Accounting Expert Answers & Study Resources : Page 426

163) Describe the similarities and differences between a quantitative and a qualitative approach to computer risk assessment. 164) Give four factors that are important to a company's control environment in the area of computer security, and illustrate each with an example. 1 .

115) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once. ________ 1. Key verification ________ 2. Real-time ________ 3. On-line, real time computing ________ 4. Input document.

117) Melbourne Manufacturing Company is a new start-up business that has not yet opened its doors. The controller for the company is concerned about the best way to process accounts receivable. The controller expects each individual sale to be relatively large, and her goal is for all customers to pay.

98) Alberta Products Company updates their accounts receivable master file each day. The EDP department uses the son-father-grandfather retention of master files. A computer operator accidentally destroyed the most recent accounts receivable master file by using the purchase transaction file to update it. The operator now has today's correct transaction.

11) In the SAP ERP system, the "contact person" screen is used to indicate the specific days and times the customer will accept deliveries. 12) The SAP ERP "sales" screen is used to code a customer's currency exchange rate. 13) The transmission medium used for preparing and sending an invoice to a.

120) Southeastern Supply Company has been in business for one month. The chief information officer of the company is designing procedures for its sales order entry system. Top management wants procedures for both general and specific authorization. Required: Describe procedures to accomplish each of the following activities and indicate whether each.

122) Goodfellows Manufacturing Company is a mature user of the SAP ERP order processing system. Goodfellows recently acquired another manufacturing company and it wants to consolidate its customer records into Goodfellows' SAP ERP system. What are two things Goodfellows must do before it consolidates the other manufacturing company's customer records.

68) Fundamental controls over data transfer between user departments and data processing include A) batch control totals. B) data transfer registers. C) activity file totals. D) Answers A and B are both correct. 69) Input data should be accompanied by the completion of a(n) A) data transfer log. B) input document control form. C) data transfer register. D) key.

85) Which of the screens listed below in SAP ERP system is not optional when a company records information relating to a sale? A) Pricing B) Create sales order C) Business data header D) Scheduling 86) The prices entered on sales orders should be independent of the sales order function. To achieve this transaction cycle.

65) ________ can be digitally signed in the same way that electronic messages are signed to authenticate the identity of the source of the program. 66) Backing up files is not the same thing as ________ them. 67) A weakness in the ________ system is also likely to create a related weakness.

161) You are the chief security officer for the Astra Corporation. You have decided that the risk of viruses is too great to allow employees to install and run games on the company's computer system. Required: a. What types of controls are required, and what is the objective of the required controls? b..

136) The information security management system life cycle includes analysis, design, implementation, and A) operation, evaluation, and management. B) operation, evaluation, and control. C) operation, management, and continuity. D) operation, control, and continuity. 137) Guidelines and standards that are important to Information Security Management Systems include all the following except A) COSO. B) COBIT. C) ERM. D) ISO 27000.

95) To provide an adequate separation of functions in the accounts receivable business process, maintaining the accounts receivable control account should be the responsibility of A) billing. B) accounts receivable. C) cash receipts. D) general ledger. 96) A sales return occurs when a customer actually returns goods that have been shipped. The departments involved with.

116) The following ten paragraphs describe control weaknesses in customer order and account management business processes. Listed below are 11 controls that may help control the weaknesses: A.Customer credit check B.Master price list independent from Order Entry C.Credit department approval of customer account adjustments D.Independent confirmation from internal audit to customer E.Independent confirmation from Accounts.

75) ________ is a form of social engineering in which one impersonates another typically in a phone call or electronic communication. 76) ________ is a form of social engineering which is aimed directly at tricking victims into giving information, money, or other valuable assets to perpetrators. 77) ________ ________ includes unnoticed intruders,.

41) Sequential-access file updating is simpler than random-access file updating. 42) An accounts receivable control file is a summary of the accounts receivable by type of account, such as "installment" or "net 30 days." 43) The last step in the cash remittance processing of customer payments by check is to restrictively endorse.

56) In ________ processing, a separate record is maintained in the accounts receivable system for each of the customer's unpaid invoices. 57) The mail room prepares a(n) ________ ________ that documents payments received. 58) An objective of managing accounts receivable is to reduce the ________, because in collecting accounts receivable, "time is.

165) When devising its disaster recovery plan, a company should have a detailed set of recovery strategies and procedures. What are five considerations that should be covered by the company's recovery strategies and procedures? 166) Discuss how U.S. law has addressed the issue of information systems fraud. 167) Discuss the information security.

86) A significant benefit of the quantitative approach to risk assessment is that A) often the most likely threat to occur is not the one with the largest exposure. B) the relevant cost of the loss's occurrence is an estimate. C) the likelihood of a given failure requires predicting the future. D) the approach.

116) Base your answer using the following version of the Modulus 11-check digit found in Chapter 6. For a four-digit account number: 1. Multiply each digit separately by the corresponding digit in the sequence: 5, 4, 3, 2. 2. Add results of digit multiplication in Step 1, digit-by-digit. 3. Subtract Step 2 results from.

1) Inquiry is an essential activity in the customer order business management process. 2) The primary function of the customer order business management process is order fulfillment. 3) Inquiries contain delivery information; quotations do not. 4) A legal agreement, prepared before selling to customers as a matter of company policy, is a contract. 5).

46) A well-designed customer order business management process captures ________ ________ as early as possible and reuses it in subsequent activities. 47) A contract to provide goods or services over a period of time is sometimes called a(n) ________ ________. 48) ________ is an information system that enables the implementation of sophisticated.

75) Hierarchy assignment includes a customer's A) distribution channel. B) geographical location. C) credit approval. D) All of these answers are correct. 76) The first screen used to create a customer in a SAP ERP system is A) control data. B) contact person. C) initial. D) account management. 77) In the SAP ERP system, the "create customer" screen, which is.

114) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once. ________ 1. Key verification ________ 2. Valid code check ________ 3. OLRS ________ 4. Output distribution register ________.

78) A data editing routine that compares data with acceptable values is a A) limit test. B) table lookup. C) financial total check. D) valid code check. 79) A data editing routine that compares numeric data input within a range is a(n) A) table lookup. B) hash total check. C) limit test. D) internal label test. 80) An extra digit.

115) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once. ________ 1. Imprest techniques ________ 2. Factoring ________ 3. Blanket order ________ 4. Customer audit ________ 5. Cycle.

121) For each of the following situations, indicate the program data editing technique that is appropriate to detect the error: a. Calgary Mountain Equipment Company uses prenumbered sales orders. The company is not sure that it can account for all sales orders for the week of October 21, 200X. b. The amount.

146) In general, ________ arise from improperly installed or configured software and from unforeseen defects or deficiencies in the software. A) exploits B) virtualizations C) vulnerabilities D) exposures 147) Sabotage is a(n) ________ threat. A) active B) passive C) direct D) second layer 148) Input ________ is an example of a system attack method. A) vector B) manipulation C) hacking D) buffer 149) ________ involves.

157) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once. ________ 1. Biometric hardware authentication ________ 2. Archive bit ________ 3. Trapdoor ________ 4. Consensus-based protocol ________ 5..

126) A flying-start site A) is the most commonly adopted option for companies with disaster recovery plans. B) usually cannot be made operational within 24 hours. C) involves mirroring of transactions at the primary site, followed by transmission of data to the backup site. D) is arranged through a service bureau. 127) After a planning.

116) Disaster risk management is concerned with A) the prevention of disasters. B) the layered-access approach to security. C) contingency planning. D) Answers A and C are both correct. 117) The first step in managing disaster risk is A) to obtain business interruption insurance. B) disaster prevention. C) contingency planning. D) to analyze and list recovery priorities. 118) Which of.

168) The main group of international standards for information security is ISO/IEC 27000 series published by the International Organization for Standardization (ISO). ISO/IEC 27002 addresses over 5,000 controls categorized under 12 categories. Discuss 10 of the 12 categories that should be used as a general guide by any company considering.

54) The use of ________ control over the entire data processing input-process-output sequence is fundamental to organizational independence. 55) The use of programmed edit checks to discriminate among acceptable data is called ________ ________ auditing. 56) Using ________ ________ can compensate for the loss of manual internal controls. 57) ________ ________ input sales.

124) Discuss the components necessary to operate a real-time sales system. 125) What are the benefits of program data editing? 126) Discuss how batch totals are prepared and used. Explain how the use of batch totals and data transfer logs helps to establish segregation of duties between user departments and the data.

21) A transmission acknowledgment reports in detail the items in the received message. 22) A functional acknowledgment acknowledges receipt of the message and reports in detail the items in the received message. 23) An input document control form documents real-time totals of input data transmitted between user departments and the data processing.

1) A sales order is an example of a source document that may be prepared manually. 2) The absence of control procedures over data transmitted between user departments and the data processing department could represent a serious weakness in the system. 3) The use of input control documents is not necessary when.

105) A significant difference between a cash sales business process and a cash-received-on-account business process is that A) no previous customer account balance exists in a cash sales business process. B) the float is shorter in a cash-received-on-account business process. C) more direct supervision is required in a cash-received-on-account business process. D) There is.

118) The following input is in an accounts receivable application: Account numberGross amount 58648362 14387866 22896483 98228968 28775214 Required: Calculate the appropriate (a) record count; (b) financial total; and (c) hash total. 119) The following input is in an accounts payable application: Account numberGross amount 62899482 32764860 12807298 97649062 12835775 Required: Calculate the appropriate (a) record count; (b) financial total; and (c) hash total. 120) For.

31) The party best suited to reconciling a company's bank account is the internal auditor. 32) Cash sales should be recorded in a cash register or other secure device that can provide immediate documentation of the sales. 33) The focal point of the cash sales business process is the quick generation of.

108) Which application would not be ideally suited to processing by an OLRS system? A) Payroll B) On-line reservations C) Inventory control D) Customer accounts 109) A technology that is not typically used in a real-time sales system is A) bar coding. B) sequential file processing. C) a POS system. D) an EDI ordering system. 110) A retail sales Point-of-Sale.

159) Your company has been rapidly growing and increasing in profitability for the past five years. Suddenly, a new, smaller company has appeared, and it seems to have an uncanny ability to win away your previously loyal customers. You know that the owner of the new company is your company's.

114) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once. ________ 1. Remittance list ________ 2. Credit memo ________ 3. Open-item processing ________ 4. Bill of lading ________.

31) Few manual processing systems are batch oriented. 32) Batch processing is economical when large numbers of transactions must be processed. 33) Batch processing can only be performed using random-accessed (i.e., direct or indexed) file updating. 34) A sequentially organized master file commonly resides on a direct-access storage device. 35) When preparing the transaction.

106) Disk shadowing is an example of a fault tolerance applied at what level? A) Network communications B) DASD C) Transaction D) CPU processor 107) An example of a fault tolerance at the network communications level is A) a watchdog processor. B) disk mirroring. C) rollback processing. D) an uninterruptable power supply. 108) Since many personal computer users do not.

88) Three technologies make extended supply-chain systems feasible. Which of the below is not one? A) XML-type data generation B) POS system C) Bar coding for automatic identification D) EDI ordering system 89) A transaction log that is "tagged" means that A) it has been catalogued in the EDP library. B) it is full and cannot hold.

11) Accounting data entered into an Accounting Information System must be in the form of debits and credits. 12) Sophisticated information systems can capture system events and their attributes. 13) Bar coding is a manual identification technique used in a real-time system. 14) Bar coding is an automatic identification technique used in a.

21) Accounts receivable often represents the majority of an organization's working capital. 22) Selling accounts receivable at a discount to a collection agency is part of a company's cycle billing plan. 23) The approval of sales returns and allowances is a function of the credit department. 24) After an allowance has been authorized.

158) Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms. Required: Match the letter next to each definition with the appropriate term. Each answer will be used only once. ________ 1. Database shadowing ________ 2. Logic bomb ________ 3. Information security system ________ 4. Risk management ________.

65) Which of the following activities is optional in the customer order business management process? A) Order entry B) Contract creation C) Shipping D) Billing 66) The customer order business management process begins when a A) customer order is entered into the system. B) customer order is shipped. C) customer invoice is generated and sent to the customer. D).

96) Sometimes computer programs are used to commit acts of sabotage. A destructive program masquerading as a legitimate one is called a A) logic bomb. B) worm. C) virus. D) Trojan horse. 97) Sometimes computer programs are used to commit acts of sabotage. A computer program that actually grows in size as it infects more.