AIS KA

COLEGIO DE DAGUPANSEMIFINALS EXAMINATION

INFOTECH 4- ACCOUNTING INFORMATION SYSTEM

Instructions: Turn off your cellphone/s. Use of CP is not allowed during exam Name:____________________________________ Write ALL YOUR ANSWERS legibly on your TEST BOOKLET Course, Year and Block:______________________ Use blue or black pen only. Strictly: NO ERASURES. Subject Code and

Description:_________________ READ and FOLLOW the DIRECTIONS carefully! Date:_____________________________________

SET A

Guys, nd q alm qng i2 nga tlga ibbgay nlabka palitan pa kc, pero kaya niu naman nai2 kpg i2 nga bngay, nd naman alien eh, wag niu gayahin ung isa na 20 mins lng tax na100 items, d2 ok na ang 30 mins XD at wagdn kau magpahalata maxado qng nd madadali aq,aq lng dn ang naglagay ng Set A jan

-Do0mas5t3r

I. MULTIPLE CHOICES. Write the letter of the correct answer.

1. Internal Control is a process designed to provide:a. Absolute assuranceb. No assurancec. Positive assuranced. Reasonable assurance

2. Software robots that invade computer which make them act automatically in response to the cracker’s inputs?a. Ad-Hocb. Botsc. Anti-virusd. Macro

3. The following are components of internal control, excepta. Control activitiesb. The entity’s risk assessment procedurec. Control environmentd. Business risk

4. This internal control component is the foundation for all other components. It sets the tone of the organization, provides discipline and structure, and influences the control consciousness of employees.

a. Control activitiesb. Monitoring of controlsc. Control environmentd. The entity’s risk assessment procedure

5. Which of the following elements are included in an entity’s control environment?Integrity and Ethical Values Assignment of Authority and Responsibility

a. Yes Yesb. Yes Noc. No Yesd. No No

6. Which of the following components of an entity’s internal control includes development and use of training policies that communicate prospective roles and responsibilities to employees?

a. Monitoring of controlsb. Control activitiesc. Control environmentd. Information and communication

7. Which of the following internal control components relates to an entity’s process for identifying and responding to business risks?

a. Control activitiesb. Information and communicationc. Risk assessmentd. Monitoring controls

8. A committee that represents the organization’s shareholders whose interests generally are considered paramount

a. Shareholdersb. Board of directorsc. Creditorsd. Lenders

9. The control environment includes the following, excepta. Human resource policies and practicesb. Organizational structurec. Integrity and ethical valuesd. Control Activities

10. A standing subcommittee of independent board members whose main objectives are to protect against management wrongdoing and to increase public confidence?

a. Audit committeeb. Managementc. Board of directorsd. Experts

11. The primary responsibility for establishing and maintaining an internal control rests witha. The external auditorsb. The internal auditorsc. Management and those charged with governanced. The controller or the treasurer

12. The fundamental purpose of internal control is toa. Safeguard the resources of the organization.b. Provide reasonable assurance that the objectives of the organization are achieved.c. Encourage compliance with organization objectives.d. Ensure the accuracy, reliability and timeliness of information.

13. Internal control can only provide reasonable assurance of achieving entity’s control objectives. One factor limiting the likelihood of achieving those objectives is that

a. The auditor’s primary responsibility is the detection of fraudb. The board of directors is active and independent c. The cost of internal control should not exceed its benefitsd. Management monitors internal control

14. The internal control cannot be designed to provide reasonable assurance thata. Transactions are executed in accordance with management’s authorizationb. Fraud will be eliminatedc. Access to assets is permitted only in accordance with management’s authorizationd. The recorded accountability for assets is compared with the existing assets at reasonable

intervals.

15. Which of the following statements about internal control correct?a. Properly maintained internal control reasonably ensures that collusions among employees cannot

occurb. The establishment and maintenance of internal control are important responsibilities of the

internal auditorc. Exceptionally strong internal control is enough for the auditor to eliminate substantive tests on a

significant account balanced. The cost-benefit relationship is a primary criterion that should be considered in

designing internal control

16. The overall attitude and awareness of an entity’s board of directors concerning the importance of the internal control usually is reflected in its

a. Computer-based controlsb. System of segregation of dutiesc. Control environmentd. Safeguards over access to assets

17. Which of the following best describes the interrelated components of internal control?a. Organizational structure, management, philosophy, and planningb. Control environment, risk assessment, control activities, information and

communication systems and monitoringc. Risk assessment, backup facilities, responsibility accounting and natural lawsd. Internal audit and management’s philosophy and operating style

18. Which of the following components if an entity’s internal control structure includes the development of employee promotion and training policies?

a. Control activities

b. Control environmentc. Information and communicationd. Quality control system

19. Malware that appears to be performing normal functions but is in fact illicitly accessing host machine to save their files on the user’s computer or to watch or control the user’s computer.

a. Wormb. Trojan horsec. Rootkitd. Backdoor

20. Remotely accessing a computer without having to authenticate and while remaining undetecteda. Wormb. Trojan horsec. Rootkitd. Backdoor

21. The collection of zombie computers running the bot softwarea. Internetb. Arpanetc. Botnetd. Interconnected bots

22. The creation of false Web traffic without the user’s knowledgea. Macro Recorderb. Spamc. Click fraudd. Embezzlement

23. The sending of unsolicited bulk informationa. Macro Recorderb. Spamc. Click fraudd. Embezzlement

24. The systematic identification and analysis of risks that can undermine the achievement of management objective.

a. Control environmentb. Control activitiesc. Risk assessmentd. Information and communication

25. A set of executable computer instructions that copies itself into a larger program, modifying the program.a. Computer virusb. Firewallc. USBd. Operating System

26. Which of the following is not an objective of the revenue process?a. Received goods are counted and inspected for qualityb. Custody over assets resulting from revenue process is properly maintainedc. Transactions related to the revenue process are properly authorized, executed and recordedd. Approved sales order are shipped on a timely basis and in accordance with customer

specifications

27. The following are directly involved in the revenue process, excepta. Treasurer and controllerb. Receiving department clerkc. Billing clerkd. Sales manager and the credit manager

28. A sale in which the customer pays cash and services are immediately provided or goods are given to the customer.

a. Credit card salesb. Trade credit salesc. Cash-and-carry salesd. Customer invoicing

29. Sales orders that cannot be filled because the inventory is depleteda. Backordersb. Blank memoc. Sales invoiced. Bill of lading

30. A letter officially agreeing to employ public accounting firms and stating the conditions:a. Engagement letterb. Inducement letterc. Confirmation letterd. Letter header

31. A discount to a customer for prompt paymenta. Cash discountb. Senior discountc. Military discountd. Payable discount

32. A purchase order from a customer to a supplier specifying a series of dates and quantities for shipment of goods until notified by the customer to stop.

a. Sitting orderb. Stale orderc. Standing orderd. Vendor’s invoice

33. Terms of sale under which title of goods passes to the buyer at the point of shipment.a. FOB destinationb. FOB shipping pointc. Freight collectd. Freight prepaid

34. Terms of sale under which title of goods in transit are still in the ownership of the seller.a. FOB destinationb. FOB shipping pointc. Freight collectd. Freight prepaid

35. A reduction of sales revenue by the full amount of the sale because the customers gives back the goods to the seller

a. Sales allowanceb. Sales returnc. Purchase allowanced. Purchase return

36. An analysis by customer of sales revenue minus cost of goods sold.a. Financial statement analysisb. Gross profit analysisc. Net income analysisd. Working capital analysis

37. An aging report that presents information about amounts owed by customers as a whole.a. Detailed Aging Reportb. Summary Aging Reportc. Comprehensive Aging Reportd. Financial Aging Report

38. An aging report that presents information about amounts owed by customers and includes only one line for each customer, with all invoices for a single customer combined.

a. Detailed Aging Reportb. Summary Aging Reportc. Comprehensive Aging Reportd. Financial Aging Report

39. The amount retained by the seller when a customer returns goods for a refunda. Backup fundb. Restocking chargec. Emergency cashd. Plan B fund

40. Delinquency notice sent to a past due customera. Debit memob. Dunc. Warrantd. Credit memo

41. A classification of customers by creditworthinessa. Credit paymentsb. Credit rankingc. Credit ratingd. Credit limit

42. A list that identifies the products and quantities ordered and gives the warehouse locationa. Finding listb. FAQ listc. Picking listd. Final inventory schedule

43. A method for recording open item receipts where total cash remittances are entered with no remittance advice data, and the AIS includes a software program that matches the remittances with specific open items

a. Automatic invoice identificationb. Post-identificationc. Pre-identificationd. Manual invoice identification

44. Statement 1: Internal control need not be monitored to determine whether it is adequate and effective.Statement 2: Credit cards permit retail customers to purchase goods or services and pay for them later.

a. True; Trueb. True; Falsec. False; Trued. False; False

45. Statement 1: Enterprise Risk Management is a comprehensive and integrated framework for managing credit risk, market risk, operational risk, economic capital and risk transfer in order to maximize firm value.

Statement 2: Fraudulent financial reporting is a type of management fraud.a. True; Trueb. True; Falsec. False; Trued. False; False

46. Statement 1: Sales tax is payable by manufacturer in most states on certain goods and services.Statement 2: Goods may not be returned to the seller in any circumstances.


47. Statement 1: A formal organization structure provides the framework within which the organization’s activities for achieving its objectives are planned, executed, monitored and controlled.

Statement 2: Denial of service is caused by botnets.a. True; Trueb. True; Falsec. False; Trued. False; False

48. Statement 1: Credit hold is a dollar ceiling up to which credit will automatically be extended without the need for further credit screening

Statement 2: Credit limit is a restriction of additional credit to a customer who has a delinquent balance.a. True; Trueb. True; Falsec. False; Trued. False; False

49. Statement 1: In a cash discount term 2/10, n/30, the discount period is 30 days.Statement 2: In a cash discount term 1/10, n/60, the entire balance is due within 60 days.


50. Statement 1: FOB point is the location which title to the goods changes from the shipper to the customer.Statement 2: Customer statement lists the invoices issued during the month just ended and any payments

received during the statement perioda. True; Trueb. True; Falsec. False; Trued. False; False

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