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acty final exam questions with verified answers
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acty final exam questions with verified answers
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acty final exam1.
2. ____________________ help ensure that information systems operate in a
consistent and effective manner to achieve organizational objectives. LO 5-4 -
ANS-business rules
3. 15.Which of the following is the best reason that a collaboration model would not be
used to diagram the conversion process? - ANS-All conversion activities are internal
to the organization.
4. 28.Which of the following best describes the AICPA's Audit Data Standards (ADS)? -
ANS-A set of standards for data files and fields designed to support external audits.
5. 33.The Data Accountability and Trust Act of 2009 (DATA) requires data owners to
notify which of the following when a data breach has been discovered? - ANS-The
Federal Trade Commission (FTC) and each individual whose data has been
exposed.
6. A company has a policy that states an employee that has the ability to record
transactions in a customer's account cannot also have custody of customer
payments is what type of control? LO 5-4 - ANS-segregation of duties
7. A company is assessing risk in their sales order process. They have found that
sometimes they ship goods to the wrong customer due to input errors on the order.
Management estimates that on average, each error event costs the company
$300,000 due to lost revenue, rerouting shipment expenses, and so on. They also
determine that the error event occurs in about 10% of the orders processed currently.
The IT manager explains that if they implement a data validation step in the input
process of sales orders, the likelihood of this error event happening would decrease
to 2%. The cost to implement this data validation step would be $10,000. Perform a
cost/benefit analysis to determine if management should implement the data
validation control. - ANS-300,000 x (.1 - .02) = 24,000
8. 10,000 < 24,000
9. The cost of the control is less than the expected benefit of the control, so the
company should implement the control.
10. A company would like to implement an information system that integrates all
functional areas within the organization. The system would allow information
exchange and collaboration among all parties involved in business activities. Which
of the following systems is most effective to accomplish this? - ANS-An enterprise
resource planning system
11. A document that summarizes payroll data for a single employee, providing current
and year-to-date payroll amounts. - ANS-Employee Earnings Record or Paystub
12. A form completed by a vendor or contractor to provide the company with their
taxpayer identification number (required to issue Form 1099-MISC) - ANS-Form W-9
13. A form completed by the employee to inform the employer how much money to
withhold each payroll. - ANS-Form W-4
14. A form that reports amounts paid to an independent contractor. - ANS-form
1099-MISC
,15. A form that reports the employers Federal Insurance Contributions Act (FICA)
withholding and tax liability. - ANS-Form 941
16. A form that reports the employers federal unemployment tax liability. - ANS-form 940
17. A form that reports year-end information for tax purposes to the employee and the
IRS. - ANS-Form W-2
18. A fraud detection program includes which one of the following: LO 12-3 - ANS-An
evaluation by internal auditors on the effectiveness of business processes
19. Analysis of transaction-level data
20. A continuous monitoring system with embedded modules to create detailed logs
21. A fraud prevention program starts with a fraud risk _______________ across the
entire firm - ANS-assessment
22. A report that computes wages, withholdings and deductions for each employee for a
given pay period. - ANS-payroll register
23. A subset of data within a data warehouse is called what? - ANS-data mart
24. A supply chain: - ANS-refers to the flow of materials, information, payments, and
services through the company to the final customer.
25. A transmittal form to report total earnings, social security and medicare wages, and
withholdings for all employees - ANS-Form W-3
26. A value chain is a chain of business processes for a firm. Products pass through all
activities of the chain in order; at each activity, the product is expected to - ANS-Gain
value
27. A very popular model used by managers and accountants to determine what the
entities (or tables) of the relational database should be is called: - ANS-
28. Accept risks - ANS-by relying on natural offsets of the risk within a portfolio or
allowing the likelihood and impact of the risk
29. According to AS 2401 Consideration of Fraud in a Financial Statement Audit who is
responsible to design and implement programs and controls to prevent, deter, and
detect fraud within a company? LO 12-3 - ANS-management
30. According to the COSO ERM framework, three risks are evaluated for each identified
threat. What are the three risks each threat is evaluated for? - ANS-Inherent risk
31. Control risk
32. Residual risk
33. According to the COSO ERM Integrated Framework, what are each of the steps we
discussed to assess risk? - ANS-1. Identify risks to the firm
34. 2. Estimate the likelihood of each risk occurring
35. 3. Estimate the impact from each risk
36. 4. Identify controls to mitigate risk
37. 5. Estimate the cost and benefits of implementing the controls
38. 6. Perform a cost/benefit analysis for each risk and corresponding controls
39. 7. Based on the results of the cost/benefit analysis, determine whether to reduce the
risk by implementing a control to or to accept, share or avoid the risk
40. According to the UML class diagram below, is this statement true or false:
41. A company adds a new product line to the inventory available for sale to customers.
When adding the new product line to the inventory class, the record must be
associated with at least one existing customer sale record. Circle one: True / False
42. inventory(1..*) -----------------(0..*)Sale - ANS-False
43. Accountants are increasingly being considered the best employees within a company
to perform business analyst tasks. What are the five expectations we discussed that
, companies often have of their accountants? - ANS-1. Analyze information (examine,
interpret, explain)
44. 2. Make conclusions and/or projections about the information
45. 3. Help management optimize overall company performance
46. 4. Help management build the information system necessary to gather, process,
store, report and control information
47. 5. Help decide what information management needs 6. keep management informed
48. Accumulates labor data (time, pay rate, total labor cost). - ANS-labor time ticket
49. After the sale of goods is recorded to Revenue, what is the second entry required to
be recorded? LO 5-1 - ANS-Debit Cost of Goods Sold Expense, credit Inventory
50. After the UML class diagram has been created, what are the basic steps to creating
the relational database? - ANS-1. Map classes to tables: each instance of the class
maps to a row in the corresponding table
51. 2. Map class attributes to table fields and assign primary keys: Map attributes for
each class to fields in the corresponding relational table. If the primary keys have not
been designated, determine an appropriate primary key for each relational table.
52. 3. Map associations to foreign keys. The maximum multiplicities on each side of an
association determine the foreign key placement.
53. 4. Creates new tables to implement many-to-many relationships
54. 5. Implement relationships among tables
55. agents in conversion business process - ANS-employees
56. An enterprise resource planning (ERP) system is considered to be: - ANS-an internal
business process
57. An enterprise resource planning system is a________________ - ANS-database that
collects data from throughout the firm and is made available to all enterprise system
users.
58. An information technology director collected the names and locations of key vendors,
current hardware configuration, names of team members, and an alternative
processing location. What is the director most likely preparing? (CPA exam adapted)
LO 12-5 - ANS-disaster recovery plan
59. An organized digital collection of data is called a/an: - ANS-database
60. As described in the text, which of the following best defines the term data analytics? -
ANS-The science of examining raw data, removing excess noise, and organizing it in
order to draw conclusions for decision making.
61. associations - ANS-Depict the relationship between two classes
62. attributes - ANS-Data elements that describe the instances in a class
63. authentication - ANS-A process that establishes the origin of information or
determines the identity of a user, process, or device.
64. Authentication is the process by which the: LO12-2 - ANS-system verifies the identity
of the user
65. avoid - ANS-avoid risks by outsourcing businesses processes, buying insurance or
entering into hedging transactions
66. Basic purpose of a bill of lading - ANS-to specify freight terms
67. basic purpose of a check - ANS-To pay the vendor
68. Basic purpose of a customer invoice - ANS-to bill client
69. Basic purpose of a customer order: - ANS-to summarize items ordered and prices
70. Basic purpose of a packing list - ANS-to specify contents of shipment
71. Basic purpose of a picking list: - ANS-to guide selection of items from warehouse
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