissemination, and maintenance of personal identifying information - Establish contracts with third parties with access to the information to establish controls that meet the requirements of the Act - Establish a process to identify risks and vulnerabilities of potential breaches and implement administrative and technical controls to mitigate the risk of compromise of the personal identifying information - Develop a procedure to efficiently and effectively notify affected parties and regulators in the event of a data breach.
Develop a procedure to efficiently and effectively notify affected parties and regulators in the event of a data breach.
What is the mechanism called that firms may use to track their marketing efforts? - Data analytics - XBRL - Business intelligence - Digital dashboard
Digital Dashboard
Which of the following describes the purpose of a lane within a pool in BPMN? - Indicate the start of the process - Indicate the end of the process - Identify different activity flow options - Distinguish specific responsibilities for performing different tasks - None of the choices are correct
Distinguish specific responsibilities for performing different tasks
XBRL Instance Documents include: Underlying technical details of XBRL. Presentation elements of XBRL. Definitions of each key data element of XBRL. Document containing XBRL elements.
Document containing XBRL elements.
Which of the following is not a purpose of using lanes to describe the conversion process? - Document the sequence of activities in the process - Expose potential problems in the handoff between organizational units - Show important decision points, and identify responsibility for those decisions - Establish internal control activities, such as segregation of duties - All of the choices are correct
Document the sequence of activities in the process
Which of the following is a business rule implementing access control for the conversion process? - Employee authorizing production cannot modify inventory records. - System must provide control numbers. - Employees preparing quotes cannot modify established prices. - System must create audit trail whenever records are changed. - None of the choices are correct.
Employee authorizing production cannot modify inventory records.
Which of the following is not an example of an application control? - Range checks ensure that purchases are limited to valid amounts. - Employee making disbursements cannot modify purchase orders. - System supplies supplier address for the payment. - System creates audit trail documenting all changes. - All of the choices are examples of application controls.
Employee making disbursements cannot modify purchase orders.
Which of the following is the primary overall objective of the conversion process? - Issue raw materials efficiently. - Ensure that enough finished products are available to meet anticipated demand. - Make finished products to order. - Transfer finished goods to warehouse inventory accurately.
Ensure that enough finished products are available to meet anticipated demand.
Which of the following least reflects the purpose of a business rule in the conversion process? - Segregating authorizing, issuing, and conversion work duties - Limiting who can view and change records in the system - Ensuring no production without a customer order - Assuring that all products meet quality standards
Ensuring no production without a customer order
In a basic UML class diagram for the conversion process, the Production Authorization class is which of the following? - Resource. - Event. - Agent. - Type Image.
Event
In a basic UML class diagram for the conversion process, the Raw Material Issue class is which of the following? - Resource. - Event. - Agent. - Type Image.
Event
Which is not an example of a batch total? - Exception total - Record count - Financial total - Hash total
Exception total
Which of the following is not a component of COSO ERM? - Event identification - External environment - Internal control evaluation - External environment and Internal control evaluation
External environment and Internal control evaluation
The acronym, ETL, in the process of readying data for use in data analysis refers to what three words? - Extrapolate, Transform and Lift - Extrapolate, Transpose and Load - Extract, Transform and Load - Extract, Transform and Lift
Extract, Transform and Load
A data warehouse may include a: - Digital Dashboard. - XBRL style sheet. - General Economic Information. - IPads and iPhones.
General Economic Information
Which of the following best describes the first step in the process for developing business rules? - Prepare an activity diagram. - Identify important events (or steps) in a process. - Prepare a structure diagram. - Review process documentation.
Identify important events (or steps) in a process.
Which of the following is considered a control environment factor by the COSO definition of internal control? - Control objectives - Integrity and ethical values - Reasonable assurance - Risk assessment
Integrity and ethical values
In a large public corporation, evaluating internal control procedures should be responsibility of: - Accounting management staff who report to the CFO. - Internal audit staff who report to the board of directors. - Operations management staff who report to the chief operation officer. - Security management staff who report to the chief facilities officer.
Internal audit staff who report to the board of directors
Using a generic conversion UML class diagram as a starting point, which of the following best describes how to find work-in-process inventory? - It is displayed in the UML class diagram as a Resource class. - It is calculated based on accumulated materials issued, labor and overhead. - It is displayed in the UML class diagram as a Type Image class. - It is not displayed in the UML class diagram, but will become a table in the relational database as a result of a many-to-many association in the UML class diagram.
It is calculated based on accumulated materials issued, labor and overhead.
Which of the following best describes the purpose of a bill of material class? - Links each raw material item to one or more finished good items. - Shows the issues of raw material items into work in process. - Links finished goods to production. - Shows the raw material usage variance.
Links each raw material item to one or more finished good items.
In a basic UML diagram of the conversion process, which of the following best describes the purpose of a duality association? - Shows the participation of employees in the process. - Links work in process events to the original production authorization. - Indicates issue of raw material into the process. - Tracks completion of work in process and increase to finished goods inventory.
Links work in process events to the original production authorization.
Which of the following is not one of the reasons that the conversion process is typically considered more complicated than the sales and collections and the purchases and payments processes? - The conversion process has greater record-keeping requirements. - Many companies do not have a conversion process. - The sophistication of the conversion process may vary greatly among different companies. - All three of the other answers are reasons that the conversion process is more complicated.
Many companies do not have a conversion process.
Ebay may use business intelligence to: - Track the cost of iPhones on its website. - Monitor the price of iPads at Amazon. - Track the cost of their airplane fuel. - Monitor prices on competitive routes.
Monitor the price of iPads at Amazon.
Which edit check compares entered data to a predetermined acceptable upper and lower limit? - Range check - Valid check - Field check - Sequence check
Range check
Which of the following events would indicate recording of a purchase in the AIS? - Issue Purchase Order - Receive Goods - Make Payment - Transfer Inventory - None of the choices are correct.
Receive Goods
Which activity results in an increase to accounts payable? - Receive items - Send payment - Request prices - Return rejected items - Place purchase order
Receive items
Which of the following describes the purpose of the Bill of Material class? - Record the invoices from suppliers for materials purchased - Record the planned raw material contents of each finished good - Record the authorization of production - Describe the labor required for each finished good - None of the choices are correct
Record the planned raw material contents of each finished good
Which of the following statements is correct? - SOX requires all public companies to use the COSO ERM framework to meet the requirements of section 404. - ISO 27000 series are best practices for IT service management. - ITIL is the best internal control framework for the high-tech industry. - Regarding IT control and governance, the COBIT framework is most commonly adopted by companies in the United States.
Regarding IT control and governance, the COBIT framework is most commonly adopted by companies in the United States.
Which is least likely to be provided by an application control? - Accuracy - Completeness - Reliability - Authorization
Reliability
Under COSO ERM framework, which of the following objectives involves parties external to the organization? - Strategic objectives - Compliance objectives - Operation objectives - Reporting objectives
Reporting objectives
In a basic UML class diagram for the conversion process, the Raw Material class is which of the following? - Resource. - Event. - Agent. - Type Image.
Resource
Avoiding, accepting, reducing and sharing are components of ___ in Enterprise Risk Management? - Risk response - Risk assessment - Control activities - Communication and monitoring
Risk Response
Which of the following is not a COSO ERM control objective? - Operations - Reporting - Compliance - Strategic - Risk assessment
Risk assessment
Which of following best describes the control activities that access controls can help implement? - Document control. - Safeguard assets. - Segregation of duties. - Monitoring.
Segregation of duties
Which of the following is an agent in a purchases and payments structure model? - Cash disbursement - Inventory - Supplier - Employee labor - Receipt of goods
Supplier
XBRL assurance might include all but which of the following: - The XBRL tagging is useful to investors. - The reports generated using XBRL are complete and received on a timely basis. - The XBRL tagging is accurate and complete. - The most current, standardized XBRL taxonomy is used.
The XBRL tagging is useful to investors.
In the generic REA model for the sales and collections process, the multiplicities between the Sales and Cash Receipts classes are displayed with question marks. Which of the following best explains this? - The direction of process flow depends on the nature of the business. - The quantities of items sold can't be determined until the sale occurs. - The actual values will depend on the nature of the business. - The customer determines the multiplicities for this association.
The actual values will depend on the nature of the business.
Which of the following is not a desired access control when developing a purchases and payments business process? - The person placing the purchase order must not receive the items. - The person returning items to the supplier must not view the original purchase order. - The person receiving the order must not see the original purchase order quantities. - The person paying the supplier must not be able to modify the purchase order.
The person returning items to the supplier must not view the original purchase order.
In a basic UML class diagram for the conversion process, a bill of materials specifies which of the following? - The raw materials to be issued. - The raw materials used to make each finished good. - The labor to be used to make each finished good. - The finished good to be made.
The raw materials to be issued.
Based on COSO 2013, which of the following statements is not correct? - Employees at any level of an organization play a role in internal control. - Internal control is a process consisting of ongoing tasks and activities. - Internal controls can provide reasonable assurance only. - The responsibility of monitoring the effectiveness of internal controls belongs to the internal audit group.
The responsibility of monitoring the effectiveness of internal controls belongs to the internal audit group.
Which of the following is an example of a business rule implementing access controls? - The warehouse containing inventory must be locked when the inventory manager is not present. - Users recording collections cannot modify sales records. - The computer system shall generate an audit trail. - Internal auditors shall be used. - The warehouse containing inventory must be locked when the inventory manager is not present and user's recording collections cannot modify sales records are business rules implementing access controls.
The warehouse containing inventory must be locked when the inventory manager is not present and user's recording collections cannot modify sales records are business rules implementing access controls.
Which of the following is the least likely example of how a specialized digital dashboard might be used? - To track construction projects. - To track network security. - To track manufacturing operations. - To track fixed asset depreciation.
To track fixed asset depreciation.
In the following basic BPMN diagram of the Sunset Graphics' conversion process, which of the following bests describes when they would record an increase to finished goods inventory? - When Authorize Product occurs. - When Issue R/M (raw materials) occurs. - When Complete Production occurs. - When Issue R/M and Perform Work occur.
When Complete Production occurs.
In the following basic BPMN diagram of the Sunset Graphics' conversion process, which of the following bests describes when they would record an increase to work in process inventory? - When Authorize Product occurs. - When Issue R/M (raw materials) occurs. - When Complete Production occurs. - When Issue R/M and Perform Work occur.
When Issue R/M and Perform Work occur.
Prenumbering of source documents helps to verify that: - no inventory has been misplaced. - multiple types of source documents have a unique identifier. - all transactions have been recorded because the numerical sequence serves as a control. - documents have been used in order.
all transactions have been recorded because the numerical sequence serves as a control.
Controls that are designed to prevent, detect, or correct errors in transactions as they are processed through a specific subsystem are referred to as: - general controls. - application controls. - physical controls. - Two of the above are correct. - None of the above are correct.
application controls
The computer sums the first four digits of a customer number to calculate the value of the fifth digit and then compares that calculation to the number typed during data entry. This is an example of a: - field check. - batch total. - check digit verification. - parity check.
check digit verification
A data warehouse may include: - competitor information. - an XBRL style sheet. - a digital dashboard. - an iPad.
competitor information.
A digital dashboard tracks, in a user-friendly way: - critical business processes. - critical business markets. - automobile speed. - critical business failures.
critical business processes
XBRL stands for: - XML Business Reporting Language. - eXtensible Business Reporting Language. - eXcellent Business Reporting Language. - eXcellent Business Reporting and Languages.
eXtensible Business Reporting Language.
XBRL facilitates business reporting of: - financial and nonfinancial information. - business processes. - only financial information. - the XML language.
financial and nonfinancial information
Access control to ensure only authorized personnel have access to a firm's network is a: - general control. - output control. - input control. - process control.
general control
A field check is a(n) - general control. - detective control. - output control. - corrective control. - preventive control.
preventive control
