ACC 307
sell a DVD player
revenue
Update the allowance for uncollectible accounts
revenue cycle
collect payment on customer accounts
revenue cycle
4A company scrapes data from a review website
semi-structured; Because it does not conform with the formal structure of data modelsbut nonetheless contain tags to separate semantic elements and enforce hierarchies of records and fields within the data
3A call center records all phone calls
unstructured; Because this data either does not have a predefined data model or is not organised in a pre-defined manner
hire a new assistant controller
Human Resources/Payroll
A delete anomaly occurs when deleting a row has unintended consequences.
T
An insert anomaly occurs when there is no way to update records to a database
T
Semantic data modeling uses a system designer's knowledge of business processes to create tables in 3NF.
T
The referential integrity rule ensures that there are no update anomaly problems with the foreign keys.
T
When data about objects of interest are stored in separate database tables, it is easier to avoid insert anomalies.
T
An overall description of a database, including the names of data elements, their characteristics, and their relationship to each other, is defined by using a A.Data command interpreter language. B.Data control language. C.Data definition language. D. Data manipulation language.
C.Data definition language.
A customer's order was never filled because an order entry clerk transposed the customer ID number while entering the sales transaction into the system. Which of the following controls would most likely have detected the transposition? (CPA) a)Sequence check b)Completeness check c)Validity check d)Limit check
c)Validity check
Which of the following is an advantage of computer-based system for transaction processing over a manual system? A computer-based system (Gleim) a)Does not require as stringent a set of internal controls b)Will produce a more accurate set of financial statements c)Will be more efficient at producing financial statements d)Eliminates the need to reconcile control accounts and subsidiary ledgers.
c)Will be more efficient at producing financial statements
Auditors' initial response to computer systems was to audit around the computer. This strategy is least likely to be successful in an audit of _______ (IIA) a)a batch processing system for payroll b)a card-based system of inventory c)an online system for demand deposits accounts d)a mark-sense document system for utility billing
c)an online system for demand deposits accounts
Which of the following statements reflects an auditor's responsibility for detecting fraud? a)An auditor is responsible for detecting employee errors and simple fraud, but not for discovering fraudulent acts involving employee collusion or management override. b)An auditor should plan the audit to detect fraud caused by departures from GAAP. c)An auditor is not responsible for detecting fraud unless the application of auditing standards would result in such detection. d)An auditor should design the audit to provide reasonable assurance of detecting errors and fraud that are material to the financial statements.
d)An auditor should design the audit to provide reasonable assurance of detecting errors and fraud that are material to the financial statements.
Which of the following is considered an assurance engagement? (Becker) assura a)Bookkeeping b)Preparation c)Compilation d)Audit
d)Audit
Which of the following features is classified as part of an expert system? (Gleim) a)Use of electronic mail to route and approve purchase requisitions b)Automatic obligation of budget funds as soon as an order is issued c)Issuance of purchase requisition notices as soon as the on-hand balance reaches the reorder point d)Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and deliver time.
d)Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and deliver time.
Which of the following is least likely to be considered as an advantage of a database itself (Wiley)? a)Easy to store large quantities of data b)Easy to retrieve information quickly c)Easy to organize and reorganize data d)Easy to distribute data and information to every possible user
d)Easy to distribute data and information to every possible user
Compared to online real-time processing, batch processing has which of the following disadvantages (Gleim, CPA)? a)A greater level of control is necessary b)Additional computing resources are required c)Additional personnel are required d)Stored data are current only after the update process.
d)Stored data are current only after the update process.
When auditing around the computer, the independent auditor focuses solely on the source documents and ____ (CPA) a)Test data b)Computer processing c)Compliance techniques d)System output
d)System output
Which of the following circumstances would most likely cause an auditor to suspect that there are material misstatements in an entity's financial statements? 'a)The entity's management strictly enforces its integrity and ethical values. b)Monthly bank reconciliations ordinarily include several outstanding checks. c)Management outsources the internal audit function to another CPA firm. d)The auditor identifies an inappropriate valuation method that is widely applied by the entity.
d)The auditor identifies an inappropriate valuation method that is widely applied by the entity.
How does the chart of accounts list general ledger accounts? (p.39) a)Alphabetical order b)Chronological order c)Size order d)The order in which they appear in financial statements
d)The order in which they appear in financial statements
An auditor's flowchart of a client's accounting system is a diagrammatic representation that depicts the auditor's (Gleim) a)Assessment of the risks of material misstatement. b)Identification of weaknesses in the system. c)Assessment of the control environment's effectiveness. d)Understanding of the system.
d)Understanding of the system.
pay off mortgage on a factory
financing cycle
complete a picking ticket for a customer order
revenue cycle
establish a $10,000 credit limit for a new customer
revenue cycle
sell concert tickets
revenue cycle
2A company performs performance evaluations
semi-structured; Because it does not conform with the formal structure of data models but nonetheless contain tags to separate semantic elements and enforce hierarchies of records and fields within the data
1A company runs many social media campaigns
structured; Because the data adheres to a pre-defined data model and is therefore straightforward to analyse
Which of the following technologies is specifically designed to exchange financial information over the World Wide Web? A.Hypertext markup language (HTML). B.Hypertext transfer protocol (HTTP). C.Extensible business reporting language (XBRL). D. Transmission control program/internet protocol (TCP/IP).
C.Extensible business reporting language (XBRL).
Notes that are included with financial statements are the responsibility of the A. Independent auditor. B. Internal auditor. C. Securities and Exchange Commission. D. Company's management.
D. Company's management.
Real-time processing is most appropriate for which of the following bank transactions? A. Biweekly payroll for bank employees. B. Expiration of prepaid liability insurance. C.Purchases of fixed assets. D. Credit authorizations for consumer loan applicants.
D. Credit authorizations for consumer loan applicants.
Which of the following best describes a characteristic of big data? A. Data collected are free from useless information or incorrect variables. B. Big data is in a visual context, such as a graph or chart, rather than a text format. C. Collected data often provides straightforward answers to users. D. Data of untapped markets is often not collected.
D. Data of untapped markets is often not collected.
A self-driving car company uses artificial intelligence to help clean its historic social media data so they can analyze trends.
Descriptive
1.An accounting firm is trying to understand if its external audit fees are appropriate. They compute a regression using public data from all companies in their industry to understand the factors associated with higher audit.
Diagnostic
A large manufacturer of farm equipment continuously analyzes data sent from engine sensors to understand how load, temperature, and other factors influence engine failure.
Diagnostic
An all-you-can-eat restaurant uses automated conveyer belts to bring cold food to the chefs for preparation. The conveyer belts bring the food to the chefs based on algorithms that monitor the number of people entering and leaving the restaurant.
Diagnostic
An online retail company tracks past customer purchases. Based on the amount customers previously spent, the program automatically computes purchase discounts for current customer purchases to build loyalty
Diagnostic
pay federal payroll taxes
HR/payroll
pay sales commissions
HR/payroll
disburse payroll checks to factory workers
HR/payroll cycle
record factory employee timecards
HR/payroll cycle
send new employees to a business ethics course
HR/payroll cycle
Which of the following would contain the total value of all inventory owned by an organization? (p.39) a)Source document b)General ledger c)Cash budget d)General journal
b)General ledger
Management information systems represent a significant investment by most businesses. A primary concern of management is that the system A.Meet the business needs of the organization. B.Employ the latest technology. C.Was designed using CASE (Computer-Aided Software Engineering) tools rather than traditional methods. D.Might consume too much time and money during testing.
A.Meet the business needs of the organization
Independent CPAs perform audits on the financial statements of issuers. This type of auditing can best be described as A. A professional activity that measures and communicates financial and business data. B. A discipline that attests to financial information presented by management. C. An activity whose purpose is to search for fraud. D. A regulatory function that prevents the issuance of improper financial information.
B. A discipline that attests to financial information presented by management.
Which of the following is the best example of the use of a decision support system (DSS)? A. A manager uses the query language feature of a database management system (DBMS) to compile a report showing customers whose average purchase exceeds $2,500. B. A manager uses a personal-computer-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule. C. An auditor uses a personal-computer-based word processing software package to modify an internal control questionnaire for a specific audit engagement. D. An auditor uses a generalized audit software package to retrieve several purchase orders for detailed vouching.
B. A manager uses a personal-computer-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule
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? A. Purchasing a stand-alone fixed asset program for managing the assets and related depreciation. B. Adopting the fixed-asset module of the new system for integration. C. Continuing to use the current spreadsheet process because there have been no issues in this area. D. Developing a new fixed-asset system to manage the assets and related depreciation.
B. Adopting the fixed-asset module of the new system for integration.
Misstatements in a batch computer system caused by incorrect programs or data may not be detected immediately because: A. The processing of transactions in a batch system is not uniform. B. There are time delays in processing transactions in a batch system. C. Errors in some transactions may cause rejection of other transactions in the batch. D. The identification of errors in input data typically is not part of the program.
B. There are time delays in processing transactions in a batch system.
The Sarbanes-Oxley Act requires independent auditors to A) create flowcharts using specialized software. B) establish and maintain adequate controls in the client's information system. C) understand a client's system of internal controls. D) prepare and understand all types of system documentation.
C) understand a client's system of internal controls.
A systems engineer is developing the input routines for a payroll system. Which of the following methods validates the proper entry of hours worked for each employee? A. Capacity check. B. Sequence check. C. Reasonableness check. D. Check digit.
C. Reasonableness check.
Which of the following terms is used to describe the unique attribute that identifies a specific record in a table? A. A foreign key. B. A secondary key. C. A schema. D. A primary key.
D. A primary key.
A decision support system: A. Improves management productivity by automating the decision-making process. B. Searches for unexpected relationships among data. C. Provides immediate information about an organization's critical success factors. D. Allows for certain aspects of a problem to be preprogrammed.
D. Allows for certain aspects of a problem to be preprogrammed.
How is an accounting information system (AIS) distinguished from a management information system (MIS)? A. An AIS may be either manual or computer based; a MIS is computer based. B. An AIS is control oriented; a MIS is used exclusively for planning. C. An AIS deals with financial information; a MIS handles all other information. D. An AIS is a subsystem within a MIS.
D. An AIS is a subsystem within a MIS.
Computers understand codes that represent letters of the alphabet, numbers, or special characters. These codes require that data be converted into predefined groups of binary digits. Such chains of digits are referred to as A. ASCII code. B. Input. C. Registers. D. Bytes.
D. Bytes.
The purchasing department buys cleaning compound from four different companies. The computerized purchasing system uses a decision table to select a vendor based on continually changing costs, delivery dates, and past experience. This is an example of a(n): A. Parallel simulation. B. Chargeback system. C. Base case system evaluation. D. Expert system.
D. Expert system.
A file containing relatively long-term information used as a source of reference and periodically updated with detail is termed a A. Dump. B. Record layout. C. Transaction file. D. Master file.
D. Master file.
A foreign key is only found in one table; it is not allowed to be in another table.
F
According to the entity integrity rule, a primary key can uniquely identify a table row if it is blank.
F
The normalization process is used to create a set of relational tables in 3NF.
F
A shipyard company runs a computer simulation of how a tsunami would damage its shipyards, computing damages in terms of destruction and lost production time.
Predictive
An airline downloads weather data for the past 10 years to help build a model that will estimate future fuel usage for flights.
Predictive
Which of the following is the best example of the use of a decision support system? (Gleim) a)A manager uses a PC-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule. b)An auditor uses a generalized audit software package to retrieve several purchases orders for detailed vouching c)A manager uses the query language feature of a DBMS to compile a report showing customers whose average purchase exceeds $25,000 d)An auditor uses a PC-based word processing software package to modify an internal control questionnaire for a specific audit engagement.
a)A manager uses a PC-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule.
Which of the following is a primary function of a database management system (Gleim, CPA Adapted)? a)Report customization b)Capability to create and modify the database c)Financial transactions input d)Database access authorization
b)Capability to create and modify the database
Which of the following statements best describes a data warehouse? (Becker; CPA Adapted) a)Corporation A extracts all payroll data for the Year 1 and stores this information in a separate database. b)Corporation B extracts all human resource data, sales data, purchasing data, andata from many other departments for the Year 1 and stores this information in a separate database. c)Corporation C owns a large storage building and stores only computers that contain data backup in this building. d)Corporation D owns a large supercomputer that stores the entire data backup for the whole organization.
b)Corporation B extracts all human resource data, sales data, purchasing data, andata from many other departments for the Year 1 and stores this information in a separate database.
To trace data through several application programs, an auditor needs to know what programs use the data, which files contain the data, and which printed reports display the data. If data exist only in a database system, the auditor could probably find all ofthis information in a (Gleim)? a)Data dictionary b)Database schema c)Data encryptor d)Decision table
b)Database schema
Which business cycle does not involve cash?a)Revenue b)Production c)Human resources d)Expenditure e)Financing
b)Production
A DFD is a representation of which of the following? a. relationship among modules, data, and programs of an AIS b. flow of data in an organization c. decision rules in a computer program d. computer hardware configuration
b. flow of data in an organization
Cloud computing can best be defined as a model that a)Streamlines business processes onto a well-secured and highly available in-house e-commerce platform to optimize customers' online experience. b)Is designed for rapid application deployment by making several virtual servers run on one physical host. c)Allows users to access network resources from remote locations through a virtual private network. d)Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure.
d)Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure.
pay property taxes on an office building
expenditure
Pay for raw materials
expenditure cycle
Purchase raw materials
expenditure cycle
pay utility bills
expenditure cycle
put purchased goods into the warehouse
expenditure cycle
record goods received from a vendor
expenditure cycle
send an order to a vendor
expenditure cycle
obtain a bank loan
financing
draw on line-of-credit
financing cycle
decide how many units to make next month
production cycle
A database is A. A collection of related files. B. A network of computer terminals. C. A real-time system. D. Essential for the storage of large data sets.
A. A collection of related files.
The relationship between online, real-time database systems and batch processing systems is that: A. A firm may use both processing modes concurrently. B.A firm will always prefer an online, real-time processing system because batch processing is slow. C. A firm will have only one processing mode because a single computer cannot do both. D. A firm will not use batch processing if it has a large computer.
A. A firm may use both processing modes concurrently.
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. An enterprise resource planning system. B. An office automation system. C. A decision support system. D. An executive support system.
A. An enterprise resource planning system.
In business information systems, the term "stakeholder" is best described by which of the following? A. Anyone in the organization who has a role in creating or using the documents and data stored on the computers or networks. B. Authorized users who are granted access rights to the documents and data stored on the computers or networks. C. Information technology personnel responsible for creating the documents and data stored on the computers or networks. D. The management team responsible for the security of the documents and data stored on the computers or networks.
A. Anyone in the organization who has a role in creating or using the documents and data stored on the computers or networks.
Which chart type is best for depicting trends over time? A.Area chart B.Bar chart C.Pie chart D.Histogram
A. Area chart
Which of the following is a false statement about a database management system application environment? A. Data are shared by passing files between programs or systems. B. Data are used concurrently by multiple users. C. The physical structure of the data is independent of user needs. D. Data definition is independent of any one program.
A. Data are shared by passing files between programs or systems.
DB2, Oracle, SQL Server, and Access are A. Database management systems. B. Access control systems. C. Programming languages. D. Library systems.
A. Database management systems
Which of the following statements regarding decision support systems is generally true? A. Decision support systems facilitate solving relatively unstructured problems. B. Decision support systems are usually developed most successfully by using a system development life cycle approach. C. A decision support system should be designed to provide specific answers and a predefined sequence of analysis. D. A decision support system best supports very structured applications.
A. Decision support systems facilitate solving relatively unstructured problems.
One of the principal objectives of a database system is to A. Improve data consistency by reducing data redundancy. B. Provide application programs with their own separate data files. C. Employ physical rather than logical data organization concepts. D. Reduce the overall complexity of data processing and data storage.
A. Improve data consistency by reducing data redundancy.
An enterprise resource planning (ERP) system has which of the following advantages over multiple independent functional systems? A. Increased responsiveness and flexibility while aiding in the decision-making process. B. Reduction in costs for implementation and training. C. Increased amount of data redundancy since more than one module contains the same information. D. Modifications can be made to each module without affecting other modules.
A. Increased responsiveness and flexibility while aiding in the decision-making process.
The four major tasks that any system must perform are A. Input, transformation, output, and storage. B. Input, backup, output, and storage. C. Input, transformation, output, and maintenance. D. Input, transformation, storage, and feedback.
A. Input, transformation, output, and storage.
A financial statement audit is designed to A. Obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to fraud or error. B. Obtain absolute assurance on the financial statements and express an opinion on the financial statements. C. Provide assurance on internal control and to identify significant deficiencies and material weaknesses. D. Detect error or fraud in the financial statements, regardless of whether or not the error or fraud is material.
A. Obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to fraud or error.
Which of the following services, if any, may an accountant who is not independent provide? A. Preparations and compilations but not reviews. B. No services. C. Both compilations and reviews. D. Reviews but not preparations.
A. Preparations and compilations but not reviews.
Edwin Co., an insurance company, is deciding whether to develop its in-house systems or source from a cloud computing provider. Which of the following is not a reason to source from a cloud computing provider? A. Program modifications are needed to satisfy customer needs. B. Sales agents of Edwin Co. normally work off-site to solicit sales. C. Edwin Co. has only two IT employees for IT infrastructure and system maintenance. D. Edwin Co. wants to reduce upfront costs.
A. Program modifications are needed to satisfy customer needs.
Business intelligence (BI) has all of the following characteristics except: A. Providing advice and answers to top management from a knowledge-based system. B. Displaying information in graphical format. C. Giving immediate information about an organization's critical success factors. D. Focusing on strategic objectives.
A. Providing advice and answers to top management from a knowledge-based system.
The appearance of independence of a CPA, or that CPA's firm, is most likely to be impaired if the CPA A. Serves as an executor and trustee of the estate of an individual who owned the majority of the stock of a closely held client corporation. B. Joins a trade association, which is an attest client, and serves in a nonmanagement capacity. C. Accepts a token gift from an attest client. D. Provides appraisal, valuation, or actuarial services for an attest client.
A. Serves as an executor and trustee of the estate of an individual who owned the majority of the stock of a closely held client corporation.
Compared to online real-time processing, batch processing has which of the following disadvantages? A. Stored data are current only after the update process. B. A greater level of control is necessary. C. Additional personnel are required. D. Additional computing resources are required.
A. Stored data are current only after the update process.
Which of the following best describes the reason an independent auditor reports on financial statements? A. The company preparing the statements and the persons using the statements may have different interests. B. The company preparing the statements may have poorly designed internal control. C. A management fraud may exist, and it is more likely to be detected by independent auditors. D. A misstatement of account balances may exist and is generally corrected as the result of the independent auditor's work.
A. The company preparing the statements and the persons using the statements may have different interests.
Which of the following is an example of a validity check? A. The computer flags any transmission for which the control field value did not match that of an existing file record. B. As the computer corrects errors and data are successfully resubmitted to the system, the causes of the errors are printed out. C. The computer ensures that a numerical amount in a record does not exceed some predetermined amount. D. After data for a transaction are entered, the computer sends certain data back to the terminal for comparison with data originally sent.
A. The computer flags any transmission for which the control field value did not match that of an existing file record.
Enabling users to have different views of the same data is a function of: A. The database management system. B. A utility program. C. The operating system. D. A program library management system.
A. The database management system.
One advantage of a database management system (DBMS) is A. The independence of the data from the application programs, which allows the programs to be developed for the user's specific needs without concern for data capture problems. B. A decreased vulnerability as the database management system has numerous security controls to prevent disasters. C. Each organizational unit takes responsibility and control for its own data. D. The cost of the data processing department decreases as users are now responsible for establishing their own data handling techniques.
A. The independence of the data from the application programs, which allows the programs to be developed for the user's specific needs without concern for data capture problems.
Which of the following database models is considered to be the most versatile? A. The relational model. B. The tree model. C. The hierarchical model. D. The network model.
A. The relational model.
Which of the following terms best describes a payroll system? A. Transaction processing system (TPS). B. Database management system (DBMS). C. Enterprise resource planning (ERP) system. D. Decision support system (DSS).
A. Transaction processing system (TPS).
Which of the following factors has the greatest impact on the design of an effective management reporting system? A. Types of decisions to be made. B. Number of authorized users. C. Number of transactions to be processed. D. Number of regulatory agencies to be satisfied.
A. Types of decisions to be made.
An accounts payable program posted a payable to a vendor not included in the online vendor master file. A control that would prevent this error is a A. Validity check. B. Reasonableness test. C. Parity check. D. Range check.
A. Validity check.
How is an accounting information system (AIS) distinguished from a management information system (MIS)? A.An AIS is a subsystem within a MIS. B. An AIS is control oriented; a MIS is used exclusively for planning. C. An AIS deals with financial information; a MIS handles all other information. D. An AIS may be either manual or computer based; a MIS is computer based.
A.An AIS is a subsystem within a MIS.
Which of the steps of an analytics mindset is the most difficult to automate? A.Ask the right questions. B.Extract, transform, and load relevant data. C.Apply appropriate data analytics techniques. D.Interpret and share the results with stakeholders.
A.Ask the right questions.
The function of a data dictionary is to A.Describe and share information about objects and resources. B.Mark the boundary between two consecutive transactions. C.Specify systems users. D. Specify privileges and security rules for objects and resources.
A.Describe and share information about objects and resources.
Which of the following factors has the greatest impact on the design of an effective management reporting system? A.Types of decisions to be made. B.Number of transactions to be processed. C.Number of authorized users. D.Number of regulatory agencies to be satisfied
A.Types of decisions to be made.
Which of the following structures refers to the collection of data for all vendors in a relational data base? A. Byte. B. File. C. Field. D. Record.
B. File.
Cloud computing can best be defined as a model that: A. Allows users to access network resources from remote locations through a virtual private network. B. Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure. C. Is designed for rapid application deployment by making several virtual servers run on one physical host. D. Streamlines business processes onto a well-secured and highly available in-house e-commerce platform to optimize customers' online experience.
B. Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure.
A segment of an organization is referred to as an investment center if it has A. Authority to make decisions affecting the major determinants of profit including the power to choose its markets and sources of supply. B. Authority to make decisions affecting the major determinants of profit including the power to choose its markets and sources of supply and significant control over the amount of invested capital. C. Authority to provide specialized support to other units within the organization. D. Authority to make decisions over the most significant costs of operations including the power to choose the sources of supply.
B. Authority to make decisions affecting the major determinants of profit including the power to choose its markets and sources of supply and significant control over the amount of invested capital.
Which of the following features is classified as part of an expert system? A. Use of electronic mail to route and approve purchase requisitions. B. Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and delivery time. C. Automatic obligation of budget funds as soon as an order is issued. D. Issuance of purchase requisition notices as soon as the on-hand balance reaches the reorder point.
B. Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and delivery time.
A payroll system's master file is processed at night once every 2 weeks. There is relatively little file maintenance required. Which of the following is most likely to be the appropriate processing method under the circumstances? A. Parallel. B. Batch. C. Online, real-time. D. Network.
B. Batch.
All of the following are correct statements regarding big data except A. Big data needs to be transformed to "Smart Data." Collecting large amounts of statistics and numbers translates into minimal benefit if there is no layer of added intelligence. B. Big data is an evolving term that describes any voluminous amount of structured data that has the potential to be mined for information. C. Big data analytic tools complete missing pieces through data fusion, which is the process of integration of multiple data and knowledge representing the same real-world object into a consistent, accurate, and useful representation. D. Big data uses inductive statistics and concepts from nonlinear system identification (e.g., output is not directly proportional to the input) to infer laws from large sets of data to reveal relationships and dependencies, or to perform predictions of outcomes and behaviors.
B. Big data is an evolving term that describes any voluminous amount of structured data that has the potential to be mined for information.
A company uses big data analytics in marketing. Which of the following is a limitation of using big data? A. The company can use big data to predict customer behaviors. B. Big data often cannot explain why customers behave in certain ways. C. Data results cannot be visualized to identify and forecast customer trends. D. Data collected only represent untapped customers but not tapped customers.
B. Big data often cannot explain why customers behave in certain ways.
A customer intended to order 100 units of product Z96014 but incorrectly ordered nonexistent product Z96015. Which of the following controls most likely would detect this error? A. Hash total. B. Check digit verification. C. Redundant data check. D. Record count.
B. Check digit verification.
An employee in the receiving department keyed in a shipment from a remote terminal and inadvertently omitted the purchase order number. The best systems control to detect this error is a A. Reasonableness test. B. Completeness test. C. Compatibility test. D. Sequence check.
B. Completeness test.
Of the following, the greatest advantage of a database (server) architecture is that A. Multiple occurrences of data items are useful for consistency checking. B. Data redundancy can be reduced. C. Backup and recovery procedures are minimized. D. Conversion to a database system is inexpensive and can be accomplished quickly.
B. Data redundancy can be reduced.
Early decision models used with structured decisions, such as inventory reordering and production scheduling, emphasized finding the structure of the decision and programming as much of it as possible. More recent models have been developed to support unstructured decision processes. Models of the latter type are called A. Rational decision models. B. Decision support systems. C. Systems analysis techniques. D. Management information systems.
B. Decision support systems.
The purpose of check digit verification of an account number on an update transaction is to: A. Verify that the account number corresponds to an existing account in the master file. B. Detect a transposition of an account number entered into the system. C. Ensure that supporting documentation exists for the update transaction. D. Require the account number to have the correct logical relationship with other fields.
B. Detect a transposition of an account number entered into the system.
Which of the following systems assists with nonroutine decisions, serves strategic levels of the organization, and helps answer questions regarding what a company's competitors are doing, as well as identifies new acquisitions that would protect the company from cyclical business swings? A. Management information system. B. Executive support system. C.Decision support system. D. Transaction processing system.
B. Executive support system.
Which one of the following incorporates making the best decisions possible, using a logical approach by asking a series of questions, by using reasoning, and by allowing subjective inputs and outputs? A. Multi-networking. B. Expert systems. C. Decision support systems. D. Teleprocessing.
B. Expert systems.
In an inventory system on a database, one stored record contains part number, part name, part color, and part weight. These individual items are called A. Stored files. B. Fields. C. Occurrences. D. Bytes.
B. Fields.
In an automated payroll processing environment, a department manager substituted the time card for a terminated employee with a time card for a fictitious employee. The fictitious employee had the same pay rate and hours worked as the terminated employee. The best control to detect this action using employee identification numbers is a A. Record count. B. Hash total. C. Reasonableness test. D. Financial total.
B. Hash total.
An entity's database is modeled after a tree structure, with each record type having any number of lower-level dependent records. This is an example of which type of database model? A. Distributed. B. Hierarchical. C. Network. D. Relational.
B. Hierarchical.
The client's computer exception reporting system helps an auditor to conduct a more efficient audit because it A. Is an efficient computer output control. B. Highlights abnormal conditions. C. Condenses data significantly. D. Decreases the need for tests of computer processing controls.
B. Highlights abnormal conditions.
Which of the following best describes unstructured data? A. Conforms with the organization of data models associated with relational databases. B. Information that is not organized in a pre-defined manner (e.g., text-heavy facts, dates, numbers, and images). C. Data with a high level of organization. D. Data systematically stored with markers to enforce hierarchies of records and fields within the data.
B. Information that is not organized in a pre-defined manner (e.g., text-heavy facts, dates, numbers, and images).
An enterprise resource planning system is designed to A. Present executives with the information needed to make strategic plans. B. Integrate data from all aspects of an organization's activities. C. Help with the decision-making process. D. Allow nonexperts to make decisions about a particular problem.
B. Integrate data from all aspects of an organization's activities.
Decentralized firms can delegate authority and yet retain control and monitor managers' performance by structuring the organization into responsibility centers. Which one of the following organizational segments is most like an independent business? A. Revenue center. B. Investment center. C. Cost center. D. Profit center.
B. Investment center.
An attestation engagement is one in which a CPA is engaged to A. Assemble prospective financial statements based on the assumptions of the entity's management without expressing any assurance. B. Issue an examination, a review, or an agreed-upon procedures report on subject matter, or an assertion about subject matter, that is the responsibility of another party. C. Testify as an expert witness in accounting, auditing, or tax matters, given certain stipulated facts. D. Provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.
B. Issue an examination, a review, or an agreed-upon procedures report on subject matter, or an assertion about subject matter, that is the responsibility of another party.
Kar, CPA, is a staff auditor participating in the audit engagement of Fort, Inc. Which of the following circumstances most likely impairs Kar's independence? A. Kar's friend, an employee of another local accounting firm, prepares Fort's tax returns. B. Kar's sibling is the director of internal auditing for Fort. C. Kar owns stock in a corporation that Fort's 401(k) plan also invests in. These interests are immaterial. D. During the period of the professional engagement, Fort gives Kar tickets to a football game worth $25.
B. Kar's sibling is the director of internal auditing for Fort.
The primary reason for an audit by an independent, external audit firm is to A. Relieve management of responsibility for the financial statements. B. Provide increased assurance to users as to the fairness of the financial statements. C. Satisfy governmental regulatory requirements. D. Guarantee that there are no misstatements in the financial statements and ensure that any fraud will be discovered.
B. Provide increased assurance to users as to the fairness of the financial statements.
A database has three record types: (1) for suppliers, a type that contains a unique supplier number, a supplier name, and a supplier address; (2) for parts, a type that contains a unique part number, a part name, a description, and a location; and (3) for purchases, a type that contains a unique supplier number referencing the supplier number in the supplier record, a part number referencing the part number in the part record, and a quantity. This database has a A. Single flat-file structure. B. Relational structure. C. Network structure. D. Hierarchical structure.
B. Relational structure.
In performing an attest engagement, a CPA typically A. Supplies litigation support services. B. Reports on subject matter other than traditional financial statements. C. Provides management consulting advice. D. Assesses the risks of material misstatement of financial information.
B. Reports on subject matter other than traditional financial statements.
All of the following are correct statements regarding velocity-based value except A.The faster businesses can inject data into their data and analytics platform, the more time they will have to ask the right questions and seek answers. B. The more data businesses have on the customers, both recent and historical, the greater the insights. C. The computing power required to quickly process huge volumes and varieties of data can overwhelm a single server or multiple servers. Organizations must apply adequate computer power to big data tasks to achieve the desired velocity. D. Rapid analysis capabilities provide businesses with the right decision in time to achieve their customer relationship management objectives.
B. The more data businesses have on the customers, both recent and historical, the greater the insights.
Which of the following is a correct statement regarding volume-based value? A. Rapid analysis capabilities provide businesses with the right decision in time to achieve their customer relationship management objectives. B. The more data businesses have on the customers, both recent and historical, the greater the insights. C. The faster businesses can inject data into their data and analytics platform, the more time they will have to ask the right questions and seek answers. D. In the digital era, capability to acquire and analyze varied data is extremely valuable.
B. The more data businesses have on the customers, both recent and historical, the greater the insights.
Which of the following factors has the greatest impact on the design of an effective management reporting system? A. Number of transactions to be processed. B. Number of authorized users. C. Types of decisions to be made. D. Number of regulatory agencies to be satisfied.
C. Types of decisions to be made.
An enterprise resource planning (ERP) system integrates the organization's computerized subsystems and may also provide links to external parties. An advantage of ERP is that A. The comprehensiveness of the system reduces resistance to change. B. The reengineering needed for its implementation should improve business processes. C. Customizing the software to suit the unique needs of the organization will facilitate upgrades. D. It can be installed by organizations of all sizes.
B. The reengineering needed for its implementation should improve business processes.
Misstatements in a batch computer system caused by incorrect programs or data may not be detected immediately because A. The identification of errors in input data typically is not part of the program. B. There are time delays in processing transactions in a batch system. C. Errors in some transactions may cause rejection of other transactions in the batch. D. The processing of transactions in a batch system is not uniform.
B. There are time delays in processing transactions in a batch system.
Which of the following controls is a processing control designed to ensure the reliability and accuracy of data processing? Limit Test . Validity Check Test A. No Yes B. Yes Yes C. No No D. Yes No
B. Yes Yes
Which of the following controls is an input control designed to ensure the reliability and accuracy of data processing? Limit Test Validity Check Test A. No No B. Yes Yes C. No Yes D. Yes No
B. Yes Yes
Which one of the following statements about an accounting information system (AIS) is false? A. AIS is often referred to as a transaction processing system. B.AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements. C.The information produced by AIS is made available to all levels of management for use in planning and controlling an organization's activities. D.AIS supports day-to-day operations by collecting and sorting data about an organization's transactions.
B.AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements.
Batch processing: A. Is not used by most businesses because it reduces the audit trail. B.Accumulates transaction records into groups for processing against the master file on a delayed basis. C. Can only be performed on a centralized basis. D. Allows users to inquire about groups of information contained in the system.
B.Accumulates transaction records into groups for processing against the master file on a delayed basis.
Flowcharts A.Depict processing from the distribution of final output to the point of origin. B.Are useful for evaluating the entity's internal control. C.Provide an overview of inputs, processes, and outputs of a system. D.Are equivalent to walkthroughs.
B.Are useful for evaluating the entity's internal control.
All of the following are correct statements regarding big dataexcept (Gleim) A.Big data is an evolving term that describes any voluminous amount of structured, semi-structured, and unstructured data that has the potential to be mined for information. B.Big data includes information collected from social media, data from Internet-enabled devices, machine data, video, and voice recordings. Theinformation collected is converted from high-density data into low-density data. C.Big data is often characterized by the "4 Vs" -volume, variety, velocity, and veracity. D.Big data processes data with analytic and algorithmic tools to reveal meaningful information.
B.Big data includes information collected from social media, data from Internet-enabled devices, machine data, video, and voice recordings. Theinformation collected is converted from high-density data into low-density data.
Which one of the following distinguishes a management information system from a transaction processing system? A.Maintenance of a structured database. B.Capability to provide data for decision-making support. C.Automation of routine transaction processing. D.Production of reports to support operations.
B.Capability to provide data for decision-making support.
The four major tasks that any system must perform are A.Input, backup, output, and storage. B.Input, transformation, output, and storage. C.Input, transformation, storage, and feedback. D. Input, transformation, output, and maintenance.
B.Input, transformation, output, and storage.
Which one of the following terms best describes a decision support system (DSS)? A.Formalized system. B.Interactive system. C.Accounting information system. D.Management reporting system.
B.Interactive system
The normal sequence of documents and operations on a well-prepared systems flowchart is A.Top to bottom and right to left. B.Top to bottom and left to right. C.Bottom to top and left to right. D. Bottom to top and right to left.
B.Top to bottom and left to right.
Which of the following is a false statement about XBRL? A.XBRL is freely licensed. B.XBRL is the authoring software language commonly used to create and link websites. C.XBRL is designed to work with a variety of software applications. D. XBRL facilitates the automatic exchange of information.
B.XBRL is the authoring software language commonly used to create and link websites.
Making an item in the data area of a viz larger to increase emphasis is an example of using which principle? A.highlighting B.weighting C.ordering D.It's a poor design choice; items should all be the same size.
B.weighting
An auditor's flowchart of a client's accounting system is a diagrammatic representation that depicts the auditor's A. Identification of weaknesses in the system. B. Assessment of the control environment's effectiveness. C. Understanding of the system. D. Assessment of the risks of material misstatement.
C. Understanding of the system.
Which one of the following statements about a management information system (MIS) is false? A. A MIS supports day-to-day operations by aggregating and formatting data about an organization's transactions. B. The information produced by a MIS is made available to middle management for use in controlling an organization's activities. C. A MIS is best suited to solve problems when uncertainty is great and reporting requirements are ill-defined. D. A MIS is often fed with input by a transaction processing system
C. A MIS is best suited to solve problems when uncertainty is great and reporting requirements are ill-defined.
Independent auditing can best be described as A. A regulatory function that prevents the issuance of improper financial information. B. A branch of accounting. C. A discipline that enhances the degree of confidence that users can place in financial statements. D. A professional activity that measures and communicates financial and business data.
C. A discipline that enhances the degree of confidence that users can place in financial statements.
Which of the following statements correctly defines the term "reasonable assurance"? A. A substantial level of assurance to allow an auditor to detect a material misstatement. B. An absolute level of assurance to allow an auditor to detect a material misstatement. C. A high, but not absolute, level of assurance to allow an auditor to detect a material misstatement. D. A significant level of assurance to allow an auditor to detect a material misstatement.
C. A high, but not absolute, level of assurance to allow an auditor to detect a material misstatement.
All of the following are correct statements regarding businesses deciding to utilize cloud computing for big data projects except A. A public cloud provider can store petabytes of data and scale up thousands of servers just long enough to accomplish the big data project. B. Businesses only pay for the storage and computing time actually used. C. Analysts are not required to have a detailed understanding of the available data and possess some sense of what answer(s) they're looking for. D. Businesses are hesitant to invest in an extensive server and storage infrastructure that might only be used occasionally to complete big data tasks.
C. Analysts are not required to have a detailed understanding of the available data and possess some sense of what answer(s) they're looking for.
A segment of an organization is referred to as a profit center if it has A. Authority to provide specialized support to other units within the organization. B. Authority to make decisions over the most significant costs of operations including the power to choose the sources of supply. C. Authority to make decisions affecting the major determinants of profit including the power to choose its markets and sources of supply. D. Authority to make decisions affecting the major determinants of profit including the power to choose its markets and sources of supply and significant control over the amount of invested capital.
C. Authority to make decisions affecting the major determinants of profit including the power to choose its markets and sources of supply.
A company updates the payroll master file at the end of the week. The payroll time cards are transported to the computer center for processing. The sequence of events followed by the computer center in updating its master file should be A.Batching records of transactions, validating input, converting to machine-readable form, updating the master. B. Converting to machine-readable form, batching records of transactions, validating input, updating the master. C. Batching records of transactions, converting to machine-readable form, validating input, updating the master. D. Validating input, batching records of transactions, converting to machine-readable form, updating the master.
C. Batching records of transactions, converting to machine-readable form, validating input, updating the master.
All of the following are correct statements regarding big data except A. Big data is an evolving term that describes any voluminous amount of structured, semi-structured, and unstructured data that has the potential to be mined for information. B. Big data processes data with analytic and algorithmic tools to reveal meaningful information. C. Big data includes information collected from social media, data from Internet-enabled devices, machine data, video, and voice recordings. The information collected is converted from high-density data into low-density data. D. Big data is often characterized by the "4 Vs" - volume, variety, velocity, and veracity.
C. Big data includes information collected from social media, data from Internet-enabled devices, machine data, video, and voice recordings. The information collected is converted from high-density data into low-density data.
Which one of the following correctly depicts the hierarchy of storage commonly found in computerized databases, from least complex to most complex? A. Field, byte, file, record. B. Field, byte, record, file. C. Byte, field, record, file. D. Byte, field, file, record.
C. Byte, field, record, file
Batch and online processing modes: A. Are mutually exclusive. B. Are forms of real-time processing. C. Can be used in combination in a single application. D. Are outmoded means of processing data.
C. Can be used in combination in a single application.
A principal advantage of an ERP system is A.Separate data updating for different functions. B. Data redundancy. C. Centralization of data. D. Program-data dependence.
C. Centralization of data.
When an accountant performs a review of the financial statements of a nonissuer, (s)he A. Need not issue a report unless (s)he considers the statements misleading. B. Must perform tests of the details of transactions and balances. C. Seeks to establish a reasonable basis for providing limited assurances about the statements. D. Is primarily concerned with the entity's internal controls, especially its accounting system.
C. Seeks to establish a reasonable basis for providing limited assurances about the statements.
Which of the following characteristics distinguishes computer processing from manual processing? A.Most computer systems are designed so that transaction trails useful for audit purposes do not exist. B. The potential for systematic error is ordinarily greater in manual processing than in computerized processing. C. Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing. D. Errors or fraud in computer processing will be detected soon after their occurrence.
C. Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing.
Which one of the following features is least likely to apply to the transaction processing cycle of an accounting information system? A. Data records are chiefly historical in nature. B. Most of the sources of data are an organization's recurring transactions. C. Data records are the basis of predictive systems. D. Data are usually financial in nature.
C. Data records are the basis of predictive systems.
According to the standards of the profession, which of the following circumstances will prevent a CPA performing audit engagements from being independent? A. Obtaining a collateralized automobile loan from a financial institution client. B. Acting as an honorary trustee for a not-for-profit organization client. C. Employment of the CPA's spouse as a client's director of internal audit. D. Litigation with a client relating to billing for consulting services for which the amount is
C. Employment of the CPA's spouse as a client's director of internal audit.
The objective of assurance services is to A.Provide more timely information. B. Improve the firm's outcomes. C. Enhance decision making. D. Compare internal information and policies to those of other firms.
C. Enhance decision making.
If a manufacturing company uses responsibility centers, which one of the following items is least likely to appear in a performance report for a manager of an assembly line? A. Materials. B. Supervisory salaries. C. Equipment depreciation. D. Repairs and maintenance.
C. Equipment depreciation.
An audit of the financial statements of Camden Corporation is being conducted by an external auditor. The external auditor is expected to A. Certify the correctness of Camden's financial statements. B.Express an opinion as to the attractiveness of Camden for investment purposes and critique the wisdom and legality of its business decisions. C. Express an opinion as to the fairness of Camden's financial statements. D. Make a 100% examination of Camden's records.
C. Express an opinion as to the fairness of Camden's financial statements.
In a business information system, which of the following types of computer files most likely would be a master file? A. Payroll transactions. B.Cash receipts. C. Inventory subsidiary. D. Cash disbursements.
C. Inventory subsidiary.
The primary purpose of a database system is to have a single storage location for each A. Database. B. Record. C. Item of data. D F ile.
C. Item of data.
NEEM Co.'s monthly closing procedures include creating journal entries to account for cash collected at month end. The journal entries are captured by the system and converted into a special format from which the monthly financial report is generated and maintained in the database. This information system performs all of the major tasks except A. Transformation. B. Output. C. Maintenance. D. Storage.
C. Maintenance.
Users of an issuer's financial statements demand independent audits because: A. Management relies on the auditor to improve internal control. B. Users expect auditors to correct management errors. C. Management may not be objective in reporting. D. Users demand assurance that fraud does not exist.
C. Management may not be objective in reporting.
Which of the following types of responsibility centers include controllable revenues in their performance reports? Cost Investment Profit Centers Centers Centers A. No No No B. Yes No No C. No Yes Yes D. Yes Yes Yes
C. No Yes Yes
A new purchasing system for just-in-time production requirements has been proposed. Users want access to current master file information at all times. To satisfy user needs, master file changes should be implemented with A. Online entry with subsequent batch processing. B. Periodic entry with immediate batch processing. C. Online entry with immediate processing. D. Periodic entry with subsequent batch processing.
C. Online entry with immediate processing.
What type of computer processing system is characterized by data that are assembled from more than one location and records that are updated immediately? A. Data compression systems. B. Batch processing systems. C. Online, real-time systems. D. Personal computer systems.
C. Online, real-time systems.
Which of the following transaction processing modes provides the most accurate and complete information for decision making? A.Application. B. Batch. C. Online. D. Distributed.
C. Online.
Which of the following most completely describes how independence has been defined by the accounting profession? A. Performing an audit from the viewpoint of the public. B. Accepting responsibility to act professionally and in accordance with a professional code of ethics. C. Possessing the ability to act with integrity and objectivity. D. Avoiding the appearance of significant interests in the affairs of an audit client.
C. Possessing the ability to act with integrity and objectivity.
According to the standards of the profession, which of the following activities most likely does not impair a CPA's independence? A. Signing a client's checks in emergency situations. B. Accepting a luxurious gift from an attest client. C. Providing extensive advisory services for a client. D. Contracting with a client to supervise the client's office personnel.
C. Providing extensive advisory services for a client.
Mill Co. uses a batch processing method to process its sales transactions. Data on Mill's sales transaction file are electronically sorted by customer number and are subjected to programmed edit checks in preparing its invoices, sales journals, and updated customer account balances. One of the direct outputs of the creation of this file most likely would be a A. Report showing overdue accounts receivable. B. Printout of the updated inventory records. C. Report showing exceptions and control totals. D. Printout of the sales price master file.
C. Report showing exceptions and control totals.
A logical view of an entire database is a A. Subschema. B. Network. C. Schema. D. Hierarchy.
C. Schema.
Which of the following best describes unstructured data? (Becker) A.Data with a high level of organization. B.Data systematically stored with markers to enforce hierarchies of records and fields within the data. C.Information that is not organized in a pre-defined manner (e.g., text-heavy facts, dates, numbers, and images). D.Conforms with the organization of data models associated with relational databases.
C.Information that is not organized in a pre-defined manner (e.g., text-heavy facts, dates, numbers, and images).
An expert system: A.Is a central database for transaction-level data. B.Comprises a general ledger/financial reporting system and a management reporting system. C.Is useful in solving unstructured problems. D.Solicits opinions from experts, summarizes the opinions, and feeds the summaries back to the experts.
C.Is useful in solving unstructured problems.
An advantage of using systems flowcharts to document information about internal control instead of using internal control questionnaires is that systems flowcharts A.Identify internal control deficiencies more prominently. B.Reduce the need to observe clients' employees performing routine tasks. C.Provide a visual depiction of clients' activities. D. Indicate whether controls are operating effectively
C.Provide a visual depiction of clients' activities.
What kind of flowchart provides an overall view of the inputs, processes, and outputs of a system? A.Document flowchart. B.Program flowchart. C.System flowchart. D.Walkthrough.
C.System flowchart.
Which of the following is a primary function of a database management system? A. Report customization. B. Financial transactions input. C. Database access authorizations. D. Capability to create and modify the database.
D. Capability to create and modify the database.
What is the correct ascending hierarchy of data in a system? A.Field, character, file, record. B.Field, record, file, character. C. Character, record, file, field. D. Character, field, record, file.
D. Character, field, record, file.
Rockford Manufacturing Corporation uses a responsibility accounting system in its operations. Which one of the following items is least likely to appear in a performance report for a manager of one of Rockford's assembly lines? A. Direct labor. B. Materials. C. Repairs and maintenance. D. Depreciation on the manufacturing facility.
D. Depreciation on the manufacturing facility.
A business information system is used to pursue an organization's objectives. Stakeholders of business information systems include I.Data entry clerks II.IT personnel III.Customers IV.Vendors A.I and II only. B. III and IV only. C. II only. D. I, II, III, and IV.
D. I, II, III, and IV.
Advanced electronic point-of-sale (POS) systems allow instant capture and transmission of information for which purposes? I. Instant updating of accounting records II.Accumulation of marketing information III.Tracking of information about specific customers IV. Facilitation of warehousing A. III and IV only. B. I and II only. C. I, II, and III only. D. I, II, III, and IV.
D. I, II, III, and IV.
The finance department is evaluating two accounts receivable transaction processing systems. System A provides for batch processing twice weekly. System B provides online real-time processing. Which of the following requirements is most important in determining whether to adopt system A or system B? A. Accuracy of monthly general ledger balance. B. Accuracy of weekly accounts receivable aging report. C. Need for controls that validate transactions. D. Need to immediately answer customers' questions regarding account balances.
D. Need to immediately answer customers' questions regarding account balances.
In responsibility accounting, a center's performance is measured by controllable costs. Controllable costs are best described as including A. Only discretionary costs. B. Those costs about which the manager is knowledgeable and informed. C. Direct material and direct labor only. D. Only those costs that the manager can influence in the current time period.
D. Only those costs that the manager can influence in the current time period.
What type of computerized data processing system would be most appropriate for a company that is opening a new retail location? A. Batch processing. B. Sequential-file processing. C. Direct-access processing. D. Real-time processing.
D. Real-time processing
When documenting internal control, the independent auditor sometimes uses a systems flowchart, which can best be described as a A.Diagram that clearly indicates an organization's internal reporting structure. B.Graphic illustration of the flow of operations that is used to replace the auditor's internal control questionnaire. C. Pictorial presentation of the flow of instructions in a client's internal computer system. D. Symbolic representation of a system or series of sequential processes.
D. Symbolic representation of a system or series of sequential processes.
In a manual system, records of current activity are posted from a journal to a ledger. In a computer system, current records from a(n): A. Table file are updated to a transaction file. B. Index file are updated to a master file. C. Master file are updated to a year-to-date file. D. Transaction file are updated to a master file.
D. Transaction file are updated to a master file.
Each of the following represents a characteristic of big data except A. Size. B. Mixture. C. Speed. D. Uniformity.
D. Uniformity.
In an effort to recognize improvement opportunities, a company is reviewing its in-house systems. The best reason for the company to consider switching to cloud computing as a solution is that it: A. Provides better program modification options. B. Is the best way to secure sensitive corporate information. C. Is accessible only from within the company on its intranet. D. Usually has lower upfront costs for equipment and maintenance.
D. Usually has lower upfront costs for equipment and maintenance.
A customer's order was never filled because an order entry clerk transposed the customer identification number while entering the sales transaction into the system. Which of the following controls would most likely have detected the transposition? A. Sequence test. B. Completeness test. C. Limit test. D. Validity check.
D. Validity check.
Which of the following input controls would prevent an incorrect state abbreviation from being accepted as legitimate data? A. Reasonableness test. B. Digit verification check. C. Field check. D. Validity check.
D. Validity check.
Controllable revenue would be included in a performance report for a Profit Center Cost Center A. Yes . Yes B. No Yes C. No No D. Yes No
D. Yes No
Which of the following is NOT a good reason to visualize data? A.Users can find information more quickly with visualized data. B.Visualized data is processed faster than written information. C.Visualizations help the majority ofpeople to learn better. D.Building visualizations does not take as much time as writing a report.
D.Building visualizations does not take as much time as writing a report.
Each relational table row is called a couple and contains data about a specific item in the table; each column contains data about an attribute of that item.
T
In a relational database, there can be no more than two values per cell.
T
A customer intended to order 100 units of product Z96014, but incorrectly ordered nonexistent product Z96041. Which of the following controls most likely would detect this error? (CPA) a)Check digit verification b)Record count c)Hash total d)Completeness check
a)Check digit verification
Which of the following characteristics distinguishes computer processing from manual processing? (Wiley CPA Review) a)Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing b)Errors or fraud in computer processing will be detected soon after their occurrence c)The potential for systematic error is ordinarily greater in manual processing than in computerized processing d)Most computer systems are designed so that transaction trails useful for audit purposes do NOT exist.
a)Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing
The four major tasks that any system must perform are: (Gleim) a)Input, transformation, output, and storage b)Input, backup, output, and storage c)Input, transformation, output, and maintenance d)Input, transformation, storage, and feedback
a)Input, transformation, output, and storage
Which of the following is a critical success factor in data mining a large data set (Gleim, CPA Adapted)? a)Pattern recognition b)Effective search engines c)Image processing systems d)Accurate universal resource locator (URL)
a)Pattern recognition
An ERP system integrates the organization's computerized subsystems and may also provide links to external parties. An advantage of ERP is that (Gleim) a)The reengineering needed for its implementation should improve business processes. b)Customizing the software to suit the unique needs of the organization will facilitate upgrades. c)ERP can be installed by organizations of all sizes. d)The comprehensiveness of the system reduces resistance to change.
a)The reengineering needed for its implementation should improve business processes.
An enterprise resource planning (ERP) system has which of the following advantages over multiple independent functional systems? (Gleim) a)Modifications can be made to each module without affecting other modules. b)Increased responsiveness and flexibility while aiding in the decision-making process. c)Increased amount of data redundancy since more than one module contains the same information. d)Reduction in costs for implementation and training.
b)Increased responsiveness and flexibility while aiding in the decision-making process.
Matthews Corp. has changed from a system of recording time worked on clock cards to a computerized payroll system in which employees record time in and out with magnetic cards. The computer system automatically updates all payroll records. Because of this change, (Gleim, CPA) a)A generalized computer audit program must be used. b)Part of the audit trail is altered c)The potential for payroll-related fraud is diminished. d)Transaction must be processed in batches.
b)Part of the audit trail is altered
An advantage of using system flowcharts to document information about internal control, instead of using internal control questionnaires, is that system flowcharts (CPA; AUD) a)Identify internal control weakness more prominently b)Provide a visual depiction of client's activities c)Indicate whether controls are operating effectively d)Reduce the need to observe clients' employee performing routine tasks
b)Provide a visual depiction of client's activities
Which of the following terms best describe a payroll system? (Gleim, CPA Adapted) a)Database management Systems (DBMS) b)Transaction Processing System (TPS) c)Decision Support System (DSS) d)Enterprise Resource Planning (ERP)
b)Transaction Processing System (TPS)
All of the following are examples of a DSS, except for a ______: (Wiley CPA) a)Financial modeling application b)Transaction processing system c)Database query application d)Sensitivity analysis application
b)Transaction processing system
A primary purpose of an operational audit is to a)provide a means of assurance that internal accounting controls are functioning as planned. b)a measure of management performance in meeting organizational goals. c)the results of internal examinations of financial and accounting matters to a company's top-level management. d)aid to the independent auditor, who is conducting the audit of the financial statements.
b)a measure of management performance in meeting organizational goals.
Batch processing (Gleim) a)Is not used by most businesses because it reduces the audit trails. b)Allows users to inquire about groups of information contained in the system. c)Accumulates transaction records into groups for processing against the master file on a delayed basis. d)Can only be performed on a centralized basis
c)Accumulates transaction records into groups for processing against the master file on a delayed basis
Which one of the following statements about an accounting information system is INCORRECT? (CPA) a)An AIS supports day-to-day operations by collecting and storing data about an organization's transactions. b)The information produced by AIS is made available to all levels of management for use in planning and controlling an organization's activities c)An AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements. d)An AIS is often referred to as a transaction processing system.
c)An AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements.
An enterprise resource planning system is designed to (Gleim) a)Allow nonexpertsto make decisions about a particular problem. b)Help with the decision-making process. c)Integrate data from all aspects of an organization's activities. d)Present executives with the information needed to make strategic plans.
c)Integrate data from all aspects of an organization's activities.
Give cash and get raw materials is an event in the _____ cycle. Give labor and get finished goods is an event in the ______ cycle. a)Financing, production b)Financing, human resources c)Revenue, production d)Expenditure, production
c)Revenue, production
Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of financial statements? a)It is difficult to prepare financial statements that fairly present a company's financial position, operations, and cash flows without the expertise of an independent auditor. b)It is management's responsibility to seek available independent aid in the appraisal of the financial information shown in its financial statements. c)The opinion of an independent party is needed because a company may not be objective with respect to its own financial statements. d)It is a customary courtesy that all stockholders of a company receive an independent report on management's stewardship of the affairs of the business.
c)The opinion of an independent party is needed because a company may not be objective with respect to its own financial statements.
Misstatements in a batch computer system caused by incorrect programs or data may NOT be detected immediately because (Gleim, CPA)? a)Errors in some transactions may cause rejection of other transactions in the batch. b)The identification of errors in input data typically is not part of the program. c)There are time delays in processing transactions in a batch system. d)The processing of transactions in a batch system is not uniform.
c)There are time delays in processing transactions in a batch system.
Compared to batch processing, real-time processing has which of the following advantages (Gleim)? a)Ease of auditing b)Ease of implementation c)Timeliness of information d)Efficiency of processing
c)Timeliness of information
In an effort to recognize improvement opportunities, a company is reviewing its in-house systems. The best reason for the company to consider switching to cloud computing as a solution is that it a)Is the best way to secure sensitive corporate information. b)Is accessible only from within the company on its intranet. c)Usually has lower upfront costs for equipment and maintenance. d)Provides better program modification options.
c)Usually has lower upfront costs for equipment and maintenance.
