Accounting Information System

 Accounting Information System

The risk of a company's internal auditing processes failing to catch the misstated dollar amount of revenue on the company's income statement is classified as inherent risk.	FALSE
Which of the following best describes the purpose of an intermediate error event?	Illustrate process flow when an exception occurs.
Data governance is the convergence of data quality, data management, data policies, business process management, and risk management surrounding the handling of data in a company.	TRUE
In Unified Modeling Language (UML) the options for minimum multiplicity values are 1 and *.	FALSE
The Purchases table would have four foreign keys.	TRUE
Which of the following is not a component of internal control as defined by COSO?	Inherent risk
Data mining is the process of searching for patterns in the data in a data warehouse and to analyze the patterns for decision making.	TRUE
The Cash Disbursements table would have three foreign keys.	TRUE
Which of the following tasks cannot be performed through queries in access?	Enter data into tables
An enterprise resource planning system has which of the following advantages over multiple independent functional systems?	Increased responsiveness and flexibility while aiding in the decision-making process.
Which of following are possible options for minimum multiplicities?	0 and 1
Which type of data models allows each record to have multiple parent and child records?	The network model
One type of fault tolerance is using redundant units to provide a system the ability to continue functioning when part of the system fails.	TRUE
Which of the following statement is correct regarding internal control?	An inherent limitation to internal control is the fact that controls can be circumvented by management override.
The purpose of a company's firewall is to:	All of the choices
The Purchase Orders table would have the same foreign keys as the Purchases table.	FALSE
Data is defined as being information organized in a meaningful way to be useful to the user.	TRUE
Segregation of duties reduces the risk of errors and irregularities in accounting records.	TRUE
Which of the following is not a form of business rules?	Compulsory
A supply chain:	Refers to the flow of materials, information, payments and services.
Which of the following is not a management control for wireless networks?	Conducting appropriate awareness training on wireless networks
Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Employees and Production Authorization classes?	One employee can authorize production multiple times.
Which of the following is considered as class in the relational database model?	All of the choices are correct
In a BPMN collaboration model of the purchase process, which of the following is the appropriate term for the message flows between pools?	Choreography
Asymmetric-key encryption is suitable for encrypting large data sets or messages.	FALSE
Which of the following control activities should be taken to reduce the risk of incorrect processing in a newly installed computerized accounting system?	Independently verify the transactions.
Segregation of duties reduces the risk of errors and irregularities in accounting records.	TRUE
In Microsoft Access, we use tables in a database for:	Data storage
Which of the following control activities should be taken to reduce the risk of incorrect processing in a newly installed computerized accounting system?	Independently verify the transactions.
Which of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?	Allowing for greater management oversight of incompatible activities.
Review of the audit log is an example of which of the following types of security control?	Detective.
Accounting information systems are:	Records, processes and reports
Which of the following statements is incorrect about digital signature?	A digital signature is a message digest encrypted using the document creator's public key.
Computer-assisted audit techniques (CAAT) are often used when auditing a company's IT infrastructure.	FALSE
Disaster recovery planning and business continuity management are preventive controls.	FALSE
The main objective of the ISO 27000 series is to provide a model for establishing, implementing, operating, monitoring, maintaining, and improving information security.	TRUE
According to the Sarbanes-Oxley Act of 2002, it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control.	FALSE
The asterisk (*) following the SELECT SQL statement is a wild card indicating all columns should be selected.	TRUE
An intermediate error event can be used to model process exceptions.	TRUE
Which of the following best describes the difference between access controls and application controls?	Access controls limit who can change records and application controls provide an audit trail of any changes.
Each Purchase Order would be ultimately linked to one cash disbursement.	FALSE
COBIT (Control Objectives for Information and related Technology) is a generally accepted framework for IT governance in the U.S.	TRUE
Which of the following is not a Business Management Support role of the Accounting/Finance Function in Business?	Financial consolidation, reporting and analysis
Which of the following is considered as class in the relational database model?	All of the choices are correct
A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.	TRUE
Which of the following least reflects the purpose of a business rule in the conversion process?	Ensuring no production without a customer order
The "Where" SQL clause can be used to link two tables.	TRUE
The associate between Purchase Orders and Purchases would be implemented with a linking table.	FALSE
An enterprise system is a centralized database that collects data from throughout the firm. This includes data from orders, customers, sales, inventory and employees.	TRUE
The SQL command "Group by" can be used to order an amount in a descending order.	FALSE
Application controls limit who can change records in a system.	FALSE
Integrity of information means the information is:	A and B are correct.
The chief executive officer is ultimately responsible for enterprise risk management.	TRUE
Which designation is for CPAs with a broad range of technology knowledge and experience?	Certified Information Technology Professional (CITP)
In Unified Modeling Language (UML) Class diagrams, Associations are represented by dashed lines.	FALSE
When client's accounts payable computer system was relocated, the administrator provided support through a dial-up connection to server. Subsequently, the administrator left the company. No changes were made to the accounts payable system at that time. Which of the following situations represents the greatest security risk?	User accounts are not removed upon termination of employees.
Which of the following best describes the purpose of an intermediate error event?	Directs sequence flow when an activity aborts
The "Where" SQL clause can be used to link two tables.	TRUE
Encryption is a preventive control ensuring data confidentiality and privacy during transmission and for storage.	TRUE
A supply chain system does not include information about.	Prospective customers
Access offers modules, which are defined by users to automate processes like opening a specific form.	FALSE
Data governance is the convergence of data quality, data management, data policies, business process management, and risk management surrounding the handling of data in a company.	TRUE
Virtual private network (VPN) is a private network, provided by a third party, for exchanging information through a high capacity connection.	FALSE
Which of the following correctly describes the Referential Integrity Rule?	The data value for a foreign key could be null
Which of the following is not a common element of activity models regardless of the specific modeling notation?	Multiplicities
The property of the primary key in a table in Microsoft Access should be set to:	"Yes (No Duplicates)"
The Sarbanes-Oxley Act of 2002 (SOX) 2002 requires the management of all companies and their auditors to assess and report on the design and effectiveness of internal control over financial reporting annually.	FALSE
The association between Purchase Orders and Cash Disbursements would be implemented with a linking table.	FALSE
A company would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application?	An enterprise resource planning system.
Classes could be grouped into Resources (R), Entity (E), and Assets (A) in data modeling.	FALSE
Fraud triangle includes incentive, opportunity and an attitude to rationalize the fraud.	TRUE
A labor plan class would establish standard overhead allocation rates.	TRUE
The characteristics of reliable information are that the information is verifiable, without bias and timely.	FALSE
Business rules describe appropriate actions to take based on process conditions.	TRUE
An information technology director collected the names and locations of key vendors, current hardware configuration, names of team members, and an alternative processing location. What is the director most likely preparing?	Disaster recovery plan.
An accounting information system (AIS) is defined as being an information system that records, processes and reports on transactions to provide financial information for decision making and control.	TRUE
Consider the following BPMN diagram of a subprocess. Which of the following is required to correct an error in the diagram?	Add a sequence flow to an end event after the discard errors activity.
Which of the following is not a step in using a Unified Modeling Language (UML) Class model to prepare a database?	Map Associations to Primary Keys.
A Class is a separately identifiable collection of business relationships.	FALSE
The association between Purchase Orders and Products would be implemented with a linking table.	TRUE
Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Employees and Production Authorization classes?	One employee can authorize production multiple times.
Which of the following statement is correct regarding internal control?	An inherent limitation to internal control is the fact that controls can be circumvented by management override.
Which of the following represents an inherent limitation of internal controls?	The CEO can request a check with no purchase order.
In Unified Modeling Language (UML) the options for maximum multiplicity values are 1 and *.	TRUE
According to COSO, which of the following components of the enterprise risk management addresses an entity's integrity and ethical values?	Internal environment.
The chief executive officer is ultimately responsible for enterprise risk management.	TRUE
A pool in a BPMN model does not actually have to display any activities.	TRUE
Which of the following statements regarding the black-box approach for systems auditing is correct?	The auditors first calculating expected results from the transactions entered into the system. Then, the auditors compare these calculations to the processing or output results.
To be valuable business partners, accountants must understand how the business delivers value to its employees.	FALSE
Type images can be used to allow process information to be summarized by category.	TRUE
Which of the following statements presents an example of a general control for a computerized system?	Restricting access to the computer center by use of biometric devices.
Key distribution and key management are problematic under the symmetric-key encryption.	TRUE
What kind data model is most commonly used as a basis for today's enterprise systems?	The relational model
The Generally Accepted Auditing Standards (GAAS) issued by PCAOB provide guidelines for conducting an IS/IT audit.	FALSE
Accounting Information Systems at this date are all computerized.	FALSE
The Cash Disbursements table would have three foreign keys.	TRUE
Which of the following tasks cannot be performed through queries in access?	Enter data into tables
Outbound logistics are the activities associated with receiving and storing raw materials and other partially completed materials, and distributing those materials to manufacturing when and where they are needed.	FALSE
In a BPMN collaboration model of the purchase process, one pool describes the focal organization's activities and the other pool describes what?	The supplier's activities
Which type of data models allows each record to have multiple parent and child records?	The network model
A BPMN process flow can start in one pool and end in the collaborating pool.	FALSE
In a large multinational organization, which of the following job responsibilities should be assigned to be network administrator?	Managing remote access.
Unified Modeling Language (UML) Class diagrams describe the logical structure of a database system.	TRUE
Which of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?	Allowing for greater management oversight of incompatible activities.
Documentation can be thought of as a tool for information transmission and communication.	TRUE
A company's audit committee is responsible for fraud risk assessments.	FALSE
Review of the audit log is an example of which of the following types of security control?	Detective.
In a computerized environment, internal controls can be categorized as general controls and application controls.	TRUE
Which of the statements regarding the data warehouse is incorrect?	Includes data for the current fiscal year only
Which SAP modules would a manufacturing company use to create a delivery order for a sales transaction?	Sales and Distribution
Which of the following best describes the purpose of an intermediate error event?	Illustrate process flow when an exception occurs.
According to the Sarbanes-Oxley Act of 2002, it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control.	FALSE
Which of the following businesses is least likely to employ a conversion process?	Retail Store
The Purchase Orders table would contain two foreign keys to implement the associations with Employees.	TRUE
Key distribution and key management are problematic under the symmetric-key encryption.	TRUE
A company's audit committee is responsible for fraud risk assessments.	FALSE
Which of the following best describes the purpose of a bill of material class?	Links each raw material item to one or more finished good items.
The Object Management Group maintains the standard for Unified Modeling Language (UML) Class diagrams.	TRUE
Which designation would most appropriate for those professionals possessing an IT audit, control and security skills?	Certified Information Systems Auditors (CISA)
The Cash Disbursements table would have three foreign keys.	TRUE
In a large pubic corporation, evaluating internal control procedures should be responsibility of:	Internal audit staff who report to the board of directors.
Which of the following is not a basic activity in the conversion process?	Ship products to stores
The purpose of a company's firewall is to:	All of the choices
Which of the following is the best reason that a collaboration model would not be used to diagram the conversion process?	All conversion activities are internal to the organization.
Documentation helps with training but won't help with regulatory compliance issues.	FALSE
The data in a data warehouse are updated when transactions are processed.	FALSE
Queries in Access are utilized by users to enter data into tables and view existing records.	FALSE
Which of the following represents an inherent limitation of internal controls?	The CEO can request a check with no purchase order.
The property of the primary key in a table in Microsoft Access should be set to:	"Yes (No Duplicates)"
Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Products and Production Authorization classes?	Each production authorization is related to one product.
The correct order of effects in the value chain are:	Inbound Logistics -> Operations -> Outbound Logistics
Classes could be grouped into Resources (R), Entity (E), and Assets (A) in data modeling.	FALSE
Which of the following are considered to be mandatory information required by a regulatory body?	Financial reports for the Securities and Exchange Commission
The Purchases table would have four foreign keys.	TRUE
What is the man-in-the-middle threat for wireless LANs?	The attacker actively intercepts communications between wireless clients and access points to obtain authentication credentials and data.
Service Activities as defined in the value chain are those activities that provide the support of customers after the products and services are sold to them (e.g. warranty repairs, parts, instruction manuals, etc.).	TRUE
Business models provide value in all of the following areas except which one?	Employee performance appraisal
Internal controls guarantee the accuracy and reliability of accounting records.	FALSE
The Purchase Orders table would have five foreign keys.	FALSE
In a collaboration model using BPMN, the interaction between participants is called orchestration.	FALSE
Processing controls are IT general controls.	FALSE
Which of the following types of businesses is least likely to employ a conversion process?	Retail store
Symmetric-key encryption method is used to authenticate users.	FALSE
According to COSO, which of the following components of the enterprise risk management addresses an entity's integrity and ethical values?	Internal environment.
In Unified Modeling Language (UML) the options for minimum multiplicity values are 0, 1, and 2.	FALSE
Encryption is a preventive control ensuring data confidentiality and privacy during transmission and for storage.	TRUE
The main objective of the ISO 27000 series is to provide a model for establishing, implementing, operating, monitoring, maintaining, and improving information security.	TRUE
What kind data model is most commonly used as a basis for today's enterprise systems?	The relational model
Certificate Authority (CA) issues digital certificates to bond the subscriber with a public key and a private key.	TRUE
Firewalls are security systems comprised of hardware and software that is built using routers, servers, and a variety of software.	TRUE
Fraud triangle includes incentive, opportunity and an attitude to rationalize the fraud.	TRUE
Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Quote class and the Order class?	Each quote may result in many future Orders.
Which of the following best describes the purpose of an intermediate error event?	Directs sequence flow when an activity aborts
A value chain is defined as the flow of materials, information, payments, and services from customer to supplier.	FALSE
Three types of data models used today are: the hierarchical model, the network model and the relational model.	TRUE
An entity doing business on the internet most likely could use any of the following methods to prevent unauthorized intruders from accessing proprietary information except:	Batch processing.
Integrated test facility (ITF) is an automated technique that enables test data to be continually evaluated during the normal operation of a system.	TRUE
Virtual private network (VPN) is a private network, provided by a third party, for exchanging information through a high capacity connection.	FALSE
Conversion labor costs become part of cost of goods sold.	TRUE
Which of the following is the best reason that a collaboration model would not be used to diagram the conversion process?	All conversion activities are internal to the organization.
In a hierarchical data model, data elements are related in many-to-many relationships.	FALSE
Which of the following is not a criterion for selection of a primary key?	Longer key values are better than shorter key values.
Which of the following is considered an application input control?	Edit check.
Which of the following correctly describes the Referential Integrity Rule?	The data value for a foreign key could be null
Computer-assisted audit techniques (CAAT) are often used when auditing a company's IT infrastructure.	FALSE
An intermediate error event can be used to model process exceptions.	TRUE
Which of the following is not something a model of database structures must be able to describe?	The sequence that entities are accessed
What is the primary objective of data security controls?	To ensure that data storage media are subject to authorization prior to access, change, or destruction.
Queries in Access are utilized by users to enter data into tables and view existing records.	FALSE
Cloud computing is an internet-based computing where shared resources, software, and information is provided to firms on demand.	TRUE
Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Products and Production Authorization classes?	Each production authorization is related to one product.
Each Purchase Order would be ultimately linked to one cash disbursement.	FALSE
In Access, users can edit database information in reports.	FALSE
In a basic UML diagram of the conversion process, which of the following best describes the purpose of a duality association?	Links work in process events to the original production authorization.
In a hierarchical data model, data elements are related in many-to-many relationships.	FALSE
Which of the following is not a Stewardship and Reporting role of the Accounting/Finance Function in Business?	Human Resource management
Which of the following statements presents an example of a general control for a computerized system?	Restricting access to the computer center by use of biometric devices.
A company would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application?	An enterprise resource planning system.
Accounting and Finance is a primary activity in the value chain.	FALSE
The asterisk (*) following the SELECT SQL statement is a wild card indicating all columns should be selected.	TRUE
Conversion labor costs become part of cost of goods sold.	TRUE
Refer to the following diagram. Which of the following answers provides the best interpretation of the multiplicities for the association between the Order class and the Products class?	An order may include many products.
Bacchus, Inc. is a large multinational corporation with various business units around the world. After a fire destroyed the corporation headquarters and largest manufacturing site, plans for which of the following would help Bacchus ensure a timely recovery?	Business continuity.
In Access, users can edit database information in reports.	FALSE
Which of the following statements about foreign keys is not true?	A foreign key cannot be NULL.
Which of the following is not an Accounting/Finance Operations role of the Accounting/Finance Function in Business?	Stakeholder assurance
The goal of information security management is to maintain confidentiality, integrity and availability of a firm's information.	TRUE