Question1. All of the following are examples of parameters that might be used to set

• A minimum password length of six digits
• Restriction of passwords to alphanumeric characters only
• Required use of words that can be found in a dictionary
• A requirement for a minimum interval (such as one day) before a password may be changed

Question 2. The certified information systems auditor certification is sponsored by:

• ISACA
• AICPA
• IMA
• None of these.

Question 3. Which of the following is not an important feature of an enterprise system?

• Multiple databases
• Centralized database
• Functional integration
• Back-office functionality

Question 4. Documentation is not important when end users create their own computer programs or applications.

• True
• False

Question 5. Which of the following is not a condition for fraud as identified in the fraud triangle?

• Incentives or pressures
• Greed
• Opportunity
• Rationalization

Question 6. When we talk about a Value-Added Reseller, in the context of accounting and enterprise software, we are referring to an individual or business that:

• Usually assists small businesses select entry-level, small business software
• Is a qualified installer of mid-level or high-end accounting software
• Makes special arrangements with software vendors and is able to train customers both (b) and (c)
• none of the above

Question 7. Within a database context, the relationship between "natural parent" and "child" would most likely be:

• one-to-one
• one-to-many
• many-to-one
• many-to-many

Question 8. When we talk about "front-office" capabilities of today's ERP systems, we are referring to which of the following?

• The payroll functions
• The human resource functions
• The administrative functions
• none of the above

Question 9. An important guideline to follow when creating data flow diagrams is to show only one system entity even when several of them perform the same tasks.

• True
• False

Question 10. Which of the following is intended to solve the problem that financial data used in one application is not easily transferable to other applications?

• XMP
• ERP
• XBRL
• XMLP

Question 11. Freije Refrigeration Company has an inventory of raw materials and parts consisting of thousands of different items which are of small dollar value individually but significant in total. A fundamental control requirement of Freije's inventory system is that:

• Perpetual inventory records be maintained for all inventory items
• The taking of physical inventories be conducted on a cycle basis rather than at year-end
• The storekeeping function not be combined with the production and inventory record-keeping functions
• Material requisitions be approved by an officer of the company

Question 12. Most system flowcharting symbols:

• Have not been standardized
• Have been standardized by the Society of System Analysts
• Have been standardized by the National Bureau of Standards
• Are unique to the organization that uses them

Question 13. Which of the following characteristics are common to both service and not-for-profit organizations?

• Importance of professional employees
• Difficulty in measuring the quality and quantity of output
• Inability to inventory product
• all of the above

Question 14. When creating system flowcharts, the requirement that a processing symbol should always be placed between an input symbol and an output symbol is known as the:

• Processing rule
• Input/output rule
• Sandwich rule
• Cycle rule

Question 15. Which of the following statements best describes business process outsourcing?

• A company focuses on its core business processes and contracts with another firm to do the other processes
• Companies frequently outsource core business processes
• Due to networked enterprises and advanced technology, more employees may work from their homes or alternate locations
• Initially, companies engaged in business process outsourcing offered employees more opportunities to travel and more career choices for advancement

Question 16. Data flow diagrams:

• Accomplish the same purpose as system flowcharts
• Are different from system flowcharts since they focus on a logical
• view of the information system
• Are useless for planning a new system
• Are never used in analyzing an existing system

Question 17. Which of the following is not a sign that indicates the need for a new AIS?

• A new vendor has just announced an AIS package with several features your system does not have
• A slowdown in inventory turnover
• The owner is concerned about cash flows and profitability
• It is taking longer to collect on receivables
• It is taking longer to close the books

Question 18. Which of the following outputs (reports) are common to both the sales process and the purchasing process?

• Sales analysis reports
• Financial statement information
• both (a) and (b)
• none of the above

Question 19. ________ is a common method of reviewing a company's internal control procedures:

• Using an informant
• Consulting historical records
• Getting top management's opinions
• Checking samples of system inputs and outputs

Question 20. A major disadvantage of decision tables is that they are unable to summarize data processing tasks associated with a large number of data conditions into any kind of compact or easily understood format.

• True
• False

Question 21. The "A" in the term IDEA (used by the SEC) stands for:

• Accounting
• Association
• Addition
• Applications
• Access

Question 22. Converting to a new computerized system will typically entail large dollar expenditures to make the new system operative. These monetary expenditures normally are incurred for:

• Transferring a company's financial data from its present storage media to computerized storage media
• Testing the operations of the new system before it replaces the old system
• Establishing good internal controls for the new computerized system
• all of the above

Question 23. DML stands for:

• Distributed management logic
• Data management logic
• Data management language
• Data manipulation language

Question 24. Manual forms, in terms of database form design, are:

• Archaic
• Used to guide the development of electronic forms
• Used to collect information electronically
• Used by many offices already

Question 25. Which of the following is not a major reason for controls in a computerized accounting information system?

• More data are processed
• Often, computerized data are unreadable to the human eye
• With computerized data, there is a higher possibility of computer crime
• all of the above are reasons for controls

Question 26. In a data flow diagram, an open-ended rectangle is used to represent:

• A process
• A data stream
• A data source or destination
• A data store

Question 27. Which of the following statements is not true?

• Time and billing systems are similar to job order costing systems
• Time and billing systems are an important component of an AIS for manufacturing firms
• A difficult problem for professional service organizations Ristracking staff time
• Time and billing systems are important in the professional service industry

Question 28. The most important factor in planning for a major change in a computer based system is:

• The organization of the IT department
• The ability of the systems programmers to write appropriate software
• The selection of the most advanced computer equipment
• Giving the systems people a free hand in all changes
• The participation of top management in the planning process

Question 29. Companies should create documentation standards that apply to enduser programs as well as applications created by the IT department.

• True
• False

Question 30. When designing a computer-based information system, the initial step in the systems design process is to determine:

• The required outputs
• The source documents that serve as the basis for input
• The processing required
• The computers that will be used
• The file information required during processing