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21.The output of the detailed design phase of the Systems Development Life Cycle (SDLC) is a a.fully documented system report b.systems selection report c.detailed system design report d.systems analysis report 22.The detailed design report contains all of the following except a.input screen formats b.alternative conceptual designs c.report layouts d.process logic 23.When each element of information supports the user’s decision or.
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6.Explain why the Systems Development Life Cycle is of interest to accountants. What is the accountant’s role in the Systems Development Life Cycle? 7.What are three problems that account for most system failures? 8.What is Industry analysis and why do managers do it. 9.Why is the announcement of a new systems project so.
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MULTIPLE CHOICE 1.Which of the following is NOT an implication of section 302 of the Sarbanes-Oxley Act? a.Auditors must determine, whether changes in internal control has, or is likely to, materially affect internal control over financial reporting. b.Auditors must interview management regarding significant changes in the design or operation of internal control that.
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3.Define the feasibility measures that should be considered during project analysis and give an example of each. 4.Explain the role of accountants in the conceptual design stage. 5.Contrast the feasibility study performed in the systems analysis phase of the Systems Development Life Cycle (SDLC) with the study performed in the systems selection.
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TRUE/FALSE 1.In a computerized environment, the audit trail log must be printed onto paper documents. 2.Disguising message packets to look as if they came from another user and to gain access to the host’s network is called spooling. 3.Access controls take on increased importance in a computerized environment because all of the records.
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31.Which statement is not true? A systems design walkthrough a.is conducted by a quality assurance group b.occurs just after system implementation c.simulates the operation of the system in order to uncover errors and omissions d.reduces costs by reducing the amount of reprogramming 32.System documentation is designed for all of the following groups except a.systems designers and.
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11.A second site backup agreement between two or more firms with compatible computer facilities to assist each other with data processing needs in an emergency is called a.internally provided backup b.recovery operations center c.empty shell d.mutual aid pact 12.The major disadvantage of an empty shell solution as a second site backup is a.the host site may.
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21.Describe two tests that an auditor would perform to ensure that the disaster recovery plan is adequate. 22.Distinguish between inherent risk and control risk. How do internal controls and detection risk fit in? 23.Contrast internal and external auditing. 24.What are the components of audit risk? 25.How do the tests of controls affect substantive tests? .
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11.A disaster recovery plan is a comprehensive statement of all actions to be taken after a disaster. 12.IT auditing is a small part of most external and internal audits. 13.Assurance services is an emerging field that goes beyond the auditor’s traditional attestation function. 14.An IT auditor expresses an opinion on the fairness of.
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ESSAY 1.Describe at least four advantages and two disadvantages of the Computer Aided Software Engineering (CASE) approach. 2.CASE tools develop systems without the intermediate step of writing human readable source code. This can pose some concerns for accountants. What are they? 3.Discuss the appropriate steps to take when selecting a commercial software package. .
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7.What fraud detection responsibilities (if any) are imposed on auditors by SOX. 8.Describe how a Corporate Computer Services Function can overcome some of the problems associated with distributed data processing. 9.Discuss the advantages and disadvantages of the second site backup options. 10.Internal control in a computerized environment can be divided into two broad.
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4.The Studebaker Company is evaluating two proposals for a commercial software package. Three relevant factors were identified and weighted. Then the evaluation team assigned raw scores from 1 to 5 to each factor for each vendor. Proposal One will cost $70,000 and Proposal Two will cost $65,000. ProposalProposal WeightOneTwo Vendor support3045 Ease of use3054 Range.
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21.The fundamental difference between internal and external auditing is that a.internal auditors represent the interests of management and external auditors represent outsiders b.internal auditors perform IT audits and external auditors perform financial statement audits c.internal auditors focus on financial statement audits and external auditors focus on operational audits and financial statement audits d.external auditors.
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SHORT ANSWER 1.Briefly define an operating system. 2.What is a virus? 3.Describe one benefit of using a call-back device. 4.Contrast the Private Encryption Standard approach with the Public Key Encryption approach to controlling access to telecommunication messages. 5.List three methods of controlling unauthorized access to telecommunication messages. .
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MULTIPLE CHOICE 1.Which statement is not true? a.prototypes do not include internal control features b.a prototype is an inexpensive, simplified model of a system c.a throwaway prototype is discarded after the requirements are established d.systems designers always discard prototypes and do not develop them into finished systems 2.Which statement is not true? Computer Aided Software Engineering.
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4.Prior to SOX, external auditors were required to be familiar with the client organization’s internal controls, but not test them. Explain. 5.Does a qualified opinion on managements assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Explain. 6.The PCAOB’s standard No. 2 specifically requires.
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MULTIPLE CHOICE 1.The operating system performs all of the following tasks except a.translates third-generation languages into machine language b.assigns memory to applications c.authorizes user access d.schedules job processing 2.Which of the following is considered an unintentional threat to the integrity of the operating system? a.a hacker gaining access to the system because of a security flaw b.a hardware.
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TRUE/FALSE 1.Programs in their compiled state are very susceptible to the threat of unauthorized modification. 2.Maintenance access to systems increases the risk that logic will be corrupted either by the accident or intent to defraud. 3.Source program library controls should prevent and detect unauthorized access to application programs. 4.A check digit is a method.
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6.Contrast reactive and proactive management styles. 7.Explain why accountants are interested in the legal feasibility of a new systems project. 8.Explain an advantage of surveying the current system when preparing a systems analysis for a new systems project. 9.What are two purposes of the systems project proposal? 10.List two ways that a systems project.
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16.The distributed data processing approach carries some control implications of which accountants should be aware. Discuss two. 17.__________________________ are intentional mistakes while __________________________ are unintentional mistakes. 18.Explain the relationship between internal controls and substantive testing. 19.Discuss the interrelationship of tests of controls, audit objectives, exposures, and existing controls. 20.Distinguish between errors and irregularities. Which.
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SHORT ANSWER 1.Which of the following statements is true? a.Both the SEC and the PCAOB requires the use of the COSO framework b.Both the SEC and the PCAOB requires the COBIT framework c.The SEC recommends COBIT and the PCAOB recommends COSO d.Any framework can be used that encompass all of COSO’s general themes 2.COSO identifies two.
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6.What is meant by “object-oriented design?” What does it mean for systems design? 7.List three advantages and one disadvantage of commercial software. 8.What is the purpose of the Request for Proposal (RFP)? 9.Explain how a benchmark problem is used to measure the performance of two different commercial software packages. 10.Contrast the structured and object-oriented.
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16.What are embedded instructions? Why do they matter? 17.What are the two methods of electronic input? How do they differ? 18.Describe the Cold Turkey (or Big Bang) approach to system cutover. 19.Discuss the advantage of the parallel operation cutover approach. 20.What is the objective of a post-implementation review? .
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TRUE/FALSE 1.The detailed design phase of the Systems Development Life Cycle is a linear process with each of five steps occurring once and in its proper sequence. 2.In a Computer Aided Software Engineering (CASE) environment, the most important use of a data flow diagram is to present a graphic display of the.
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TRUE/FALSE 1.Corporate management (including the CEO) must certify monthly and annually their organization’s internal controls over financial reporting. 2.Both the SEC and the PCAOB requires management to use the COBIT framework for assessing internal control adequacy. 3.Both the SEC and the PCAOB requires management to use the COSO framework for assessing internal control.
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11.Which statement is not correct? The structured design approach a.is a top-down approach b.is documented by data flow diagrams and structure diagrams c.assembles reusable modules rather than creating systems from scratch d.starts with an abstract description of the system and redefines it to produce a more detailed description of the system 12.The benefits of the.
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21.Correctly designed, processing modules are tightly coupled and have strong cohesion. 22.A system walkthrough occurs after the system is implemented. 23.The detailed design report is the “blueprint” which guides programmers and database administrators in constructing the physical system. 24.When a program module is tested, both good and bad data are included with the.
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11.The most frequent victims of program viruses are microcomputers. 12.Access controls protect databases against destruction, loss or misuse through unauthorized access. 13.Operating system integrity is not of concern to accountants because only hardware risks are involved. 14.Audit trails in computerized systems are comprised of two types of audit logs: detailed logs of individual.
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31.In an electronic data interchange environment, the audit trail a.is a printout of all incoming and outgoing transactions b.is an electronic log of all transactions received, translated, and processed by the system c.is a computer resource authority table d.consists of pointers and indexes within the database 32.All of the following are designed to control exposures.
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ESSAY 1.Discuss the key features of Section 404 of the Sarbanes-Oxley Act 2.Section 404 requires management to make a statement identifying the control framework used to conduct their assessment of internal controls. Discuss the options in selecting a control framework. 3.Explain how general controls impact transaction integrity and the financial reporting process. .
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10.Contrast the preliminary project feasibility study with the feasibility study performed in the systems evaluation and selection phase of the SDLC. 11.Part of systems planning is a project feasibility study. Several feasibility issues can be raised. What are they? Explain the key concerns. 12.Explain the role of accountants in the conceptual design.
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6.Describe two ways that passwords are used to authorize and validate messages in the electronic data interchange environment. 7.Explain how transactions are audited in an electronic data interchange environment. 8.Describe are some typical problems with passwords? 9.Discuss the key features of the one-time password technique: 10.Describe two tests of controls that would provide evidence.
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SHORT ANSWER 1.Using Computer Aided Software Engineering (CASE) tools, the structure diagram can be transformed into machine code. Describe a disadvantage associated with this procedure. 2.Using Computer Aided Software Engineering (CASE) tools, the structure diagram can be transformed into machine code. Describe an advantage associated with this procedure. 3.What is prototyping? Why is.
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6.Define general controls. 7.Discuss the key features of Section 302 of the Sarbanes-Oxley Act. 8.What the three primary CBIS functions that must be separated? 9.List three pairs of system functions that should be separated in the centralized computer services organization. Describe a risk exposure if the functions are not separated. Functions to SeparateRisk Exposure ____________________________________________________ ____________________________________________________ ____________________________________________________ 10.For.
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11.Which is not a biometric device? a.password b.retina prints c.voice prints d.signature characteristics 12.Which of the following is not a basic database backup and recovery feature? a.checkpoint b.backup database c.transaction log d.database authority table 13.All of the following are objectives of operating system control except a.protecting the OS from users b.protesting users from each other c.protecting users from themselves d.protecting the environment from users 14.Passwords.
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26.What is an auditor looking for when testing computer center controls? 27.Define and contrast attestation services and assurance services. 28.What is IT Governance? 29.Why should the tasks of systems development and maintenance be segregated from operations? 30.Why should new systems development activities be segregated from the program change (maintenance) function. .
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21.All of the following tests of controls will provide evidence that adequate computer virus control techniques are in place and functioning except a.verifying that only authorized software is used on company computers b.reviewing system maintenance records c.confirming that antivirus software is in use d.examining the password policy including a review of the authority table 22.Audit.
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11.Auditors examine the physical environment of the computer center as part of their audit. Many characteristics of computer centers are of interest to auditors. What are they? Discuss. 12.Explain why certain duties that are deemed incompatible in a manual system may be combined in a CBIS environment? Give an example. 13.Compare and.
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11.List four types of facts that should be gathered during an analysis of a system. 12.What is the Internal Business Process Perspective? 13.What is the Learning and Growth Perspective? 14.When a company is doing financially well, why is the Customer Perspective measure important? 15.Distinguish between escapable and inescapable costs. Give an example. 16.Why is cost-benefit.
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11.In the object-oriented approach to systems design, when an operation is performed on an object, an attribute will always be changed. 12.In the object-oriented approach to systems design, inheritance means that each object instance inherits the attributes and operations of the class to which it belongs. 13.In the object-oriented approach to systems.
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11.Describe the components of a disaster recovery plan. 12.What is a mirrored data center? 13.Why is supervisory control more elaborate in the CBIS environment than in the manual environment? 14.What are some control implications of the distributed data processing model? 15.What is program fraud? .
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11.List three characteristics that should be considered when designing a hardcopy input form. 12.List two techniques of forms design that encourage efficient and effective data collection. 13.What is the importance of the base case? 14.Describe a risk associated with the phased cutover procedure for data conversion. 15.List the attributes of output views. .
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