AIS Final Exam Questions and Answers

AIS Final Exam Questions and Answers c The Sarbanes-Oxley Act of 2002 dramatically changed the daily work of financial accountants and auditors because it a. Expanded the scope of the audit beyond financial information b. Required that organizations work with their auditors to design systems of internal control c. Required that external auditors report on the effectiveness of an organization system of internal control d. Expand the opportunities for auditors to engage in consulting activities with their audit clients c The ability of more than one individual to come to the same measurement is known as a. accuracy b. completeness c. verifiability d. comparability c The central repository for all the date related to the enterprise's business activities and resources a. information system b. management information system c. enterprise database d. strategic planning b Generally, which of the following is NOT one of the three roles an accountant typically fills in relation to the AIS? a. Designer b. Programmer c. User d. Auditor c The most dominant player in the ERP market for large companies is a. Oracle b. Sage c. SAP d. Microsoft a Software that builds and maintains an organization's customer-related database is known as a. customer relationship management (CRM) software b. Customer self service (CSS) software c. Sales force automation (SFA) software d. Supply chain management (SCM) software d Software that manages the interactions with the organization's that supply the goods and services to an enterprise is known as a. Customer relationship management (CRM) software b. Customer self service (CSS) software c. Sales force automation (SFA) software d. Supplier relationship management (SRM) software b The general term for software that connects third-party modules to ERP systems is known as a. Dreamweaver b. Middleware c. Microsoft d. NetWeaver a The _____ module of the SAP system handles payroll processing a. Human resources b. Controlling and profitability analysis c. Financial accounting d. Customer relationship management d These are relatively permanent portions of master data a. Business event data b. Data maintenance c. Master data d. Standing data c In batch processing, business event data are collected and processed a. As soon as possible b. One at a time c. In groups d. Using OLRT systems a A disadvantage of periodic mode systems is a. Online master data are only up to data right after the processing has been completed b. It is more expensive to operate than immediate mode system c. Query capability always exists to extract up-to-date data d. Data is updated after every transaction b A system that supports constantly up-to-date reporting of data is a. Online transaction entry (OLTE) b. Online real-time (OLRT) c. Online transaction data (OLTD) d. Electronic document management c Internet market exchanges: a. Restrict those that can participate b. Eliminate the need for credit and background checks c. Bring together buyers and sellers in the same industry d. Are approved by the Federal Trade Commission (FTC) b Which data flow diagram (DFD) symbol is portrayed by two parallel lines? a. Data Flow b. Data Store c. External entity d. Internal entity or process d In a physical data flow diagram (DFD), this is something within the system that transforms data. a. Data flow b. Data store c. External entity d. Internal entity b Which type of data flow diagram specifies where, how, and by whom a system's processes are performed? a. Context diagram b. Physical DFD c. Logical DFD d. Systems flowchart b Information processing activities include: a. Only automated activities b. Activities that retrieve, transform, and file data c. The sending of data between entities d. Operational activities d Which of these represents a comprehensive picture of management, operations, and information systems? a. Context diagram b. Logical DFD c. Physical DFD d. Systems flowchart a Data redundancy: a. Occurs when data is stored in multiple locations b. Is eliminated by using the application approach c. Reduces labor and storage costs d. Improves consistency between applications c A company uses a 7-digit number to identify customers. For example, the customer 1532789 indicates the following information: Digit 1-2, state, 15 = Georgia Digit 3, type of organization, 3 = government agency Digit 4, credit terms, 2 = 2/10, n/30 Digits 5-7, unique customer Identifier, 789 This type of coding scheme is: a. Hierarchical b. Block c. Significant digit d. Sequential d The coding system that is most understandable by human information processors is: a. Serial coding b. Hierarchical coding c. Block coding d. Mnemonic coding a The ______ database model works well for simple data structures, but falls apart quickly when the data becomes more complex. a. Hierarchical b. Relational c. Network d. Object-oriented a A relation that is in _____ form contains repeating attributes within each row or record a. Unnormalized b. First normal (1NF) c. Second normal (2NF) d. Third normal (3NF) b Running an applications approach to sales and inventory programs leads to: a. A central database b. Data redundancy c. Higher efficiencies d. Reports that are easier to query c The model that logically organizes data into two-dimensional tables is the: a. Hierarchical database model b. Network database model c. Relational database model d. Object-oriented model a The ERM framework addresses four categories of management objectives. Which category of concerns laws and regulations? a. Compliance b. Operations c. Reporting d. Strategic d Which component of the ERM framework is best described here: Management selects whether to avoid, accept, reduce, or share risk; developing a set of actions to allign risks with the entity's risk tolerances and risk appetite. a. Control activities b. Event identification c. Risk assessment d. Risk response b This component of the ERM framework concerns the entirety of enterprise risk management and is accomplished through ongoing management activities, separate evaluations, or both. a. Control activities b. Monitoring c. Objective setting d. Risk response a This framework was issued in 1996 (and updated in 2007) by the Information Systems Audit and Control Association (ISACA) because of the influence of IT over information systems, financial reporting and auditing. a. COBIT b. COSO c. ERM d. All of the above a A control goal that is a measure of success in meeting a set of established goals is called: a. Effectiveness b. Monitoring c. Efficiency d. Risk c A programming error causes the sale of an inventory item to be added to the quantity on hand attribute in the inventory master data. Which control goal was not achieved? a. ensure update completeness b. ensure input accuracy c. ensure update accuracy d. ensure input completeness c _______ can consist of many computers and related equipment connected together via a network. a. PCs b. Servers c. LAN d. Firewall b The controlled access to data, programs, and documentation is a principal responsibility of which of the following functions? a. Data control b. Data librarian c. Recording events d. Computer operator b A warehouse clerk manually completing an order document and forwarding it to purchasing for approval is an example of: a. Authorizing events b. Executing events c. Recording events d. Safeguarding resources a A clerk receives checks and customer receipts in the mall. He endorses the checks, fills out the deposit slip and posts the checks to the cash receipts events data. The clerk is exercising which functions? a. Recording and executing events b. Authorizing and executing events c. Recording and authorizing events d. Safeguarding of resources and authorizing events b A control plan that is designed to detect a fraud by having one employee periodically do the job of another employee is called: a. Segregation of duties b. Forced vacations c. Periodic audits d. Management control c This logs and monitors who is on or trying to access an organization's network. a. Blometrics b. Electronic vaulting c. Intrusion detection systems (IDS) d. Firewall a The columns in a control matrix contain headings listing the business process: a. Control goals b. Control plans c. Control environment d. Control procedures b In the control matrix, the rows represent: a. Control goals of the operations process b. Recommended control plans including both present and missing controls c. Control goals of the information process d. Control goals of the management process a Which of the following is a control plan in which the source document is designed to make it easier to input data from the document? a. Document design b. Written approval c. Preformatted screens d. Online prompting a Before a complete input screen is recorded the data entry clerk is asked if the data should be accepted. This is which control plan? a. Online prompting b. Mathematical accuracy check c. Preformatted screen d. Confirm input acceptance b A control report generated by a system that shows data about transactions that were accepted or rejected during a transaction processing step is called a(n): a. Violation report b. Exception and summary report c. Variance report d. Program change log d Which of the following types of batch totals is likely to be most effective in ensuring the control goal of input accuracy? a. Line counts b. Document/record counts c. Item counts d. Hash totals b Inputting a range of number comprising a batch and then inputting each serially numbered document is characteristic of the control plan called: a. Cumulative sequence check b. Batch sequence check c. Suspense file of missing numbers d. Computer agreement of batch totals a When the sales-related data are captured in the sales order department and then the information flows to the managers housed in the marketing department, it is an example of a: a. Vertical information flow b. Horizontal information flow c. Both vertical and horizontal information flow d. Neither vertical nor horizontal information flow d With companies facing global competition, firms are recognizing that their most important asset is: a. Inventory b. Employees c. Cash d. A happy customer c _________ application can handle both B2B and B2C business transactions a. Customer relationship management b. Buy-side c. Sell-side d. E-business c A document that is used when filling a sales order to authorize the movement of goods from a warehouse to shipping is called a: a. Shipping order b. Packing slip c. Picking ticket d. Blind authorization d Which of the following data is least likely to be stored in the customer master data? a. customer number b. billing address c. ship-to address d. open invoices