AIS CHAPTER 3 QUIZ
SYSTEM DOCUMENTATION TECHNIQUES
1. The documentation skills that accountants require vary with their job function. However, they should at least be able
to do which of the following?
a. Read documentation to determine how the system works.
b. Critique and correct documentation that others prepare.
c. Prepare documentation for a newly developed information system.
d. Teach others how to prepare documentation.
2. It explains how a system works, including the who, what, why, when, and where of systems.
a. Documents
b. Flowcharts
c. Documentation
d. Diagrams
3. These are the basic elements of a Data Flow Diagram, except:
a. Data Store
b. Process
c. Data Connection
d. Data Flow
4. It uses a pictorial representation to make it easier to understand and explain using a standard set of symbols.
a. Input and Output
b. Symbols
c. Document
d. Flowcharts
5. What act was enacted in 2002 that requires management to assess internal controls and auditors to evaluate the
assessment?
a. Credit Information System Act
b. Sarbanes-Oxley Act
c. Electronic Commerce Act
d. Sorley-Oxbey Act
6. A written, step-by-step explanation of system components and how they interact.
a. Documentation
b. Description
c. Descriptive Description
d. Narrative Description
7. A type of flowchart that shows the relationship among the input, processing, and output in an information system.
a. System flowchart
b. Program flowchart
c. Internal Control flowchart
d. Document flowchart
8. A graphical description of the flow of data within an organization, including data sources/destinations, data flows,
transformation processes, and data storage.
a. Data transformation
b. Context Diagram
c. Data Flow Diagram
d. Business Process Diagram
9. Which of the following statements is incorrect?
a. A flowchart is an analytical technique used to describe some aspect of an information system.
b. A flowchart uses a standard set of symbols to describe pictorially some aspect of an information system.
c. A flowchart is drawn using a software program such as Excel, Word, or PowerPoint.
d. A flowchart is a narrative representation of an information system.
10. Which of the following flowcharts shows the flow of document and information between departments or areas of
responsibility?
a. System flowchart
b. Program flowchart
c. Documentation flowchart
d. Document flowchart
11. Which function does the rectangle symbol represent in a flowchart?
a. Manual Operation
b. Database
c. Computer Processing
d. Journal or Ledger
12. What does the circle on a business process diagram represent?
a. Start/Begin
b. Flow
c. Decision
d. Annotation Information
13. The data flow diagram symbol which represents data flows is the
a. Triangle
b. Circle
c. Line
d. Arrow
14. These are the guidelines for preparing Business Process Diagrams (BPD), except one of the following.
a. Ignore certain items
b. Organize diagram
c. Identify business process
d. All of the following are guidelines for BPD.
15. Choose among the following is included in the guidelines for preparing flowcharts.
a. Ignore certain items
b. Organize diagram
c. Identify business process
d. None of the above choices.
16. It is a visual way to represent the activities in a business process.
a. Business Process Diagram
b. Data Flow Diagram
c. Pyramid Diagram
d. Transaction Diagram
17. A system flowchart depicts the relationship among system input, processing, storage, and ____.
a. Computer
b. Technology
c. Output
d. Program
18. How do flowcharts are represented?
a. By a narrative information
b. By a symbolic shape
c. By a functions
d. By a page
19. Our main topic for today’s discussion is
a. Symbolic Documentation Techniques
b. System Documents Techniques
c. Systematic Techniques
d. Systems Documentation Techniques
20. Which one is not included in our topic's learning objectives?
a. Prepare and use DFD
b. Prepare and use flowcharts
c. Prepare and use input/output
d. Prepare and use BPD
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u
e1. ____ is a primary key (PK) that uniquely identifies each record in the file.
a. Sales Order Number
b. Pre-printed number
c. Inventory Number
d. Account Number
2. It records the essential details and prepares multiple copies of sales order, which are held for pending approvals.
a. Shipping Department
b. Sales Department
c. Credit Department Approval
d. Warehouse Procedures
3. It is where the clerk reconciles checks and remittance list and prepare deposit slips.
a. Mail Room
b. Data Processing Department
c. Cash Receipts Department
d. AR Department
4. This is to reduce the amount of accounting mistakes but more commonly to reduce the incidence of fraud.
a. Segregation of Duties
b. Transaction Authorization
c. Access Control
d. Supervision
5. Which is not a part of revenue cycle?
a. Revenue Cycle Activities
b. Physical Systems
c. Cash Flows
d. Revenue Cycle Controls
6. It involves using technology to improve the efficiency and effectiveness of a task.
a. Reengineering
b. Interactive System
c. Automation
d. Manual System
7. In what procedure do clerks terminal immediately produces a hard-copy printout of the electronically transmitted
stock release document?
a. Sales Procedures
b. Shipping Procedures
c. Sales Order Procedures
d. Warehouse Procedures
8. It is a recurring set of business activities and related information processing operation associated with providing
goods and services to a customer and the collection of cash and payment for those sales.
a. Revenue Cycle Activities
b. Physical Systems
c. Cash Flow
d. Revenue Cycle
9. It is a shipment receipt when the carrier delivers the goods at a predetermined destination.
a. Shipping Department
b. Shipping Procedures
c. Bill of Lading
d. Warehouse Procedures
10. Both are secondary key (SK) that is neither uniquely identifies sales order records.
a. Account Number and Inventory Number
b. Account Number and Sales Order Number
c. Inventory Number and Sales Number
d. Inventory Number and Sales Order Number
11. It is where the clerk receives and reconciles the remittance advices and list.
a. Mail Room
b. Data Processing Department
c. Cash Receipts Department
d. AR Department
12. It is where the clerk separates the checks and remittance advices and prepares a remittance list.
a. Mail Room
b. Data Processing Department
c. Cash Receipts Department
d. AR Department
13. The primary objective of revenue cycle is to provide the right product in a place at the right time for the right price. T
14. Account number is a pre-printed number on physical source documents. F
15. If credit is approved, the sales department releases copies of the sales order to the billing, warehouse and shipping
department. T
16. One of the advantages of Reengineering with Real- time Technology is. it reduces the amount of paper documents in
the system. T
17. Remittance advices and list must be sent to Cash Receipts Department. F
18. When contents of cash drawer have been reconciled, cash receipts clerk prepares a cash reconciliation form, the first
copy must be recorded to the cash receipts journal.F
19. Reengineering using the internet connects to thousands of potential business partners with formal agreement. F
20. Under the Cash Receipts Department, clerk prepares the journal voucher of total cash received.T
1. What are the five principles that the reliable system satisfies?
A. Security, Access control, Confidentiality, Privacy, Availability
b. Security, Confidentiality, Privacy, Process integrity, Availability
c. Security, Intellectual property, Access control, Privacy, Confidentiality
d. Security, Confidentiality, Privacy, Process integrity,
Encryption
2.) It protects information in transit and in storage
A. Identify & classify information to protect
B. Encryption
C. Access controls
D. Training
3.) It is a principle which has the same control as confidentiality
Privacy
Availability
Security
Access control
4.) The following are the privacy concerns, except
A. SPAM
B. Organizations must carefully follow the CAN-SPAM
guidelines
C. Identify Theft
D. Identification and classification
5.) Manner in which key and text is combined to create scrambled text
A. Key length
B. Privacy
C. Policies concerning encryption keys
D. Algorithm
6.) It is the number of bits (characters) used to convert text into blocks
A. Key length
B. Privacy
C. Policies concerning encryption keys
d. Algorithm
7.) A type of encryption which uses two keys and can create digital signatures
A. Symmetric
B. Asymmetric
C. Hybrid Solution
d. Hashing
8.) A type of encryption which uses one key to encrypt & decrypt
Symmetric
Asymmetric
Hybrid Solution
Hashing
9.) Hash of document that is encrypted using document creator’s private key
Digital Signature
Hashing
Hybrid Solution
Digital Certificate
10. ) If data is encrypted before sending it, a _____ is created.
Virtual Private Network (VPN)
Hybrid Solution
Public Key Infrastructure (PKI)
Digital certificate
11.) It is the correctness of logical relationship between two data items.
Key Verification
Check digit verification
Reasonableness Test
Validity check
12.) Checks accuracy of input data by using it to retrieve and display other related information.
Prompting
Closed-loop verification
Transaction logs
Automatic data entry
13.) Threats to system availability originate from the following sources, except:
Hardware and Software failures
Natural and man-made disasters
Human error
Cross-footing
14.) When using batch processing, the following data entry controls should be incorporated, except:
Transaction logs
Sequence check
Error log
d. Batch totals
15.) Range check tests numerical amount against lower and upper limits. T
16.) Completeness check requires entering key data in twice to verify its accuracy. F
17.) Digital certificate is an electronic document that contains an entity’s public key and certifies the identity of the
owner of that particular public key. T
18.) The following regulations require organizations to protect the privacy of customer information, except: Health
Issurance Possibility and Accounting Act (HIPAA)
19.) The unauthorized use of someone’s personal information for the perpetrator’s benefit.- identity theft
20.) The common number of bits (characters) used to convert text into blocks - 256
1. It is the process of recording financial transactions pertaining to a business.
Auditing
Accounting
Posting
Journalizing
2. Is a system that composed of people and computers that processes or interprets information.
Computerized Information System
Accounting System
Transactions
Auditing
3. A process effected by an entity’s board of directors, management and other personnel, designed to provide
reasonable assurance of the achievement of objectives.
IPO model
Accounting model
COSO model
Audit risk model
4. A situation involving exposure to danger.
Risks
Internal control
Fraud
Error
5. Accounting _____ events systematically to produce reports for the users of the information.
Audits
Records
Journalizes
Summarizes
6. Complete, honest and fair information.
Validity
Integrity
Reliability
Honesty
7. Economic and efficient use of resources and the accomplishment of established goals and objectives.
Compliance audit
Financial Audit
Internal Audit
Operational Audit
8. Is a multi-disciplinary study.
Auditing in a CIS Environment
Accounting
Transactions
CIS
9. Examines the reliability and integrity of financial transactions, accounting records, and financial statements.
Compliance audit
Financial Audit
Internal Audit
Operational Audit
10. Well-grounded, just and relevant.
Validity
Integrity
Reliability
Honesty
11. It is the organizational plan and all related measures to safeguard assets, ensure the accuracy and reliability of
accounting records, promote operational efficiency, and encourage adherence to prescribed managerial policies.
IPO model
Accounting model
COSO model
Internal control
12. the systematic process of obtaining and evaluating evidence regarding assertion about economic actions and events
in order to determine how well they correspond with established criteria.
Validity
Auditing
Reliability
Honesty
13. Is a widely used approach in systems analysis and software engineering for describing the structure of an
information processing program or another process.
IPO model
Accounting model
COSO model
Internal control
14. Compliance Audit determines whether entities are complying with applicable laws, regulations, policies, and
procedures. T
15. Financial Audit examines the reliability and integrity of financial transactions, accounting records, and financial
statements. T
16. Instances that may be outside the control of processors are the following, except;
Information theft
Computer fraud
Information abuse
None of these
17. Objectives of Audit in Computerized Information includes the following, except;
Integrity
Reliabilty
Honesty
None of these
18. Examples of raw data are the following, except;
Assets
Liability
Income
Retained Earnings
19. Is the process of understanding the IT environment, to identify the related IT risks in order to perform appropriate
audit procedures to achieve that ‘assurance’ needed.
Computerized Information System
Accounting
Transactions
Auditing in a CIS Environment
20. The following are the advantages of E-commerce & Electronic Fund Transfers, except;
Convenience
Time consuming
Immediate Payment
Real-time Processing
It is an organized collection of structured information, or data, typically stored electronically in a computer system.
a) Database
b) Data dictionary
c) Logical
d) Database system
These are the advantages of database except:
a) Improved data security
b) Reduced updating errors and increased consistency
c) Damage to database affects virtually all applications programs
d) Greater data integrity and independence from applications programs
It determines if all the requirements of the business have been gathered.
a) Physical
b) Logical
c) Data dictionary
d) Database
What does DBMS stands for?
a) Data management system
b) Data manipulation system
c) Database management system
d) Database manipulation system
These are the disadvantages of database except:
a) Initial training required for all programmers and users
b) Substantial hardware and software start-up costs
c) Damage to database affects virtually all applications programs
d) Greater data integrity and independence from applications programs
This is usually controlled by a database management system.
a) Data Definition Language
b) Database
c) Data dictionary
d) Logical
In designing a database, one must have a _________ of the entire database.
a) Peripheral view
b) Conceptual view
c) Point of view
d) Data view
_______”blueprint” of the structure of database and includes data elements, field types, programs, output, etc.
a) Data Dictionary
b) Database management system
c) Database
d) Database system
What are the three DBMS languages?
a) Data Definition Language, Data Manipulation Language, and Data Query Language
b) Data Definition Language, Database Management Language, and Data Query Language
c) Data Definition Language, Data Manipulation Language, and Data Management Language
d) Database Definition Language, Data Manipulation Language, and Data Query Language
It is a software package designed to define, manipulate, retrieve and manage data in a database.
a) DBMS
b) DDL
c) DML
d) DQL
Data Manipulation Language (DML) used the following commands except:
a) Insert
b) Select
c) Delete
d) Caps Lock
It enables users to retrieve, sort, and display specific data from database
a) DQL
b) DML
c) DBMS
d) DDL
Data Manipulation Language do not change the content in the database
a) TRUE
b) FALSE
It represents the conceptual and external schema as if that “data view” were truly stored in one table.
a) Relational Database
b) Relationship Database
c) Relational Data
d) Relationship Data
Data stored in on large table can be redundant and inefficient causing the following problems except:
a) Update anomaly
b) Insert anomaly
c) Delete anomaly
d) Control anomaly
In relational database design rules, every column in a row must be _______valued
a) Triple
b) Double
c) Single
d) Quadruple
Users may want specific information found in a relational database and not have to sort through all the files to get that
information. So they ______ (ask a question) the data.
a) Query
b) Answer
c) Invoice
d) Research
Reduced data redundancy is one of the advantages of database.
a) TRUE
b) FALSE
What DBMS Language displays the “primary keys”?
a) Data Query Language
b) Data Quality Language
c) Data Definition Language
d) Data Manipulation Language
It deals with how the data will be stored in the database.
a) Physical
b) Logical
c) Data dictionary
d) Database management
1. It is a false representation of a material fact made by one party to another party with the intent to deceive and
to induce the other party to rely on the fact to his or her detriment.
a) Swindling
b) Deception
c) Fraud
d) Concealment
2. In the fraud triangle, it is the only component that a company exercises complete control over.
a) Incentive
b) Attitude
c) Opportunity
d) Rationalization
3. A type of fraud that is committed at higher levels usually by Chiefs Executive Officer and Chief Financial Officer.
a) Customer Fraud
b) Management Fraud
c) Vendor Fraud
d) Employee Fraud
4. Below are the example of things that provide incentives for committing fraud, except:
a) Poor tone at the top
b) Personal incentives
c) Bonuses based on a financial metric
d) Investor and analyst expectations
5. Which of the following belongs to the external sources of computer fraud?
a) Skimming
b) Larceny
c) Spoofing
d) Kickback
6. The following are policies to assist in the avoidance of fraud and errors, except:
a) System of Accounting Internal Control
b) System of Information Technology Controls
c) System of Accounting External Control
d) Code of Ethics
7. Its purpose is to inform those acting on behalf of the organization on how they should conduct themselves.
a) Stewardship Obligation
b) Code of Ethics
c) Computer Ethics
d) Internal controls
8. It refers to an employee’s mindset towards committing fraud.
a) Incentive
b) Attitude
c) Opportunity
d) Rationalization
9. (Blank) are everything your organization owns including money, money owed to you, equipment, goods,
property or lands, etc.
a) Property
b) Asset
c) Equity
d) None of the above.
10. It refers to the careful and responsible management of something entrusted to one’s care.
a) Leadership
b) Regulation
c) Stewardship
d) Supervision
11. These are the objectives of internal control; except:
a) Reliability of Financial reporting
12.
13.
14.
15.
16.
17.
18.
19.
20.
b) Effectiveness and Efficiency of operations.
c) Compliance with Management Directives
d) Compliance with Applicable Laws and Regulations
This act also added new criminal penalties for violating securities laws.
a) Act of 2002
b) Act of 2001
c) Act of 2004
d) Act of 2003
It is the analysis of the impact of computer technology and the policies for the ethical use of such technology.
a) Code of Ethics
b) Pop Ethics
c) Para Ethics
d) Computer Ethics
It is a multidisciplinary application of ethical theories to computer science.
a) Para Ethics
b) Pop Ethics
c) Theoretical Ethics
d) Theories of Ethics
Ethical behavior is a necessary and a sufficient condition for business success in the long run.
a) True
b) False
This pertains to the principles of conduct that individuals and business manager use in guiding their behavior
and choices.
a) Business Ethics
b) Behavioral Ethics
c) Code of Ethics
d) Decision Ethics
These are the four areas of ethics in business, except:
a) Equity
b) Exercise of corporate power
c) Rights
d) Obligations
The purpose of a code of ethics is to ______ those acting on behalf of the organization on how they should
conduct themselves.
a) Affirm
b) Inform
c) Guide
d) Check
One of the levels of computer ethics where one should have real interest and acquire some skill and knowledge
in the field.
a) Pop Ethics
b) Para Ethics
c) Pare Ethics
d) Paria Ethics
A type of customer fraud.
a) Credit card fraud
b) Vendor Audits
c) Cash Fraud
d) Dos Attacks
1. Upon receipt of the supplier’s invoice, Accounts Payable reconciles all documents, posts to the purchases
journal, and records the _______ in the accounts payable subsidiary ledger.
a. asset
b. liability
c. equity
d. income
2. A clerk prepares a purchase requisition and sends copies to Purchasing and Accounts Payable.
a. True
b. False
3. To what departments do Purchasing department prepares and sends copies of purchase order for each
vendor?
a. Inventory control, Accounts Payable, Receiving (blind copy), and Purchasing Department
b. Purchasing Department, Receiving (blind copy), and Accounts Payable
c. Accounts Payable, Purchasing Department, the vendor and Inventory Control
d. Inventory Control, Accounts Payable, Receiving (blind copy), and the vendor.
4.The Accounts Payable department has now sent copies of the purchase requisition, purchase order, and
receiving report.
a. False
b. True
5. Periodically, the entries in the purchases journal are summarized in a _______ which is sent to the General
Ledger department.
a. Journal voucher
b. General ledger
c. Purchases journal
d. cash disbursements voucher
6. In a manual purchases system, the General Ledger department:
a. reconciles all documents, posts to the purchases journal, and records the liability in the accounts payable
subsidiary ledger
b. receive copies of the purchase requisition, purchase order, and receiving report.
c. reconciles the inventory amount with the account summary received from inventory control
d. all of the above
7. General Ledger also prepares a cash disbursements voucher and posts it in the voucher register.
a. True
b. False
8. The General Ledger department posts from the accounts payable journal voucher to the general ledger.
a. False
b. True
9. The Accounts Payable Department prepares the checks and returns paid vouchers to accounts payable, mails
the check to the supplier.
a. True
b. False
10. _______ are prepared for the general update procedure
a. Journal voucher
b. Cash disbursements voucher
c. Batch totals
d. purchases journal
11. In computer-based expenditure applications for Cash Disbursements the computer performs tasks by:
a. Prints checks for scanned vouchers currently due
b. The system scans for vouchers currently due
c. Records checks in the check register
d. All of the above
12. Advantage of Real-Time Data Input & Processing Over Batch Processing
a. Eliminates much of the routine manual procedures, such as transcribing information onto paper documents
b. validates the voucher records against the valid vendor file
c. calculates batch totals for the general ledger update procedure and then closes the corresponding records in
the open PO file to the closed PO file
d. None of the above
13. In manual accounting records, there must be a maintenance of adequate records for:
a. accounts payable, vouchers payable, checks, general ledger, subsidiary ledgers
b. subsidiary ledgers, accounts payable, purchase orders, checks, general ledger
c. general ledger, subsidiary ledger, checks, purchase orders, cash disbursements
d. checks, cash disbursements, subsidiary ledger, cash disbursements
14. There is an access to inventories (direct), cash (direct) and accounting records (indirect) in Manual Access
Controls.
a. True
b. False
15. The expenditure cycle is the set of activities related to the acquisition of and payment for goods and services.
a. False
b. True
16. Why does computer-based supervision needed?
a. Supervision takes on new aspects as technology advances.
b. The workplace becomes more sophisticated.
C.Automation often leads to a collapsing of the traditional segregation of duties.
D. all of the above
17. Im computer-based expenditure, the computer updates the inventory subsidiary file from the receiving
report, calculates batch totals for the general ledger update procedure and then closes the corresponding
records in the open PO file to the closed PO file.
a. True
b. False
18. What starts the expenditure cycle?
a. When there is a need for an item
b. When the journal voucher is used to update the general ledger.
C. When the accounts payable control account is reconciled with the subsidiary summary.
D. B & C are correct
19. The time lag splits the expenditure transaction cycle into two phases: physical phase (purchasing cycle) and
financial phase (cash disbursements)
a. False
b. True
20. Within the expenditure cycle, supervision is of highest importance in the Receiving department, where the
inventory arrives and is logged in by a receiving clerk. Need to minimize:
a. failures to properly inspect the assets
b. theft of the assets
c. failures to inspect liability
d. a & b are correct