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Test bank For Accounting Data Analytics Exam 2 (Ch 5-9)1st Edition by Farmer
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Test bank For Accounting DataAnalytics Exam 2 (Ch 5-9)1st Edition by
Farmer
A flat file is a single table of data with user-defined attributes.
True or False? - ANSTrue
The Audit Data Standards define common tables and fields that are needed by auditors to
perform common audit tasks. The Securities and Exchange Commission, or SEC, developed
these standards.
True or False? - ANSFalse
The Base Standard of the AICPA Audit Data Standards defines the order for files and fields as
well as some master data for users and business units.
True or False? - ANSFalse
The General Ledger Standard of the AICPA Audit Data Standards adds the chart of accounts,
source listings, trial balance, and GL detail.
True or False? - ANSTrue
Continuous auditing is a process that provides real-time assurance over business processes
and systems.
True or False? - ANSTrue
_______ ensures that all of its divisions and subsidiaries use a uniform installation of one ERP
system. _______ allows for the use of bolt on systems of companies that are acquired and uses
a series of translators to convert the output of various systems into usable financial information.
A) Continuous reporting; Continuous monitoring
B) Continuous monitoring; Continuous reporting
C) The heterogeneous systems approach; The homogenous systems approach
D) The homogenous systems approach; The heterogeneous systems approach - ANSD) The
homogenous systems approach; The heterogeneous systems approach
Continuous auditing relies heavily on alarms, which are essentially notifications of a
classification problem. A _______ occurs when too many alarms are false positives.
A) Flood of alarms
B) Exception report
,C) A negative event
D) Data warehouse - ANSA) Flood of alarms
Under the guidance of the chief audit executive (CAE) or another manager, teams can develop
and implement analytical techniques to aid the following audits except:
A) governance audits
B) risk audits
C) security audits
D) forensic audits. - ANSC) security audits
PWC uses all but the following systems to automate its audit process?
A)Halo
B) Sky
C) Aura
D) Connect - ANSB) Sky
The _______ of the audit defines parameters that will be used to filter the records or
transactions being evaluated.
A) scope
B) methodology
C) plan
D) IMPACT model - ANSA) scope
The following features relate to which type of system?
-Requires system translator software
-Integrate multiple ERP systems in multiple locations
-Usually the result of many acquisitions - ANSHeterogeneous
The following features related to which type of system?
-Have the same ERP system in multiple locations
-Simplifies the reporting and auditing process - ANSHomogeneous
The following feature relates to what type of system?
-Allow auditors to review data in a data warehouse - ANSBoth homogeneous and
heterogeneous
Homogeneous systems allow for ________ interaction within a company and a _________
lower cost of internal controls since systems are set up and used in the same fashion. -
ANSgreater; lower
The following features relate to what type of audit?
,-Sampling
-Auditors appear at regular intervals
-Delayed resolution of the issue
-Copying and pasting data into Excel
-Annual Audit - ANSTraditional Audit
The following features relate to what type of audit?
-Full population testing
-Alarms when a control is violated
-Immediate resolution of the issue - ANSContinuous Audit
Under the guidance of the chief audit executive (CAE) or another manager, these individuals
build teams to develop and implement analytical techniques to aid all of the following audits
except:
A) Process efficiency and effectiveness.
B) Governance, risk, and compliance, including internal controls effectiveness.
C) Tax compliance.
D) Support for the financial statement audit. - ANSC) Tax compliance.
Which audit data standards ledger defines product master data, location data, inventory on
hand data, and inventory movement?
A) Order to Cash Subledger
B) Procure to Pay Subledger
C) Inventory Subledger
D) Base Subledger - ANSC) Inventory Subledger
Which audit data standards ledger identifies data needed for purchase orders, goods received,
invoices, payments, and adjustments to accounts?
A) Order to Cash Subledger
B) Procure to Pay Subledger
C) Inventory Subledger
D) Base Subledger - ANSB) Procure to Pay Subledger
A company has two divisions, one in the United States and the other in China. One uses Oracle
and the other uses SAP for its basic accounting system. What would we call this?
A) Homogeneous systems
B) Heterogeneous systems
C) Dual data warehouse systems
D) Dual lingo accounting systems - ANSB) Heterogeneous systems
, Which of the following defines the time period, the level of materiality, and the expected time for
an audit?
A) Audit scope
B) Potential risk
C) Methodology
D) Procedures and specific tasks - ANSA) Audit scope
All of the following may serve as standards for the audit methodology except:
A) PCAOB's auditing standards
B) COSO's ERM framework
C) ISACA's COBIT framework
D) FASB's accounting standards - ANSD) FASB's accounting standards
When there is an alarm in a continuous audit, but it is associated with a normal event, we would
call that a:
A) False negative.
B) True negative.
C) True positive.
D) False positive. - ANSD) False positive.
When there is no alarm in a continuous audit, but there is an abnormal event, we would call that
a:
A) False negative.
B) True negative.
C) True positive.
D) False positive - ANSA) False negative.
If purchase orders are monitored for unauthorized activity in real time while month-end adjusting
entries are evaluated once a month, those transactions monitored in real time would be an
example of a:
A) Traditional audit.
B) Periodic test of internal controls.
C) Continuous audit.
D) Continuous monitoring. - ANSC) Continuous audit.
Who is most likely to have a working knowledge of the various ERP systems that are in use in
the company?
A) Chief executive officer
B) External auditor
C) Internal auditor
D) IT staff - ANSC) Internal auditor
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