CIS430 Unit 2 Quiz C2
Question 1
Which of the following is false?
A reference file stores data that are used as standards for processing transactions
A master file generally contains account data
An archive file contains records of past transactions that are retained for future reference
A transaction file is a temporary file of transaction records used to change or update data in a master file
All of the above are true
Question 2
Which of the following is true of the relationship between subsidiary ledgers and general ledger accounts?
The relationship between the two provides an audit trail from the financial statements to the source documents
The two contain different and unrelated data
All general ledger accounts have subsidiaries
The total of subsidiary ledger accounts usually exceeds the total in the related general ledger account
Question 3
Which of the following statements is NOT true?
Sorting records that are coded alphabetically tends to be more difficult for users than sorting numeric sequences
Mnemonic coding requires the user to memorize codes
Sequential codes carry no information content beyond their order in the sequence
Mnemonic codes are limited in their ability to represent items within a class
Question 4
Which statement is NOT true?
Business activities begin with the acquisition of materials, property, and labor in exchange for cash
The conversion cycle includes the task of determining raw materials requirements
Manufacturing firms have a conversion cycle but retail firms do not
A payroll check is an example of a product document of the payroll system
Question 5
Which statement is NOT correct?
Indexed random files use disk storage space efficiently
Indexed random files are dispersed throughout the storage device without regard for physical proximity with related records
Indexed random files are efficient when processing a large portion of a file at one time
Indexed random files are easy to maintain in terms of adding records
Question 6
A coding scheme in the form of acronyms and other combinations that convey meaning is
sequential code
block code
alphabetic code
mnemonic code
Question 7
Which statement is NOT correct?
Records in an indexed random file are dispersed throughout a disk without regard to their physical disks
In a sequential structure the application starts at the geginning of the file and process each record in sequence
Sequential file systems are not efficient when the user is interested in locating only one record in the file
The sequential access method allows accessing a record directly
Question 8
2 out of 2 points
Which statement is NOT correct?
Legacy systems may process financially significant transactions
Legacy systems tend to use mainframe computers and be batch oriented
The flat file approach is often associated with legacy systems
All the above are true.
Question 9
2 out of 2 points
The expenditure, conversion and revenue cycles exist in all types of businesses to include both for profit and not for profit
True
False
Question 10
2 out of 2 points
An advantage of a physical address pointer is that
it points directly to the actual disk storage location
it points directly to the actual disk storage location
it is easily recovered if it is inadvertently lost
it remains unchanged when disks are reorganized
all of the above are advantages of the physical address pointer
CIS430 Unit 2 Quiz C3
Question 1
Which of the following is not a major factor that contributes to small business fraud?
Inadequate employee prescreening
Too much trust
Limited controls
Excessive cash on hand
Question 2
A shell company fraud involves:
stealing cash from an organization before it is recorded
stealing cash from an organization after it has been recorded
setting up a fake company and manufacturing false purchase orders, receiving reports, and invoices
A clerk pays a vendor twice for the same products and cashes the reimbursement check issued by the vendor
Question 3
When duties cannot be segregated, the most important internal control procedure is
supervision
independent verification
accounting records
access controls
Question 4
To conceal the theft of a check from customers in payment of their accounts, which of the following journal entries should the bookkeeper make?
Debit Miscellaneous Expense; Credit Cash
Debit Petty; Credit Cash
Debit Cash; Credit Accounts Receivable
Debit Sales Returns; Credit Accounts Receivable
None of the above
Question 5
Cash larceny involves stealing cash from an organization before it is recorded on the organization’s books and records
True
False
Question 6
When certain customers made cash payments to reduce their accounts receivable, the bookkeeper embezzled the cash and wrote off the accounts as uncollectible. Which control procedure would most likely prevent this irregularity?
segregation of duties
maintaining a general ledger
insuring debits equal credits in the accounting system
access controls
Question 7
2 out of 2 points
Correct
Which of the following indicates a strong internal control environment?
the internal audit group reports to the audit committee of the board of directors
there is no segregation of duties between organization functions
there are questions about the integrity of management
adverse business conditions exist in the industry
Question 8
Which of the following is not a limitation of the internal control system?
errors are made due to employee fatigue
fraud occurs because of collusion between two employees
the industry is inherently risky
management instructs the bookkeeper to make fraudulent journal entries
Question 9
The external auditor is responsible for establishing and maintaining the internal control system.
True
False
Question 10
Which of the following is NOT an element of the fraud triangle?
rationalization (ethics)
justifiable reliance
pressure (motive)
opportunity
CIS430 Unit 3 Quiz C4
Question 1
Which type of control is considered a compensating control?
segregation of duties
access control
supervision
accounting records
Question 2
In regard to the bill of lading which of the following is false?
The shipping clerk normally prepares the bill of lading.
It is a formal contract between the seller and the shipping company.
It establishes legal ownership and responsibility for assets in transit.
It is completed before the packing slip and shipping notice.
Question 3
The bill of lading is prepared by the
sales clerk
warehouse clerk
shipping clerk
billing clerk
Question 4
Good internal controls in the revenue cycle should ensure all of the following except
all sales are profitable
all sales are recorded
credit is authorized
inventory to be shipped is not stolen
Question 5
Which of following functions should be segregated?
opening the mail and recording cash receipts in the journal
authorizing credit and determining reorder quantities
shipping goods and preparing the bill of lading
providing information on inventory levels and reconciling the bank statement
Question 6
Which situation indicates a weak internal control structure?
the AR clerk authorizes the write off of bad debts
the record- keeping clerk maintains both AR and AP subsidiary ledgers
the inventory control clerk authorizes inventory purchases
the AR clerk prepares customer statements every month
Question 7
When will a credit check approval most likely require specific authorization by the credit department?
when verifying that the current transaction does not exceed the customer’s credit limit
when verifying that the current transaction is with a valid customer
when a valid customer places a materially large order
when a valid customer returns goods
Question 8
Which of the following is not one of the three rules that govern segregation of duties?
All transactions should be independently verified to verify the completeness and accuracy of the transaction.
Transaction authorization should be separate from transaction processing.
Asset custody should be separate from the task of asset record keeping.
The organization should be structured so that the perpetration of a fraud requires collusion between two or more individuals.
Question 9
Which situation indicates a weak internal control structure?
the mailroom clerk authorizes credit memos
the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers
the warehouse clerk obtains a signature before releasing goods for shipment
the accounts receivable clerk prepares customer statements every month
Question 10
The credit department
prepares credit memos when goods are returned
approves credits to accounts receivable when payments are received
authorizes the granting of credit to customers
none of the above
CIS430 Unit 4 Quiz C5
Question 1
The documents in a voucher packet include all of the following except
a check
a purchase order
an invoice
a receiving report
Question 2
The greatest advantage of the automated inventory system over its manual counterpart is improved ability to manager inventory needs.
True
False
Question 3
Vendors approved by an organization are maintained in a valid vendor file. Insuring that vendors used are in the valid vendor file will insure the most competitive price will be obtained.
False
True
Question 4
Which document helps to ensure that the receiving clerks actually count the number of goods received?
packing list
blind copy of purchase order
shipping notice
invoice
Question 5
Which document typically triggers the process of recording a liability?
purchase requisition
purchase order
receiving report
supplier’s invoice
Question 6
Which of the following tasks should the cash disbursement clerk NOT perform?
review the supporting documents for completeness and accuracy
prepare checks
approve the liability
mark the supporting documents paid
Question 7
Which of the following is not a major risk exposures associated with the receiving department?
goods are accepted without a physical count
there is no inspection for goods damaged in shipment
inventories are not secured on the receiving dock
the audit trail is destroyed
Question 8
Which statement is NOT correct for a cash disbursement system with proper internal controls?
The bank reconcilement should be an independent verification (ie: by Controller).
The accounts payable function authorizes the cash disbursement via the cash disbursement voucher.
The accounts payable function prepares the cash disbursement check.
Separate the accounts payable, cash disbursements and general ledger functions.
Question 9
Goods received are inspected and counted to
determine that the goods are in good condition
determine the quantity of goods received
preclude payment for goods not received or received in poor condition
all of the above
Question 10
Close supervision in the receiving department reduces the risks of both theft of assets and failure to properly inspect assets.
True
False
CIS430 Unit 5 Quiz C8
Question 1
Which statement below best describes an investment center?
The 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.
The authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply.
The authority to provide specialized support to other units within the organization.
The responsibility for developing markets for and selling of the output of the organization.
Question 2
A profit center manager has responsibility for both cost control and revenue generation.
True
False
Question 3
The core benefits of XBRL adoption include all of the following except:
Improved information quality
Cost reduction through tagging of each item with information so that data is easy to identify
Cost reduction through the ability to use data just once.
Cost reduction through enhancing comparability of information because XBRL lays out a common set of definitions by which all organizations will tag their data.
Question 4
An audit trail should:
Provide the ability to answer inquiries from customers or vendors.
Be able to reconstruct files if they are destroyed.
Provide historical data required by auditors.
Fulfill government requirements.
Provide a means for preventing, detecting and correcting errors.
All of the above.
Question 5
XBRL
is an application of XML to business information reporting, that uses tags or structure, that will make data dramatically easier to create, aggregate, distribute and analyze.
will improving the quality of the information used by companies, analysts and investors to make decisions.
enables the creation of “interactive, intelligent” data that allows information to be automatically processed and analyzed and vastly improves transparency.
is an acronym for eXtensible Business Reporting Language (XBRL).
Question 6
At what level of management is the long range planning function most important?
at top management levels
at middle management levels
at lower management levels
for staff functions e. for line functions
Question 7
The General ledger System (GLS) may be characterized as a hub in the center that is connected to other systems of the firm through spokes of information.
True
False
Question 8
Which of the following is NOT a potential exposure of the FRS?
defective audit trail
general ledger accounts that are out of balance with subsidiary accounts
unauthorized access to the check register
unauthorized access to the general ledger
Question 9
The Ozment Corporation uses a performance reporting system that shows online the data for each subordinate who reports to a supervisor. The data presented show the actual costs incurred during the period, the budgeted costs, and all variances from budget for that subordinate’s department. The name of this system of reporting is
responsibility accounting.
flexible budgeting.
program budgeting.
cost benefit accounting.
CIS430 Unit 5 Quiz C11 latest 2017 november
Question 1
In regard to ERP which of the following is false?
There is no need to be concerned about segregation of duties because ERP systems possess strong computer controls.
Managers in an ERP environment must be concerned about granting access to too many employees.
ERP systems are often installed because they tend to eliminate the need for contingency disaster planning.
Access security is critical in an ERP environment and must be maintained to establish data confidentiality, integrity and availability.
Question 2
In regard to an enterprise resource system (ERP) which of the following is false?
An organization may need to change the way it conducts business to take full advantage of the ERP.
ERP systems are custom packages designed for specific organizations.
The ERP system integrates key processes of the organization so a single computer system can serve the needs of each functional area.
ERP systems utilize a single database to facilitate the sharing of information and to improve communications across the organization.
Question 3
There are a number of risks that may be associated with ERP implementation. Which of the following was NOT stated as a risk in the chapter?
A drop in firm performance after implementation because the firm looks and works differently than it did while using a legacy system.
Implementing companies have found that staff members, employed by ERP consulting firms, do not have sufficient experience in implementing new systems.
Implementing firms fail to select systems that properly support their business activities.
ERPs are too large, complex, and generic for them to be well integrated in to most company cultures.
CIS430 Unit 6 Quiz C12
Question 1
Which of the following statements is true?
Cookies were originally intended to facilitate advertising on the Web
Cookies always contain encrypted data.
encrypted data.
Cookies contain the URLs of sites the user visits.
Web browsers cannot function without cookies.
Question 2
Which of the following security risks associated with electronic commerce is false?
A firewall is a system used to insulate an organization’s intranet from the internet.
A common firewall configuration employs two firewalls – a network level firewall and an application level firewall.
A digital certificate is an electronic authentication technique that can be used to authenticate the identity of the sender of a message.
In a public key management system a certification authority will issue and revoke digital certificates.
Encryption can resolve all security concerns.
Question 3
Per the article The Information Security Control Environment, which of the following is considered a “least” commonly implemented control?
Protect equipment from unauthorized access.
Maintain network security.
Enforce a secure logon process when providing access to information services.
Keep antivirus software updated.
Authenticate remote users accessing the network.
Question 4
Which of the following statements is correct?
TCP/ IP is the basic protocol that permits communication between Internet sites.
TCP/ IP controls Web browsers that access the Web.
TCP/ IP is the document format used to pro-duce Web pages.
TCP/ IP is used to transfer text files, programs, spreadsheets, and databases across the Internet.
TCP/ IP is a low- level encryption scheme used to secure transmissions in higher- level ( HTTP) format.
Question 5
Which of the following statements associated with the internet and/or intranet is false?
Discharged employees raise particular concerns because of trade secrets, operations data, accounting data and other confidential information to which they had access.
Many organizations are reluctant to prosecute those that commit an internet/intranet crime.
Privacy is normally not one of the reasons why individuals avoid internet commerce.
A denial of service attack is defined as an assault on a web server to prevent it from servicing its legitimate users.
One form of internet fraud involves establishing a website to steal a visitor’s password.
Question 6
A digital signature
is the encrypted mathematical value of the message sender’s name.
is derived from the digest of a document that has been encrypted with the sender’s private key.
is derived from the digest of a document that has been encrypted with the sender’s public key.
is the computed digest of the sender’s digital certificate.
Question 7
Which of the following best describes a system of computers that connects the internal users of an organization distributed over a wide geographic area?
LAN
Internet
decentralized network
multidrop network
CIS430 Unit 6 Quiz C13
Question 1
Which of the following is least likely to be an accountant’s role in the SDLC?
user
consultant
auditor
programmer
all of these are likely roles
Question 2
Which of the following steps is NOT considered to be part of this systems survey?
Interviews are conducted with operating people and managers.
The complete documentation of the system is obtained and reviewed.
Measures of processing volume are obtained for each operation.
Equipment sold by various computer manufacturers is reviewed in terms of capability, cost, and availability.
Question 3
In the context of the TELOS acronym, technical feasibility refers to whether
a proposed system is attainable, given the existing technology.
the systems manager can coordinate and control the activities of the systems department.
an adequate computer site exists for the pro-posed system.
the proposed system will produce economic benefits exceeding its costs.
the system will be used effectively within the operating environment of an organization.
Question 4
2 out of 2 points
All of the following individuals would likely be SDLC participants EXCEPT
accountants.
shareholders.
management.
programmers.
Question 5
Which of the following represents the correct order in problem resolution?
Recognize the problem, define the problem, perform feasibility studies, specify system objectives, and prepare a project proposal.
Define the problem, recognize the problem, specify system objectives, perform feasibility studies, and prepare a project proposal.
Recognize the problem, define the problem, perform feasibility studies, specify system objectives, and prepare a project proposalDefine the problem, recognize the problem, specify system objectives, perform feasibility studies, and prepare a project proposal
Question 6
The last step in the cost- benefit analysis is to compare the costs and benefits identified in the first two steps. The two most common methods used for evaluating information systems are net present value and payback. Which of the following statements are true?
Under the net present value method, the present value of the costs is deducted from the present value of the benefits over the life of the system. Projects with a positive net present value are economically feasible.
The payback method is a variation of break- even analysis. The break-even point is reached when total costs equal total benefits. This is when the project breaks even, or pays for itself.
Both are true.
Both are false.
Question 7
Which of the following is the most important factor in planning for a system change?
Having an auditor as a member of the design team.
Using state- of- the- art techniques.
Concentrating on software rather than hardware.
Involving top management and people who use the system.
Question 8
One time costs of system development include all of the following EXCEPT
hardware maintenance.
programming.
hardware acquisition.
data conversion.
Question 9
Which of the following aspects of a cost- benefit study would have the greatest uncertainty as to its precise value?
the tangible costs
the intangible costs
the intangible benefits
none of the above because they are equally precise
Question 10
A feasibility study for a new computer system should
consider costs, savings, controls, profit improvement, and other benefits analyzed by application area.
provide the preliminary plan for converting existing manual systems and clerical operations.
provide management with assurance from qualified, independent consultants that the use of a computer system appeared justified.
include a report by the internal audit department that evaluated internal control features for each planned application.
Question 11
The TELOS acronym is often used for determining the need for system changes. Which of the following types of feasibility studies are elements of TELOS?
legal, environmental, and economic
environmental, operational, and economic
technical, economic, legal, and practical
practical, technical, and operational
technical, operational, and economic
CIS430 Unit 7 Quiz C15
Question 1
Which of the following is not a disaster recovery techniques?
empty shell
Recovery Operations Center (ROC)
internally provided backup
All of the above are disaster recovery techniques.
Question 2
2 out of 2 points
Which of the following is NOT a control implication of distributed data processing?
redundancy
user satisfaction
incompatibility
lack of standards
Question 3
When management outsources IT they also are able to outsource their management responsibility under SOX for ensuring adequate IT controls.
True
False
Question 4
Which of the following is NOT a potential threat to computer hardware and peripherals?
low humidity
high humidity
carbon dioxide fire extinguishers
water sprinkler fire extinguishers
Question 5
The Disaster Recovery Plan (DRP) should provide details regarding the use of a duplicate data processing facility.
True
False
Question 6
Computer accounting control procedures are referred to as general or application controls. The primary objective of application controls in a computer environment is to
ensure that the computer system operates efficiently.
ensure the validity, completeness, and accuracy of financial transactions.
provide controls over the electronic functioning of the hardware.
plan for the protection of the facilities and backup for the systems.
Question 7
If properly documented, the Disaster Recovery Plan need not be tested.
True
False
CIS430 Unit 7 Quiz C16
Question 1
In regard to data base backup the auditor’s objective is to verify that the database controls are adequate to facilitate the recovery of lost, destroyed or corrupted data.
True
False
Question 2
A user’s application may consist of several modules stored in separate memory locations, each with its own data. One module must not be allowed to destroy or corrupt another module. This is an objective of
operating system controls.
data resource controls.
computer center and security controls.
application controls.
Question 3
Audit trails can be used to support system security by:
Detecting unauthorized access to the system.
Facilitating the reconstruction of events.
Promoting personal accountability.
All of the above.
Question 4
A program whose sole purpose is to capture IDs and passwords from unsuspected users is called:
virus.
worm.
Trojan horse
logic bomb.
Question 5
Reviewing database authority tables is a(n)
access control.
organizational structure control.
data resource control.
operating resource control.
Question 6
In regard to controlling access privileges which of the following is false?
The systems administrator or the owner of the resource (system) normally assigns the access privilege.
User access privileges are assigned to indivuduals or to entire user workgroups.
User access privileges determine what files can be accessed and what can be done to those files.
Because of the nature of computerized systems, management need not be concerned with assigning access privileges that are incompatible with assigned duties.
Question 7
In reference to Electronic Data Interchanges (EDI) which of the following is false?
Both the customer and the supplier must establish that the transaction being processed is to (or from) a valid trading partner and is authorized.
EDI trading partners must permit a degree of access to private files that would be forbidden in the traditional environment.
The EDI process makes use of periodic human intervention to insure adequate internal control.
Screening.
Question 8
Which of the following techniques is not normally considered a way to reduce malicious and destructive computer programs.
Purchase software only from reputable vendors.
Have an organization wide policy prohibiting the use of unauthorized software.
Prevent illegal access through a password system.
Examine all vendor software upgrades and public domain software for viruses before installing.
CIS430 Unit 8 Quiz C17
Question 1
A control designed to validate a transaction at the point of data entry is a. recalculation of
a record count.
a check digit.
checkpoints.
recalculation of hash total.
Question 2
Which of the following statements is true?
The black box approach to testing application controls is essentially auditing around the computer.
The white box approach audits through the computer and tests the application logic directly.
Both are true.
Both are false
Question 3
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 technique to detect this action using employee identification numbers would be a record count.
True
False
Question 4
Users need to be actively involved in the system development process.
True
False
Question 5
An electronic walk- through of the application’s internal logic is called
a salami logic test.
an integrated test.
tracing.
a logic bomb test.
Question 6
SOX legislation calls for sound internal control practices over financial reporting and requires SEC- registered corporations to maintain systems of internal control that meet SOX standards. An integral part of internal control is the appropriate use of preventive controls.Which of the following is not an essential element of preventive control?
separation of responsibilities for the recording, custodial, and authorization functions
sound personnel practices
documentation of policies and procedures
implementation of state of the art software and hardware
physical protection of assets
Question 7
In regard to Generalized Audit Software (GAS) which of the following is false?
Generalized Audit Software is an off-the-shelf package that can provide a means to gain access to and interrogate data maintained on computer storage media.
Generalized Audit Software is utilized by auditors to obtain evidence directly on the quality of the records produced and maintained by application systems.
ACL and IDEA are two widely used Generalized Audit Software products.
Generalized audit software is the client’s software that is borrowed by the auditor.
Question 8
Input controls should test validity, accuracy and completeness.
True
False
Question 9
When using the test data method:
Involves an audit module designed into the application with dummy or test records integrated among legitimate records.
Performs an electronic walk through of the application’s internal logic.
Involves an audit module designed into the application with dummy or test records integrated among legitimate records.
Creating a program that does what the application program does. Transactions are reprocessed and the parallel simulation results are compared to the actual application results.
Involves a module embedded into the application program that selects transactions for further testing.
The results of the test are compared to predetermined results
Question 10
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 would be a reasonableness test.
True
False
Question 11
In regard to program changes which of the following is false?
Normally there is no audit trail for program changes.
All program changes should be supported by a change authorization in the program permanent file.
The program maintenance change authorization should be approved by both the computer services management and the user department management.
Every program change should be thoroughly tested before being implemented.
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