IS & Accounting Multiple Choice

1. Identify which of the following accounting functions has been automated by most companies' information processing subsystems:
A) Posting to ledgers
B) Recording journal entries
C) Preparing trial balances
D) all of the above

2. An example of an assurance service for a company engaged in electronic commerce is:
A) ETrust
B) ECTrust
C) SysTrust
D) CPA WebTrust

3. What is the first step to be performed by most organizations in their accounting cycles?
A) Recording business transactions in a journal
B) Preparing a trial balance
C) Recording closing entries in a journal
D) Preparing transaction source documents
E) none of the above

4. Pseudocode:
A) Is sometimes referred to as "imitation code"
B) Is another name for structured English
C) Is used for security purposes
D) Cannot be used to describe the logic in an accounting information system

5. This is the document flowcharting symbol for a source document such as a purchase order:

A) a
B) b
C) c
D) d

6. Frequent use of process maps is for:
A) Designing new AISs
B) Documenting the logic in a computer program
C) Reengineering business processes
D) Showing the physical media in an IS

7. All of the following are ways to thwart computer viruses except:
A) Acquire a vaccine or antivirus program
B) Only copy software that is in the public domain
C) Maintain complete backup files
D) Buy shrinkwrapped software from reputable sources

8. Many professional organizations have codes of conduct. The one for the Institute for Certification of Computer Professionals (ICCP) is:
A) Codes of Conduct and Good Practice for Certified Computer Professionals
B) Herodotus Code of Honesty and Integrity
C) ICCP Rules of Conduct and Order
D) none of these

9. Which of these would be an example of "denial-of-service" computer abuse?
A) Computer virus
B) Salami technique
C) Trojan horse computer program
D) Embezzlements using computerized data

10. Which of the following fundamental concepts is stressed by the COSO report?
A) Internal control is not affected by people
B) Internal control is geared to the achievement of a company's objectives in the financial reporting area only
C) Internal control is designed to detect all errors and irregularities that occur within a company's system
D) Internal control is a process

11. If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company's internal control system?
A) A good audit trail
B) Separation of duties
C) Internal review of controls
D) Competent employees

12. The sales department bookkeeper has been crediting houseaccount sales to her brother-inlaw, an outside salesman. Commissions are paid on outside sales but not on house-account sales. This might have been prevented by requiring that:
A) Sales order forms be prenumbered and accounted for by the sales department bookkeeper
B) Sales commission statements be supported by sales order forms and approved by the sales manager
C) Aggregate sales entries be prepared by the general accounting department
D) Disbursement vouchers for sales commissions be reviewed by the internal audit department and checked to sales commission statements

13. Which of the following best describes ISO 17799?
A) The international information systems standards that establish information systems best practices
B) The international information security standards that establish information security best practices
C) The international information systems control standards that establish information systems control best practices
D) none of the above

14. An apparent error in input data describing an inventory item received was referred back to the originating department for correction. A week later the department complained that the inventory in question was incorrect. Data processing could not easily determine whether or not the item had been processed by the computer. The best control procedure would be:
A) Input edit checks
B) Missing data validity check
C) Transmittal control
D) An error log

15. In an online, real-time system, which of the following would be most likely to be used as backup for an application's master file maintained on magnetic disk?
A) At specified periods the disk files would be dumped to (copied on) magnetic tape along with the period's transactions
B) A duplicate disk file would be maintained and all activity would be copied on magnetic tape continuously
C) The grandfather-parent-child technique would be employed to retain disk files
D) All source documents for transactions would be retained
E) The disk files would be copied to magnetic tape continuously

16. Networked enterprises and globalization have enabled a new business model called "business-without-boundaries." Which of the following statements describes this business model?
A) Companies no longer have all of their employees in one location
B) It is called offshoring and companies contract with firms in other countries to do such business processes as human resources, payroll, and accounting
C) Companies are under a great deal of scrutiny to manage costs and generate revenue so they contract with foreign firms to do various business processes at a lower cost to the company
D) all of the above statements describe this model

17. The primary objective in processing revenues is to:
A) Sell as many goods as possible
B) Maximize an organization's sales orders
C) Only sell goods to customers who can pay their bills
D) Achieve timely and efficient cash collection

18. All of the following are inputs (source documents) to the sales process except:
A) Sales order
B) Shipping notice
C) Remittance advice
D) all of the above are source documents to the sales process

19. Which of the following is an example of a not-for-profit organization?
A) Consulting firm
B) State university
C) Public hospital
D) both b and c are correct

20. Business process reengineering efforts sometimes fail because:
A) Management gets too involved in the process
B) Management is too optimistic regarding its expectations from its implementation
C) Management support can never overcome employee resistance
D) Employees will never accept change

21. A major objective of professional service organizations is to:
A) Decrease billable hours
B) Increase billable hours
C) Increase time spent training employees
D) Bill customers as frequently as possible

22. A waitress brings cold food to a customer, who complains. Which of these is most likely to be the cause of the problem and not a symptom of this problem?
A) The angry customer
B) An irritable waitress
C) The cold food itself
D) The inability of the kitchen staff to keep up with many orders at once

23. Which of these is not a logical procedure that is followed in the systems analysis phase of a systems study?
A) Define the problem(s) in the current system
B) Identify the company's goals
C) Perform a systems survey to acquire information about the current system
D) Generate possible solutions to solve the company's problem(s)
E) all of the above are systems analysis procedures

24. Which of the following is least likely to be a member of a study team?
A) CEO of a company
B) Internal auditor or accountant
C) IT specialist
D) Middle-level manager who uses the system