Ais

DATA MODELING

1. The type of diagram in which the operations are specified on objects is considered as

a. functional diagrams

b. class diagrams

c. attribute diagrams

d. entity diagrams

2. The particular database and the set of related programs which helps in implementation of

updates and queries is called

a. implemented applications

b. backup applications

c. utility programs

d. database application

3. In traditional DBMS, the application programs are considered to be the part of domain of

a. database designs

b. software engineering

c. network design utility

d. utility designs

4. The Universal Modeling Language in database management system is classified as

a. object modeling methodology

b. query modeling methodology

c. entity modeling methodology

d. attribute modeling methodology

5. The most popular high level conceptual model in database management system is

a. close end relation model

b. query relation model

c. entity relationship model

d. attribute relationship model

6. Which of the following indicates the maximum number of entities that can be involved in a relationship?

a. minimum cardinality

b Maximum cardinality

c. ERD

d.Greater Entity Count (GEC)

7. Which type of entity cannot exist in the database unless another type of entity also exists in the database, but does not require that the identifier of that other entity be included as part of its own identifier?

a. Weak entity

b. Strong entity

c. ID-dependent entity

d. ID- independent entity

8. In a one-to-many relationship, the entity that is on the one side of the relationship is called a(n) ________ entity.

a. Parent b. child

c. Instance d. subtype

9. Which type of entity represents an actual occurrence of an associated generalized entity?

a. Supertype entity

b. Subtype entity

c. Archetype entity

d.

Instance entity

10. A recursive relationship is a relationship between an entity and _______.

a. Itself

b. a subtype entity

c. an archetype entity

d. an instance entity

11. In which of the following is a single-entity instance of one type related to many entity instances of another type?

a. One-to-One Relationship

b. One-to-Many Relationship

c. Many-to-Many Relationship

d. Composite Relationship

12. Entities of a given type are grouped into a(n):

a. Database

b. entity class

c. Attribute

d. ERD

13. Which of the following is NOT a basic element of all versions of the E-R model?

a. Entities

b. Attributes

c. Relationships

d. Primary keys

14. Which of the following is a Data Model?

a. Entity-Relationship Model

b. Relational Data Model

c. Object-based data model

d. All of the above

15. Which of the following is not a Storage Manager Component?

a. Transaction Manager

b. Logical Manager

c. Buffer Manager

d. File Manager

AUDIT COMMAND LANGUAGE

1. It is one of the most popular Computer Aided Audit Tools (CAATs) among auditors.

a. Audit Procedure c. Audit Command Language

b. Audit Trail d. Audit Trail

2. Which of the following is not used for Audit Command Language (ACL)?

a. Gather essential information for effective decision-making

b. Access server data

c. Both a and b

d. None of the above

3. Which of the following is the disadvantage of Audit Command Language (ACL)?

a. Steep learning curve c. Vast online community

b. Widely used and extremely popular d. Excellent online support and training

4. Which of the following statement is/are correct regarding why choose ACL over other software product?

Statement I. ACL has maintained its ‘first to market’ lead

Statement II. Only ACL provides ease of scalability

a. Statement I is correct c. Statement I and II are correct

b. Statement II is correct d. Neither statement I and II is correct

5. Which of the following is not considered as application of ACL?

a. Improve control environments c. Acquire the data

b. Plan your project d. Verify the integrity of the data

6. Items associated with an ACL project include:

a. Numbers c. Pictures

b. Table d. Formula

7. It is used to make it easy to create tables for all common data types.

a. Data Definition Wizard c. Data Table

b. Data Language d. Data Validation

8. Which of the following is false?

a. Use the Total command to total numeric fields or expressions in the active table.

b. Use the Count command to count the number of records in the active table, or only those that

meet a specified filter condition.

c. Each time you use Count, ACL saves the result in the command log and displays it in the status

bar.

d. You can use the Total command to rebut the completeness and accuracy of the data and

to produce control totals.

9. Which of the following is false?

a. Use Stratify to summarize data according to numeric ranges.

b. Use Age to summarize data according to ranges based on unique values in a single character field.

c. Use Cross-tabulate to summarize by setting character fields in rows and columns and accumulating numeric values.

d. Use Summarize to produce a summary of the data according to ranges based on multiple character or date fields, and display the results with selected data from associated fields.

10. Which of the following command used to determine values for the Stratify, Histogram, and Sample commands?

a. Statistics c. Profile

b. Benford d. Export

11. Which of the following command used to provides a more complete overview of the significant properties of a numeric file?



12. Which of the following command used to digital analysis identifies anomalies in certain types of data?



13. It is use to summarize data according to date ranges.

a. Stratify c. Summarize

b. Classify d. Age

14. It is use to summarize data according to ranges based on unique values in a single character field.

a. Stratify c. Cross-tabulate

b. Classify d. Age

15. It is use to produce a summary of the data according to ranges based on multiple character or date fields, and display the results with selected data from associated fields.

a. Classify c. Age

b. Cross-tabulate d. Summarize

ACCOUNTING ON THE INTERNET

1. It is the collection of a local and wide-area networks that are now connection together via

the Internet Backbone.

a) World Wide Web (www)

b) Internet

c) Universal Resource Locator (url)

d) Internet Backbone

2. Maintains its own Internet computers.

a) Internet Service Provider

b) Intranet

c) Extranet

d) Universal Resource Locator (url)

3. The primary repository of financial information on the Internet is the Security and

Exchange Commission’s Electronic Data Gathering and Retrieval Database.

a) Hypertext Transfer Protocol

b) eXtensible Business Reporting Language (XBRL)

c) World Wide Web

d) Internet Service Provider

4. It developed Edgar Scan to take information in EDGAR and change it to a common

format.

a) Hypertext Mark-up Language (HTML)

b) Hypertext Transfer Protocol (HTTP)

c) Pricewaterhouse Coopers

d) Electronic Mail

5. It is a specialize software language for the financial reporting industry.

a) Hyperlink

b) EDGAR

c) eXtensibleMarkup Language (XML)

d) eXtensible Business Reporting Language (XBRL)

6. How does XBRL affect accountants?

a) Provides lesser transparency

b) Permits automatic and reliable exchange of financial information across

different formats and technologies

c) Does require a change to existing accounting standards or disclosure

requirements.

d) Highers the cost of the preparation and distribution of financial statements.

7. Refers to conducting business with computers and data communication.

a) E-Payments

b) Electronic Commerce (EC)

c) E-Wallets

d) None of the Above

8. It may be a more desirable payment method. It eliminates the need to transmit credit card

number over the Internet.

a) Electronic Data Interchange (EDI)

b) E-Wallets

c) E-Payments

d) All of the Above

9. Auditors review transactions at frequent intervals or as they occur.

a) Continuous process auditing

b) Intelligentcontrol agents

c) Electronic audit trails

d) Confidentiality of data

10. Electronic transactions generated without human intervention.

a) Continuous process auditing

b) Intelligentcontrol agents

c) Confidentiality of data

d) Electronic audit trails

11. Open system designs allow mission-critical information to be at the risk to intruders.

a) Authentication

b) Nonrepudiation

c) Confidentiality of data

d) Data integrity

12. Allows organizations to transmit standard business documents over high-speed data

communications channels.

a) Electronic Data Interchange (EDI)

b) Value Added Networks (VAN)

c) Proxy Servers

d) Firewalls

13. It guards against unauthorized access to sensitive file information from external Internet

users.

a) Firewalls

b) Value Added Networks (VAN)

c) Electronic Data Interchange (EDI)

d) Proxy Servers

14. It is a computer and related software that creates a transparent gateway to and from the

Internet, and that can be used to control Web access.

a) Value Added Networks (VAN)

b) Electronic Data Interchange (EDI)

c) Proxy Servers

d) None of the Above

15. It is used to authenticate business documents transmitted or received over the internet.

a) Digital Time-Stamping Services (DTSSs)

b) Digital Signature

c) Data Encryption

d) Data encryption standard

INFORMATION TECHNOLOGY AND AIS

1. In an accounting information system, “inputs” often come in the form of:a. Source documentsb. Financial statementsc. Computer reportsd. Internal Controls

2. Documents in an accounting information system are:a. Always paper-basedb. Always electronicc. Either paper-based or electronic

d. Neither paper-based nor electronic

3. Which of the following best demonstrates the relationship between accounting information systems and other areas of accounting?a. Tax accountants have to create budgets.b. Auditors often prepare tax returns for their clients.c. Virtually all areas of accounting involve inputs, processes, outputs, storage and

internal controls.d. Accounting information systems is the most important area of accounting.

4. The relationship between accounting information systems and information technology is most clearly shown by:

I. Using debits and credits to record transactionsII. Incorporating journals and ledgers as processing tools

a. I onlyb. II onlyc. Both I and IId. Neither I nor II

5. Which of the following is not an example of an input to the accounting information system?a. Sales invoiceb. Purchase orderc. Customer checkd. Balance sheet

6. Source documents in an accounting information system include sales invoices, purchase orders and:a. Bank statementsb. Reports of projected stock pricesc. Evaluations of accounting staffd. Currency and coin

7. The information to be communicated in a data communications system is the:a. Mediumb. Protocolc. Messaged. Transmission

8. A ____ is a data communication system spanning states, countries, or the whole world.a. Metropolitan Area Networkb. Wide Area Networkc. Local Area Networkd. None of the above

9. A ____ is a set of rules that governs data communication.a. Protocolb. Forumc. Standardd. None of the above

10. What exactly is cloud computing?a. A way to organize desktop computers.b. Lightweight software that takes up little space on a hard drive.c. Computing resources that can be accessed on demand, like electricity from a

utility.d. The World Wide Web

11. Internal controls in an accounting information system help promote information integrity. Which of the following best explains the concept of information integrity?a. Financial statements are subject to audit.b. Users can rely on the financial statements as the sole basis for decisions.c. The information in AIS outputs is reliable.d. Accounting information systems that incorporate computer software are more reliable

than paper-based systems.

The following scenario relates to Questions 12 through 15:

Alex Gaskarth wrote a check to pay a supplier’s invoice. The check had to be signed by two company officers and was later part of a monthly bank reconciliation. The canceled check was filed under the supplier’s name.

12. The inputs mentioned in the preceding scenario are:a. The check and the invoice

b. The check and the bank reconciliationc. The bank reconciliation and the filed. The file and the supplier’s invoice

13. The internal controls mentioned in the preceding scenario are:a. The dual signatures on the check and the fileb. The bank reconciliation and the filec. The dual signatures on the check and the bank reconciliationd. The supplier’s invoice and the bank reconciliation

14. In the preceding scenario, ___ was both an input and an output. a. The invoiceb. The supplier’s namec. The two signaturesd. Alex Gaskarth

15. Filing the check under the supplier’s name is an example of:a. Inputb. Processingc. Outputd. Storage

ACCOUNTING AND ENTERPRISE SOFTWARE

1. Process all types of accounting transactionsa. Dynamic Programb. Integrated accounting software programsc. Enterprise resource planning (ERP) systemsd. Central database

2. In order to accomplish integration, ERP systems architecture is configured around a what?

a. Dynamic Programb. Integrated accounting software programsc. Enterprise resource planning (ERP) systemsd. Central database

3. This software enhances the working relationship of partners, particularly when they use the internet.

a. Partner relationship management (PRM)b. Business Intelligence (BI) toolsc. Hosted solutiond. Integrated accounting software programs

4. Are data analysis software that helps managers to get the most information form their customer

a. Customer Relationship Management (CRM)b. Business Intelligence (BI) toolsc. Central databased. Extended application interfaces (EAI)

5. A tool that helps companies optimize their supply chain is?a. Advanced Planning and Scheduling (APS) systemsb. Business Intelligence (BI) toolsc. Central databased. Customer Relationship Management (CRM)

6. Systems synchronize the flow of materials within the supply chain, it helps an organization to determine whether its capacity is adequate to meet expected orders.

a. Advanced Planning and Scheduling (APS) systemsb. Business Intelligence (BI) toolsc. Central databased. Customer Relationship Management (CRM)

7. These systems were integrated with the accounting and finance functions to produce cash forecasts and other budget information.

a. Material Requirements Planning (MRP I) systemsb. Supply Chain Management (SCM)c. Manufacturing Resource Planning (MRP II) systemsd. Manufacturing Requirements Planning (MRP II) systems

8. These information systems used marketing sales projections, combined with production schedules to plan for raw materials purchases.

a. Material Requirements Planning (MRP I) systemsb. Supply Chain Management (SCM)c. Advanced Planning and Scheduling (APS) systemsd. Manufacturing Requirements Planning (MRP II) systems

9. Extend ERP systems interface with individuals inside and outside an organization through e-business?

a. Blogb. Sitec. Portalsd. Internet

10. One feature that even low-end packages incorporate today is _____ which permits small businesses to create web sites and engage in electronic commerce.

a. Siteb. Internet connectivityc. Internetd. Blog

11. These software solutions include financial functions interfaced with manufacturing, sales and distribution, and human resource applications.

a. Integrated Accounting Software programsb. Extended application interfaces

c. Central Databased. Enterprise Resource Planning (ERP) systems.

12. A software package that has everything offers maximum integration. However, the flexibility of choosing the best software in different categories may argue for a __________.

a. Outsourcingb. Internal outsourcingc. External outsourcingd. Best-of-breed

13. These services are necessary due to the complexity of the mid-range accounting programs, this offers a broader array of services for more software programs,

a. Value Added Reseller (VAR)b. Requirements Analystsc. Value Added Buyer( VAB)d. Computer Training Services (CTS)

14. Describes an approach to cutting expenses to their bare minimum.a. Best-of-Breed Approachb. Spend Managementc. Procurement Expensesd. Strategic Finance

15. It is a program instruction written in a high-level computer language.a. Bar codeb. Encryptionc. Source Coded. Customer ID

ACCOUNTING INFORMATION SYSTEM AND THE ACOUNTANT

1. Which of the following is the correct definition of accounting information system?

a. It is a way of using business applications over the Internet. b. It is all about providing relevant information to individuals and groups outside an

organization’s boundaries.c. It is a collection of data and processing procedures that creates needed

information for its users.d. It stores important nonfinancial information that are relevant to the decision-making

processes of their users.

2. It is about reallocating the IT budget from maintenance to improve business processes and deliver innovation to the finance organization.

a. Cloud computingb. Accounting Information System

c. Information technologyd. Enterprise Resource Planning

3. It refers to conducting business over the Internet or dedicated proprietary networks.

a. E-Businessb. Information agec. Trade-offsd. Website trading

4. It combines the skills of investigation, accounting, and auditing to find and collect pieces of information that collectively provide evidence that criminal activity is in progress or has happened.

a. Governmental accounting

b. Forensic accounting

c. Management accounting

d. Financial accounting

5. They provide help with issues concerning information systems.

a. Accountantsb. Knowledge workersc. Computer programmersd. System consultants

6. Information technology (IT) auditors:

a. Concern themselves with analyzing the risks associated with computerized information systems.

b. Produce, analyze, manipulate, and distribute information about business activities. c. Store important nonfinancial information about resources, events, and agents in

databases.d. Provide relevant information to users who are internal to a company or government

agency.

7. It is used to measure business performance in four categories: (1) financial performance, (2) customer knowledge, (3) internal business processes, and (4) learning and growth.

a. key performance indicatorsb. balanced scorecardc. dashboards

d. cloud computing

8. It is a set of professional service areas built around a set of common principles and criteria related to the risks and opportunities presented by IT environments.

a. CPA Trust Servicesb. Health Insurance Portability and Accountability Services c. Assurance Servicesd. Accounting Information Services

9. All of the following are the major areas of accounting that are impacted by information technology except:

a. Taxationb. Auditingc. Managerial Accountingd. Sustainability Accounting

10. Its main objective is to provide relevant information to individuals and groups outside an organization’s boundaries.

a. Managerial Accountingb. Auditingc. Taxationd. Financial Accounting

11. Interactive data:

a. Are mainly raw facts about events that have little organization or meaning.b. Focuses on nonfinancial performance measures that might impact an organization’s

income, value, or future performance. c. Are data that can be reused and carried seamlessly among a variety of

applications or reports. d. Does not require a language for standardization that ‘‘tags’’ the data at its most basic

level.

12. It is a part of managerial accounting that specifically assists management in measuring and controlling the costs of an organization.

a. Cost Accountingb. Financial Accountingc. Auditingd. Risk Accounting

13. An accountant can acquire this certification by meeting the qualifications of the

Association of Certified Fraud Examiners (ACFE).

a. Certified Public Accountant (CPA)b. Certified Fraud Examiner (CFE)c. Certified Managerial Accountant (CMA)d. Certified Information Systems Auditor (CISA)

14. It includes a variety of methodologies that managers might use to analyze current and past data to help predict future events.

a. Cloud computingb. Sustainability reportingc. Predictive analytics d. Forensic accounting

15. This refers to one of the abilities of computers which is to output vast amounts of information quickly.

a. Information ageb. Information overloadc. Interactive datad. System failure

ORGANIZING AND MANIPULATING THE DATA IN DATABASES

1. In MS Access, Text Data type may contain maximum character of ________________________.

a. 255 charactersb. 256 characters

c. 1064 charactersd. No limit

2. The command center of Access file that appears when you create or open the MS Access database file.

a. Switchboardb. Query Window

c. Design View Windowd. Database Window

3. The third stage in designing a database is when we analyze our tables more closely and create a _________________ between tables.

a. Joinb. Relationship

c. Queryd. None of these

4. This is the stage in database design where one gathers and list all the necessary fields for the database project.

a. Data Definition b. Data Refinement

c. Establishing Relationship d. None of these

5. Which of the following statements is true?a. Foreign key fields don’t allow duplicate values.b. In primary key field, you can enter duplicate value.c. In an indexed field, you may or may not enter duplicate value depending

upon the setting.d. All statements are true.

6. A database language concerned with the definition of the whole database structure and schema.

a. Data Control Language (DCL)b. Data Manipulation Language (DML)c. Data Definition Language (DDL)d. All of these.

7. Which of the following is not a type of MS Access database object?a. Tableb. Form

c. Worksheetsd. Modules

8. Which of the following data type is used to store logical value in MS Access?a. True/Falseb. On/Off

c. Yes/Nod. All of these.

9. The appropriate Data Type to store Time in MS Access is ___________________________.

a. Date/Timeb. Time only

c. Date only.d. Time cannot be stored.

10. In MS Access, Lookup Wizard is used ___________________________________.a. To select from previous values.b. To select values from Excel sheet.c. To select value from another table.d. Not a valid Data Type.

11. Which of the following Data Type is used to store picture in MS Access?a. Pictureb. OLE Object

c. Memod. Picture cannot be stored

12. In MS Access, which Data Type is appropriate to store large text and numbers?a. Text b. Memo

c. OLE Object d. Large Text

13. In MS Access, OLE Object Data Type can store _________________________.a. MS Word Documentsb. MS Excel Spreadsheets

c. Soundsd. All of these

14. In MS Access, AutoNumber Data Type can be _______________________.a. Sequentialb. Random

c. Editedd. Only A and B

15. Which of the following is not a valid Data Type in MS Access?

a. Memob. Picturec. Currencyd. AutoNumber

CREATING DATABASE FORMS AND REPORTS

1. The following are the major sections in a form, except one:a. Heading Section c. Design sectionb. Detail Section d. Navigation bar

2. It is a custom-designed screen for entering records or displaying existing record in a database.a. Reports c. Screenb. Forms d. Tables

For questions 3 to 5 write:

a. If statement 1 is true, Statement 2 is false b. If statement 1 is false, Statement 2 is truec. If both statements are trued. If both statements are false

3. Statement 1: One advantage of a form is that it can display all the data-entry textboxes for an entire record in multiple screens.Statement 2: Objects such as textboxes and labels that appear on a form are examples of form controls.Answer: B

4. Statement 1: Bound controls are textboxes, drop-down boxes, and similar controls that depend on the underlying data and therefore change from record to record.Statement 2: Unbound controls are labels, pictures, and similar items that are consistent from record to record in a form and do not display underlying database information.Answer: C

5. Statement 1: If you’re using Access to print something on paper, the chances are high that you are using a report to perform this task.Statement 2: Unlike forms, reports are strictly outputs and do not allow users to input data into databases.Answer: C

6. The following are the steps to create a form in Access using Form Wizard:1. Customize the form2. Enter the appropriate settings in the Form Wizard dialog boxes

3. Refine your design4. Reset the tab order

The order in which the above steps should be preferably followed isa. 2, 1, 3, 4 c. 4, 1, 2, 3b. 1, 2, 4, 3 d. 3, 4, 2, 1

7. Which of the following statement is false?a. Forms also enable you to change the information already in a database table. b. A form is a custom-designed screen for entering records or displaying existing

records.c. Report displays subordinate information related to the information in the main

form.d. Database reports provide custom information to database users.

8. A Subform is a. A custom-designed screen for entering records or displaying existing recordsb. A form within a form that displays data related to the information in the main

formc. the technical term for the point at which a group changes from one type to the next in

a reportd. none of the above

9. It can be simple documents that display only the contents of a table or complex outputs that combine the information from several tables and show selected subsets of database information useful for decision making.a. Reports c. Tablesb. Database d. Forms

10. A common task when creating reports is to include ___________.a. Subform c. Calculated fieldsb. Design tab d. Dialog Box

11. The following are the steps to create a report using Report Wizard in Access:1. Launch the report wizard2. Name the report3. Indicate any sort fields and select the desired report format.4. Select the underlying data source and desired fields.5. Indicate any grouping levels.6. Modify the design of the report as desired.

The order in which the above steps should be preferably followed isa. 1, 2, 3, 4, 5, 6 c. 4, 2, 1, 3, 5, 6b. 2, 1, 4, 5, 3, 6 d. 1, 4, 5, 3, 2, 6

12. The following are considered as part of the seven major components of a report except one:a. Report heading c. Detail Linesb. Group header d. Dialog Box

13. It is the technical term for the point at which a group changes from one type to the next in a report.a. Control break c. Report Wizardb. Calculated Fields d. Query

14. Which of these is not a typical content of a report header?a. Company name and addressb. Page numberc. Date Preparedd. Company logo

15. It is often the points at which managers want to see subtotals, maximums, minimums, averages, or similar subgroup summaries.a. Calculated Fields c. Control breaksb. Forms d. Tables

BUSINESS PROCESS PART 2

1.) Source documents generally help to improve accuracy in transaction processing becauseA. They specify which information to collect due to their structure.B. Standard information is preprinted on the document.C. They provide directions and steps for completing the form.D. All of the above are correct.

2.) Federal Express stated in one of its mission statements that "positive control of each package will be maintained by utilizing . . . electronic tracking and tracing systems. This is an example of which type of data processing?

A. Real-time processing which features immediate updating as to the location of packages. B. Batch processing which features updating at fixed time periods.C. Real-time processing which features updating at fixed time periods such as at the end of an

accounting period.D. Batch processing which features immediate updating as to the location of packages.

3.) When the sum of all entries in the subsidiary ledger equals the amount in the corresponding general ledger account, it is assumed that

A. The recording and posting process are accurate. B. All of the transaction cycles have been completed.C. Since the ledgers are in balance, adjusting entries are not required.D. No errors exist in the subsidiary ledger and corresponding general ledger account.

4.) Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the expenditure cycle would be

A. Give cash, get cashB. Give cash, get goods. C. Give cash, get labor.D. Give goods, get cash.

5.) To be effective, the chart of accounts mustA. Be as concise as possible.B. Contain only five account categories.C. Limited account codes to 10 digits or less.D. Contain sufficient detail to meet the information needs of the specific organization's AIS.

6.) It has been said that a controller in a small business has at least four distinct roles. In the role identified as "technician," the controller is responsible for

A. Collecting and processing the data needed to prepare financial statement and a wide variety of managerial reports.

B. Establishing procedures to ensure that business activities are performed correctly.C. Helping managers and staff understand how their individual duties fit into the company's overall

goals and objectives.D. Keeping abreast of new and changing technology and accounting developments and how they

impact the business.

7.) Some information will have to be collected from __________sources to determine, for example, customer satisfaction.

A. External B. InternalC. RegulatoryD. Competitive

8.) A report which shows actual results, budgets, and variances is called aA. Financial planB. Cash budgetC. Performance report D. Managerial report

9.) One of the most important assumptions about how managers will act in a budget-controlled environment is that:

A. Managers will largely ignore budgets.B. Budgets must be too tight to encourage high aspirations.C. Budget slack will exist in almost every budget and is negotiated by all managers.D. Measurement affects behavior.

10.)The efficiency of recording numerous business transactions can be best improved by the use ofA. Prenumbered source documents.B. Specialized journals.C. Posting references.D. Segregation of duties.

11.)One of the objectives of the segregation of duties is toA. Ensure that no collusion will occur.B. Make sure that different people handle different transactions.C. Achieve an optimal division of labor.D. Make sure that different people handle different parts of the same transactions.

12.)Which of the following cash receipts activities would be incompatible with the others?A. Opening the mail and endorsing the checks.B. Counting cash and making out a deposit slip.C. Posting the cash receipts to the customer accounts D. Carrying the cash deposit to the bank.

13.)The main area of weakness in the practical application of the separation of duties isA. When collusion between employees occurs. B. Poor supervision.C. Poor documentation.D. Inadequate training of employees.

14.)Which managerial tool below is used to provide the organization with financial control?A. A cash budgetB. A performance report C. A sales budgetD. A customer satisfaction survey

15.)Regarding internal control considerations, the key to accountability for all business transactions is

A. Processing internal and external data together into meaningful information.B. Ensuring that business activities are performed efficiently and in accordance with

management's objectives.C. Possessing and maintaining adequate documentation. D. Realizing that AIS can directly affect employee behavior.

ACCOUNTING INFORMATION SYSTEMS AND BUSINESS PROCESS: PART I

1.) Statement 1: A Ledger is a chronological record of business events by accounts.

Statement 2: A Journal is a collection of detailed monetary information about an organization’s account.

a. Both statements are correct c. Only statement 1 is correct

b. Both statements are wrong d. Only statement 2 is correct

2.) These are sequential codes in which specific blocks of numbers are reserved for particular uses.

a. Group codes c. Number codes

b. Sequence code d. Block codes

3.) It is the primary output of a financial accounting system.

a. Journal entries c. AIS report

b. Management report d. Financial statements

4.) Companies use variety of source documents to collect data for the AIS. Which among the following does not concerns the chief in the process of the collection of data?

a. Verifiability c. Timeliness

b. Accuracy d. Cost-effectiveness

5.) A business process is a collection of activities and work flows in an organization that creates value. Which among the following statements are incorrect?

a. The nature and type of business process might vary from industry to industry.

b. An AIS collects and reports data related to an organization’s business processes.

c. Most businesses and government agencies have some common core process. Two core business processes that are common to many businesses are sales and stock investment.

d. All statements are correct.

6.) It is a business process that begins with a customer order for goods or services and ends with the collection of cash from the customer.

a. Sales process c. Purchase process

b. Order Report d. Accounts collection cycle

7.) Business model called “Business without Boundaries” means that:

a. Companies no longer have all of their employees in one location.

b. All business process are not accomplished in only one business location, some may be located anywhere in the world.

c. Both a and b are correct

d. None of the above

8.) These are software packages that help companies collect corporate knowledge, data, and business system to improve core business processes.

a. BPM software c. CRM software

b. AIS d. Database

9.) Statement 1: Companies outsource or offshore business process to remain competitive and to generate value for shareholders.

Statement 2: Outsourcing or offshoring is not necessary to small scale business.

a. Statement 1 is correct c. Both statements are correct

b. Statement 2 is correct d. Both statements are wrong

10.) All, except one are the benefits of using and accounting system in business processes.

a. Accounting system makes recording transactions easier and faster.

b. Using an accounting system allows data storage and collection to be more systematic and organized.

c. Accounting systems enables the company to be more competitive.

d. Accounting systems eliminate the need for accountants.

11.) Statement 1: Recording of transactions in a journal is the first step in an accounting process.

Statement 2: Adjusting entries are not necessary in an accounting process.

a. Both Statements are correct c. Statement 1 is correct

b. Both statements are wrong d. Statement 2 is correct

12.) The following are examples of AIS outputs, except:

a. Reports to management c. Reports to investors

b. Transaction Data files d. All are examples of AIS outputs

13.) It is a report issued only when a particular event occurs, containing lists of exceptional conditions.

a. Events report c. Conditional Report

b. Exception report d. Specific Report

14.) Statement 1: All business events must be journalized.

Statement 2: Most business events are necessary for decision making.

a. Statement 1 is correct c. Both statements are correct

b. Statement 2 is correct d. Both statements are wrong

15.) Which among the following shows that an AIS in a sales process is good:

a. It matches each revenue with a valid transaction.

b. It maintains customer records.

c. Allows an interface with the inventory control function.

d. All of the above

MS ACCESS

1. What Are The Different Views To Display A Table

A) Datasheet View B) Design View C) Pivote Table & Pivot Chart View D) All Of Above

2. Which Of The Following Creates A Drop Down List Of Values To Choose From?

A) Ole Object B) Hyperlink C) Memo D) Lookup Wizard

3. The Command Center Of Access File That Appears When You Create Or Open The Ms Access Database File.

A) Database Window B) Query Window C) Design View Window D) Switchboard

4. The Third Stage In Designing A Database Is When We Analyze Our Tables More Closely And Create A ___________ Between Tables

A) Relationship B) Join C) Query D) None Of These

5. What is a form in MS Access

A) It is a printed page where users will write their data to fill it up B) It is an input screen designed to make the viewing and entering data easier C) This is an important part of database used by analysts to draw conclusions D) All of above

6. This Key Uniquely Identifies Each Record

A) Primary Key B) Key Record C) Unique Key D) Field Name

7. It Is An Association Established Between Common

A) Line B) Relationship C) Primary Key D) Records

8. Which of the following is not a type of relationship that can be applied in Access database

A) One to One B) One to Many C) Many to Many D) All of above can be applied

9. A Database Language Concerned With The Definition Of The Whole Database Structure And Schema Is ________

A) DCL B) DML C) DDL D) All Of Above

10. Which Of The Field Has Width 8 Bytes?

A) Memo B) Number C) Date/time D) Hyperlink

11. Which Of The Following Statement Is True?

A) Foreign Key Fields Don\'t Allow Duplicate Values B) In Primary Key Field You Can Enter Duplicate Value C) In An Indexed Field You May Or May Not Enter Duplicate Value Depending Upon Setting D) All Statements Are True

12. Following Is Not A Database Model

A) Network Database Model B) Relational Database Model C) Object Oriented Database Model D) None

13. Microsoft Access Is A

A) RDBMS B) OODBMS C) ORDBMS D) Network Database Model

14. What Are The Columns In A Microsoft Access Table Called?

A) Rows B) Records C) Fields D) Columns

15. What happens when you release mouse pointer after you drop the primary key of a table into foreign key of another table?

A) A relationship is created B) Edit relationship dialog box appears C) Error occurs D) Nothing happens

COMPUTER CONTROLS FOR ORGANIZATIONS AND ACCOUNTING INFORMATION SYSTEMS

1. The following are examples of protections for systems and data with personnel policies, except:

a. Use of computer accounts c. Controls for personal computersb. Identifying suspicious behavior d. None of the above

2. A ______ is a location where power and environmentally controlled space are available to install processing equipment on short notice.

a. Cold site c. Hot site b. Flying-start site d. Hot-Cold site

3. It is an auxiliary power supply that can smooth the flow of power to the computer, thereby preventing the loss of data due to monetary surges or dips in power.

a. Cold backup

b. Hot backupc. Electronic vaulting d. UPS (Uninterruptible power system)

4. In a routing verification procedure, any transaction or message transmitted over

network should have a:a. Header label c. Trailer labelb. Checkpoint d. Footer label

5. Logical security include the following except:a. System authentication c. Biometricsb. Alarm systems d. Smart cards

6. Organizations should encourage employees to create strong passwords. Each character that is added to a password increases the protection that it provides. Passwords should be 8 or more characters in length; ___ characters or longer is ideal.

a. 14 c. 12b. 10 d. 13

7. Statement 1: Preprinted recording forms ensure that all the data required for processing have been collected and also enhance accuracy in the recording process.

Statement 2: Output controls focus on the manipulation of accounting data after they are input to the computer system.

a. Statement 1 and 2 is trueb. Only Statement 2 is falsec. Only Statement 1 is falsed. Statement 1 and 2 is false

8. When cash receipts from customers are processed, the manual sum of the customers’ account numbers in a batch of transactions might be computed to form a:

a. Batch total c. Hash totalb. Control total d. Record count

9. These listings provide complete, detailed information about all changes to master files and thus contribute to a good audit trail.

a. Output listings c. Software documentationb. Compiler d. Activity listings

10. An_______ system, supported by a comprehensive security policy, can significantly reduce the risk of attack because it increases the costs and resources needed by an intruder.

a. Integrated system c. Logical systemb. Physical system d. Internal control

11. The following are control procedures for laptops, except;a. Load Antivirus software onto the hard disk c. Identify your laptop b. Back up laptop information d. None of these

12. It is a function within an IT environment that maintains custody of files, databases, and computer programs in separate storage area.

a. Programming function c. Computer operations functionb. AIS library function d. Systems analysis function

13. Read-only file designation is an example of a:a. Computer processing c. File security controlb. Physical security d. Disk shadowing

14. A fault-tolerant system can use _______, in which transactions are never written to disk until they are complete.

a. Disk mirroring c. Watchdog processorb. Rollback processing d. Backup

15. Under batch processing, the procedure that uses the three generations of reference data retained with the transaction data used during the general ledger updating process is called:

a. Grandfather-parent-child procedureb. Great-great-grandfather procedurec. Parent-parent-child procedured. None of the above

IT AUDITING

1. A company’s own accounting employees perform a(n):

a. Internal Audit c. Bothb. External Audit d. None of the above

2. Accountants working for an independent CPA firm conduct a(n):a. Internal Audit c. Bothb. External Audit d. None of the above

3. Which of these is not a component of a computer-based AIS?a. Databases c. Technologyb. Hardware d. Procedure

4. An _____________ auditor is likely to audit the information systems of many different client organizations. a. Internal Auditor c. Bothb. External Auditor d. None of the above

5. The purpose of this hacking technique is to evaluate risk and design controls to protect against unauthorized access.a. Red Hat c. White Hatb. Blue Hat d. Black Hat

6. It is a productivity tool that auditors employ to improve their work.a. General-Use Software c. Generalized Audit Softwareb. Auditing Software d. Automated Work Papers

7. It’s purpose is to audit an AIS in an operational setting.a. Parallel Stimulation c. Integrated Test Facilityb. Test Date d. Validating Computer Programs

8. An auditor that can provide assurance to a company’s top management and the board of directors about the efficiency and effectiveness of almost any aspect of its organization.a. Internal Auditor c. Both b. External Auditor d. None of the above

9. The following are the steps that provides a logical framework for performing a risk-based audit.I. Evaluate weaknesses within the AISII. Determine the threatsIII. Identify the control procedures that should be in place IV. Evaluate the control procedures within the AIS.

The order in which the above steps should be preferably followed is:a. II, IV, III, I c. II, I, IV, IIIb. II, III, I, IV d. II, III, IV, I

For items 10 to 12 write:

e. If statement 1 is true, Statement 2 is false f. If statement 1 is false, Statement 2 is trueg. If both statements are trueh. If both statements are false

10. Statement 1: Spreadsheet software doesn’t allowed both accountants and auditors to make complex calculations automatically.Statement 2: Spreadsheet software can be used to perform analytical procedures such as computing ratios.

Answer: A

11. Statement 1: Database Management System can sort data and make certain mathematical computations. Statement 2: A Databes Management System is the backbone of almost all organizational accounting systems.

Answer: C

12. Statement 1: Automated workpapers can’t help auditors create common-size income statements and balance sheets that show account balances as percentages.Statement 2: Automated workpapers doesn’t allow internal and external auditors to automate and standardize specific audit tests and audit documentations.

Answer: D

13. A parallel simulation a. Creates a second system that duplicates a portion of the client’s system.

b. Develop a set of transactions that tests, as completely as possible, the range of exception situations that might occur.c. Validates an applications input control.d. Sort data and make certain mathematical computations.

14. It describes itself as a “global resource for auditors.”a. AuditBlog c. AuditNetb. AuditPage d. AuditWeb

15. It is the required minimum password length by the auditors to use in software tools to review systems software.a. 7 c. 9b. 6 d. 5

1. This section in the Sarbanes-Oxley Act of 2002 reaffirms that management is responsible for establishing and maintaining an adequate internal control structure.

a. Section 401b. Section 402c. Section 403d. Section 404

2. The purpose of this is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and implement only those controls whose projected benefits outweigh their costs.

a. Risk Assessmentb. Risk Implementationc. Risk Avoidanced. Risk Examination

3. These are the policies and procedures that the management of a company develops to help protect all of the different assets of the firm, based on a careful risk assessment

a. Control Activitiesb. Corporate Governancec. Control Environmentd. Asset Protection Program

4. One of the following is not an example of control activities done by an organization.a. A Good Audit Trailb. Separation of Dutiesc. Random Performance Reportsd. Physical Protection of Assets

5. These are procedures a company uses to solve or correct a problem.

a. Preventive Controlsb. Detective Controlsc. Discretionary Controlsd. Corrective Controls

6. These controls alert managers when the preventive controls fail.a. Preventive Controlsb. Detective Controlsc. Discretionary Controlsd. Corrective Controls

7. These are controls that management puts in place to prevent problems from occurring.a. Preventive Controlsb. Detective Controlsc. Discretionary Controlsd. Corrective Controls

8. It describes the policies, plans, and procedures implemented by the management of an organization to protect its assets, to ensure accuracy and completeness of its financial information, and to meet its business objectives.

a. External Controlb. Internal Control c. Management Controld. Risk Control

9. One of the following is not an application are of physical protection of assets.a. Inventory Controlsb. Document Controlsc. Audit Controlsd. Cash Controls

10. This describes the purpose of each general ledger account so that employees enter the debits and credits of accounting transactions in the correct accounts.

a. General Journalb. Trial Balancec. Adjusting Entriesd. Chart of Accounts

11. The objective of this is to manage and control risk by identifying threats, analyzing the risks, and implementing cost-effective countermeasures to avoid, mitigate, or transfer the risks to a third party.

a. Risk Assessmentb. Risk Implementationc. Risk Avoidanced. Risk Examination

12. This establishes a common definition of internal control for assessing control systems, as well as determined how to improve controls.

a. 1972 COSO Reportb. 1986 COSO Reportc. 1992 COSO Reportd. 2005 COSO Report

13. One of these is not a perspective of how an enterprise’s objectives are viewed.a. Strategicb. Operationsc. Manageriald. Compliance

14. The purpose of this is to structure work assignments so that one employee’s work serves as a check on another employee.

a. A Good Audit Trailb. Separation of Dutiesc. Periodic Performance Reportsd. Physical Protection of Assets

15. This includes functions such as preparing source documents, maintaining journals and ledgers, preparing reconciliations, and preparing performance reports.

a. Recordingb. Classifyingc. Custody of Assetsd. Authorizing

DEVELOPING AND IMPLEMENTING EFFECTIVE AIS

1. When converting to a new system, which of the following conversion alternatives would be the most risky for a financial services firm.

a. preliminary investigation of current conducted by the steering committeeb. planning for a successc. direct conversiond. follow up implementation

2. A feasibility area that anticipated benefits of the system exceed its projected costs.a. Legalb. Economicc. Technicald. Operational

3. The study team must analyze the results which includes:a. Highlighting bottlenecks in information flowsb. Reporting redundancy

c. Both A and bd. None of the Above

4. There are several ways of gathering data, including:a. Review of existing documentation.b. Observation of the current systemc. Using questionnaires and surveys d. All of the Above

5. A feasibility area which examines its compatibility with the current operating environment.

a. Legalb. Economicc. Technicald. Operational

6. It provides a system study team with an objective means for selecting a final AIS.a. A point-scoring analysisb. Documentationc. Constraintsd. Controls

7. This step involves performing a preliminary investigation of the existing system, organizing a systems study team, and developing strategic plans for the remainder of the study.

a. Planning and Investigationb. Analysisc. Designd. Implementation, Follow-up, and Maintenance

8. This documentation includes descriptive data such as organizational charts, strategic plans, budgets, policy and procedure manuals, job descriptions, and charts of accounts, as well as technical documentation such as flowcharts, process diagrams, and training manuals.

a. Observe the Current System in Operationb. Use Questionnaires and Surveysc. Review Existing Documentationd. Interview System Participants

9. Gantt charts are usefula. for managers to identify critical paths b. for observing employee work performance c. for evaluating the control proceduresd. for scheduling and tracking the activities of systems implementation projects

10. It requires the design team to estimate how long it will take a new or revised system to become operational and to communicate this information to the steering committee.

a. Schedule Feasibilityb. Economic Feasibilityc. Legal Feasibilityd. Operational Feasibility

11. It is a scaled-down, experimental version of a nonexistent information system that a design team can develop cheaply and quickly for user-evaluation purposes.

a. Process Designb. Prototypingc. Designing System Inputsd. Documentation

12. A primary motivator for outsourcing is______.a. Cost Savingsb. Inflexibilityc. Systems implementationd. Functional Changes

13. With PERT, a/an _____ first prepares a list of systems implementation activities, identifies the prerequisite activities that must be completed before others can start, and estimates the amount of time required to complete each activity.

a. memberb. project leaderc. adviser

d. economist

14. It is often called the ‘‘action phase’’ of a systems study because the recommended changes from the prior analysis, design, and development work are now put into operation.

a. Systems implementationb. Selecting a Finalistc. Vendor Supportd. Cost Benefit Analysis

15. Which of the following example is not correct when organizations do not plan carefully?a. Systems do not meet users’ needs, causing employee frustration, resistance, and

even sabotage.b. Top management does not approve or support the new systemsc. Project expenditures significantly overrun what once seemed like very

unsatisfactory budgets.d. Systems solve the wrong problems.

COMPUTER CRIME, ETHICS AND PRIVACY

1. In the world of computing, the essential element that controls how computers are used is

a. Ethics

b. Legal laws

c. Security requirements

d. Business demands

2. The guidelines for the morally acceptable use of computers in society are

a. Computer ethics

b. Privacy

c. Morality

d. Legal systems

3. The issues that deal with the collection and use of data about individuals is

a. Access

b. Property

c. Accuracy

d. Privacy

4. The ethical issue concerned with the correctness of data collected is

a. Access

b. Property

c. Exactness

d. Privacy

5. The ethical issue that involves who is able to read and use data is

a. Access

b. Property

c. Accuracy

d. Privacy

6. Identity theft is the

a. Impersonation by a thief of someone with a large bank account

b. Impersonation by a thief of someone with computer skills

c. Impersonation by a thief of someone with good credit

d. Impersonation by a thief of someone’s identity for the purpose of economic gain

7. Businesses search employees’ electronic mail and computer files using so-called

a. Trojan horses

b. Cookies

c. Snoopware

d. Theft-ware

8. Small files that are deposited on a user’s hard drive when they visit a Web site are best

describe as

a. Cookies

b. Codes

c. Profiles

d. Trackers

9. __________ commit the majority of computer crimes.

a. Employees

b. Hackers

c. Outside users

d. Members of organized crime

10. A computer crime is

a. Any activity in which the thief uses computer technology

b. An illegal action in which the perpetrator uses special knowledge of computer

technology

c. An immoral action in which the thief uses special knowledge of computer technology

without the other person knowing

d. Any threat to computer or data security

11. People who gain unauthorized access to computers for the fun of it, but do not

intentionally do damage, are

a. Employees

b. Hackers

c. Crackers

d. Members of organized crime

12. A computer virus is

a. A software written with malicious intent to cause annoyance or damage

b. A process of scrambling a message so that it cannot be read until it is unscrambled

c. A small device that scans the number of credit cards

d. An ID-checking tool used to monitor who is logged onto a network

13. __________ is the process of protecting information, hardware, and software from

unauthorized use as well as from damage from intrusions, sabotage, and natural disasters.

a. Protectors

b. Security

c. Antivirus

d. Drivers

14. A __________ acts as a security buffer between a company’s private network and all

external networks.

a. Firewall

b. Password

c. Disaster recovery plan

d. Virus checker

15. A __________ can help to avoid loss o information and data and protect computer

systems from access by unauthorized persons.

a. Firewall

b. Password

c. Disaster recovery plan

d. Back-up files

DOCUMENTING AIS

1. Many documentation tools are available to explain how a system works. Which tool provides a graphical description of the sources and destinations of data as well as data flow within the organization and the processes that transform and store that data?

o Data flow diagram

o Document flowchart

o Program flowchart

o System flowchart

2. A Data Flow Diagram (DFD) is composed of which elements?

o Data sources and destinations

o Data flows

o Transformation processes

o Data stores

o All of the above

3. Which function does the rectangle symbol represent in a flowchart.

o Online keying

o Display

o Computer processing

o Manual operation

4. A document flowchart is particularly useful

o In identifying the inputs that enter the system.

o In analyzing the adequacy of control procedures.

o In identifying the sequence of logical operations performed by the computer.

o In system analysis.

5. What do the circles on a data flow diagram represent?

o Data sources and destinations

o Data flows

o Transformation processes

o Data stores

6. Why are documentation tools important?

o They are needed to determine how a system works.

o They are needed to evaluate internal control systems.

o Both answers #1 and #2 are correct.

o Neither answer #1 nor #2 is correct.

7. The data flow diagram symbol which represents data flows is the

o Square.

o Arrow.

o Circle.

o Parallel lines.

o Parallelogram.

8. A flowchart is

o An analytical technique used to describe the data flows and sources and destinations and

data stores of a system.

o An analytical technique used to describe some aspect of an information system in a

clear, concise, and logical manner.o A piece of hard plastic used to draw symbols.

o A graphical description of the flow of data within an organization and the processes

performed on that data, as well as the sources and destinations of data.

9. An example of a data input would be a(n)

o Payroll check.

o Tax payment.

o Tax report.

o Employee change form.

10. Which documentation technique illustrates the flow of documents and information among areas of responsibility within an organization?

o Data Flow Diagram

o Document flowchart

o Process flowchart

o System flowchart

11. Which of the following is not a guideline for drawing a Data Flow Diagram (DFD)?

o Develop a context diagram

o Subdivide the DFD

o Determine system boundaries

o Display the physical location of data files

12. Which of the following is a guideline for preparing flowcharts?

o Flowchart only the normal flow of operations.

o Assume that the reader will know the direction of the flow.

o Identify the entities to be flowcharted.

o A manual process should have an input and an output.

o Include data stores where appropriate.

o Answers to 1, 3, and 4

13. I. In a systems flowchart, a document symbol may be directly linked to a magnetic disk/drive symbol.

II. The highest level DFD is called a Context Diagram.

o Both I and II are true.

o Both I and II are false.

o Only I is correct.

o Only II is correct.

14. I. The Program Flowchart depicts the relationships among the input, processing, and output of an Accounting Information System (AIS).

II. Data Flows represent the transformation of data.





15. I. Data Flow Diagrams (DFDs) generally have to be subdivided to be made more understandable.

II. Inverted triangle serves as multiple copies of a specific document.





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