Info
Warning
Danger

Study Resources (Accounting)

57.A technique for controlling identification numbers (part number, employee number, etc.) is: a)Self-checking (check) digits b)Echo checks c)Parity control d)File protection 58.In its automated data processing system, a company might use selfchecking numbers (check digit) to enable detection of which of the following errors? a)Assigning a valid identification code to the wrong customer b)Recording an invalid customer's.
5 Views
View Answer
41.The term “test data" is associated with: a)Auditing through-the-computer b)Auditing around-the-computer c)Auditing of manual accounting systems d)Non-auditing procedures performed by a firm’s accounting subsystem employees 42.Three common techniques auditors use to test computer programs are: a)Test data, integrated test facilities, and parallel simulation b)Test data, edit checks, and integrated test facilities c)Test data, program change control, and parallel.
4 Views
View Answer
Matching Questions For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once – there are three terms that are not used. 97.  ______  input controls 98.  ______  business continuity plan (BCP) 99.  ______ .
8 Views
View Answer
Multiple-Choice Questions 23.Three objectives of a company's internal control system should be safeguarding assets, checking the accuracy and reliability of accounting data, and promoting operational efficiency.  A fourth objective of a company's internal control system should be: a)Preventing embezzlement of assets b)Encouraging adherence to prescribed managerial policies c)Avoiding the payment of overtime to company.
6 Views
View Answer
True-False Questions 1. “Integrated accounting software” means software that can interface with other corporate software such as CRM software. 2. “Integrated accounting software” means software that includes the major software modules needed by a business—e.g., accounts payable, accounts receivable, inventory, general ledger, and payroll.  3. Integrated accounting software is mostly available to.
15 Views
View Answer
41. Typically, BPR requires change management.  42. A business implementing an enterprise system should always conduct business process reengineering before putting in the new system. 43. It is not possible to implement an enterprise information system in less than one year. 44. Software and consultant selection precedes formulation of the project team.
9 Views
View Answer
96. Which of the following is true regarding ERP costs? a)Enterprise systems tend to be less costly than integrated accounting software b)Enterprise systems are always less costly than best of breed software solutions c)Costs associated with reassigned employees have nothing to do with the true cost of an enterprise system d)There may be many.
10 Views
View Answer
53.The duties of cashier and accounts receivable bookkeeper should be separated. a)There are two cashiers.  At the end of a certain day, there is a sizable cash shortage; each cashier blames the other and it is impossible to fix responsibility b)A cash shortage is covered by overfooting (overadding) cash in transit.
10 Views
View Answer
Matching Questions For the following terms find the correct definition below and place the letter of that response in the blank space next to the term.  Each definition is used only once – there are two terms that are not used. 74.  ______  ideal control 75.  ______  scenario planning 76.  ______  COBIT 77.  ______ .
7 Views
View Answer
Short Answer Questions 119. How is “integrated accounting software” integrated? 120. Are all integrated accounting software packages alike?  If not, how do they differ? 121. What “cloud processing services” do vendors provide?  How are these useful to accounting software users? 122.What can an ERP system do that middle-market accounting software cannot. 123.  Are.
14 Views
View Answer
63.  Many organizations have an internal audit function that makes periodic reviews of each department within the organization.  The focus of these reviews is to: a)  Conduct an investigation of each department to be sure fraud is not taking place b)  Evaluate the efficiency and effectiveness of the department c)  Evaluate the performance.
8 Views
View Answer
37.Which of the following is not a processing control? a)Record counts b)Control totals c)Hash totals d)Check digits 38.Editing checks performed "in tandem" would be defined as: a)Tests of alphanumeric field content b)Tests for valid codes c)Redundant data checks d)Tests of reasonableness 39.A data field could pass all editing tests and still be invalid.  Additional controls to cope with this would.
7 Views
View Answer
11.Input controls attempt to assure the accuracy and completeness of the data fed into the CPU for processing. 12.It is more difficult to safeguard logical computer access than it is to safeguard physical computer access. 13.Output controls for the computerized accounting information system focus primarily on the security and distribution of print.
9 Views
View Answer
51.All of the following are true concerning embedded audit modules except: a)They provide for continuous auditing of application processing b)The auditor does not have to be involved in the development of these programs c)Once implemented, the system can capture information that is useful to the auditor on an ongoing basis d)With this approach, the.
6 Views
View Answer
77.A transaction involving a charge to a non-existent customer account was entered into an accounts receivable and billing system that was batch processed.  This error should be detected by the computer system and appear in: a)The sort run error printout b)The edit run error printout c)The customer statements printout d)The master file update run.
5 Views
View Answer
61.All of the following are reasons why SOX was enacted, except: a)Enron’s CEO, Jeffrey Skilling, claimed he did not know about the company’s financial shenanigans because he was not involved in their accounting b)Public perception was that auditors were having conflicts of interest with respect to the auditing and consulting services they.
4 Views
View Answer
True-False Questions 1.All controls available for the computerized accounting information system of a company should be implemented regardless of cost due to the high rate of computer crime. 2.One of the "fallback" procedures of a computing center is the "grandfather parent-child" file arrangement. 3.According to the text, data transcription would only be necessary.
14 Views
View Answer
11.Public companies are required to adopt the Control Objectives for Information and Related Technology framework under SOX. 12.The Electronic Systems Assurance and Control model provides a framework for evaluating controls over email systems. 13.An auditing around the computer approach pays little or no attention to the control procedures within an IT environment. 14.Normal.
10 Views
View Answer
Multiple-Choice Questions 31.Which of the following is not true? a)An internal audit is never performed by external auditors b)The primary goals of an internal audit and an external audit are somewhat different c)Both internal and external audits are similar in their insistence upon objectivity in the performance of the audit evaluation d)Both the internal audit.
5 Views
View Answer
47.The least effective physical security control for a computer center is: a)Limited employee access b)Color-coded identification badges c)Insurance d)Strategic placement of computer center equipment 48.Which of the following is an example of application controls in automated data processing systems? a)Input controls b)Hardware controls c)Documentation procedures d)Controls over access to equipment and data files ? 49.An expense report was prepared by a.
6 Views
View Answer
35.It is generally true of not-for-profit organizations that they: a)Are profit-oriented despite their name b)Are always evaluated using profit measures c)Are not governed by accounting standards d)Emphasize funds rather than income in their internal accounting systems 36.A major objective of professional service organizations is to: a)Decrease billable hours b)Increase billable hours c)Increase time spent training employees d)Bill customers as.
10 Views
View Answer
33.Which of the following statements is true? a)The COSO report failed to define internal control b)The COSO report emphasized that an internal control system is a tool of management c)SAS 78 rejected the definition of internal control provided in the COSO report d)COBIT concluded that a company's management is not responsible for establishing.
5 Views
View Answer
11.Operational audits are performed by a company’s internal audit staff. 12.The separation of duties control would not be violated if a company's cashier was also responsible for recording cash transactions. 13.The separation of duties control does not eliminate completely the possibility of embezzlement by employees. 14.The personnel subsystem has the important function of.
9 Views
View Answer
True-False Questions 1.One problem with internal auditing is that it is akin to self-regulation (i.e., the auditor cannot be impartial because both the auditor and the subsystem being audited work for the same company). 2.Both the internal audit and the external audit have the same primary objective (i.e., to verify that the.
18 Views
View Answer
Multiple-Choice Questions 27.The principal function of an accounting system's computerized controls is: a)Detecting computer frauds b)Preventing computer frauds c)Encouraging programmer honesty d)none of the above 28.When a company is setting up its accounting information system, it is important for management to select: a)A standard set of computer control mechanisms b)Only those controls which appear to serve its needs c)Controls.
11 Views
View Answer
21.Information Technology (IT) governance includes using IT responsibly and efficiently, but not necessarily strategically. 22.Auditors may use transaction tagging to verify how a system processes certain transactions. 23.It is relatively easy to prevent hackers from unauthorized access to data and programs. 24.The three conditions for fraud in the fraud triangle include pressure, rationalization,.
5 Views
View Answer
Matching Questions For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once – there are four terms that are not used. 105. ______  scalable 106. ______  mashups 107. ______  hosted solution 108. ______  supply.
12 Views
View Answer
Matching Questions For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once – there are three terms that are not used. 57.  ______  enterprise asset management 58.  ______  BPM software 59.  ______  financing.
11 Views
View Answer
Short Answer Questions 85.Discuss the elements of the Sarbanes-Oxley Act of 2002 that affect auditing. 86. IT auditors need people skills as well as technical skills.  Discuss some techniques and skills that assist the auditor during interviews. 87.Describe continuous auditing anddiscuss examples of different continuous auditing techniques.   15.1 .
12 Views
View Answer
11. Internet connectivity is a software feature that is available only in enterprise resource planning software. 12. Supply chain management concerns an organization’s ability to interface with its customers and suppliers. 13. Integrated accounting software programs process accounting transactions only. 14. Low-end accounting software is unlikely to include features such as sample.
15 Views
View Answer
True-False Questions 1.Controls that specifically encourage operating efficiency are often called preventive controls. 2.Controls that attempt to safeguard asset resources are often called detective controls. 3.For a specific internal control to be effective, both the preventive and the detective aspect of the control must exist and be interrelated. 4.Preventive and corrective controls are established.
27 Views
View Answer
51. The term “spend management” refers to the ongoing process of limiting expenses to minimum levels.  52.An important advantage of ERP systems is that they are close to failure-proof. 53. An example of an intangible benefit of ERP systems is increased customer satisfaction. 54. An important drawback of an ERP.
10 Views
View Answer
Multiple-Choice Questions 66.   Which of the following is considered an integrated software system? a)  Material requirements planning systems (MRP I) b)  Manufacturing resource planning systems (MRP II) c)  Enterprise resource planning systems (ERP) d)  all of the above 67. Integrated accounting software programs generally include all of the following, except: a)Graphic reporting capabilities b)Internet connectivity c)One standardized chart of.
10 Views
View Answer
Short Answer Questions 118.Define and explain BCP and its purpose. 119.When we talk of convergence of physical and logical security, what do we mean and why is it important? 120.What is the purpose of the separation of duties control and why is it different between manual systems and computerized systems?   14.1 .
15 Views
View Answer
Short Answer Questions 69.Why would some companies choose to have payroll processed by an external service bureau? 70.What concepts are the "root" of lean production and lean manufacturing? 71.Identify three vertical market industries and list some unique needs they might have.   11.1 .
14 Views
View Answer
Matching Questions For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once. 68.______  automated workpaper software 69.______  Certified Information Systems Auditor (CISA) 70.______  computer-assisted audit techniques (CAATs) 71.______  continuous auditing 72.______  COBIT 73.______  fraud triangle 74.______  generalized audit.
6 Views
View Answer
86.The database of an ERP system is best described as: a)Limited b)Bolt-on c)Centralized d)Distributed ? 87. Which of the following business processes or functions is unlikely to be part of an enterprise system? a)Accounting/financing b)Human resources c)Manufacturing d)Sales or distribution e)all of the above are likely to be included in an enterprise system 88. Business process reengineering, as it relates to.
29 Views
View Answer
11) MIS is defined as the management and use of processes, information systems, and information to help organizations achieve their strategies. 12) An information system is a collection of components, including a computer, that stores and retrieves data and produces information. 13) Business processes are synonymous with information systems. 14) A process may.
8 Views
View Answer
45.   According to the text, all of the following are objectives of the human resource management process except: a)  Hiring, training, and employing workers b)Counseling employees on retirement and medical benefits c)Maintaining employee earnings records d)Reporting on payroll deductions 46.   According to the text, which of the following is an output of the human resource.
14 Views
View Answer
43.If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company's internal control system? a)A good audit trail b)Separation of duties c)Internal review of controls d)Competent employees 44.Which of the following control procedures provides physical protection for.
5 Views
View Answer