Auditing Information Systems
Test Preparation
Course Introduction
Auditing Information Systems explores the principles, methodologies, and practices involved in assessing and evaluating the controls, security, and integrity of information systems within organizations. The course covers risk assessment, audit planning, control frameworks, and compliance with regulatory standards. Students learn to identify vulnerabilities, recommend improvements, and ensure the accuracy and reliability of data through practical case studies and hands-on audit exercises. Emphasis is placed on understanding the technological environment, legal and ethical issues, and the role of the auditor in ensuring effective governance and protection of critical information assets.
Recommended Textbook
Accounting Information Systems 11th Edition by Marshall
B. Romney Paul J. Steinbart
Available Study Resources on Quizplus
20 Chapters
1765 Verified Questions
1765 Flashcards
Source URL: https://quizplus.com/study-set/3502 Page 2
Chapter 1: Accounting Information Systems
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/69576
Sample Questions
Q1) Define an accounting information system.
Answer: An AIS is a system that collects,records,stores,and processes data to produce information for decision makers.
Q2) Harvard professor Michael Porter contends that for a company to be successful in the long run it "must deliver greater value to customers or create comparable value at a lower cost,or do both" and suggests three strategic positions.Describe these strategic positions.How do these strategic positions relate to financial and managerial accounting information given?
Answer: The three strategic positions described are: a)a variety-based strategic position that involves producing or providing a subset of the industry's products or services; b)a needs-based strategic position that involves trying to serve most or all of the needs of a particular group of customers in a target market; and c)an access-based strategic position that involves serving a subset of customers who differ from other customers in terms of factors such as geographic location or size which create different requirements for serving those customers.AIS that has been properly designed can support an organization in attaining and maintaining a strategic position.Such an information system can be a valuable asset in helping the organization to maintain a competitive position in the marketplace.
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Overview of Business Processes
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/69575
Sample Questions
Q1) An agreement between two entities to exchange goods or services or any other event that can be measured in economic terms by an organization is
A)give-get exchange
B)transaction
C)revenue
D)processing cycle
Answer: B
Q2) Periodic updating of the data stored about resources and agents is
A)On-line processing
B)real-time processing
C)batch processing
D)data processing
Answer: C
Q3) The set of fields that contain data about various attributes of the same entity forms a
A)entity
B)record.
C)file.
D)database. Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Systems Development and Documentation Techniques
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/69574
Sample Questions
Q1) Most processes on a DFD can be identified by
A)data in-flows only.
B)data out-flows only.
C)data flows both into or out of a process.
D)always being followed by a data store.
Answer: C
Q2) P62 50)What are the various ways to document a system?
Answer: Data flow diagrams,document flowcharts,system flowcharts,program flowcharts,and narrative documentation are the various ways to document a system.
Q3) An entity that sends or receives data used or produced by the system is called a A)data source or destination.
B)data store.
C)data flow.
D)data transformation.
Answer: A
Q4) P71 56)What are the four categories of flowcharting symbols?
Answer: The four categories of flowcharting symbols are: input/output,processing,storage,flow and miscellaneous.
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Relational Databases
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/69573
Sample Questions
Q1) The potential inconsistency problem could arise when there are multiple occurrences of a data item in a database.This is called the
A)update anomaly.
B)insert anomaly.
C)inconsistency anomaly.
D)integrity anomaly.
Q2) The data dictionary usually is maintained
A)automatically by the DBMS.
B)by the database administrator.
C)by the database programmers.
D)by top management.
Q3) What do you think will be the main impact of database technology in your career?
Q4) A database system separates the logical and physical view of data.Such separation facilitates the development of new applications since programmers can concentrate their efforts on coding application logic.The term physical view refers to
A)how a user or programmer conceptually organizes and understands the data.
B)how the DBMS accesses data for an certain application program.
C)how and where the data are physically arranged and stored.
D)how master files maintain facts used by certain application programs.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Computer Fraud and Security
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/69572
Sample Questions
Q1) There are four distinct types of threats to an AIS: 1)software errors and equipment malfunctions; 2)unintentional acts; 3)intentional acts; and 4)__________.
A)computer fraud
B)data transmission errors
C)human carelessness
D)natural and political disasters
Q2) An expert from the Information Systems Security Association estimates that the largest single source of security problems for systems is due to A)human errors and omissions.
B)physical threats such as natural disasters.
C)dishonest employees.
D)fraud and embezzlement.
Q3) Misappropriation of assets can also be called
A)Computer fraud
B)Employee fraud
C)Fraudulent financial reporting
D)Management fraud
Q4) How does a company make fraud less likely to occur?
Q5) How can companies reduce losses from fraud?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Control and Accounting Information Systems
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/69571
Sample Questions
Q1) River Rafting Adventures of Iowa provides rafts and tour guides to tourists eager to ride the wild rivers of Iowa.Management has determined that there is one chance in a thousand of a client being injured or killed.Settlement of resulting lawsuits has an average cost of $650,000.Insurance with a $50,000 deductible is available.It covers the costs of lawsuits unless there is evidence of criminal negligence.What is the expected loss without insurance?
A)$50,000
B)$650,000
C)$650
D)$50
Q2) The risk that remains after management implements internal controls is
A)Inherent risk
B)Residual risk
C)Risk appetite
D)Risk assessment
Q3) What are the two categories of internal controls?
Q4) Discuss the weaknesses in COSO's internal control framework that lead to the development of the Enterprise Risk Management framework.
Q5) What are the three functions of internal controls?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Infromation System Controls for Systems
Reliability
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/69570
Sample Questions
Q1) This screens individual IP packets based solely on the contents of the source and/or destination fields in the packet header..
A)Access control list
B)Deep packet inspection
C)Stateful packet filtering
D)Static packet filtering
Q2) Murray Snitzel called a meeting of the top management at Snitzel Capital Management.Number one on the agenda was computer system security."The risk of security breach incidents has become unacceptable," he said,and turned to the Chief Information Officer."This your responsibility! What do you intend to do?" Which of the following is the best answer?
A)Evaluate and modify the system using the Trust Services framework
B)Evaluate and modify the system using the COBIT framework.
C)Evaluate and modify the system using the CTC checklist.
D)Evaluate and modify the system using COBOL.
Q3) Which of the following descriptions is not associated with symmetric encryption?
A)A shared secret key
B)Faster encryption
C)Lack of authentication
D)Separate keys for each communication party.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Auditing Computer-Based Information Systems
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/69569
Sample Questions
Q1) Input validation checks are an example of
A)Data entry controls
B)Data transmission controls
C)Output controls
D)Source data controls
Q2) Which of the following is not one of the 10 internationally recognized best practices for protecting the privacy of customers' personal information?
A)Access.
B)Monitoring and enforcement.
C)Registration.
D)Security.
Q3) This batch processing data entry control tests if a batch of input data is in the proper numerical or alphabetical sequence.
A)Batch total
B)Financial total
C)Hash total
D)Sequence check
Q4) Identify four useful procedures for controlling access to system outputs.
Q5) Identify four data entry controls.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Auditing Computer-Based Informtion Systems
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/69568
Sample Questions
Q1) One way an auditor gauges how much audit work and testing needs to be performed is through evaluating materiality and seeking reasonable assurance about the nature of the information or process.What is key to determining materiality during an audit?
A)determining if material errors exist in the information or processes undergoing audit
B)the testing of records,account balances,and procedures on a sample basis
C)determining what is and is not important given a set of circumstances is primarily a matter of judgment
D)none of the above
Q2) An auditor examines all documents related to the acquisition,repair history,and disposal of a firm's delivery van.This is an example collecting audit evidence by A)confirmation.
B)reperformance.
C)vouching.
D)analytical review.
Q3) Name the four major stages of all audits.
Q4) What does an auditor examine when performing a detailed analysis of program logic?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: The Revenue Cycle: Sales an Cash Collections
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/69567
Sample Questions
Q1) Responding to customer inquiries and general customer service is an important aspect in the revenue cycle.Since customer service is so important,software programs have been created to help manage this function.These special software packages are called
A)EDI systems.
B)POS systems.
C)VMI systems.
D)CRM systems.
Q2) The credit manager reports to the __________ and the treasurer reports to the
A)controller; vice president of finance
B)treasurer; controller
C)marketing manager; vice president of finance
D)treasurer; vice president of finance
Q3) The maximum allowable account balance for a given customer is called the A)credit checkpoint.
B)credit limit.
C)reorder point.
D)backorder point.
Q4) Why is credit approval an important part of the revenue cycle?
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: The Expenditure Cycle: Purchasing and Cash
Disbursements
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/69566
Sample Questions
Q1) The decision of when to place an order in a traditional inventory system is specified by the
A)company inventory policies.
B)economic order quantity.
C)stockout point.
D)reorder point.
Q2) In the expenditure cycle,good control dictates that expenditures should be paid by check.This may not be feasible when minor purchases are made.To facilitate quick payment for minor purchases,a(n)__________ should be set up and maintained using __________.
A)special bank account; disbursement vouchers
B)imprest fund; vouchers
C)cash box; small denomination bills
D)petty cash fund; procurement cards
Q3) Define the materials requirement planning (MRP)
Q4) How can information technology be used to improve the vendor invoice approval process?
Q5) a)What is the major cost driver in the purchasing function?
b)How can information technology be used to control this cost driver?
Q6) Define just-in-time (JIT)inventory methods. Page 13
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 12: The Production Cycle
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/69565
Sample Questions
Q1) Information found on the materials requisition form is based in part on information obtained from which other form?
A)a bill of materials.
B)a move ticket.
C)a production order.
D)a picking list.
Q2) The expenses associated with disposal of defective products are ______ costs.
A)prevention
B)inspection
C)internal failure
D)external failure
Q3) A __________ authorizes the transfer of raw goods needed for production from the storeroom to the production facilities.
A)master production schedule
B)materials requisition
C)move ticket
D)production order
Q4) Discuss two measures that can address the threats of inefficiencies and quality controls problems.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: The Human Resources Managementpayroll Cycle
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/69564
Sample Questions
Q1) For recording time spent on specific work projects,manufacturing companies usually use a
A)job time ticket.
B)time card.
C)time clock.
D)labor time card.
Q2) Employee turnover will always occur and some experts believe it may even be desirable in an organization.Experts estimate that on average the costs associated with replacing an employee are about __________ that of the employee's annual salary.
A)one-quarter
B)one-half
C)one and one-half
D)twice
Q3) What factors should be considered in outsourcing payroll to a payroll service bureau? Discuss the advantages and disadvantages of using a payroll service bureau to process a payroll.
Q4) Define an HRM/payroll cycle.What are the basic activities in an HRM/payroll cycle?
Q5) Why are accurate cumulative earnings records important?
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: General Ledger and Reporting System
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/69563
Sample Questions
Q1) Adjusting entries that are made to recognize revenue that has been earned but not yet received are called
A)corrections.
B)estimates.
C)deferrals.
D)accruals.
E)revaluations.
Q2) A financial data warehouse provides support for strategic decision making because it
A)consolidates current financial data.
B)contains both current and historical financial data.
C)contains current financial and operational data.
D)summarizes historical data.
Q3) In accounting terminology,the form that documents journal entry updates to the general ledger is called
A)a trial balance.
B)an adjusted trial balance.
C)a journal voucher.
D)an accounting update memo.
Q4) Explain the benefits of XBRL.
17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Data Modeling and Database Design
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/69562
Sample Questions
Q1) Identify the three basic rules that apply to the REA model pattern.
Q2) How many types of relationships are possible between entities?
A)one
B)two
C)three
D)an infinite number
Q3) Which of the following is not one of the five stages of database design?
A)systems analysis
B)conceptual design
C)data modeling
D)implementation
Q4) In an REA diagram,the pair of numbers next to each entity represents the cardinalities for the entity.The first number in the pair is known as
A)the minimum cardinality.
B)the maximum cardinality.
C)the x axis cardinality.
D)the y axis cardinality.
Q5) Name and describe the three parts of the REA data model.
Q6) Define minimum and maximum cardinalities.
Q7) Describe the possible relationships between entities in terms of cardinalities.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Implementing an Rea Model in a Relational Database
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/69561
Sample Questions
Q1) A query that extracts,for a given time period,all purchases for which there is no corresponding disburse cash event will yield
A)a cash account ledger.
B)a credit sales journal.
C)an accounts receivable ledger.
D)an accounts payable journal.
Q2) What are the advantages of the REA data model over the traditional AIS model?
Q3) A query that extracts,for a given time period,all sales events for which there is no corresponding receive cash event on the date of the sales event will yield
A)a cash account ledger.
B)a credit sales journal.
C)an accounts receivable ledger.
D)an accounts payable journal.
Q4) REA data modeling
A)Can be used only to model financial data.
B)Can provide accountants with a method for more easily adapting the AIS to respond to change.
C)Is an example of a traditional accounting concept.
D)Is just a fancy way of doing E-R diagramming.
Page 19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Special Topics in Rea Modeling
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/69560
Sample Questions
Q1) Concerning the sale of services,the minimum cardinality from the Sales event to the Services entity is ____.However,the minimum cardinality from the Sales event to the Inventory Resource is ____.
A)0;0
B)0;1
C)1;0
D)1;1
Q2) Supplier number is least likely to be a foreign key in:
A)Order Goods
B)Pay for Goods
C)Receive Goods
D)Warehouse
Q3) Why might an REA diagram show relationships between resources and agents?
Q4) In the human resources REA model,the relationship between the Employees and Training is
A)1:1
B)1:N
C)M:N
D)None of the above
Q5) Why is cost information stored in several relational tables?
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Introduction to Systems Development and Systems Analysis
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/69559
Sample Questions
Q1) Systems development planning is an important step in the SDLC for a number of reasons.When management is better prepared for future resource needs and employees are better prepared for the changes that will occur,it can be said that the systems development planning has A)adaptability.
B)attained lower costs.
C)consistency.
D)reached a level of efficiency.
Q2) When is a proposal to conduct a systems analysis prepared?
A)after a written request for systems development is prepared
B)after the development team completes the survey of the existing AIS
C)after the initial investigation of the project is approved
D)before the initial investigation
Q3) Discuss the relative advantages and disadvantages of the four different methods for gathering data during a systems survey.
Q4) What are the objectives of a system survey?
Q5) Identify and briefly discuss the points at which a "go/no go" decision is made in the systems analysis process.
Q6) What four strategies can be used for determining user requirements?
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 19: Ais Development Strategies
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/69558
Sample Questions
Q1) A sobering fact is that even though a trillion-plus-dollars has been spent on information technology in the last decade,productivity has not increased significantly.One change suggested to improve performance dramatically is to analyze thoroughly and completely redesign business processes and information systems.What is such a change called?
A)a CSC Index
B)business process reengineering
C)end-user development
D)information system outsourcing
Q2) Which statement is true regarding canned software and the SDLC?
A)Canned software cannot be modified to meet unique user needs.
B)Companies that buy rather than develop AIS software can still follow the SDLC process.
C)Most canned software meets all of a company's information or data processing needs.
D)The SDLC process does not apply to canned software.
Q3) What is business process reengineering? What are the principles of reengineering?
Q4) What are the guidelines for successfully purchasing custom software when using an outside vendor?
To view all questions and flashcards with answers, click on the resource link above.
Page 22
Chapter 20: Systems Design, Implementation and Operation
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/69557
Sample Questions
Q1) Flowcharts,record layouts,decision tables,and related items are part of
A)determining user needs.
B)documenting the program.
C)testing the program.
D)training program users.
Q2) What is a post-implementation review? What are the activities involved in a post-implementation review?
Q3) What output design considerations should be analyzed as part of the physical system design phase?
Q4) One of the purposes of the __________ is to guide physical systems design activities.
A)conceptual systems design report
B)physical systems design report
C)program design
D)systems analysis report
Q5) Debugging is an activity that is most closely related to which of the following?
A)Desk checking
B)Structured programming
C)Program maintenance
D)Hierarchical program design
To view all questions and flashcards with answers, click on the resource link above. Page 23