I. Choose matching term
A plan that documents detailed recovery procedures in the event of
equipment failure or disasters to quickly and smoothly restore an
organization's processing capabilities.
Ordering cost (ch. 11)
Stockout cost (ch. 11)
Hash total (ch. 7)
Disaster Recovery Plan (CH. 7)
A Disaster Recovery Plan (DRP) is a comprehensive document that outlines detailed procedures to be
followed in the event of a disaster or equipment failure. The primary goal of a DRP is to ensure the swift
and effective restoration of an organization's critical processing capabilities. This includes actions such as
data recovery, system restoration, and the resumption of essential business functions. By having a well-
thought-out DRP in place, organizations can minimize the impact of disruptions and quickly return to
normal operations, thereby reducing downtime and mitigating potential financial losses.
II. Choose matching term
Ways to minimize the interruption of business (e.g., insurance to
replace damaged equipment, alternative sites to conduct business
after an emergency)
Alternative means to continue processing until the company is at
normal capacity (e.g., back-up programs and data files). Back-up sites
can either be different branches of the same company or other
organizations contracted for short-term periods.
When and how normal operations can be resumed (using simulations
to check documentation and effectiveness of plan)
Training personnel in emergency operations (note: continuous
updates and reviews of the plan should be part of business continuity
plan).
The company's contingency plan should include: (CH. 7)
Economic Order Quantity (EOQ) (CH. 11)
The economic order quantity is equal to the maximum stocking level less: (CH. 11)
a. Safety stock
b. Lead-time stock
c. The sum of safety and lead-time stock
d. Holding cost
Disaster Recovery Plan (CH. 7)
Explanation
The term "The company's contingency plan should include" refers to the comprehensive strategy
developed by an organization to ensure business continuity in the face of unexpected events or
disruptions. This plan encompasses various measures aimed at minimizing interruptions to business
operations, such as securing insurance to replace damaged equipment, establishing alternative sites to
conduct business after an emergency, implementing backup programs and data files for continued
processing, and defining protocols for resuming normal operations.
Key components of a contingency plan typically include:
Risk Assessment: Identifying potential risks and vulnerabilities that could impact business
operations.
Preventive Measures: Implementing measures to reduce the likelihood of disruptions, such as
redundancy in critical systems.
Response Procedures: Outlining step-by-step procedures to be followed during and immediately
after an incident to minimize its impact.
Recovery Strategies: Detailing plans for restoring operations to normalcy as quickly as possible,
including resource allocation and prioritization.
Training and Awareness: Ensuring that employees are trained in emergency response
procedures and are aware of their roles and responsibilities.
Testing and Review: Conduct regular drills, simulations, and reviews to assess the effectiveness
of the contingency plan and make necessary improvements.
By incorporating these elements into the contingency plan, organizations can enhance their resilience
and ability to navigate through disruptions with minimal disruption to their business activities.
III. Choose matching term
Specifications for new applications should be drawn up jointly by users
and information technology personnel. Representatives of user
departments, particularly from accounting and internal auditing, should
participate in this effort and should also be involved in the selection of
application software. External auditors should be consulted to ensure
the auditability of the systems. Before implementation, new software
should be tested in accordance with a planned test program and the
results should be reviewed in light of the system specifications.
Application Software Selection, Implementation, and Maintenance Controls (CH. 7)
T/F Q
Tasks that SCM software can perform include: (CH. 11)
Inventory Process in Mercantile Organizations Continued (CH. 11)
SA #1: What are the most important aspects of a great disaster recovery plan?
Explanation
The term "Application Software Selection, Implementation, and Maintenance Controls" refers to
the processes and procedures involved in selecting, implementing, and maintaining application
software within an organization. Here's an explanation of how it relates to the provided
description:
Specifications for New Applications: When considering new application software,
specifications need to be established to ensure that the software meets the specific needs
and requirements of the organization. This involves collaboration between users and
information technology (IT) personnel to define the functionality, features, and
performance criteria.
Joint Effort: The description emphasizes the importance of involving both users and IT
personnel in drawing up specifications for new applications. This collaborative approach
ensures that the software addresses the business needs while also meeting technical
requirements and constraints.
User Involvement: Representatives from user departments, such as accounting and
internal auditing, should actively participate in the selection process. Their input is
valuable in ensuring that the chosen software aligns with the organization's operational
and regulatory requirements.
External Auditor Consultation: Consulting with external auditors helps to ensure that the
selected software is capable of supporting audit processes and compliance requirements.
This step enhances the auditability and integrity of the systems.
Testing and Review: Before implementation, new software should undergo rigorous
testing to verify its functionality, reliability, and compliance with specifications. A
planned test program is essential to systematically evaluate the software, and the results
should be carefully reviewed to ensure alignment with the system specifications.
Overall, the process of selecting, implementing, and maintaining application software involves
various controls and procedures to ensure that the chosen software effectively supports the
organization's operations, meets regulatory requirements, and aligns with user needs and
expectations.
IV. Choose matching term
A committee that establishes or approves information processing
policies and operating standards, approves system projects, set
priorities for implementing systems, evaluates the effectiveness of
processing operations, and generally monitors and evaluates
processing activities.
Location Codes (ch. 11)
Steering Committee (CH. 7)
Sla Continued (ch. 11)
Processing Controls (ch. 7)
Explanation
A Steering Committee is a group or committee within an organization that plays a critical role in
overseeing various aspects of information processing and technology initiatives. Here's how it relates to
the provided description:
Establishing Policies and Standards: The Steering Committee is responsible for setting
information processing policies and operating standards within the organization. These policies
and standards provide guidelines for how information technology resources are managed and
utilized.
Project Approval and Prioritization: The committee approves system projects and sets priorities
for implementing systems based on the organization's strategic objectives and resource
availability. This ensures that IT projects align with business goals and objectives.
Evaluation of Processing Operations: The Steering Committee evaluates the effectiveness of
processing operations to ensure that they are meeting the organization's needs and objectives.
This evaluation may involve assessing system performance, identifying areas for improvement,
and addressing any issues or concerns that arise.
Monitoring and Evaluation: The committee monitors and evaluates processing activities on an
ongoing basis to ensure compliance with established policies and standards. This includes
reviewing progress on IT projects, assessing risks, and making recommendations for
improvements or changes as needed.
Overall, the Steering Committee serves as a governance body that provides oversight and direction for
information processing activities within the organization. Its role is to ensure that IT resources are
effectively managed, aligned with business objectives, and contribute to the organization's overall
success.
V. Choose matching term
Control activities that deal with the authorization, entry, and
verification of data entering the system.
Input Controls (CH. 7)
Comparisons (ch. 7)
Check Digit (ch. 7)
Processing Controls (ch. 7)
Explanation
Input Controls refer to the measures and procedures implemented to manage the authorization,
entry, and verification of data as it enters a system. Here's an explanation of how input controls
relate to the provided description:
1. Authorization: Input controls ensure that only authorized individuals or processes are allowed
to enter data into the system. This involves defining access rights and permissions to restrict
unauthorized access to sensitive data or system functions.
2. Data Entry: Input controls include mechanisms to facilitate accurate and complete data entry
into the system. This may involve validation checks to ensure that the data entered meets
predefined criteria, such as format, range, or completeness.
3. Verification: Input controls verify the accuracy and integrity of data entered into the system.
This may include methods such as double-entry verification, where data is entered twice
independently and compared for consistency, or automated validation checks to identify errors or
discrepancies.
Examples of input controls include:
- User authentication mechanisms to verify the identity of individuals accessing the system.
- Data validation checks to ensure that entered data conforms to predefined rules or formats.
- Check digits, which are additional digits added to data for error detection purposes.
- Encryption techniques to secure data transmission and prevent unauthorized access or
tampering.
Overall, input controls are essential for ensuring the integrity, accuracy, and security of data as it
enters the system, thereby helping to prevent errors, fraud, and unauthorized access.
VI. Choose matching term
A. Automatically created transactions should be subjected routinely
to management review, and exceptions should be identified for
investigation.
B. A specific authorization applies to a single transaction and is
granted on a case-by-case basis. A specific authorization may
approve a departure from the provisions of a general
authorization. A specific authorization can be evidenced by a
handwritten signature on a document or by the entry of an
authorization code in the accounting system.
1. The economic order quantity is equal to the maximum stocking level less: (CH. 11)
a. Safety stock
b. Lead-time stock
c. The sum of safety and lead-time stock
d. Holding cost
2. Data and Transaction Authorization Controls (CH. 7)
3. Update Price Lists (CH. 11)
4. Tasks that SCM software can perform include: (CH. 11)
Explanation
Data and Transaction Authorization Controls refer to the processes and procedures implemented
to ensure that data and transactions are authorized appropriately within an organization. Here's an
explanation of how it relates to the provided description:
Management Review of Automatically Created Transactions: Data and Transaction
Authorization Controls involve establishing mechanisms for routine management review
of transactions, including those that are automatically generated by systems or processes.
Management should regularly review these transactions to ensure their accuracy,
completeness, and compliance with organizational policies and procedures. Exceptions or
anomalies identified during the review process should be investigated promptly to
determine the cause and take appropriate corrective actions.
Specific Authorization for Single Transactions: This aspect of authorization controls
pertains to granting specific authorization on a case-by-case basis for individual
transactions. Unlike general authorizations, which apply to a broader set of activities or
transactions, specific authorizations are tailored to particular circumstances or instances.
These authorizations may be evidenced by signatures on documents or entry of
authorization codes in the accounting system, providing a clear record of approval for the
transaction.
Overall, Data and Transaction Authorization Controls play a critical role in ensuring the
integrity, security, and compliance of data and transactions within an organization. By
implementing effective authorization processes, organizations can mitigate the risk of
unauthorized access, fraud, errors, and non-compliance with regulations and policies.
VII. Choose matching term
- Screens use a block format in which labels (prompts) are placed
above or to the left of the empty fields to which they refer. The labels
prompt the user for what data should be entered and where it should
be entered.
- Additional screen controls are properties such as disable and hide. A
disabled field is dimmed with background color to indicate it is not
available to the user whereas a hidden field cannot be seen.
Verification Controls (CH. 7)
Update Price Lists (CH. 11)
Outsourcing Continued (CH. 11)
Input Screen Controls (CH. 7)
Explanation
Input Screen Controls are features and properties implemented in user interface design to
facilitate efficient data entry and interaction with software applications. Here's how it relates to
the provided description:
Block Format: Input screens typically use a block format where labels or prompts are
placed above or to the left of empty fields. This format helps users understand what data
is expected and where it should be entered, improving usability and reducing errors
during data entry.
Additional Screen Controls: Input screens may include additional controls such as disable
and hide properties. A disabled field is visually indicated by dimming its appearance,
often using a different background color, to signify that it is not currently available for
input. On the other hand, a hidden field cannot be seen by the user at all, typically used
for fields that are conditional or not relevant to the current context.
Overall, Input Screen Controls play a crucial role in enhancing the user experience and ensuring
accurate data entry by providing clear guidance, disabling irrelevant fields, and hiding
unnecessary elements. These features contribute to the effectiveness and efficiency of software
applications by streamlining user interactions and reducing the risk of input errors.
VIII. Choose matching term
A plan that documents detailed recovery procedures in the event of
equipment failure or disasters to quickly and smoothly restore an
organization's processing capabilities.
Hash total (ch. 7)
Stockout cost (ch. 11)
Disaster Recovery Plan (CH. 7)
Ordering cost (ch. 11)
Explanation
A Disaster Recovery Plan (DRP) is a comprehensive document that outlines detailed procedures
to be followed in the event of a disaster or equipment failure. The primary goal of a DRP is to
ensure the swift and effective restoration of an organization's critical processing capabilities.
This includes actions such as data recovery, system restoration, and the resumption of essential
business functions. By having a well-thought-out DRP in place, organizations can minimize the
impact of disruptions and quickly return to normal operations, thereby reducing downtime and
mitigating potential financial losses.
IX. Choose matching term
- Ways to minimize the interruption of business (e.g., insurance to
replace damaged equipment, alternative sites to conduct business
after an emergency)
- Alternative means to continue processing until the company is at
normal capacity (e.g., back-up programs and data files). Back-up
sites can either be different branches of the same company or other
organizations contracted for short-term periods.
- When and how normal operations can be resumed (using
simulations to check documentation and effectiveness of plan)
- Training personnel in emergency operations (note: continuous
updates and reviews of the plan should be part of business
continuity plan).
The company's contingency plan should include: (CH. 7)
Data and Transaction Authorization Controls (CH. 7)
Periodic and Perpetual Inventory Systems (CH. 11)
Economic Order Quantity (EOQ) (CH. 11)
Explanation
The term "The company's contingency plan should include" refers to a comprehensive strategy
developed by an organization to ensure business continuity in the face of unexpected events or
disruptions. This plan encompasses various measures aimed at minimizing interruptions to
business operations and ensuring the organization can continue functioning effectively during
and after emergencies. Here's how each aspect of the description aligns with a company's
contingency plan:
Ways to minimize interruption of business: The contingency plan should outline
strategies to minimize disruptions, such as having insurance coverage to replace damaged
equipment and establishing alternative sites to conduct business after an emergency.
These measures help ensure that essential business functions can continue despite adverse
events.
Alternative means to continue processing: The plan should include provisions for
alternative methods to continue processing operations until the company can return to
normal capacity. This may involve implementing backup programs and data files and
having backup sites available, either within the organization or through contracted
arrangements with external partners.
Resuming normal operations: The contingency plan should detail when and how normal
operations can be resumed following an emergency. This may involve conducting
simulations or tests to evaluate the effectiveness of the plan and ensuring that
documentation is up to date to guide the resumption of operations.
Training personnel: The plan should include provisions for training personnel in
emergency operations to ensure they are prepared to implement the plan effectively when
needed. Continuous updates and reviews of the plan should also be part of the business
continuity efforts to ensure it remains relevant and effective over time.
Overall, the company's contingency plan is a crucial component of its risk management strategy,
providing a roadmap for responding to and recovering from various types of disruptions while
minimizing their impact on business operations.
