Auditing and Information Systems
Exam Review
Course Introduction
This course explores the fundamental principles and practices of auditing within the context of contemporary information systems. Students will examine the role of auditing in ensuring the accuracy, reliability, and security of financial and operational data in computerized environments. Key topics include audit planning and risk assessment, internal controls, compliance testing, evidence collection, and the use of computerized audit tools. The course also covers the impact of information systems on the audit process, emerging issues in IT auditing, and standards such as COBIT and ISACA guidelines. By integrating theoretical concepts with practical case studies, students will develop a comprehensive understanding of how auditors evaluate and safeguard information systems in both traditional and modern business settings.
Recommended Textbook
Accounting Information Systems 1st Edition by Vernon J. Richardson
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14 Chapters
555 Verified Questions
555 Flashcards
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Page 2
Chapter 1: Accounting Information Systems and Firm Value
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62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/54672
Sample Questions
Q1) Which of the following are considered to be mandatory information required by a regulatory body?
A) Financial reports for the Securities and Exchange Commission
B) The amount of taxes saved by a merger
C) The total dollar value of fireworks that are sold on July 4.
D) The cost to build an all-new Starbucks restaurant in Abu Dhabi.
Answer: A
Q2) An enterprise system is primarily used to manage and nurture a firm's interactions with its current and potential clients.
A)True
B)False
Answer: False
Q3) Information overload is defined as the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.
A)True
B)False
Answer: True
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Chapter 2: Accountants As Business Analysts
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43 Verified Questions
43 Flashcards
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Sample Questions
Q1) Use the following description to create a Business Process Modeling Notation (BPMN)activity diagram of the process.
Jeremy is using his banks online banking site to pay for his new phone.He logs onto the bank's website by entering his user name and password,confirming his SiteKey.After access to his account,he selects the Bill Pay tab.He searches to see of the phone company is already listed in the "Pay To Accounts."
If the phone company is not listed,he clicks on the option to "Add a New Pay To Account." He fills in the information for the phone company,including the name,address,account number,and phone number.After completing the entry,he is taken back to the list of "Pay To Accounts."
If the phone company is listed (or if he just completed entering the new account),he enters the amount of the payment.Then,he selects the option to set up a recurring payment.He enters the number of payments.Then,he selects the date that the payment should be sent each month.He then logs out of the banks online banking site and closes his browser.
Answer: There could be several similar answers,but this is a basic solution: 11ea6df8_4eb1_2346_b0bd_4d7e2169990a_TB2309_00
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Page 4
Chapter 3: Data Modeling
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Sample Questions
Q1) Which of the following would be least likely to be represented with a Unified Modeling Language (UML)Class?
A) Trucks
B) The number of trucks used in the delivery
C) The employee driving the truck
D) The customer receiving the delivery
Answer: B
Q2) A Class is a separately identifiable collection of business relationships.
A)True
B)False
Answer: False
Q3) Entity-relationship diagrams (ERDs)are similar in content and purpose to Unified Modeling Language (UML)Class diagrams.Which of the following is not a basic building block of ERDs?
A) Relationships
B) Associations
C) Attributes
D) Entities
Answer: B
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Page 5
Chapter 4: Relational Databases and Enterprise Systems
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48 Verified Questions
48 Flashcards
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Sample Questions
Q1) List the seven objects and their functions that are used to implement relational databases using Microsoft Access.
Q2) Which of the following tasks cannot be performed through queries in access?
A) Retrieve and display data
B) Calculations of data
C) Data sorting
D) Enter data into tables
Q3) What is the main purpose of using foreign keys in a relational database design?
A) It provides useful financial data value in the table.
B) It is required in all tables.
C) It is used to link tables.
D) None of the above is correct.
Q4) Which SAP modules would a manufacturing company use to create a delivery order for a sales transaction?
A) Materials Management
B) Sales and Distribution
C) Production Planning and Control
D) Logistics Execution
Q5) Discuss the challenges of enterprise system implementation?
Q6) Explain the three main types of classes in data modeling.
6
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Chapter 5: Sales and Collections Business Process
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25 Flashcards
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Sample Questions
Q1) Which of the following best describes the difference between access controls and application controls?
A) Access controls limit who can change records and application controls provide an audit trail of any changes.
B) Access controls implement business rules and application controls do not.
C) Access controls are "prohibited" business rules and application controls are "allowed" business rules.
D) There is no difference between access and application controls.
Q2) One-to-many relationships are implemented by posting a foreign key.
A)True
B)False
Q3) Many-to-many relationships are implemented by posting a foreign key.
A)True B)False
Q4) A BPMN process flow can start in one pool and end in the collaborating pool.
A)True
B)False
Q5) Segregation of duties is an example of a COSO control activity.
A)True
B)False
7
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Chapter 6: Purchases and Payments Business Process
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15 Verified Questions
15 Flashcards
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Sample Questions
Q1) In a BPMN collaboration model of the purchase process,which of the following best describes the purpose of swimlanes is which of the following?
A) Capturing the process complexity
B) Clarifying the interaction between pools
C) Showing the sequence of activities in a pool
D) Showing different jobs in the purchase process
Q2) Many companies record both purchase orders and purchases; when would such a company recognize the purchase?
A) When the purchase order is issued.
B) When the supplier receives the purchase order.
C) When the products are received from the supplier and accepted.
D) When the products are sold.
Q3) In a BPMN collaboration model of the purchase process,which of the following is the appropriate term for the message flows between pools?
A) Orchestration
B) Choreography
C) Collaboration
D) Intermediate events
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Chapter 7: Conversion Business Process
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18 Verified Questions
18 Flashcards
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Sample Questions
Q1) Gateways can direct sequence flow to support looping.
A)True
B)False
Q2) Which of the following best describes the purpose of a bill of material class?
A) Links each raw material item to one or more finished good items.
B) Shows the issues of raw material items into work in process.
C) Links finished goods to production.
D) Shows the raw material usage variance.
Q3) Business rules describe appropriate actions to take based on process conditions.
A)True
B)False
Q4) Review the following diagram.Which answer provides the best interpretation of the multiplicities for the association between the Products and Production Authorization classes?
A) The employee records the completion of a job and updates finished goods.
B) Each production authorization is related to one product.
C) Each product is related to one production authorization.
D) One employee can authorize production multiple times.
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9
Chapter 9: Reporting Processes and Extensible Business
Reporting Language XBRL
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) Why would general economic information (GDP,interest rates,etc.)be included in a data warehouse? Would they be more helpful for some companies than for others?
Q2) Data warehouses work together with operational systems to provide necessary insight,particularly in the case of customer relationship management (CRM)and supply chain management (SCM)systems.
A)True
B)False
Q3) A collection of information gathered from an assortment of external and operational (i.e.,internal)databases to facilitate reporting for decision making and business analysis is called
A) Business intelligence
B) Data Warehouse
C) Digital Dashboard
D) XBRL
Q4) Name five items that you think would be included in a digital dashboard for EBay.Why are these critical business processes for them?
Q5) How would the XBRL style sheets be different for financial analysts as compared to the Internal Revenue Service?
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Chapter 10: Accounting Information Systems and Internal Controls
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57 Verified Questions
57 Flashcards
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Sample Questions
Q1) Describe the three categories of objectives and five essential components of the COSO 2.0 framework.
Q2) What are the definitions of "governance" and "management" in the COBIT 5.0 framework?
Q3) Internal control is a process consisting of ongoing tasks and activities.It is a means to an end,not an end in itself.
A)True
B)False
Q4) Which of the following most likely would not be considered as an inherent limitation of the effectiveness of a firm's internal control?
A) Incompatible duties.
B) Management override.
C) Mistakes in judgment.
D) Collusion among employees.
Q5) Which of the following represents an inherent limitation of internal controls?
A) Bank reconciliations are not performed on a timely basis.
B) The CEO can request a check with no purchase order.
C) Customer credit check not performed.
D) Shipping documents are not matched to sales invoices.
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Chapter 11: Information Security and Computer Fraud
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Sample Questions
Q1) Symmetric-key encryption method is used to authenticate users.
A)True
B)False
Q2) Key distribution and key management are problematic under the symmetric-key encryption.
A)True
B)False
Q3) Which of the following outcomes is a likely benefit of information technology used for internal control?
A) Processing of unusual or nonrecurring transactions.
B) Enhanced timeliness of information.
C) Potential loss of data.
D) Recording of unauthorized transactions.
Q4) Describe the framework for vulnerability assessment and vulnerability management.
Q5) A disaster recovery approach should include which of the following elements:
A) Encryption.
B) Firewalls.
C) Regular backups.
D) Surge protectors.
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Chapter 12: Monitoring and Auditing AIS
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48 Verified Questions
48 Flashcards
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Sample Questions
Q1) Which of the following statements is wrong regarding continuous audit?
A) Continuous audit is to perform audit-related activities on a continuous basis
B) Testing in continuous audits often consists of continuous controls monitoring and continuous data assurance
C) Technology plays a key role in continuous audit in analyzing trends and patterns of transactions, identifying exceptions and anomalies, and testing controls
D) Continuous audit is frequently used to perform substantive tests and is used for testing of controls through transactional-data analysis
Q2) Which of the following describes a group of computers that connects the internal users of a company distributed over an office building?
A) Internet
B) LAN
C) Virtual private network (VPN)
D) Decentralized network
Q3) Embedded audit module is a programmed audit module that is added to the system under review.
A)True
B)False
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13
Chapter 13: The Balanced Scorecard and Business Value of Information Technology
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) Network IT changes the way that work if performed and decisions are made.
A)True
B)False
Q2) In the business process perspective,the firm describes its objectives for improvements in tangible and intangible infrastructure.
A)True
B)False
Q3) The value of IT investments often depend on the level of complementary resources,which can change over time.
A)True
B)False
Q4) The success of Enterprise IT investments often depends on whether the company makes complementary changes in business processes.
A)True
B)False
Q5) The balanced scorecard management process starts with the Formulate step. A)True
B)False
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Chapter 14: Evaluating AIS Investments
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Sample Questions
Q1) Which of the following is the least effective approach to quantifying expected benefits of an IT project?
A) Find out what other firms experienced in similar situations
B) Review options with the hardware vendor
C) Consult with experts
D) Use simulation software
Q2) Which of the following is not a major consideration when assessing business requirements for IT initiatives?
A) Complementary business process changes
B) Potential technological solutions
C) Gaps in performance indicated by the strategy map
D) Project risks
Q3) In making the business case for an IT investment,companies should assess the sensitivity of results to the assumptions.
A)True
B)False
Q4) Benefits are often estimated without complete information.
A)True
B)False
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Chapter 15: The Systems Development Life Cycle and Project Management:
Addressing the Challenges of Building Ais Systems
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45 Verified Questions
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Sample Questions
Q1) Tyson Foods (pork,chicken,beef producer)is implementing its SAP system throughout its worldwide operations.If Tyson has the choice,should it implement this system in Brazil before,at the same time,or after the implementation in the United States? Use the Technology Acceptance Model as a model (in particular,perceived ease of use)to explain your answer.
Q2) The systems development life cycle has five phases: Planning,Analysis,Design,Implementation and Maintenance.
A)True
B)False
Q3) Let's suppose that Wal-Mart wants to make sure its top-selling products are placed on the modular shelves at the right level for customers to find and buy.Using Wal-Mart as an example,explain what types of activities would occur in each of the five phases of the systems development life cycle in preparation for this providing this type of information to Wal-Mart and its suppliers.
Q4) The triple constraint of project management includes the constraint of:
A) Technical issues
B) Time
C) Adoption
D) Usability
Page 16
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