Acct 310 Test 3
Which of the following best describes the skill sets used in data analytics?
Acquiring/cleaning data; creating data structures/models; mining/analyzing data
Encryption is a control that changes plain text into which of the following?
Cyphertext
According to the results of the PWC's 18th Annual Global CEO survey, CEO's aren't yet ready to place a high value on data analytics
False
Asymmetric-key encryption is suitable for encrypting large data sets or messages.
False
Data analytics can provide deep insights into financial data, but it is not particularly useful when evaluation non-financial data such as social media.
False
Data analytics is best described as the science of reducing extremely large datasets down to more manageable databases that can then be processed using traditional tools
False
Data warehouses gather information from external databases but not from internal databases
False
Disaster recovery planning and business continuity management are preventive controls.
False
If data mining finds a statistical correlation or relationship between two data items, then there exists a plausible relationship between those two data items in the real world.
False
Spam is a self-replicating program that runs and spreads by modifying other programs or files.
False
XBRL produces standardized reports and is not customizable
False
COBIT 5 takes the view that all IT processes should provide clear links between all of the following except:
IT components
The ISO 27000 Series of standards are designed to address which of the following?
Information security issues
A Public Key Infrastructure (PKI) provides the ability to do which of the following?
Issue, maintain, and revoke digital certificates
In a large multinational organization, which of the following job responsibilities should be assigned to the network administrator?
Managing remote access
Which of the following items is one of the eight components of COSO's enterprise risk management framework?
Monitoring
Which of the following is often used as the main repository of a company's historical data (i.e., its corporate memory)?
The data warehouse
At its core, data analytics fits into the information value chain in which of the following ways?
The process of data analytics aims at transforming
As described in the text, which of the following best defines the term data analytics?
The science of examining raw data, removing excess noise, and organizing it in order to draw conclusions for decision making
Why would companies want to use digital signatures when conducting e-business?
They can authenticate the document sender and maintain data integrity
Which of the following is least likely example of how a specialized digital dashboard might be used?
To track fixed asset depreciation
Which of the following is not one of the common techniques for information security risks and attacks?
TraceRT
Audit data standards are standards for data files and fields typically needed to support an external audit in a given financial business process area
True
Bank loan officers and the IRS will likely have different XBRL style sheets for the various XBRL filings.
True
COBIT (control objectives for information and related technology) is a generally accepted framework for IT governance in the U.S.
True
Data analytics are likely to play a significant role in future audit activities
True
Data warehouse are often designed to facilitate decision making such as those often used in managerial accounting and facilitate management by exception such as variance reports, trend reports, variance analysis reports, and reports that show actual performance are compared to budgeted information.
True
Data warehouses work together with operational systems to provide necessary insight particularly in the case of customer relationship management and supply chain management systems
True
Datasets that are too large and complex for businesses' existing systems utilizing traditional capabilities are refered to as big data.
True
Information security is a crucial factor in maintaining systems integrity.
True
Internal control is a process consisting of ongoing tasks and activities. It is a means to an end, not an end in itself.
True
The chief executive officer is ultimately responsible for enterprise risk management.
True
The fraud triangle includes incentive, opportunity, and an attitude to rationalize the fraud.
True
The goal of information security management is to maintain confidentiality, integrity and availability of a firm's information.
True
The process of scrubbing raw data to remove extraneous data and other noise in order to increase its usefulness is known as extract, transform, and load.
True
XBRL allows highly disaggregated data so not only is it possible to know the level of sales, but it is possible to know sales revenue in much more detail
True
XBRL is based on the XML language
True
XBRL style sheets take the instance documents and add presentation elements to make XBRL filings readable by humans
True
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 accounts are not removed upon termination of employees
Which of the following is a password security weakness?
Users are assigned passwords when accounts are created, but do not change them
A customer intended to order 100 units of a product A, but incorrectly ordered nonexistent product B. Which of the following controls most likely would detect this error?
Validity check
Which of the following is a computer test made to ascertain whether a given characteristics belongs to the group?
Validity check
The three V's are considered a defining feature of big data. Which of the following is the best definition of the term big data?
Volume, velocity, and variety
Which of the following is not included in the remediation phase for vulnerability management?
Vulnerability prioritization
A document containing XBRL elements is called:
XBRL Instance Document
The tool that defines and describes each key data element (e.g., total assets, accounts, payable, net income, etc.) in XBRL is called:
XBRL taxonomy
Data mining may uncover relationships in which no casualty should be implied. In these cases, which of the following phases would be most appropriate?
"A is associated with B"
Which of the following is a set of standards created by the AICPA for data files and fields in order to support external audits?
(ADS) Audit Data Standards
Data analytics professionals estimate that they spend how much of their time cleaning data in order to perform analysis on it?
50-90%
Asymmetric-key encryption uses which of the following techniques to allow users to communicate securely?
A public key and a private key
Which of the following best describes the AICPA's Audit Data Standards?
A set of standards for data files and fields designed to support external audits
Which of the following statement is correct regarding internal control?
An inherent limitation to internal control is the fact that controls can be circumvented by management override
Which of the following would most likely be used for a secure initial logon process?
Asymmetric-key encryption
Which of the following security controls would best prevent unauthorized access to a firm's internal network?
Automatic log-off of inactive users
Which of the following controls would most likely assure that a company can reconstruct its financial records?
Backup data are tested and stored safely
One of the benefits of using Tableu is its ability to connect to a wide variety of data sources. Once connected to those sources, users can do which of the following?
Build relationships between data sources, Create data visualizations, Create calculated fields
Bacchus, Inc. is a large multinational corporation with various business units around the world. After a fire destroyed the corporation headquarters and largest manufacturing site, plans for which of the following would help Bacchus ensure a timely recovery?
Business continuity
How does data analytics play a vital role in today's business world?
By examining data to generate models for predictions of patterns and trends
According to the Sarbanes-Oxley Act of 2002, it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control.
False
Which of the following provides the advantage of incorporating other widely accepted standards and frameworks?
COBIT 5
The first person to propose using XML be used as a means to electronically deliver financial information was:
Charles Hoffman
Which of the following best describes a reason that companies would want assurance on their XBRL filings?
Companies may begin to tag XBRL filings in more detail than is currently disclosed, introducing new information to investors
According to AS 5, control risk should be assessed in terms of:
Control environment factors
According to COSO, which of the following is not a component of internal control?
Control risk
According to COSO, which of the following is not a component of internal-control?
Control risk
The Sarbanes-Oxley Act (SOX) was passed as a response to which of the following events?
Corporate reporting scandals by companies such as WorldCom, Enron, and Tyco
Before data from multiple sources can be loaded into the data warehouse, which of the following activities must be performed?
Data inconsistencies must be removed so that the warehouse has homogeneous data for analysis and reporting purposes
Which of the following best summarizes the two key limiting factors for business systems when dealing with big Data?
Data storage capacity and processing power
Which of the following is the best definition of the term big data?
Datasets that are too large and complex for businesses' existing systems utilizing traditional capabilities
Which of the following would not by itself be considered personally identifying information?
Date of birth
Which of the following is not one of the responses to risk presented in COSO ERM?
Delegate the risk
Which of the following describes the recommended prerequisites for managing vulnerabilities?
Determine the main objective of vulnerability management, and assign roles and responsibilities
The insight provided through data analytics can help companies in all of the following ways except:
Dictate the policies of external business partners
An information technology director collected the names and locations of key vendors, current hardware configuration, names of team members, and an alternative processing location. What is the director most likely preparing?
Disaster recovery plan
Which of the following does not represent a viable data backup method?
Disaster recovery plan
Which of the following is the most likely application of data analytics for accountants to develop expertise in?
Domain knowledge of business functional areas
Which of the following outcomes is a likely benefit of information technology used for internal controls?
Enhanced timeliness of information
The IT Infrastructure Library (ITIL) is considered a de factor standard in which of the following regions?
Europe
Which of the following areas of financial reporting is more suitable for applying data analytics techniques?
Evaluation of estimates and valuations
Which of the following best describes how external auditors' interactions with their clients is likely to change due to the use of data analytics in the audit process?
External auditors will stay engaged with clients beyond the audit
The use of data analytics will likely result in significant changes to clients' expectations of their auditors. Which of the following is most likely not one of those expected changes?
More time spent fathering and testing data
Which of the following statements about asymmetric-key encryption is correct?
Most companies would like to use a Certificate Authority to manage the public keys of their employees
Which of the following is not one of the skill sets often associated with data analytics?
Normalizing data structures
Which of the following statements regarding authentication in conducting e-business is incorrect?
One key is used for encryption and decryption purposes in the authentication process
According to COSO ERM, which of the following is not one of the bases that should be used to analyze the risk of an identified event?
Organizational risk
Which of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?
Providing greater management oversight of incompatible activities
When using a data mining approach for business analytics, it is important to remember which of the following?
Relationships between data items do not necessarily mean that one causes the other
Which of the following best illustrates the use of multifactor authentication?
Requiring the use of a smart card and a password
Which of the following statement present an example of a general control for a computerized system?
Restricting access to the computer center by use of biometric devices
A manufacturing firm identified that it would have difficulty sourcing raw materials locally, so it decided to relocate its production facilities. According to COSO, this decision represents which of the following response to the risk?
Risk reduction
In the event identification component of the COSO ERM framework, management must classify events into which of the following?
Risks and opportunities
The internal control provisions of SOX apply to which companies in the United States?
SEC registrants
For businesses considering a cloud computing solution, which of the following should they ask the cloud vendor to provide before entering into a contract for critical business operations?
SOC 2 Report
In February 2009, the _____________ passed the rule requiring all large domestic firms to begin formatting their financial statements using XBRL.
Securities and Exchange Commission
XBRL does all of the following except:
Serves as a universal standard for financial reporting information in the individual investor community
Data mining uses which of the following approaches to analyze data and find new patterns and trends?
Sophisticated statistical techniques
Business intelligence is a technique that frequently makes use of all of the following except:
Spear phishing
Which of the following best describes the use of XBRL style sheets?
Style sheets allow for presentation of selected data from XBRL documents in a way that humans can read
The Public Company Accounting Oversight Board (PCAOB) is not responsible for standards related to:
accounting practice
Which of the following metrics would be least likely to show up on a digital dashboard:
accumulated depreciation for the previous year
Management philosophy and operating style would have a relatively less significant influence on a firm's control environment when:
accurate management job descriptions delineate specific duties
The framework to be used by management in its internal control assessment under requirements of SOX is the:
all of the above are correct
XBRL assurance is generally expected to include all of the following except:
assurance that reports include all relevant financial and non-financial information
An entity doing business on the internet most likely could use any of the following methods to prevent unauthorized intruders from accessing proprietary information except:
batch processing
Data mining is considered a technique of:
business intelligence
Digital dashboards track which of the following in a user friendly way:
critical business process
All of the following are examples of internal control procedures except:
customer satisfaction surveys
The process of using sophisticated statistical techniques to extract and analyze data from large databases to discern patterns and trends that were not previously know is called:
data mining
A collection of information gathered from an assortment of external and operational databases to facilitate reporting for decision making and business analysis is called:
data warehouse
A computer-based information system that facilitates business decision-making activities is called a:
decision support system
Data warehouses that focus on facilitating managerial accounting needs and/or management by exception, can be called:
decision support system
XBRL stands for:
eXtensible Business Reporting Language
XBRL GL, or XBRL Global Ledger Taxonomy, is different from XBRL US GAAP because it facilitates:
efficient communication within a firm
Raw data often must be scrubbed to remove extraneous data and other noise in order to become useful. This technique is known as:
extract, transform, and load
The stated advantages of XBRL GL include:
flexibility
The steps in business intelligence include:
gather information, analyze data for patterns, make decisions
A data warehouse may include:
general economic information
In a large public corporation, evaluating internal control procedures should be the responsibility of:
internal audit staff who report to the board of directors
Which of the following is not one of the main components of vulnerability management and assessment?
internalization
Which of the following groups is responsible for conducting fraud risk assessment for an organization?
management
Sound internal control dictates that, immediately upon receiving checks from customers by mail, a responsible employee should:
prepare a summary listing of checks received
In addition to finding statistical correlations, proper application of Data Mining techniques include which of the following?
professional judgement
Ford may use business intelligence:
to analyze indicators of quality issues to pinpoint potential machinery failures in its assembly plants