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A series of multiple-choice questions covering key concepts in accounting information systems (ais). The questions address topics such as internal control, auditing, erp systems, data processing, and operational audits. This practice exam can be a valuable tool for students preparing for exams or assessments in ais courses.
Typology: Exams
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Internal control is often referred to as a(n) ____, because it permeates an organization's operating activities and is an integral part of management activities
a.
activity
b.
system
c.
process
d.
event - Correct Ans: โ c.
process
The auditor's objective is to seek ____ that no material error exists in the information audited.
a.
reasonable objectivity
b.
reasonable assurance
c.
reasonable evidence
d.
absolute reliability - Correct Ans: โ b.
reasonable assurance
Terrorists are an example of a(n) ____ threat
a.
intentional acts (computer crimes)
c.
outsourcing
d.
leasing - Correct Ans: โ a.
sending out a request for a proposal
All of the following are reasons that implementing a new ERP may fail except
a.
employees may resist using the ERP system
b.
employees may refuse to share sensitive information with different departments
c.
ERPs may require procedures and reports to be standardized across business units.
d.
ERPs can take years to fully implement - Correct Ans: โ c.
ERPs may require procedures and reports to be standardized across business units.
When properly deployed, accounting information systems can provide firms with a competitive advantage
Select one:
True
False - Correct Ans: โ True
Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If the information is free from error or bias, it is representative of the characteristic of
a.
verifiability
c.
none of the above
d.
enterprise resource planning - Correct Ans: โ d.
enterprise resource planning
Duplicate checking of calculations and preparing bank reconciliations and monthly trial balances are examples of what type of control?
a.
Authorization control
b.
Corrective control
c.
Preventive control
d.
Detective control - Correct Ans: โ d.
Detective control
Sabotage is an example of a(n) ____ threat
a.
intentional acts (computer crimes)
b.
software errors and equipment malfunctions
c.
unintentional acts
d.
natural and political disasters - Correct Ans: โ a.
intentional acts (computer crimes)
Select one:
True
False - Correct Ans: โ False
Baggins Incorporated identifies new product development and product improvement as the top corporate goals. An employee developed an innovation that will correct a shortcoming in one of the company's products. Although Baggins current Return on Investment (ROI) is 10%, the product innovation is expected to generate ROI of 15%. As a result, awarding bonuses to employees based on ROI resulted in
a.
goal congruence
b.
information overload
c.
decreased value of information
d.
goal conflict - Correct Ans: โ a.
goal congruence
Auditors have the ability to change detection risk
Select one:
True
False - Correct Ans: โ True
Which of the following is the greatest risk to information systems and causes the greatest dollar losses?
a.
Human errors and omissions
b.
Computer crime
c.
Dishonest employees
Identify the corrective control below.
a.
Reconciling the bank statement to the cash control account
b.
Counting inventory on hand and comparing counts to the perpetual inventory records
c.
Approving customer credit prior to approving a sales order
d.
Maintaining frequent backup records to prevent loss of data -
Correct Ans: โ d.
Maintaining frequent backup records to prevent loss of data
What is not a typical responsibility of an external auditor?
a.
All of the above
b.
Helping management to improve organizational effectiveness
c.
Helping management to improve organizational effectiveness
d.
Helping management to improve organizational effectiveness -
Correct Ans: โ a.
All of the above
Auditors have the ability to change inherent risk.
Select one:
True
False - Correct Ans: โ False
General User Interface
b.
General User Intervention
c.
Graphical User Interface
d.
Graphical User Intervention - Correct Ans: โ c.
Graphical User Interface
The primary objective of accounting is to
a.
prepare financial statements
b.
implement strong internal controls
c.
provide useful information to decision makers
d.
prepare financial statements - Correct Ans: โ c.
provide useful information to decision makers
Which step below is not considered to be part of the data processing cycle?
a.
feedback from external sources
b.
data storage
c.
data processing
because a firm never wants to waste time addressing issues that are
not urgent - Correct Ans: โ a.
because most organizations have limited resources
A(n) ____ audit is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives
a.
financial
b.
internal control
c.
information systems
d.
operational or management - Correct Ans: โ d.
operational or management
"Cooking the books" is typically accomplished by all the following except
a.
inflating accounts payable
b.
delaying recording of expenses
c.
accelerating recognition of revenue
d.
overstating inventory - Correct Ans: โ a.
inflating accounts payable
Dysfunctional employee behavior in response to implementation of a new computerized information system is likely to be the result of
