ACC 564 FINAL EXAM PART 2 only LATEST THREE VERSIONS POSTED MAKING TOTAL OF 135 QUESTIONS

Question 1

The ________ audit is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives.

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Question 2

The ________ stage of the auditing process involves (among other things) the auditors observing the operating activities and having discussions with employees.

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Question 3

The ________ procedure for auditing computer process controls uses a hypothetical series of valid and invalid transactions.

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Question 4

What is the primary purpose of computer audit software?

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Question 5

Assessing the quality of internal controls, the reliability of information, and operating performance are all part of which stage of the auditing process?

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Question 6

Which of the following poses an internal control problem?

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Question 7

The manager of Callow Youth Clothing was entering an order online from Sad Clown Pajamas. He ordered 100 one-size fits all pajama bottoms, but when he ordered 1000 one-size fits all pajama tops, the following error message popped up: "Did you mean to enter a quantity of 1000 for your order?" This message is the result of a

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Question 8

How is credit approval generally handled for established customers with a documented payment history?

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Question 9

The document a customer returns with their payment and that identifies the source and the amount of the payment is called a

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Question 10

In Petaluma, California, electric power is provided to consumers by the Power To The People Electrical Company, a local co-op. Each month PTTP mails bills to 70,000 households and then processes payments as they are received. The customers are provided with a remittance advice, which is a

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Question 11

Bob Chum is the sales manager at Folding Squid Technologies. At lunch with the company CEO, he complained that a recent shipment from a vendor had been unsatisfactory and so had to be returned. That required the purchasing manager to send a ________ to the supplier.

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Question 12

The disbursement voucher and supporting documents are sent to the ________ for payment prior to the due date.

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Question 13

One of the threats associated with the process and activity of receiving and storing goods is

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Question 14

A(n) ________ system posts an approved invoice to the vendor account and stores it in an open invoice file until payment is made by check.

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Question 15

Evaluated receipt settlement (ERS) approves payment of vendor invoices after reconciling the purchase order and the

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Question 16

When using electronic documents, ________ increase the accuracy of data entry.

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Question 17

Which activity below is not performed by the HRM?

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Question 18

This organization provides payroll processing as well as other HRM services, such as employee benefit design and administration.

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Question 19

Which of the following documents would be likely to yield the greatest cost saving by converting from paper to electronic?

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Question 20

The document that lists each employee's gross pay, payroll deductions, and net pay in a multicolumn format is called

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Question 21

Adjusting entries that are made to counteract the effects of errors found in the general ledger are called

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Question 22

Financial statements are prepared in a certain sequence. Which statement is prepared last in the sequence?

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Question 23

Performance reports for cost centers should compare actual versus budget ________ costs.

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Question 24

Information about financing and investing activities for use in making general ledger entries is typically provided by the

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Question 25

Budgets and performance reports should be developed on the basis of

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Question 26

The "get" event represents an activity which

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Question 27

An entity-relationship (E-R) diagram

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Question 28

Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of many?

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Question 29

Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of one?

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Question 30

An entity-relationship (E-R) diagram represents entities as ________ and the relationships between them as lines and ________.

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Question 31

On March 18, 2008, a newly installed robotic painting system broke down. A technician was called to repair the system. She found that a shoe had been shoved into the system's innards. This is an example of dealing with change by

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Question 32

A good rule to follow to prevent behavioral problems associated with implementing a new system is "Avoid complex systems that cause radical changes." What expression is used to describe this system design rule?

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Question 33

A federal law demands that certain information about foreign customers should be maintained in the information system. In which part of a feasibility study should this requirement be considered?

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Question 34

Who is responsible for preparing the specifications that are used to create the programs?

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Question 35

The ________ method of gathering information helps to determine how a system should work.

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Question 36

Which of the following is a method for comparing alternative vendor proposals for development of an accounting information system when the vendors differ with regard to their ability to meet the project criteria?

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Question 37

The approaches to evaluating vendor proposals that do not incorporate dollar estimates of costs or benefits are known as

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Question 38

A costly and labor-intensive approach to systems acquisition is creating

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Question 39

The basic premise of ________ is that it is easier for people to express what they like or dislike about an existing system than to imagine what they would like in a system.

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Question 40

Benathir Donathat, director of the project committee, has received approval from management for implementation of a new accounting information system. After putting out an RFP, the committee settled on a vendor that will provide an industry standard software package and post-sale technical support. The committee decided to go with

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Question 41

Phil in Marketing got a call from Chuck in ITS. "Phil, the system just generated a stock-out report. I wanted to give you a heads up. I'm sending it right over." This is an example of a

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Question 42

Acceptance tests involve

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Question 43

What is used as the basis for management to make a "go/no go" decision regarding whether to proceed from the physical design phase to the implementation and conversion phase of the systems development life cycle?

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Question 44

Who is responsible for evaluating the design alternatives and selecting the one that best meets the organization's needs?

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Question 45

One process used to uncover and eliminate program errors is known as

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Question 1

What is the primary purpose of computer audit software?

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Question 2

The possibility that a material error will occur even though auditors are following audit procedures and using good judgment is referred to as

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Question 3

Control risk is defined as the

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Question 4

In the ________ stage of an operational audit, the auditor measures the actual system against an ideal standard.

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Question 5

The ________ stage of the auditing process involves (among other things) the auditors observing the operating activities and having discussions with employees.

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Question 6

A ________ system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month.

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Question 7

The accounts receivable management method typically used by credit card companies is

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Question 8

What is a typical procedure for processing sales orders from new customers or customers making a purchase that causes their credit limit to be exceeded?

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Question 9

The manager of Callow Youth Clothing was entering an order online from Sad Clown Pajamas. He ordered 100 one-size fits all pajama bottoms, but when he ordered 1000 one-size fits all pajama tops, the following error message popped up: "Did you mean to enter a quantity of 1000 for your order?" This message is the result of a

Answer

Question 10

When an ERP is used, it is assumed that there will be increases in efficiency and the effectiveness of the activities related to the revenue cycle. However, what must be in place and functioning well to fully realize these benefits?

Answer

Question 11

One of the threats associated with the process and activity of receiving and storing goods is

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Question 12

Double-checking the accuracy of an invoice is a control that can help to neutralize a threat in the expenditure cycle. What activity would specifically be associated with this control?

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Question 13

Evaluated receipt settlement increases efficiency by

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Question 14

The Squishy Things Toy Company was established in 1948. It recently signed a large contract with a chain of retail toy stores. As a condition of the contract, the Squishy will be required to track and forecast product sales by linking in to the chain's sales database. Squishy will then be responsible for shipping products to the chain's regional warehouses as needed. The relationship between Squishy and the chain is an example of

Answer

Question 15

Bob Chum is the sales manager at Folding Squid Technologies. At lunch with the company CEO, he proudly announced that he had negotiated a(n) ________ with a client that defined a long-term commitment to buy components from Folding Squid.

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Question 16

Which type of payroll report lists the voluntary deductions for each employee?

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Question 17

Which of the following will limit a firm's potential loss exposure from paycheck forgery?

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Question 18

Experts estimate that on average the costs associated with replacing an employee are about ________ that of the employee's annual salary.

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Question 19

A "zero balance check" refers to which of the following control procedures?

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Question 20

Companies that specialize in processing payroll are known as

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Question 21

Communications technology and the Internet can be used to reduce the time and costs involved in disseminating financial statement information. Users of such financial information still struggle in that many recipients have different information delivery requirements and may have to manually reenter the information into their own decision analysis tools. The ideal solution to solve these problems and efficiently transmit financial information via the Internet is to use

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Question 22

Adjusting entries that are made to reflect differences between the actual and recorded value of an asset or a change in accounting principle are called

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Question 23

Financial statements are prepared in a certain sequence. Which statement is prepared last in the sequence?

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Question 24

Cheryl Liao is an accountant at Folding Squid Technologies. While making an adjusting entry to the general ledger, she received the following error message, "Your journal entry must be a numeric value. Please reenter." This message was the result of a

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Question 25

The managerial report that shows planned cash inflows and outflows for major investments or acquisitions is the

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Question 26

An entity-relationship (E-R) diagram

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Question 27

How many types of relationships are possible between entities?

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Question 28

Which of the following graphical symbols represents a minimum cardinality of zero and a maximum cardinality of many?

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Question 29

Which of the following transactions is represented by the diagram below?

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Question 30

Developing an REA diagram for a specific transaction cycle begins by identifying

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Question 31

When using the payback method to determine economic feasibility of projects, the company usually accepts the project with the

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Question 32

In which step of the SDLC do all of the elements of the system come together?

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Question 33

A planning horizon of at least ________ years is reasonable for any master plan; however, the plan should be updated at least ________ each year.

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Question 34

Refer to the table below, which shows the results of payback, net present value, and internal rate of return analysis of four projects. Which is preferred by the payback criterion?

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Question 35

A federal law demands that certain information about foreign customers should be maintained in the information system. In which part of a feasibility study should this requirement be considered?

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Question 36

What would be one duty of second-line help desk personnel?

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Question 37

When canned software is used for systems acquisition, the physical design phase of the SDLC

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Question 38

Where is the responsibility for the development of end-user computing applications typically placed?

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Question 39

Firms should consider preparing a software prototype if the application

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Question 40

What term is used to refer to users becoming involved in the hands-on development, control, and employment of information systems?

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Question 41

Processing test data involves

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Question 42

Phil in Marketing got a call from Fred at regional headquarters. "Phil, I just got the quarterly sales report for your district. You beat your quota again, you son of a gun!" This is an example of a

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Question 43

________ is the process of installing hardware and software and getting the AIS up and running.

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Question 44

What type of system test determines whether a program is operating as designed?

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Question 45

One of the purposes of the ________ is to guide physical systems design activities.

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Question 1

Auditing involves the

Question 2

The ________ audit reviews the general and application controls of an AIS to assess its compliance with internal control policies and procedures and its effectiveness in safeguarding assets.

Question 3

Assessing the quality of internal controls, the reliability of information, and operating performance are all part of which stage of the auditing process?

Question 4

According to the risk-based auditing approach, when a control deficiency is identified, the auditor should inquire about

Question 5

Which of the following is the first step in the risk-based audit approach?

Question 6

When an ERP is used, it is assumed that there will be increases in efficiency and the effectiveness of the activities related to the revenue cycle. However, what must be in place and functioning well to fully realize these benefits?

Question 7

The accounts receivable management method typically used by credit card companies is

Question 8

A ________ system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month.

Question 9

When a customer places an order (on account) for a certain product, what should be done before the order is checked for inventory availability?

Question 10

During the sales order entry process, a ________ is performed to verify that each transaction record contains all appropriate data items.

Question 11

Evaluated receipt settlement (ERS) approves payment of vendor invoices after reconciling the purchase order and the

Question 12

A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.

Question 13

What is a key feature of materials requirements planning (MRP)?

Question 14

The Squishy Things Toy Company was established in 1948. It recently signed a large contract with a chain of retail toy stores. As a condition of the contract, the Squishy will be required to track and forecast product sales by linking in to the chain's sales database. Squishy will then be responsible for shipping products to the chain's regional warehouses as needed. The relationship between Squishy and the chain is an example of

Question 15

In the expenditure cycle, Financial Electronic Data Interchange (FEDI) increases efficiency by

Question 16

Which type of payroll report contains information such as the employees' gross pay, payroll deductions, and net pay in a multicolumn format?

Question 17

When using electronic documents, ________ increase the accuracy of data entry.

Question 18

Experts estimate that on average the costs associated with replacing an employee are about ________ that of the employee's annual salary.

Question 19

What is a potential threat to the specific activity of payroll processing?

Question 20

Payroll deductions fall into the broad categories of ________ and ________.

Question 21

A listing of journal vouchers by numerical sequence, account number, or date is an example of

Question 22

Financial statements are prepared in a certain sequence. Which statement is prepared last in the sequence?

Question 23

Cheryl Liao is an accountant at Folding Squid Technologies. While making an adjusting entry to the general ledger, she received the following error message when she tried to save her entry, "The amounts debited and credited are not equal. Please correct and try again." This message was the result of a

Question 24

Entries to update the general ledger are often documented by which of the following?

Question 25

Adjusting entries that are made to reflect differences between the actual and recorded value of an asset or a change in accounting principle are called

Question 26

Developing an REA diagram for a specific transaction cycle begins by identifying

Question 27

On an entity-relationship (E-R) diagram, anything about which an organization wants to collect and store information is called

Question 28

The REA data model

Question 29

A relationship in which cardinalities have zero minimums and N maximums would most likely be an

Question 30

The "get" event represents an activity which

Question 31

Refer to the table below, which shows the results of payback, net present value, and internal rate of return analysis of four projects. Which is preferred by the internal rate of return criterion?

Question 32

Which data gathering method is most helpful to deal with the question: "Why?"

Question 33

The type of user resistance in which data are erroneously entered into a system is called

Question 34

When the information is brief and well defined, which is the best data-gathering approach to use?

Question 35

The ________ method of gathering information helps to determine how a system should work.

Question 36

As part of the development process for a new job bidding software system for Halide Construction, LLC, Jon Chelide prepared and distributed functional programs that simulate the system's input and output interface. These programs are an example of

Question 37

What is the emphasis of the first step involved in developing a prototype?

Question 38

Software development companies write commercial software that can be used by a variety of organizations. Sometimes these companies combine both software and hardware together to sell as one package. Such a package is commonly referred to as

Question 39

When canned software is used for systems acquisition, the maintenance aspect of the operations and maintenance phase of the SDLC

Question 40

Which of the following is a method for comparing alternative vendor proposals for development of an accounting information system when the vendors differ with regard to their ability to meet the project criteria?

Question 41

In which phase of the systems development life cycle would changing tax rates in a software program be accomplished?

Question 42

Which of the following is a consideration during file and database design?

Question 43

________ is the process of installing hardware and software and getting the AIS up and running.

Question 44

Acceptance tests involve

Question 45

What is used as the basis for management to make a "go/no go" decision regarding whether to proceed from the physical design phase to the implementation and conversion phase of the systems development life cycle?