Exam - MC

  1. Role of the accountant has changed in recent times because...
    Computer systems have emerged to handle the classification and recording tasks traditionally associated with the accounting function
  2. The accounting function's reliance on information systems function has remained the same over the years?
  3. A business process consists of a series of discrete activities?
  4. System mapping and documentation...
    Is crucial for systems development and systems review

    Serves as a memory device for an organisation

    Is useful for new staff and external auditors
  5. Internal controls control...
    Physical assets in an organisation

    Information resources in an organisation

    Human behaviours in an organisation
  6. Activities of the general ledger and financial reporting cycle...
    Preparing and updating journals and ledger accounts

    Preparing end-of-period adjusting entries and closing temporary accounts to profit and loss

    Preparing trial balances and producing financial reports
  7. A process that has been reengineered will have less of a role for specialists because...
    Jobs are combined and key workers are given decision-making responsibility
  8. Systems development can be driven by...
    Change in the regulatory environment

    Change in the business environment 

    Business need from within the organisation
  9. The objective of the AR phase in the revenue cycle is to...
    Ensure payments for goods and services are correctly received, recorded and banked.
  10. Not involved in processing the sales order...
    Bill the customer
  11. Not part of the expenditure cycle...
    Produce goods
  12. Main risk attached to financial reporting...
    Reporting incorrect data
  13. ERM stands for
    Enterprise Risk Management
  14. A mixture of preventative, detective and corrective controls should always be used?
  15. A reasonableness check used when processing fortnightly employee wage payments would best be used to...
    Detect potentially high values for hours worked.
  16. An antivirus program scans and monitors files in a computer continuously for viruses is...
    Detective control
  17. In-house developed programs are often cheaper than commercial off-the-shelf programs?
  18. ERP systems capture the accounting information for ALL business processes?
  19. Feasibility analysis involves determining whether...
    The new system can be built within a specific period.
  20. Building in internal controls after the systems design phase is a ... process compared to building them in at the time the systems development occurs.
    Costly but efficient
  21. Which of the following documents would normally trigger the process to record a customer payment?
    • Not deposit slip...
    • Not sales invoice...
  22. A purchase order is...
    All of the above
  23. A DFD...
    is a graphical representation of the source and destination of data that shows how data flow within an organisation
  24. Prevent the acceptance of unordered goods...
    Match the packing slip to PO before accepting delivery
  25. Document triggers picking and shipping process in the revenue cycle?
    Sales order
  26. Corrections are made to correct errors found in...
    General Ledger
  27. Opposite of receiving and storage of goods, supplies and services?
    Shipping function
  28. Revenue Cycle
    Right product, right place, right time, right price.
  29. First activity in transaction processing?
    • Not recording data in a journal...
    • Not managerial accounting standards...
  30. Set of related, coordinated and structured activities and tasks...
    Business process
  31. Benefits of XBRL
    Organisations can publish information only once, using standard XBRK tags.

    Tagged data is readable and interpretable by computers, so users don't need to re-enter data in order to work with it.

  32. Free from bias or error
  33. NOT shown on a receiving report...
    Price of the item
  34. General ledger and reporting system provides information to...
    external and internal users (all of the above)
  35. NOT useful for accounts payable...
    blanket purchase orders
  36. Sarbanes-Oxley Act...
    understand a client's system of internal controls
  37. Budgets and performances reports developed on the basis of...
    NOT financial accounting standards
  38. Relationships among input, processing and output of AIS...
    System flowchart
  39. Seperate shipping and billing to reduce threat of...
    failure to bill customers
  40. Inviting vendores
    Request for Proposal (RFP)
  41. NOT a benefit of outsourcing...
    Offers a great deal of flexibility as it's easy to change outsourcers.
  42. Backups...
    • NOT monthly, weekly...
    • NOT quarterly, monthly
  43. NOT component of an intelligence enterprise system...
    Data reconciling
  44. NOT key digital networking technology...
    Digital balanced scorecards
  45. Conceptually organises...
    Logical view
  46. "com"
  47. Customer's name...
  48. Prototyping
    AIS not clearly visualised
  49. Radio Frequency Identification is frequently used to automate payments between businesses?
  50. All inventory records...
  51. COSO
    Internal control policies
  52. Sales table primary key...
    Sales invoice number
  53. NOT part of Internal Control System
    Strategic direction
  54. Searching data stored in a data warehouse
    Data mining
  55. Prevent alphabetic characters
    Field check
  56. Internal control finds the problem before it occurs
    Preventative control
  57. First step in data conversion
    Decide what files need converting
Card Set
Exam - MC
Exam - MC