ACC 3510 - Exam #1

In the accompanying UML class diagram of Sunset Graphics sales and collection process, consider the association marked number 1 between Quote and Order classes. If Sunset's quotes may result in many orders, the multiplicities next to the Order class are which of the following?

0..*

Match the described situation with the correct multiplicity.

0..1 or 0..* Participation is optional. 1..1 or 1..* participation is mandatory 0..* or 1..* Maximum is more than one. 0..1 or 1..1 maximum is one

Specify the order of the steps in mapping a UML class diagram to a relational database schema by matching the step to the order number.

1 - Map classes to tables. 2 - Map class attributes to table fields. 3 - Map Associations to foreign keys. 4 - Create new tables to many-to-many relationships.

Place Sunset Graphics' sales and collection process activities in the correct sequence.

1 - Provide Quote 2 - Receive Order 3 - Prepare Products 4 - Apply Graphics 5 - Deliver Order 6 - Invoice Customer 7 - Receive Payment

Provide the process of risk assessment in correct sequence (i.e., seven steps). The last step is to base on the results of the cost/benefit analysis, determine whether to reduce the risk by implementing a control, or to accept, share, or avoid the risk. identify controls to mitigate the risk estimate the costs and benefits of implementing the controls identify risks to the firm estimate the likelihood of each risk occurring perform a cost/benefit analysis for each risk and corresponding controls estimate the impact

1. Identify risk to the firm. 2. Estimate the likelihood of each risk occurring. 3. Estimate the impact. 4. Identify controls to mitigate the risk. 5. Estimate the costs and benefits of implementing the controls. 6. Perform a cost/benefit analysis for each risk and corresponding controls.

In the accompanying UML class diagram of Sunset Graphics' sales and collection process, consider the association between Order and Cash Receipt classes marked number 2. If customers pay for all outstanding orders in full with a single payment, the multiplicities next to the Orders class are which of the following?

1..*

Consider the association between two classes: purchases and cash disbursements linked with one association. Match the description of the situation with the appropriate multiplicity. The first multiplicity is next to the purchases class and the second multiplicity is next to the cash disbursements class.

1..* and 0..1 matches Each cash disbursement pays for a min of 1 and a max of many purchases 1..1 and 0..* matches Each purchase can be paid for with many payments 1..1 and 0..1 matches Each purchase is paid separately and in full with one cash disbursement 1..* and 0..* matches Purchases may be paid for over time, and each payment can apply to many purchases

Deep learning networks have more than ___ non-output layers.

2

If there are two possible classifications, then the confusion matrix would show ___ cells with the prediction options.

4

Data analytics professionals spend up to ___% of their time cleaning data for analysis?

90

Which of the following cardinality symbols (placed on the association between two classes/entities) is the equivalent of the multiplicity 0..* in information engineering notation?

A circle and three crow's feet

What is a data dictionary?

A data dictionary describes the data fields in a database such as field type and field length.

Which of the following is NOT true about modern neural networks?

A neural network with more than 100 layers cannot be effectively trained.

Explain what the multiplicity zero mean in the following relationship. Sales (0..*) ----- (1..1) Salesperson

A new salesperson whose information has been entered into the Salesperson table before performing any sales transaction.

What is a smart contract used in a blockchain network?

A smart contract defines the terms and business rules to be used in conducting transactions. A smart contract is written in software code. A smart contract defines the digital assets that could be transferred in transactions.

In an example where the goal is to identify spam email, which of the following best describes the difference between a true positive (TP) and a false negative (FN) in a confusion matrix?

A true positive is a correct classification of a spam email message; a false negative is an incorrect classification of a spam email message.

Management selects risk responses and develops a set of actions to align risks with the entity''s risk tolerances and risk appetite. The four options to respond to risks are: reducing, sharing, avoiding, and ___ risks.

Accepting or accept

Which of the following are rules for forming appropriate relational tables from a UML class diagram?

Add a table for each class. Add a table for each many-to-many relationship.

Sunset's process for preparing customer quotes includes resources, events and _____.

Agents

In unsupervised learning, the model discerns how elements of the dataset are ___ or not.

Alike or similar

Select a wrong statement about blockchain concepts.

All transactions on a blockchain network must be verified by a central authority.

In this diagram, which of the following statements of multiplicities (the number of times instances of one class can be associated with instances of another class) are likely true?

An auto is licensed in one state. A person may own many autos. Autos may be serviced by many dealers.

In the process of business intelligence, you first gather information, then ________________ and finally make decisions based on the information gained.

Analyze the information

Management selects risk responses according to the entity''s risk tolerances and risk:

Appetite

___ controls ensure data integrity and an audit trail.

Application or Applications

IT controls are a subset of a firm's internal controls and are categorized as IT general and ___ controls.

Application or applications

Machine learning is a subset of ___ intelligence.

Artificial

The first step in the AMPS model is to _____.

Ask the question

Which of the following things can be represented by classes on a UML class diagram?

Assets People

A depiction of the relationship between two classes is a(n) _____.

Association

An ___ depicts the relationship between two classes in UML.

Association

Application controls ensure data integrity and provide an ___ trail.

Audit or auditing

Identify physical control activities based on the COSO internal control framework.

Authorization - to ensure transactions are valid Segregation of duties matches - to prevent fraud and mistakes Supervision - to compensate imperfect segregation of duties. Accounting documents and records - to maintain audit trails and accuracy of the financial data. Access control - to ensure only authorized personnel have access to physical assets and information. Independent verification matches - To double check for errors and misrepresentations.

In the generic REA model of the sales and collections process, the minimum multiplicity next the sales class for the association between customers and sales is zero, because customers are usually entered into the database ___ they participate in a sale.

Before

Match the key concepts behind Bitcoin versus Ethereum.

Bitcoin - Anonymous peer-to-peer transactions, no middleman involved. One block is added to the blockchain every 10 minutes. Ethereum - Uses smart contracts. One block is added to the blockchain every 12 to 15 seconds.

What are the potential impacts of blockchain on accounting and audit practice?

Blockchain technology increases the possibility of conducting continuous audit. Auditors will need to review business rules coded in smart contracts.

In the information value chain presented in the book, what precedes the collection of data?

Business Event

Data mining is a technique used to analyze data for what purpose?

Business intelligence.

Match the following control or governance frameworks with their main purposes.

COSO - A general internal control framework that can be applied to all firms. COSM ERM - a framework expands from internal control to risk management that can be applied to all firms. COBIT - A comprehensive framework for IT governance and management a comprehensive framework for IT governance and management. ITIL - a framework focusing on IT infrastructure and IT service management a framework focusing on IT infrastructure and IT service management. ISO 27000 Series - a framework for information security management a framework for information security management

Which of the following is a good example of a primary key for the Cash Receipt table?

Cash receipt number

Which of the following is NOT an example of reinforcement learning?

Categorizing email spam.

One type of application control is field:

Checks or check

A ___ is an object which is implemented as a table in a relational database.

Class

A separately identifiable collection of things about which the organization wants to collect and store information is a _____.

Class

Best practices in preparation of UML diagrams include the use of common terminology in the organization for ___ names.

Class

Match the UML class diagram element to the corresponding entity-relationship diagram element.

Class - Entity Association - Relationship Multiplicities - Cardinalities

Match the symbol with the thing that the symbol represents in UML.

Class - Re tangles Associations - Lines

Most machine learning applications are designed to perform either some sort of ___ or regression.

Classification or categorization

Select the correct statements about cloud computing.

Cloud computing is Internet-based. Companies using cloud computing often share resources and applications. The major concern of using cloud computing is issues on privacy and security.

Which party would have the most interest in monitoring blogs and social media to assess the probability of the collectibility of bad debts?

Company accountant.

Another word for business intelligence is ___ intelligence.

Competitive

The Object Management Group is a consortium of ___ industry members.

Computer

The success of an artificial neural network can be measures by using a ___ matrix.

Confusion

A business rule is a statement of a _____ on a business process.

Constraint

A business rule is a succinct statement of a ____ on a business process.

Constraint, Limit, or Control

Business rules implement specific ___ activities for a particular business process.

Control, controls, or controlling.

To create a relational table in Microsoft Access, select the ___ tab and then click on the Table Design icon.

Create

Select a possible attribute for a class called CUSTOMER.

Customer Address

Which information system is most likely to impact the total revenue line item for a company?

Customer Relationship Management

Which of the following are basic elements of Sunset Graphics' process for preparing quotes?

Customer's requirements Prices and quantities Sunset's products and services

Which of the following are examples of associations between classes in UML.

Customers "participate" in sales. Instructors "teach" classes. Employees "work for" supervisors.

Which of the following best describes the business reason for the multiplicities between the customer class and the sales class in the generic UML class diagram of the sales and collection process?

Customers may participate in many sales.

Message flows are modeled with ___ arrows and sequence flows are modeled with solid arrows.

Dashed

Converting ___ from existing legacy systems to the newly implemented enterprise systems is often complicated and time consuming.

Data

Machine learning applications improve their ability to analyze patters as they process more:

Data

A ___ ___ describes the data fields in each database record such as field description, field length, and field type (e.g., alphanumeric, numeric).

Data Dictionary

A ___ is a collection of related data used by businesses to maintain information about various types of objects, events, people and places.

Database

Which of the following is NOT true about the relationship between AI, machine learning, and deep learning.

Deep learning involves less complexity than machine learning.

For Sunset Graphics sales are recorded when the order is:

Delivered, complete, concluded, or completed

Counts, totals and sums are specific types of ______ analysis employed.

Descriptive

The analysis needed to address the question, 'Did return on assets improve or decline last year?', is _____ analysis.

Descriptive

The analysis needed to address the question, 'Did we make a profit last year?', is _____ analysis.

Descriptive

Addressing the question, 'Why did advertising expense increase, but sales increase', is an example of _____ analysis.

Diagnostic

Addressing the question, 'Why did sales, general and administrative expense increase relative to the industry', is an example of _____ analysis.

Diagnostic

Looking for anomalies and outliers are specific types of ______ analysis employed.

Diagnostic

List the key characteristics of blockchain technology:

Distributed and decentralized Consensus Immutability

Which of the following statements correctly describes the basic requirements of tables in a database?

Each attribute in a table must have a unique name and the values of a specific attribute must be of the same type.

Explain the multiplicities in the following relationship. Inventory (1..*) ----- (0..1) Sales

Each item of inventory can be sold once only.

When using pools in a BPMN activity model, which of the following is not required?

Each pool must have multiple lanes.

Artificial neural networks are the ___ of machine learning.

Engine

A(n) ___ system is a centralized database that collects data from throughout the firm.

Enterprise , ERP, or ES

In the COSO ERM framework component ___ ___, firms identify events affecting achievement of their objectives.

Event Identification

XBRL is an acronym for which words?

Extensible Business Reporting Language

In the generic REA model of the sales and collection process, there are normally two agents: an internal agent and an ___ agent.

External

ETL stands for which process for scrubbing raw data to make it ready for analysis?

Extract, Transform, and Load

True or false: A blockchain network is a distributed ledger system and all transactions must be verified by a central authority.

False

True or false: A primary key is a unique identifier of tables.

False

True or false: Audit data standards are a set of data standards in preparation for the internal audit.

False

True or false: Audits do not provide value beyond the financial perspective and providing assurance.

False

True or false: COBIT is one of the generally accepted internal control frameworks for enterprises. COSO is a generally accepted framework for IT governance and management.

False

True or false: Classification problems seek to minimize the differences between predicted and actual values.

False

True or false: Data analytics allows auditors to vastly expand sampling beyond current traditional sample sizes, but does not allow the ability to test the full population of transactions.

False

True or false: Data analytics comes up with computer algorithms that make decisions automatically without human intervention.

False

True or false: In a hierarchical data model, data elements always have a one-to-one relationship. In a network data model, data elements always have many-to-many relationships.

False

True or false: In general, data analytics requires the auditor to pull data at the client site before an external audit is completed.

False

True or false: In today's business world, we use the network data model only in designing databases.

False

True or false: Since blockchains are immutable, auditors do not need to audit blockchain transactions.

False

True or false: Sunset Graphics records sales revenue when they receive an order.

False

True or false: Supervised learning is a type of machine learning but it is seldom used in practice.

False

True or false: The SELECT statement in SQL is used to create a table.

False

True or false: The entity integrity rule requires using foreign keys to link tables.

False

True or false: The relational database implemented from a UML class diagram would contain fewer tables than the UML class diagram has classes.

False

True or false: The specification for UML (unified modeling language) is maintained by the Object Management Guild.

False

Each relational table attribute must be defined as a ___ in Microsoft Access.

Field

When designing a table using Microsoft Access, we use validation rules to provide input control such as requiring a field being numerical with a fixed length. We also enter information called validation text to tell the user what went wrong when entering data. All these features can be found in ___ properties.

Field or fields

Accounting information systems provide decision makers _____________________.

Financial and Nonfinancial Information.

_________________ are tagged in XBRL by either manual tagging by professionals knowledgeable of the firm's financial reports or automatically by an enterprise system.

Financial statements items.

Tables are linked by the use of ___ keys, forming an interconnected network of records that taken together are the relational database.

Foreign

We define corporate ___ as a set of processes and policies in managing an organization with sound ethics to safeguard the interests of its stakeholders.

Governance

According to the textbook, audits are expected to provide all but the following above and beyond the assurance perspective.

Help companies reduce future audit fees.

All of the following are types of data models used in databases today:

Hierarchical model Network model Relational model

Robotic process automation is used to reduce the ___ labor required.

Human

Which of the following is an example of IT general controls (ITGC)?

IT control environment

The risk assessment process starts with ___ the risks.

Identifying or identify

The difference between business rules and internal control is that business rules __________ internal control activities.

Implement

The difference between business rules and internal control is that business rules ___ internal control activities.

Implement or implements

Which of the following is NOT a technique to train a neural network system?

Incentive-based learning

The ISO 27000 series of standards are designed to address ___ ___ issues.

Information Security

Which of the following is NOT true about artificial neural networks?

Information moves from the output layer to the input layer.

Structure models describe the ___ and ___ structure of a business process or processes.

Information or Informational Data

Select correct statement regarding information technology governance and corporate governance.

Information technology governance is a subset of corporate governance. Information technology governance is the responsibility of management.

An XBRL _______________ is a document containing XBRL elements for firm financial information.

Instance Document

Ethical behavior prompted by a code of ethics can be considered a form of:

Internal Control or controls

The XBRL GL is used to facilitate which kind of communication by the firm?

Internal communication

Select the correct statement(s) regarding the concepts on internal control defined under COSO 2.0.

Internal control is a process consisting of ongoing tasks and activities. It is a means to an end, not an end in itself. Internal control is geared toward the achievement of objectives in one or more separate but overlapping categories.

According to the textbook, audit data standards include all but the following benefits to accountants and auditors.

Is less expensive to implement and use. Lends itself to analysis by managerial accountants seeking to lower costs Is useful for those preparing tax returns

What is an enterprise system?

It is also known as ERP. It often uses a database in establishing the system. It is an integrated information system to be used across different functional areas of an organization.

Select a correct statement on the monitoring component of the COSO ERM framework.

It is the process of evaluating the quality of internal control design and operation and the effectiveness of the ERM model. The ERM components and internal control process should be monitored continuously and modified as necessary.

All types of challenges emerge both from a technical and organizational perspective when implementing an enterprise system. Which of the following are examples of the challenges?

It is too costly to implement an enterprise system. It is not easy to get employees adequate training.

Choose the best answer to explain a hierarchical data model.

It organizes data into a tree-like structure that allows repeating information using defined parent/child relationships.

Which of the following classes is most likely to be a type image?

Job category

The data analytics skill sets that should be developed are all but the following:

Knowledge of audit data standards. Decision Making

Natural language processing (NLP) applications communicate using written and spoken:

Language

The IT Infrastructure Library (ITIL) is a de facto standard in Europe for the best practices in IT infrastructure management and service delivery. ITIL adopts a ___ - ___ approach to IT services.

Life Cycle

An ERD is a graphical representation of the ___ data structure of a database.

Logical

AI is intelligence exhibited by ___ rather than humans.

Machines or computers

Hierarchical data models organize data into a tree-like structure and are widely used in database ___ management systems.

Mainframe

The processes of making sure changes to programs and applications are authorized and documented are called change ___ controls. Changes should be tested prior to implementation so they do not affect system availability and reliability.

Management

Systems used to support ____________ decision making are called decision support systems.

Managerial

The first step in mapping a ULM class diagram to a relational database schema is

Map classes to tables.

In a machine learning context, a model is a ___ representation of some process.

Mathematical

___ flows between pools describe the interactions between organizations that participate in a process.

Message

Select the best statement in describing the concept of miners in blockchain.

Miners are the nodes/machines creating and validating blocks.

Multiplicities describe the ___ and ___ number of times that instances of one class can be associated with instances of another class.

Minimum Maximum

During the "Objective Setting" process, firms set specific objectives based on their:

Mission . Vision

Valid multiplicity options are shown in which of the following?

Mminimum zero and maximum many (0..asterisk) Minimum zero and maximum one (0..1)

Neural networks are mathematical ___ that convert inputs to outputs/predictions.

Models or Algorithms

In the COSO ERM framework, ___ is the process of evaluating the quality of internal control design and operation and the effectiveness of the ERM model.

Monitoring

Determining proper foreign key placement uses ______.

Multiplicities

The more _____ the question is, the better chance it has of being answered.

Narrow

A ___ data model is a flexible model representing objects and their relationships and allows M:N mapping.

Network

The structure of a ___ data model connecting records in a database looks like a mesh.

Network or networking

The XBRL specification ____________.

Outlines the technical framework for XBRL

In supervised learning, the ___ is a known set of values that the neural network seeks to predict.

Output

In unsupervised learning, the system uses unstructured data and the system discovers ___ in the data.

Patterns

The sales and collection process includes activities necessary to sell products and record ___ from customers.

Payments, receipts, or payment.

Control activities are the policies and procedures that help ensure that necessary actions are taken to address risks to achieving the firm's objectives. There are two categories of control activities:

Physical IT

Sequence flow must by continuous from the start event to an end event in each:

Pool

Which of the following is NOT a flow object?

Pool

Regression problems seek to ___ real numbers, such as house prices.

Predict or forecast.

Classification and regression are specific types of ______ analysis employed.

Predictive

The analysis needed to address the question, 'Can we forecast whether the company will have a profit next year?', is _____ analysis.

Predictive

The analysis needed to address the question, 'Will these financial statements need to be restated?', is _____ analysis.

Predictive

Addressing the question, "What should we do, based on what we expect will happen" is an example of ______ analysis.

Prescriptive

Optimization and what-if scenarios are specific types of ______ analysis employed.

Prescriptive

The analysis needed to address the question, 'How can revenues be maximized if our employees go on strike?', is _____ analysis.

Prescriptive

The analysis needed to address the question, 'What level of sales is needed to breakeven?', is _____ analysis.

Prescriptive

Requiring a signed source document before recording a transaction is a _______ control.

Preventive

___ controls require compliance with preferred procedures to deter undesirable issues from happening.

Preventive

When designing a table using Microsoft Access, we must choose the Required field as "Yes" and the Indexed field as "Yes (No Duplicates)" in the field properties box for the ___ key.

Primary

Select the correct statement on the three types of blockchain.

Private blockchain is also called enterprise blockchain.

During the objective setting stage, management should have a ___ in place to set strategic, operations, reporting, and compliance objectives.

Process

Internal control is a ___ consisting of ongoing tasks and activities. It is a means to an end, not an end in itself.

Process

List the three types of blockchain:

Public, Private, Consortium

When users want to find answers to questions in a Microsoft Access database such as the balance of accounts receivable, which function do they use?

Query

When calculating and sorting data, the users often use ___ the object in Microsoft Access.

Query or queries

Which of the following have not yet been implemented in AI applications?

Reacting emotionally.

Sunset Graphics' sales and collection process includes which of the following activities?

Receive payment Prepare products Provide quote

Which of the following are NOT uses of natural language processing and understanding applications?

Recognize faces

Which of the following is not a normal part of the sales and collection process?

Reconciling the bank statement.

The symbol used to represent a class is the _____.

Rectangle

Flowchart tasks/activities are modeled with:

Rectangles

Among the different types of data models, ___ data models are the dominant one in use today, because they offer advantages over other data models, including: flexibility and scalability, simplicity, and reduced information ___.

Relational Redundancy

Best practices in preparation of UML diagrams suggests that classes should be linked only when there is a clear business purpose for that:

Relationship, Association, or Relationships.

RPA is a tool that can perform high-volume, ___ , tasks such as preparing tax returns or managing accounts payable.

Repetitive

ERP means enterprise ___ planning.

Resource or Resources

In an REA data model, R means ___, E means ___, and A means ___.

Resources or resource Events or event Agents or agent

Internal and external events affecting achievement of a firm's objectives must be identified. When using COSO ERM framework, management must distinguish between ___ and ___ after identifying all possible events.

Risks or risk Opportunities or opportunity

Information technology controls involve processes that provide assurance for information and help to mitigate ___ associated with the use of ___ . Firms need such controls to protect information assets, remain competitive, and control costs in implementing IT projects.

Risks or risk Technology

Organizations implement Internal controls by creating business:

Rules or rule

The standard multiplicities on the association between Customers and Sales for the generic REA model would have 0..* next to ___ the class and 1..1 next to the ___ class.

Sales or sale Customers or customer

List agents who are often involved in sales transactions:

Salesperson, salespeople, or cashier & Customer or customers

___ ___ published a white paper in 2008 to introduced a concept on distributed ledger system which is the foundation of the blockchain technology.

Satoshi Nakamoto

ITIL organizes IT service management into five high-level categories. Define each category.

Service strategy matches - the strategic planning of IT service management capabilities and the alignment of IT service and business strategies. Service design - the design and development of IT services and service management processes. Service transition matches - the transition from strategy to design, and maintaining capabilities for the ongoing delivery of a service. Service operation matches - the effective and efficient delivery and support of services, with a benchmarked approach for event, problem, and access management Continual service improvement matches - Ongoing improvement of the service and the measurement of process performance required for the service.

ERD is short for entity-relationship diagram. Which of the following is true about ERDs?

Similar to UML class diagrams Originally proposed by Peter Chen Graphic representation of logical data structure

Best practices in preparation of UML diagrams suggests that the modeler should opt for ___ over complexity.

Simplicity

Using the diagram, select the answers that are true about the cardinalities described in information engineering notation.

Songs have one singer Singers sing many songs

A class is any separately identifiable collection of objects about which the organization wants to collect and ___ information.

Store

What is the main function of "Tables" in Microsoft Access?

Store data

The COSO ERM framework categorizes objectives in the following four categories: ___, operations, reporting, and compliance.

Strategic

The COSO ERM framework indicates that an effective internal control system should consist of four categories of objectives:

Strategic Reporting or report Compliance

What is SQL?

Structured Query Language

A level 1.1 represents a ___ of a level 1 process.

Subprocess

In BPMN, a collapsed ___ contains a series of steps that are hidden from view.

Subprocess

What are the disadvantages of using cloud computing?

The Internet connection may not be always available. Companies must ensure that sensitive data stored in the cloud are secure. The company that provides service in the cloud may not be reliable.

Which of the following statements describes the Referential Integrity Rule correctly?

The data values of a foreign key should have existed in the reference table already.

Select a correct statement regarding control frameworks.

The original COSO internal control integrated framework was created more than 20 years ago.

Which of the following are true about the generic REA pattern for the sales and collection process?

There are normally 2 resources. There are 2 economic events. There are internal and external agents.

What is the original purpose of using a distributed ledger system with the blockchain technology?

To eliminate intermediaries/middlemen in perform transactions.

Which of the following are valid uses of a collapsed subprocess in BPMN?

To hide unnecessary detail.

What are the main purposes of corporate governance?

To protect the interests of a firm's stakeholders. To promote accountability and transparency in a firm's operations. To encourage the efficient use of the resources a firm has.

What is the purpose of using the command WHERE in SQL?

To state the criteria to be met in getting the query result.

Which of the following are true about the purpose of structure models?

Tools for documenting Tools for implementing databases Tools for planning

In the process of business intelligence, you first gather information, then analyze patterns or:

Trends

In reinforcement learning, the model learns by

Trial

True or false: A primary key is a unique identifier of a specific row in a table.

True

True or false: AI applications are also called cognitive technologies.

True

True or false: Business intelligence allows firms to monitor competitors, customers and suppliers.

True

True or false: Business rules help ensure that information systems operate in a consistent and effective manner.

True

True or false: In a hierarchical data model, data elements are related to each other using a notation known as one-to-many mapping.

True

True or false: Integrity and individual ethics are formed through a person's life experience.

True

True or false: One reason for the paradigm shift suggests that auditors will stay engaged with clients beyond the audit since data analytics allows them to offer value to their clients.

True

True or false: The FROM command in SQL is to indicate which tables to be used in a query.

True

True or false: The internal environment of the COSO ERM framework provides the discipline and structure for all other components of enterprise risk management. It is the most critical component in the framework.

True

True or false: The phrase "Your data won't speak unless you ask it the right data analysis questions" really speaks to the expertise the accountant can offer by asking questions that are answerable by data.

True

True or false: When using SQL to retrieve data, the WHERE clause can be used to indicate how tables are linked.

True

True or false: application controls include a variety of input validation checks.

True

What kinds of business questions would a reinforcement learning algorithm help answer?

What action should I take next?

A database is used to maintain information about

types of objects.

Flowcharts model decisions with

Diamonds

The CGMA Competency Framework classifies skills into ___ important sets.

4

The Institute of Management Accounting Competency Framework defines how many areas of skills that accounting professionals need to remain relevant in a digital age?

6

XBRL style sheets can format data for _____________.

A PDF file

An activity model describes the sequence of workflow in

A business process.

In BPMN, the organization is identified by

A pool.

Accountants gather information relevant in solving business problems, create or extract that information, and then ______ the information to solve the problem.

Analyze

What is the IT strategic role that replaces human labor with technology?

Automate

To be useful to decision makers, information from an AIS must be both relevant and __________.

Be a faithful representation.

What would be the most appropriate designation for a professional who serves as an IT auditor?

Certified Information Systems Auditor (CISA)

What would be an appropriate designation for a CPA with a broad range of technology knowledge and experience?

Certified Information Technology Professional (CITP)

Who was the person who contemplated the use of XML to electronically deliver financial information in 1998?

Charles Hoffman

Which of the following is considered a best practice in BPMN modeling?

Clearly identify start events. Continuous flow from Start to end events. Avoid distracting detail.

Examples of an external database used in a data warehouse might include which data source?

Competitor information.

A graphical representation presents information more ___ than a written description.

Concisely, Succinctly, or Concise.

_____ manages the interaction between the company and its customer, from initial lead to customer service after the sale.

Customer Relationship Management Software

A data flow diagram (DFD) shows the flow of ___ through a system, such as one or more business processes.

Data

In BPMN the two elements used to model ___ are the data object and the datastore.

Data

In the information value chain presented in the book, what precedes the receipt of information?

Data

Raw facts that describe the basic characteristics of an event would be defined as _________.

Data

The flow of data through a system is graphically represented by a _____.

Data Flow Diagram

For a grocery store chain, answering a question like, how much cranberry sauce did we sell last Thanksgiving would be a good question for which type of data source?

Data mart

__________ is a technique used to analyze data for business intelligence purposes.

Data mining

Systems used to support managerial decision making are called __________________.

Decision support systems

A business process is a ___ sequence of activities that uses resources to transform specific inputs into outputs to achieve a business goal.

Defined

Flowcharts model decisions with:

Diamonds

Continuous tracking of month-to-date orders would be an example of which of these?

Digital dashboard

Managerial accounting information is generally produced for internal information purposes and would be considered to be ____________.

Discretionary Information

Which system can significantly lower the cost of support processes included in sales, general and administrative expenses (SG&A)?

Enterprise System

A(n) ___ system serves as a central depository for information from orders, customers, sales, inventory, and employees.

Enterprise or ERP

The CGMA Competency Framework describes four broad sets of skills anchored by a commitment to ___, integrity, and professionalism.

Ethics

External auditors accessing their client's accounting information system would be serving the accountant's role in an accounting information system of a(n) _____.

Evaluator

A data warehouse is a collection of information gathered from an assortment of ___ and internal databases to facilitate reporting for decision making.

External

Information regarding competitors, the industry and the general economy would be examples of _____ databases.

External

Documentation is important to businesses for all of the following reasons except:

Facilitating tax reporting.

Neutrality, or information without bias, would be considered a component of ________, which are critical for providing useful accounting information.

Faithful Representation

True or false: A business process is a defined sequence of interactions with business customers.

False

True or false: Data that collects the characteristics of different transactions has great value to an organization.

False

True or false: Documentation facilitates process improvement because it establishes how a process can be performed with fewer inputs and resources

False

True or false: In BPMN, there are three types of events: start, intermittent, and end events.

False

True or false: In a DFD, the level 0 diagram shows the highest level of detail.

False

True or false: Sequence flows are used between pools, and messsage flows are used within pools.

False

True or false: Supply chain is the term used to describe a firm's interactions with its current and potential clients.

False

To be valuable business partners, accountants must understand financial reporting and additionally they must understand:

How the accounting system collects business process information. How the accounting system summarizes business process information. Risks that the business faces.

What is the IT strategic role that uses technology to provide information about business activities to senior management or to employees across the firm?

Informate

What is the IT strategic role that uses technology to provide information to the line (entry-level) worker?

Informate-Down

What is the IT strategic role that uses technology to provide information to senior management?

Informate-Up

The International Federation of Accountants suggests that accounting can hardly be viewed separately from which field?

Information Technology

Sales recorded in a cash register would be an example of a(n) ____________ activity in an information system.

Input

General ledger, journal entries, sales and purchases would be examples of _____ databases.

Internal

Data warehouses are ______________ a company's operational database.

Kept separate from

Like BPMN, flowcharts use ___ to show organization units or functions.

Lanes or Swimlanes

In a business process diagram, models are normally presented

Left to right.

The four roles of accountants with respect to accounting information systems include user, designer, evaluator and _____.

Manager

Business intelligence is a computer-based technique for accumulating and analyzing data from databases and data warehouses to support ______________________.

Managerial decision making

In BPMN, the interaction between two pools is modeled as a ___ flow.

Message

Business _____ allow the depiction of important features of business processes clearly and concisely.

Models

The organization that maintains the specification for BPMN (business process modeling notation) is the ___ Management Group (OMG).

Object

What is a primary activity of the value chain?

Outbound Logistics / Inbound Logistics

A monthly sales report produced by an information system would be an example of a(n) ____________ activity.

Output

Match the purpose of the flowchart symbol to the symbol.

Oval: Indicates the beginning of the process flow Rectangle: Steps in the process Arrow: Sequence flow Diamond: Portrays decisions and branching options

Pools represent ___ in a process.

Participants, Participation, or Organizations

Which of the following is a business management support of the accounting/finance function?

Performance measurement, reporting and analysis.

Match the purpose of the BPMN symbol to the name of the BPMN symbol.

Pool: Identifies participants in a process Swimlane: Shows departments within organizations Message flows: Represents interactions between BPMN pools Sequence flows: Represents sequence of activities within BPMN pools

There are 3 types of flowcharts that differ according to the level of detail. The three types are:

Process maps Document flowcharts System flowcharts

Which of the following is NOT a role of accountants with respect to technology?

Programmers

An entity is represented by the ___ symbol in an ERD.

Rectangle

Which of the following describes a value-added activity:

Required to produce the product or service given the current state of technology. Essential to produce the processes' product.

Deployment flowcharts show the sequence of steps in a process and organizational _____ for each step.

Responsibility

In 2009, the _____ requires that financial statements be submitted using XBRL.

SEC

Which regulatory body requires large corporations to submit their financial statements using XBRL?

Securities and Exchange Commission

A data mart takes a subset of information from a data warehouse to serve a ________ purpose.

Specific

Recorded transactions that are saved in the cloud would be an example of a(n) ____________ activity in an information system.

Storage

What process refers to the flow of materials, information, payments and services from raw materials suppliers to the final customer?

Supply Chain

Which information system is most likely to impact the total cost of goods sold line item?

Supply chain management software.

Match the description to the type of flowchart.

System: Provides an overall view of a system with inputs, activities, and outputs. Document: Presents the flow of documents through an entity. Process Maps: Use basic symbols to represent the steps in a process.

What is the definition of the XBRL specification?

The XBRL specification provides the underlying technical details of what XBRL is and how it works.

XBRL assurance is needed to ensure which of the following?

The reports generated using XBRL are complete and received on a timely basis. The most current, standardized XBRL taxonomy is used.

Which of the following is the best description on an association?

They connect data objects to activities

An attribute of relevant information is: the information is _________.

Timely

An accounting information system is defined as a system that records, processes and reports on business:

Transactions

What is the IT strategic role that fundamentally redefines business process and relationships through the use of technology?

Transform

A best practice to enhance the use of models to describe important steps in a business process is that sequence flows should be used within pools, but not between pools.

True

True or false: A sequence flow can only connect to flow objects.

True

True or false: Activity models show the sequence of workflow tasks in a business process.

True

To be valuable business partners, accountants must first ___ the business.

Understand

When accountants input journal entries or calculate the cost of a product input, the accountants' role in an accounting information system is that of a _____.

User

Opportunity flowcharts use swimlanes to separate the activities that add ___ from those that only add costs to the process.

Value or Values

What term describes taking the XBRL data and making it readable by humans?

XBRL Style Sheets

XBRL is based on which standard for Internet communication among businesses?

XML

Data warehouses often serve as a repository of the firm's ___ data.

historical