Question details

ACC 564 FINAL EXAM PART 1 TWO VERSIONS POSTED 100 QUESTIONS 2
$ 40.00

 

Question 1

The transaction cycle that includes the events of hiring employees and paying them is known as the
Answer

revenue cycle.

expenditure cycle.

human resources cycle.

financing cycle.
Question 2

Data must be converted into information to be considered useful and meaningful for decision-making. There are six characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of
Answer

relevancy.

timeliness.

understandability.

reliability.
Question 3

The primary objective of accounting is to
Answer

implement strong internal controls.

provide useful information to decision makers.

prepare financial statements.

ensure the profitability of an organization
Question 4

The business owners obtain financing from outside investors, which results in an inflow of cash into the company. This transaction is considered to be part of which cycle?
Answer

the revenue cycle

the payroll cycle

the production cycle

the financing cycle
Question 5

Information that is free from error or bias and accurately represents the events or activities of the organization is
Answer

relevant.

reliable.

verifiable.

timely
Question 6

Hector Sanchez works in the accounting department of a multinational manufacturing company. His job includes updating accounts receivable based on sales orders and remittance advices. His responsibilities are part of the company's
Answer

revenue cycle.

expenditure cycle.

financing cycle.

production cycle
Question 7

An audit trail
Answer

provides the means to check the accuracy and validity of ledger postings.

begins with the general journal.

is automatically created in every computer-based information system.

is a summary of recorded transactions
Question 8

What usually initiates data input into a system?
Answer

The transaction system automatically checks each hour to see if any new data is available for input and processing.

The performance of some business activity generally serves as the trigger for data input.

A general ledger program is queried to produce a trial balance at the end of an accounting period.

Data is only input when a source document is submitted to the accounting department
Question 9

The general ledger account that corresponds to a subsidiary ledger account is known as a
Answer

dependent account.

attribute account.

entity account.

control account.
Question 10

The efficiency of recording numerous business transactions can be best improved by the use of
Answer

prenumbered source documents.

specialized journals.

posting references.

subsidiary ledgers
Question 11

Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to document the existing accounting information system, and focus on the activities and flow of data between activities. He decides to begin with a summary description of the sources and uses of data in the organization and how they are processed by the system. The documentation tool that he should employ for this purpose is a
Answer

data flow diagram.

document flowchart.

system flowchart.

program flowchart.
Question 12

In general, a data destination will be shown by
Answer

an arrow pointing away.

an arrow pointing in.

arrows pointing both ways.

no arrows, only two horizontal lines.
Question 13

A data flow diagram
Answer

is a graphical description of the source and destination of data that shows how data flow within an organization.

is a graphical description of the flow of documents and information between departments or areas of responsibility.

is a graphical description of the relationship among the input, processing, and output in an information system.

is a graphical description of the sequence of logical operations that a computer performs as it executes a program
Question 14

A flowchart that depicts the relationships among the input, processing, and output of an AIS is
Answer

an internal control flowchart.

a document flowchart.

a system flowchart.

a program flowchart.
Question 15

Chuck and Jill Scruggs travel in their motor home six months of the year and buy unique artifacts. Within hours after the Scruggs make a purchase, they have photographed it, written a description of it, and posted it for sale on eBay with a reservation price. Anything that does not sell within a week is shipped back to Austin, Texas, for display in The House of Curiosities, a retail business that the Scruggs operate during the balance of the year. Which symbol should be used to represent the transfer of data to eBay in a context diagram of this process?
Answer

A) rectangle
B) circle
C) arrow up and right
D) parallel horizontal lines


Question 16

The ________ handles the link between the way data are physically stored and each user's logical view of that data.
Answer

data warehouse

data dictionary

database management (DBMS) software

schema
Question 17

The logical structure of a database is described by the
Answer

data dictionary.

schema.

database management system.

internal level.
Question 18

The database requirement that foreign keys must be null or have a value corresponding to the value of a primary key in another table is formally called the
Answer
entity integrity rule.
referential integrity rule.
rule of keys.
foreign key rule
Question 19

A set of individual user views of the database is called the
Answer

conceptual-level schema.

internal-level schema.

external-level schema.

meta-schema.
Question 20

Inability to add new data to a database without violating the basic integrity of the database is referred to as the
Answer

update anomaly.

insert anomaly.

integrity anomaly.

delete anomaly.
Question 21

The US Justice Department defines computer fraud as
Answer

any crime in which a computer is used.

an illegal act in which knowledge of computer technology is essential.

any act in which cash is stolen using a computer.

an illegal act in which a computer is an integral part of the crime
Question 22

Which of the following is the greatest risk to information systems and causes the greatest dollar losses?
Answer

human errors and omissions

physical threats such as natural disasters

dishonest employees

fraud and embezzlement
Question 23

The most efficient way to conceal asset misappropriation is to
Answer

write-off a customer receivable as bad debt.

alter monthly bank statements before reconciliation.

alter monthly physical inventory counts to reconcile to perpetual inventory records.

record phony payments to vendors.
Question 24

Most fraud perpetrators are insiders because
Answer

insiders are more dishonest than outsiders.

insiders know more about the system and its weaknesses than outsiders.

outsiders are more likely to get caught than insiders.

insiders have more need for money than outsiders
Question 25

The simplest and most common way to commit a computer fraud is to
Answer

alter computer input.

alter computer output.

modify the processing.

corrupt the database
Question 26

Telefarm Industries is a telemarketing firm that operates in the Midwest. The turnover rate among employees is quite high. Recently, the information technology manager discovered that an unknown employee had used a Bluetooth-enabled mobile phone to access the firm's database and copy a list of customers from the past three years that included credit card information. Telefarm was a victim of
Answer

Bluesnarfing.

splogging.

vishing.

typosquatting.
Question 27

Illegally obtaining and using confidential information about a person for economic gain is known as
Answer

eavesdropping.

identity theft.

packet sniffing.

piggybacking.
Question 28

A fraud technique that slices off tiny amounts from many projects is called the ________ technique.
Answer

Trojan horse

round down

salami

trap door
Question 29

Computer fraud perpetrators that modify programs during systems development, allowing access into the system that bypasses normal system controls are using
Answer

a Trojan horse.

a trap door.

the salami technique.

superzapping.
Question 30

Which of the following is the easiest method for a computer criminal to steal output without ever being on the premises?
Answer

dumpster diving

by use of a Trojan horse

using a telescope to peer at paper reports

electronic eavesdropping on computer monitors
Question 31

What is one reason why AIS threats are increasing?
Answer

LANs and client/server systems are easier to control than centralized, mainframe systems.

Many companies do not realize that data security is crucial to their survival.

Computer control problems are often overestimated and overly emphasized by management.

Many companies believe that protecting information is a strategic requirement.
Question 32

The SEC and FASB are best described as external influences that directly affect an organization's
Answer

hiring practices.

philosophy and operating style.

internal environment.

methods of assigning authority
Question 33

According to the ERM, these objectives help ensure the accuracy, completeness and reliability of internal and external company reports.
Answer

Compliance objectives

Operations objectives

Reporting objectives

Strategic objectives
Question 34

According to the ERM, these deal with the effectiveness and efficiency of company operations, such as performance and profitability goals.
Answer

Compliance objectives

Operations objectives

Reporting objectives

Strategic objectives
Question 35

When undertaking risk assessment, the expected loss is calculated like this.
Answer

Impact times expected loss

Impact times likelihood

Inherent risk times likelihood

Residual risk times likelihood
Question 36

Compatibility tests utilize a(n) ________, which is a list of authorized users, programs, and data files the users are authorized to access or manipulate.
Answer

validity test

biometric matrix

logical control matrix

access control matrix
Question 37

In 2007, a major U.S. financial institution hired a security firm to attempt to compromise its computer network. A week later, the firm reported that it had successfully entered the system without apparent detection and presented an analysis of the vulnerabilities that had been found. This is an example of a
Answer

preventive control.

detective control.

corrective control.

standard control
Question 38

The process that allows a firewall to be more effective by examining the data in the body of an IP packet, instead of just the header, is known as
Answer

deep packet inspection.

stateful packet filtering.

static packet filtering.

an intrusion prevention system
Question 39

This protocol specifies the procedures for dividing files and documents into packets to be sent over the Internet.
Answer

Access control list

Internet protocol

Packet switching protocol

Transmission control protocol
Question 40

A special purpose hardware device or software running on a general purpose computer, which filters information that is allowed to enter and leave the organization's information system, is known as a(n)
Answer

demilitarized zone.

intrusion detection system.

intrusion prevention system.

firewall.
Question 41

Jeff Davis took a call from a client. "Jeff, I need to interact online and real time with our affiliate in India, and I want to make sure that our communications aren't intercepted. What do you suggest?" Jeff responded "The best solution will be to implement
Answer

a virtual private network."

a private cloud environment."

an asymmetric encryption system with digital signatures."

multifactor authentication
Question 42

On March 3, 2008, a laptop computer belonging to Folding Squid Technology was stolen from the trunk of Jiao Jan's car while he was attending a conference in Cleveland, Ohio. After reporting the theft, Jiao considered the implications of the theft for the company's network security and concluded there was nothing to worry about because
Answer

the computer was protected by a password.

the computer was insured against theft.

it was unlikely that the thief would know how to access the company data stored on the computer.

the data stored on the computer was encrypted
Question 43

One way to circumvent the counterfeiting of public keys is by using
Answer

a digital certificate.

digital authority.

encryption.

cryptography
Question 44

An electronic document that certifies the identity of the owner of a particular public key.
Answer

Asymmetric encryption

Digital certificate

Digital signature

Public key
Question 45

Which of the following descriptions is not associated with symmetric encryption?
Answer

A shared secret key

Faster encryption

Lack of authentication

Separate keys for each communication party
Question 46

This tests a numerical amount to ensure that it does not exceed a predetermined value.
Answer

Completeness check

Limit check

Range check

Sign check
Question 47

User reviews are an example of a(n)
Answer

data entry control.

data transmission control.

output control.

processing control
Question 48

A copy of a database, master file, or software that will be retained indefinitely as a historical record is known as a(n)
Answer

archive.

cloud computing.

differential backup.

incremental backup
Question 49

This determines the correctness of the logical relationship between two data items.
Answer

Range check

Reasonableness test

Sign check

Size check
Question 50

When I enter a correct customer number, the data entry screen displays the customer name and address. This is an example of
Answer

prompting.

preformatting.

closed-loop verification.

error checking.

Version 2
Question 1



Refer to the chart above. At what point, measured in terms of the net cost of information, does information overload begin?
Answer

0

5

10

12
Question 2

Which of the following statements below shows the contrast between data and information?
Answer

Data is the output of an AIS.

Information is the primary output of an AIS.

Data is more useful in decision-making than information.

Data and information are the same
Question 3

The primary objective of accounting is to
Answer

implement strong internal controls.

provide useful information to decision makers.

prepare financial statements.

ensure the profitability of an organization
Question 4

Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the revenue cycle would be
Answer

give cash, get goods.

give goods, get cash.

give cash, get labor.

give cash, get cash.
Question 5

An example of inbound logistics would consist of
Answer

the activities that transform inputs into final products or services.

the activities that help customers to buy the organization's products or services.

the activities that provide post-sale support to customers.

the activities that consist of receiving, storing, and distributing the materials used as inputs by the organization to create goods and/or services it sells
Question 6

Which of the following is an example of source data automation?
Answer

a utility bill

POS (point-of-sale) scanners in retail stores

a bill of lading

a subsidiary ledger
Question 7

A general journal
Answer

would be used to record monthly depreciation entries.

simplifies the process of recording large numbers of repetitive transactions.

records all detailed data for any general ledger account that has individual sub-accounts.

contains summary-level data for every account of the organization
Question 8

Hector Sanchez works in the accounting department of a multinational manufacturing company. His job includes updating accounts payable based on purchase orders and checks. His responsibilities are part of the company's
Answer

revenue cycle.

expenditure cycle.

financing cycle.

production cycle
Question 9

The efficiency of recording numerous business transactions can be best improved by the use of
Answer

prenumbered source documents.

specialized journals.

posting references.

subsidiary ledgers.
Question 10

To be effective, the chart of accounts must
Answer

be as concise as possible.

begin with account 001.

utilize only one coding technique.

contain sufficient detail to meet the information needs of the organization.
Question 11

The Union Soup Kitchen is a non-profit organization that collects, stores, prepares and provides food to the homeless in Erie, Pennsylvania. Donations of food are recorded in a database and a receipt is provided to the donor. When food is used, the database is updated so that it always reflects the amounts and types of food that are available. In a data flow diagram, which type of symbol would be used to represent the flow of data from the donor into the system?
Answer



A) rectangle
B) circle
C) arrow up and right
D) parallel horizontal lines



Question 12

In a document flowchart of a manual payroll processing system, "update employee file" will be shown by a(n) ________ symbol, and "prepare payroll check" will be shown by a(n) ________ symbol.
Answer

input; output

input; manual operation

manual operation; output

manual operation; manual operation
Question 13

When preparing a document flowchart, the names of organizational departments or job functions should appear in the
Answer

column headings.

right-hand margin.

written narrative accompanying the flowchart.

title of the flowchart.
Question 14

Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to thoroughly document the existing accounting information system in preparation for making recommendations for improvements to internal controls. He decides to begin with a description of the information stored in paper records, their sources, and their destinations. The documentation tool that he should employ for this purpose is a
Answer

data flow diagram.

document flowchart.

system flowchart.

program flowchart
Question 15

A DFD created at the highest-level or summary view is referred to as a
Answer

process diagram.

overview diagram.

content diagram.

context diagram
Question 16

The ________ acts as an interface between the database and the various application programs.
Answer

data warehouse

database administrator

database management system

database system
Question 17

The problem of changes (or updates) to data values in a database being incorrectly recorded is known as
Answer

an update anomaly.

an insert anomaly.

a delete anomaly.

a memory anomaly
Question 18

The update anomaly in file-based systems or unnormalized database tables
Answer

occurs because of data redundancy.

restricts addition of new fields or attributes.

results in records that cannot be updated.

is usually easily detected by users.
Question 19

When the human resources manager wants to gather data about vacation and personal day usage by employees and by departments, the manager would use which language?
Answer

Data Query Language

Data Manipulation Language

Data Report Language

Data Definition Language
Question 20

In a well-structured database, the constraint that ensures the consistency of the data is known as the
Answer

entity integrity rule.

referential integrity rule.

logical view.

consistency integrity rule
Question 21

In a ________ scheme, customer receipts are stolen and then subsequent payments by other customers are misapplied to cover the theft of the original receipts.
Answer

kiting

laundering

bogus expense

lapping
Question 22

Opportunity to commit fraud is comprised of three stages. The stage that often takes most time and effort would include
Answer

stealing inventory from the warehouse.

selling stolen inventory to get cash.

lapping accounts receivable.

creating false journal entries to overstate revenue
Question 23

Which characteristic of the fraud triangle often stems from a lack of internal controls within an organization?
Answer

pressure

opportunity

rationalization

concealment
Question 24

Intentional or reckless conduct that results in materially misleading financial statements is called
Answer

financial fraud.

misstatement fraud.

fraudulent financial reporting.

audit failure fraud
Question 25

Why is computer fraud often more difficult to detect than other types of fraud?
Answer

Rarely is cash stolen in computer fraud.

The fraud may leave little or no evidence it ever happened.

Computers provide more opportunities for fraud.

Computer fraud perpetrators are just more clever than other types of criminals
Question 26

In the 1960s, techniques were developed that allowed individuals to fool the phone system into providing free access to long distance phone calls. The people who use these methods are referred to as
Answer

phreakers.

hackers.

hijackers.

superzappers
Question 27

The call to tech support was fairly routine. A first-time computer user had purchased a brand new PC two months ago and it was now operating much more slowly and sluggishly than it had at first. Had he been accessing the Internet? Yes. Had he installed any "free" software? Yes. The problem is likely to be a(an)
Answer

virus.

zero-day attack.

denial of service attack.

dictionary attack.
Question 28

Developers of computer systems often include a user name and password that is hidden in the system, just in case they need to get into the system and correct problems in the future. This is referred to as a
Answer

Trojan horse.

key logger.

spoof.

back door
Question 29

I work in the information technology department of a company I'll call CMV. On Wednesday morning, I arrived at work, scanned in my identity card and punched in my code. This guy in a delivery uniform came up behind me carrying a bunch of boxes. I opened the door for him, he nodded and went on in. I didn't think anything of it until later. Then I wondered if he might have been
Answer

pretexting.

piggybacking.

posing.

spoofing
Question 30

When a computer criminal gains access to a system by searching records or the trash of the target company, this is referred to as
Answer

data diddling.

dumpster diving.

eavesdropping.

piggybacking
Question 31

Go-Go Corporation, a publicly traded company, has three brothers who serve as President, Vice President of Finance and CEO. This situation
Answer

increases the risk associated with an audit.

must be changed before your audit firm could accept the audit engagement.

is a violation of the Sarbanes-Oxley Act.

violates the Securities and Exchange Act
Question 32

A(n) ________ helps top-level managers with high-level activities that demand frequent and regular attention.
Answer

boundary system

diagnostic control system

interactive control system

internal control system
Question 33

When undertaking risk assessment, the expected loss is calculated like this.
Answer

Impact times expected loss

Impact times likelihood

Inherent risk times likelihood

Residual risk times likelihood
Question 34

Generally in a risk assessment process, the first step is to
Answer

identify the threats that the company currently faces.

estimate the risk probability of negative events occurring.

estimate the exposure from negative events.

identify controls to reduce all risk to zero.
Question 35

The primary purpose of the Foreign Corrupt Practices Act of 1977 was
Answer

to require corporations to maintain a good system of internal control.

to prevent the bribery of foreign officials by American companies.

to require the reporting of any material fraud by a business.

All of the above are required by the act
Question 36

A special purpose hardware device or software running on a general purpose computer, which filters information that is allowed to enter and leave the organization's information system, is known as a(n)
Answer

demilitarized zone.

intrusion detection system.

intrusion prevention system.

firewall.
Question 37

Multi-factor authentication
Answer

involves the use of two or more basic authentication methods.

is a table specifying which portions of the systems users are permitted to access.

provides weaker authentication than the use of effective passwords.

requires the use of more than one effective password.
Question 38

Which of the following is an example of a corrective control?
Answer

Physical access controls

Encryption

Intrusion detection

Incident response teams
Question 39

The Trust Services Framework reliability principle that states that users must be able to enter, update, and retrieve data during agreed-upon times is known as
Answer

availability.

security.

maintainability.

integrity
Question 40

In 2007, a major U.S. financial institution hired a security firm to attempt to compromise its computer network. A week later, the firm reported that it had successfully entered the system without apparent detection and presented an analysis of the vulnerabilities that had been found. This is an example of a
Answer

preventive control.

detective control.

corrective control.

standard control
Question 41

Which of the following is not one of the three important factors determining the strength of any encryption system?
Answer

Key length

Key management policies

Encryption algorithm

Privacy
Question 42

Jeff Davis took a call from a client. "Jeff, I need for my customers to make payments online using credit cards, but I want to make sure that the credit card data isn't intercepted. What do you suggest?" Jeff responded "The best solution will be to implement
Answer

a virtual private network."

a private cloud environment."

an encryption system with digital signatures."

a data masking program
Question 43

These are used to create digital signatures.
Answer

Asymmetric encryption and hashing

Hashing and packet filtering

Packet filtering and encryption

Symmetric encryption and hashing
Question 44

Which of the following is not one of the 10 internationally recognized best practices for protecting the privacy of customers' personal information?
Answer

Providing free credit report monitoring for customers

Inform customers of the option to opt-out of data collection and use of their personal information

Allow customers' browsers to decline to accept cookies

Utilize controls to prevent unauthorized access to, and disclosure of, customers' information
Question 45

Jeff Davis took a call from a client. "Jeff, I need to interact online and real time with our affiliate in India, and I want to make sure that our communications aren't intercepted. What do you suggest?" Jeff responded "The best solution will be to implement
Answer

a virtual private network."

a private cloud environment."

an asymmetric encryption system with digital signatures."

multifactor authentication
Question 46

Sequentially prenumbered forms is an example of a(n)
Answer

data entry control.

data transmission control.

processing control.

input control.
Question 47

Error logs and review are an example of
Answer

data entry controls.

data transmission controls.

output controls.

processing controls
Question 48

This determines if all required data items have been entered.
Answer

Completeness check

Field check

Limit check

Range check
Question 49

A facility that is pre-wired for necessary telecommunications and computer equipment, but doesn't have equipment installed, is known as a
Answer

cold site.

hot site.

remote site.

subsidiary location
Question 50

User reviews are an example of a(n)
Answer

data entry control.

data transmission control.

output control.

processing control

 

 

 

Available solutions
  • ACC 564 FINAL EXAM PART 1 TWO VERSIONS POSTED 100 QUESTIONS
    $40.00

    Question 1 The transaction cycle that includes the events of hiring employees and paying them is known as the Answer revenue cycle. expenditure cycle. human resources cycle. financing cycle. Question 2 Data must be converted into information to be considered useful and meaningful for decision-making. There are six characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of Answer relevancy. timeliness. understandability. reliability. Question 3 The primary objective of accounting is to Answer implement strong internal controls. provide useful information to decision makers. prepare financial statements. ensure the profitability of an organization Question 4 The business owners obtain financing from outside investors, which results in an inflow of cash into the company. This transaction is considered to be part of which cycle? Answer the revenue cycle the payroll cycle the production cycle the financing cycle Question 5 Information that is free from error or bias and accurately represents the events or activities of the organization is Answer relevant. reliable. verifiable. timely Question 6 Hector Sanchez works in the accounting department of a multinational manufacturi

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