Final Examination Essay

1. The essential steps in do a schemas study argon (in order of occurrence) a) Analysis, design, implementation and initial operation, borrowup b) Design, planning, followup, analysis, and implementation c) Planning, dodge specification, analysis, business, implementation d) Planning, analysis, design, implementation, and followup2. Which of the pastime is intended to solve the problem that pecuniary info use in integrity application is non easily transferable to unseasoned(prenominal) applications?a) XMPb)ERPc) XBRLd) XMLP3.Information remainss visitors atomic number 18a) Auditors who argon concerned with analyzing risks associated with computing deviceized knowledge governancesb) Individuals who often work intimately with financial meetersc) Auditors who view as a lot of technical expertise link to study technologyd) all of the supra4. Which of the succeeding(a) is not an cogency of client/server computing?a) Alter tuition stored elsewhere on the networ kb) Process a consummation that may affect data stored on both client and server calculatorsc) Query or hedge the wargonhouse data on the serverd) Increased networking capabilities between different wedge formats on multiple establishments5. Softw ar that changes transactiones and government agencies to transmit and manipulate financial data on an organization-wide basis best namesa. Communication softwargon packageb. weenie softw atomic number 18c. Enterprise resource planning (ERP) softwared. Programming software6. All of the sideline are programming languages chuck outa. Javab. hypertext markup languagec. C++d. COBOLe. ERP7. Data flow diagramsa)Accomplish the same purpose as system flowchartsb)Are different from system flowcharts since they focus on a logical compute of the instruction systemc)Are useless for planning a new systemd)Are never used in analyzing an existing system8. All of the pursual are stamp downs for end-user computing move outa) Formally evalu ate sizable projectsb) adjudge support standardsc) Limit the number of employees authorized to create end-user applicationsd) all of the above are of import get a lines9. The text identified seven reasons why documentation of an AIS is important. For which of the by-line reasons would the user guides, procedure manual of armss and operating instructions be almost important?a) Depicting how the system worksb) Training usersc) Designing new systemsd) Standardizing communications with some another(prenominal)s10. Business organizations are recognizing the value of sales data and are purchasing software solutions to gather, keep on, and use these data to furnish better table service and promote customer loyalty. These software solutions are calleda) Customer relations data solutionsb) Customer relationship wariness solutionsc) Sales data management solutionsd) no(prenominal) of the above11. Which of the pursuit statements best describes business routine outsourcing? a) A bon ton focuses on its core business processes and contracts with another firm to do the other processes b) Companies frequently outsource core business processes c) Due to networked enterprises and advanced technology, more(prenominal)(prenominal) employees may work from their homes or alternate locations d) Initially, companies engaged in business process outsourcing to offer employees more opportunities to travel and more career choices for furtherance12. Networked enterprises and globalization have enabled a new business model called business-without-boundaries. Which of the following statements describes this business model? a) Companies no extensiveer have all of their employees in one location b) It is called offshoring and companies contract with firms in other countries to do much(prenominal) business processes as human resources, payroll, and accounting c) Companies are under a great deal of scrutiny to manage costs and generate tax so they contract with foreign f irms to do various business processes at a lower cost to the comp any(prenominal) d) all of the above statements describe this model13. Which of the following is not a concern of the financing process? a) Effective cash managementb) Optimizing an organizations cost of bang-upc) Minimizing an organizations borrowingsd) Projecting cash flows14. Business process reengineering efforts sometimes fail because a. focussing gets too involved in the processe) Management is too optimistic regarding its expectations from its implementation b. Management support bum never overcome employee resistance c. Employees will never accept miscellany15. Which of the following technologies are now used in conjunction with automate production process systems to increase efficiencies?a) Radio frequency technologyb)Bar code s notifynersc) RF IDs and advanced electronic tagsd)all of the abovee)none of the above16. According to the chapter, which of these statements is most faithful?a)Most estimator vi tiate is performed as retaliation against employersb) Very little computer crime is committed for personal gainc) Some computer abuse is performed simply to meet a challenged) We catch most computer abusers with good accounting matchs17.Which of the following is probably the direct reason accountants should be concerned about computer crime and abuse?a)They might overlook their job if they dont detect computer crime or abuse in their organizationb)They might lose their professional credibility and license if computer crime or abuse continues for a long time in their organization and they do not detect itc)They are responsible for designing, implementing, and monitoring the control procedures for AISsd)none of the above18. iodine of the major crimes identified by the Computer Fraud and Abuse Act of 1986 is intent to illegally capture information or tangible property through the use of computers. Which of the following methods might accomplish this type of crime if the perpetrato r can interchange data before, during, or after they are entered into a computer system? a)Salami techniqueb)Data diddlingc)Shoulder surfingd)Trojan horse program19.Regarding a companys audit trail, which of the following statements is true?a) Because of the tangledities involved in establishing an audit trail, a good audit trail commonly makes it more difficult for an mortal to follow the flow of a companys business minutes through thecompanys information systemb) In actuality, the audit trail established within a companys information system is an unimportant element of the companys privileged control system When a companys audit trail becomes more difficult to follow, this causes an increase in the risk of errors or irregularities taking go under in the processing of accounting transactions and not being observec) A companys policies and procedures manual should not be give of its audit trail since confidential information is included within this manual20.Which of the fo llowing statements is true regarding timely performance reports?a. In many companies, these reports are the major means of providing information to management concerning the actual operations of the companies internal control systemsb. These reports should only include monetary datac. Since these reports fail to provide feedback to management on the operations of previously implemented internal control procedures, other techniques are needed to provide this feedback to managersd. The complexity that a computer introduces into a companys information system will typically prevent the preparation of timely performance reports for the companys management21. _________________ describes the policies, plans, and procedures implemented by a firm to protect its assets. a) Internal controlb) SAS No. 94c) SOX, Section 404d) Enterprise risk management22. ordinary controls within IT environments that affect personnel include a) Use of computer accountsb) insularity of dutiesc) Informal knowled ge of employeesd) all of the above affect personnel23. Which of the following best describes a fundamental control weaknessoften associated with automated data processing systems? a. alter data processing equipment is more field of study to systems error than manual processing is subject to human error b. Automated data processing equipment processes and records alike(p) transactions in a similar manner c. Automated data processing procedures for detection of invalid and strange transactions are less effective than manual control procedures d. Functions that would normally be separated in a manual system are combined in an automated data processing system24. The textbook identifies a number of issues that should be considered when developing a security policy. One of the issues is identify threats. Which of the following is not an example of this issue? a) What assets need to be protectedb) What are the sources of potential security problemsc) External threats are viruses, worms, retaliations from occasion employees d) Internal threats are misuse of assets by employees and embezzlement25 Which of these is not a phase in the life cycle of an information system?a) Planningb) Analysisc) Controld) Implementation26. A poorly-planned information system can result ina)Employee resistance and even sabotageb)Inflexible systems that are sticky to maintain or modifyc)Systems that solve the wrong problemsd)all of these27.Which of the following is not a general objective in the design of an information system? a)A system should provide information which is timely and relevant for conclusiveness making by management and operating personnel b)The output of a system should be highly accuratec)A system should have suitable cogency to accommodate levels of normal activity any additional capacity proves too costly in the long run d)A system should be as simple as permitted so that its structure and operation can be easily understood and its procedures easily accomplished e)A system should be flexible to accommodate changes of a reasonable magnitude when required28. A computerized AIS is harder to audit than a manual system for all of the following reasons except a) The file information is not human readableb) The volume of transaction records and master file records is usually much larger in computerized systems than in manual systems c) An audit trail does not exist in a computerized AISd) Computerized systems often use remote real-time data processing, thus complicating the ghost of transaction records to their sources29. Which of the following is not one of the groups of SOX compliance requirements? a) requirements to use an IT auditor to evaluate controlsb) regulations governing executive reporting and conductc) rules about financial statement reportingd) audit committee/corporate governance requirements30. triplet common techniques auditors use to testing computer programs are a) Test data, compound test facilities, and parallel simulation b) Test data, edit checks, and integrated test facilitiesc) Test data, program change control, and parallel simulation d) Program change control, edit checks, and parallel simulation31. The term data encryption refers toa) Storing data in safe places called cryptsb) Transforming data into secret codesc) Scrambling data in haphazard ways that cannot be unscrambled d) none of these32. The term key in the circumstance of data encryption refers to e) A physical key similar to a house keyf) A logical key similar to the primary key of a data fileg) A mathematical wait on used for encryption purposese) A computer function key that can be found on keyboards33. All of the following are benefits of XBRL excepta) Companies can file financial information in one format, avoiding the errors that may come from reentering data multiple times b) The SEC accepts XBRL-format for electronic register of financial statement reports c) XBRL permits the automatic and reliable exchange of financial inf ormation across all software formats and technologies, including the Internet f) all of the above are benefits of XBRLd) none of the above are benefits of XBRL34.All of these are reasons why databases are important to AISs excepta) AIS databases store valuable informationb) Many AISs are large and therefore potentially unwieldyc) The databases of some organizations are very complexd) The hard disk space used to store AIS databases is comparatively priceyg) all of these are reasons why databases are important to AISs35.A major emolument of relational databases isa)All records are stored togetherb)No pointers are usedc)An expandable top executive is usedd)It closely resembles a flat file36. In upstart years many businesses have formed a common information source within their business organization called a database. One of the wagess of edifice databases is the simultaneous updating of files with common data elements. Another major advantage of the database concept is that a) Dat abase systems can be used in microcomputers as intimately as on large computers b) Database systems are simple to install and maintainc) Database systems are generally less expensive than separate file keep systemsd) Less duplication of data occurs with a database systeme) Fewer virtuoso(prenominal) people are required to run a database system than any other system1. The process of data normalization refers to)a Eliminating data errors and other problems from normal data b)Scaling data to values between zero and onec)Storing data in normal storage media such as hard disksd)none of these38. Database management systems are important to accountants becausea) They automate file storage tasks and enable managers to generate worthwhile financial reportsb They eliminate data verbiage)b) They are unique data structures which accountants have never used before )c) They are easy to develop and therefore save money)d) They are energy efficient39. Which of these is true about finding data in multimedia databases? a) It is not possible to search them because graphics have no text keys for searching b) It is not possible to search them because audio objects have no text keys for searching )c It is possible to search for items in them because such characteristics as speaker or subject can be used as search parameters