Information is data that has been organized and processed.

Your Answer:

False

Correct Answer:

True

Incorrect. Information allows users to make decisions.

2. Information that is timely is free from error or bias.

Your Answer:

True

Correct Answer:

False

  Incorrect. Timely information is provided in time for decision makers to make decisions.

3. Inbound logistics consists of receiving, storing, and distributing the materials an organization uses to create the services and products it sells.

Your Answer:

True

  Correct.

4. An AIS designer, who is very competent with information technology skills, will be successful in designing an information system regardless of his/her understanding of the organization that he/she is designing for. 

Your Answer:

False

  Correct.

5. A component of an Accounting Information System are the people who use the system.

Your Answer:

True

  Correct.

1. Which of the following is NOT one of the five major business processes or transaction cycles? 

Your Answer:

All of the above are major cycles.

  Correct.

2. Which of the following is NOT a characteristic of useful information?

Your Answer:

Accessible

Correct Answer:

Cost-effective

  Incorrect. This is a characteristic of useful information.

3. Accounting Information Systems (AIS) is most likely applicable to which area of accounting?

Your Answer:

All of the above are applicable to AIS.

  Correct.

4. Which of the following is NOT a "primary activity" that directly provides value to the customer?

Your Answer:

Operations

Correct Answer:

Human resources

  Incorrect. This is a primary activity.

5. Which of the following best describes the sequence of the supply chain?

Your Answer:

Raw materials supplier, manufacturer, distributor, retailer, and consumer

  Correct.

6. Which of the following is NOT one of the support activities in the value chain of an organization?

Your Answer:

Firm Infrastructure

Correct Answer:

Service

  Incorrect. This is one of the four support activities in the value chain.

7. AIS adds value to an organization by:

Your Answer:

Answers #1, #2, and #3.

  Correct.

8. Which of the following does not influence the design of an Accounting Information System (AIS)?

Your Answer:

Organizational culture

Correct Answer:

Legal environment

  Incorrect. This element does influence the design of AIS.

9. What is data?

Your Answer:

The output which results from the input of information

Correct Answer:

All of the facts that are collected, stored, and process

ed by an information system

  Incorrect. The reverse is the case. Data is the input which has an output of information.

10. Reliability refers to the characteristic of information whereby

Your Answer:

Timely.

Correct Answer:

Information is free from error or bias.

  Incorrect. This refers to information being presented to the decision-maker in time to make a decision.

11. In order for an accounting information system to meet the needs of systems users, one must take into account the types of decisions that are made. Decisions vary from repetitive and routine to nonrecurring and non-routine. How would you classify a decision where no framework or model exists for the decision?

Your Answer:

Structured

Correct Answer:

Unstructured

  Incorrect. A structured decision is easily modeled.

12. Information can improve decision making in what way?

Your Answer:

All of the above.

  Correct

1. A chart of accounts provides the user with a list of general ledger accounts.

Your Answer:

False

Correct Answer:

True

  Incorrect. A chart of accounts lists each general ledger account and an associated code number so that transaction data can be correctly entered into an accounting system.

2. An audit trail can only assist external auditors.

Your Answer:

False

  Correct.

3. A master file is analogous to a journal in a manual system.

Your Answer:

True

Correct Answer:

False

  Incorrect. The master file is analogous to a ledger in a manual system.

4. Accounts receivable generally has a sub-ledger for many companies.

Your Answer:

True

  Correct.

5. Data processing is comprised of four elements and can be represented by the acronym CRUD. The R in CRUD stands for Revise.

Your Answer:

True

Correct Answer:

False

  Incorrect. The R in CRUD stands for Read.

1. A foreign key imposes a specific kind of integrity to related

tables. What is the name of this integrity?

Your Answer:

Schema

Correct Answer:

Referential

  Incorrect. A schema is a subset of a database that a particular user is allowed to view.

2. What are the benefits associated with database technology?

Your Answer:

Answers #1, #2, and #3

  Correct.

3. Which of the following provides the low-level view of the database?

Your Answer:

None of the above

Correct Answer:

The internal-level schema

  Incorrect. There is a correct response above.

4. This type of key is used to link rows from one table to the rows in

another table.

Your Answer:

Foreign key

  Correct.

5. Which method of gathering business intelligence uses sophisticated statistical analysis and neural networks to aid in decision making?

Your Answer:

Data Warehousing

Correct Answer:

Data mining

  Incorrect. Large databases that can contain several years of data.

6. Which of the following cannot be blank (null)?

Your Answer:

Primary key

  Correct.

7. When the same, non-key, data element is stored multiple times in table it creates an anomaly known as the:

Your

Update Anomaly.

Answer:

  Correct.

8. Which of the following are requirements of a relational database?

Your Answer:

All of the above.

  Correct.

9. When a non-null value for the primary key indicates that a specific object exists and can be identified by reference to its primary key value, it is referred to as

Your Answer:

the relational database rule.

Correct Answer:

the entity integrity rule.

  Incorrect. There is no such rule.

10. What is (are) the component(s) of a data dictionary?

Your Answer:

Answers #1, #2, and #3 are

correct.

  Correct.

11. "Get me the date attribute of the third tuple in the sales order relation." What is being requested?

Your Answer:

None of the above.

Correct Answer:

The person wants the value in the date field of the third record in the sales order table.

  Incorrect. Review the answers above.

12. Data manipulation language is used to do which of the following?

Your Answer:

All of the above

Correct Answer:

Updating the database

  Incorrect.

1. A data manipulation language (DML) is used to query a database.

Your Answer:

True

Correct Answer: False

  Incorrect. The data manipulation language (DML) is used for data maintenance. The data query language (DQL) is used to query a database.

2. A data dictionary contains information about the structure of the database.

Your Answer:

False

Correct Answer: True

  Incorrect. By definition, the data dictionary maintains information about the structure of the database.

3. The primary difference between the conceptual and external schema is that the external schema is an organization-wide view of the entire database.

Your Answer:

True

Correct Answer: False

  Incorrect. This describes the conceptual-level schema.

4. It is possible that two or more attributes can form a

single key.

Your Answer:

True

  Correct.

5. A foreign key is an attribute in a table that is a primary key in another table. 

Your Answer:

True

  Correct.

1. What criteria contribute to systems reliability?

Your Answer:

All of the above

  Correct!

2. Compliance with the Sarbanes Oxley Act of 2002 requires

Your Answer:

The CEO and CFO must certify that they have evaluated the effectiveness of internal controls.

  Correct!

3. What type of security controls are authorization

controls?

Your Answer:

Internal controls

Correct Answer:

Preventive controls

  Incorrect, authorization controls are preventive controls.

4. Which of the following devices should NOT be placed in the demilitarized zone (DMZ)?

Your Answer:

Remote access server

Correct Answer:

Sales department server

  Incorrect.

5. The time based model of security does not include which factor to evaluate the effectiveness of an entity's security controls

Your Answer:

The time it takes to evaluate the financial consequences from an attack.

  Correct!

6. Defense in depth utilizes what techniques to assure security?

Your Answer:

All of the above

  Correct.

7. Which of the following statements is true regarding authorization controls?

Your Answer:

All of the above.

Correct Answer: None of the above.

  Incorrect. Authorization permits limited access to a system and permits limited actions.

8. Which of the following items are considered detective controls?

Your Answer:

Both 1 and 2

  Correct.

9. Which of the following is an example of a corrective control?

Your Answer:

Encryption

Correct Answer:

Patch management

  Incorrect. This is an example of a preventive control.

10. Which type of network filtering screens individual IP packets based solely on its contents?

Your Answer:

None of the above

Correct Answer: Static packet filtering

  Incorrect.

11. Which step would a computer incident response team (CIRT) team take first in the incident response process?

Your Answer:

Recognition that the problem exists

  Correct!

12. Which of the following is a method of controlling remote access?

Your Answer:

All of the above

  Correct!

1. Security is considered to be more the responsibility of the Information Technology department than that of Management.

Your Answer:

False

  Correct.

2. The time-based model of security, while theoretically valid, is difficult to apply.

Your Answer:

True

  Correct.

3. Authentication is a type of access control.

Your Answer:

True

  Correct.

4. Cloud computing takes advantage of the power and speed of modern computers to run multiple systems simultaneously on one computer.

Your Answer:

True

Correct Answer: False

  Incorrect. This statement defines virtualization.

5. Detective controls actually monitor preventive controls.

Your Answer:

True

  Correct

1. Access controls include the following:

Your Answer:

Answers 1 and 2 only.

  Correct.

2. Identity theft can be prevented by:

Your Answer:

(blank)

3. Which of the following can be used to detect whether confidential information has been disclosed?

Your Answer:

A digital watermark

  Correct.

4. Which of the following is a fundamental control for protecting privacy?

Your Answer:

Encryption

  Correct.

5. Which of the following are internationally recognized best practices for protecting the privacy of customers' personal information.

Your Answer:

All of the above.

  Correct.

6. The same key is used to encrypt and decrypt in which type of encryption systems?

Your Answer:

Symmetric encryption systems

  Correct!

7. Which of the following represents a process that takes plaintext and transforms into a short code?

Your Answer:

Hashing

  Correct.

8. Which of the following uses encryption to create a secure pathway to transmit data?

Your Answer:

Virtual Private Network (VPN)

  Correct.

9. Which of the following represents an organization that issues documentation as to the validity and authenticity of digital identification such as digital certificates?

Your Answer:

Symmetric Key Infrastructure

Correct Answer: Certificate Authority

  Incorrect.

10. Which of the following is NOT a factor that can influence encryption strength?

Your Answer:

Policies for managing cryptographic keys

Correct Answer: Digital Certificate Length

  Incorrect. This factor can influence encryption strength.

11. What is the first step in protecting the confidentiality of intellectual property and other sensitive business information?

Your Answer:

Identify where confidential data resides and who has access to it.

  Correct.

12. Which of the following is a major privacy-related concern?

Your Answer:

Answers 1 and 2

  Correct.

1. Encryption is generally sufficient to ensure data confidentiality.

Your Answer:

True

Correct Answer: False

  Incorrect, access controls are also required.

2. CAN-SPAM provides only civil sanctions for SPAM violations.

Your Answer:

False

  Correct.

3. A digital signature is an electronic document that contains an entity's public key.

Your Answer:

False

  Correct.

4. Training is arguably the most important control for protecting confidentiality.

Your Answer:

False

Correct Answer: True

  Incorrect.

5. One significant advantage of firewalls is that they can inspect encrypted packets.

Your Answer:

False

  Correct. One significant limitation of a firewall is that it cannot inspect an encrypted packet.

1. A concurrent audit technique would include the following:

Your Answer:

system control audit review file.

Correct Answer: All of the above.

  Incorrect. There are multiple correct

answers.

2. Internal auditors are responsible for:

Your Answer:

Both a and c.

  Correct.

3. Which of the following are types of internal audits?

Your Answer:

All of the above.

  Correct.

4. In audit planning, auditors assess various audit risk factors, which of the following is NOT an audit risk factor considered during audit planning?

Your Answer:

Compliance risk

  Correct.

5. Which of the following methods can be used to collect audit evidence?

Your Answer:

All of the above.

  Correct.

6. Audits which assess computer security include a review of:

Your Answer:

All of the above.

Correct Answer: Answers #1 and #3 are correct.

  Incorrect. Answer #2 is incorrect.

7. When would compensating controls be most important?

Your Answer:

When security controls are deficient

Correct Answer: Answers #1 and #2 only

  Partially correct, but there are multiple correct answers.

8. The auditor's role in systems development should be as a(n):

Your Answer:

Both a and b.

Correct Answer: independent reviewer.

  Incorrect.

9. Which of the following is not a part of audit planning?

Your Answer:

Review of documentation

  Correct. This is the collection of audit evidence.

10. Confirmation involves which of the following actions?

Your Answer:

Examining supporting documents

Correct Answer: Communication with third parties

  Incorrect. This is vouching.

11. When sorting inventory records by location with generalized audit software, the __________ function of a generalized audit software package is used.

Your Answer:

data analysis

Correct Answer: file manipulation

  Incorrect.

12. Evaluation of audit evidence includes which of the following?

Your Answer:

All of the above.

  Correct.

1. Inherent risk is the risk of a material misstatement will get through the internal control structure and into the financial statements.

Your Answer:

True

Correct Answer: False

  Incorrect. This describes control risk.

2. Materiality tends to be more important in external audits than in internal audits.

Your Answer:

True

  Correct.

3. The first step in carrying out an audit is to identify control procedures.

Your Answer:

True

Correct Answer: False

  Incorrect. The first step is to determine the threat.

4. An integrated test facility (ITF) inserts fictitious records into a company master file.

Your Answer:

True

  Correct.

5. A disadvantage of processing test transactions is the time it takes the auditor to develop an understanding of the system.

Your Answer:

True

  Correct.

1.

The threat of inaccurate inventory records can be mitigated by which of the following controls?

Your Answer:

Verification of invoice accuracy

Correct Answer: Bar coding or RFID tags

  Incorrect. Threat is associated errors in supplier invoices.

2. Ordering unnecessary items can result from:

Your Answer:

None of the above.

Correct Answer: inaccurate perpetual inventory records.

  Incorrect. There is a correct answer above.

3. What is a method that companies use to minimize the risk of inferior quality products?

Your Answer:

All of the above.

Correct Answer: Tracking and monitoring product quality by supplier.

  Incorrect. Only one answer above is correct.

4. The practice of allowing kickbacks:

Your Answer:

provides quantity discounts.

Correct Answer: impairs the objectivity of the purchaser.

  Incorrect.

5. What is the most effective technique used to minimize the risk of an inaccurate inventory counts?

Your Answer:

The use of just-in-time (JIT) accounting systems.

Correct Answer: The use of a bar-coding or radio frequency identification tag (RFID) system

  Incorrect. This is a way of reducing carrying costs, and is not related to accuracy.

6. An effective method of reducing the risk of theft is

Your Answer:

All of the above.

Correct Answer: proper segregation of duties.

  Incorrect. There are incorrect answers above.

7. What control procedures reduce the risk of paying the same invoice twice?

Your Answer:

All of the above.

  Correct.

8. Which inventory system attempts to minimize inventory costs by only purchasing goods required for actual sales orders?

Your Answer:

Just-in-time (JIT)

  Correct.

9. What are the typical expenditure cycle functions?

Your Answer:

All of the above.

  Correct.

10. What is one unusual feature of an imprest petty cash fund?

Your Answer:

The account is reviewed periodically by internal auditors.

Correct Answer: The lack of segregation of duties involved in administering the

account.

  Incorrect. This is a feature associated with most assets.

11. The risk of receiving unordered goods is prevented most effectively by

Your Answer:

recalculation of invoice prices.

Correct Answer: instruct the receiving department to accept deliveries only those goods where there is an approved copy of the purchase order.

  Incorrect. This would detect mathematical errors but would generally be unrelated to unordered goods.

12. The objective of approving and paying vendor invoices is to ensure:

Your Answer:

None of the above.

Correct Answer: Two answers are correct.

  Incorrect. There is at least one correct answer.

1. The primary objective of the expenditure cycle is to minimize the total cost of acquiring inventories and supplies.

Your Answer:

True

  Correct. This is the primary objective of the expenditure cycle.

2. A key decision with respect to the expenditure cycle does not include the optimal level of inventory.

Your Answer:

True

Correct Answer:

False

  Incorrect.

3. Material requirements planning (MRP) relies on sales forecasts to schedule inventory purchases.

Your Answer:

True

  Correct.

4. Obsolescence is a disadvantage associated with JIT inventory systems.

Your Answer:

False

  Correct.

5. Kickbacks are a threat associated with the ordering of goods.

Your Answer:

False

Correct Answer:

True

  Incorrect. This is a specific threat in the goods ordering process.