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ACC 564 Final Exam Review: Key Accounting Information Systems Concepts and Fraud Detection

A review of accounting information systems and fraud detection.

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    ACC 564 Final Exam Review: Key Accounting Information Systems Concepts and Fraud Detection ACC 564 FINAL EXAM PART 1 TWO VERSIONS POSTED 100 QUESTIONS Question 1 The transaction cycle that includes the events of hiring employees and paying them is known as the Answer revenue cycle. expenditure cycle. human resources cycle. financing cycle. Question 2 Data must be converted into information to be considered useful and meaningful for decision - making. There are six characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of Answer relevancy. timeliness. understandability. reliability. Qu estion 3 The primary objective of accounting is to Answer implement strong internal controls. provide useful information to decision makers. prepare financial statements. ensure the profitability of an organization Question 4 The business owners obtain financing from outside investors, which results in an inflow of cash into the company. This transaction is considered to be part of which cycle? Answer the revenue cycle the payroll cycle the production cycle the financing cycle Question 5

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    Information that is free from error or bias and accurately represents the events or activities of the organization is Answer relevant. reliable. verifiable. timely Question 6 Hector Sanchez works in the accounting department of a multinational manufacturing company. His job includes updating accounts receivable based on sales orders and remittance advices. His responsibilities are part of the company's Answer revenue cycle. expenditure cycle. financing cycle. production cycle Question 7 An audit trail A nswer provides the means to check the accuracy and validity of ledger postings. begins with the general journal. is automatically created in every computer - based information system. is a summary of recorded transactions Question 8 What usually initiates data input into a system? Answer The transaction system automatically checks each hour to see if any new data is available for input and processing. The performance of some business activity generally serves as the trigger for data input. A general ledger program is queried to produce a trial balance at the end of an accounting period. Data is only input when a source document is submitted to the accounting department Question 9 The general ledger account that corresponds to a subsidiary ledger account is known as a Answer dependent account. attribute account. entity account. control account. Question 10 The efficiency of recording numerous business transactions can be best improved by the use of

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    Answer prenumbered source documents. specialized journals. posting references. subsidiary ledgers Question 11 Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to document the existing accounting information system, and focus on the activities and flow of data between activities. He decides to begin with a summary description of the sources and uses of data in the organization and how they are processed by the system. The documentation tool that he should employ for this purpose is a Answer data flow diagram. document flowchart. system flowchart. program flowchart. Question 12 In general, a data destination will be shown by Answer an arrow pointing away. an arrow pointing in. arrows pointing both ways. no arrows, only two horizontal lines. Question 13 A data flow diagram Answer is a graphical description of the source and destination of data that shows how data flow within an organization. is a graphical description of the flow of documents and information between departments or areas of responsibility. is a graphical description of the relationship among the input, processing, and output in an information system. is a graphical description of the sequence of logical operations that a computer performs as it executes a program Question 14 A flowchart that depicts the relationships among the input, processing, and output of an AIS is Answer an internal control flowchart. a document flowchart. a system flowchart.

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    a program flowchart. Question 15 Chuck and Jill Scruggs travel in their motor home six months of the year and buy unique artifacts. Within hours after the Scruggs make a purchase, they have photographed it, written a description of it, and posted it for sale on eBay with a reservation price. Anything that does not sell within a week is shipped back to Austin, Texas, for display in The House of Curiosities, a retail business that the Scruggs operate during the balance of the year. Which symbol should be used to represent the transfer of data to eBay in a context diagram of this process? Answer A) rectangle B) circle C) arrow up and right D) parallel horizontal lines Question 16 The ________ handles the link between the way data are physically stored and each user's logical view of that data. Answer data warehouse data dictionary database management (DBMS) software schema Question 17 The logical structure of a database is described by the Answer data dictionary. schema. database management system. internal level. Question 18 The database requirement that foreign keys must be null or have a value corresponding to the value of a primary key in another table is formal ly called the Answer entity integrity rule. referential integrity rule. rule of keys. foreign key rule Question 19 A set of individual user views of the database is called the Answer conceptual - level schema. internal - level schema. external - level schema. meta - schema.

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    Question 20 Inability to add new data to a database without violating the basic integrity of the database is referred to as the Answer update anomaly. insert anomaly. integrity anomaly. delete anomaly. Question 21 The US Justice Department defines computer fraud as Answer any crime in which a computer is used. an illegal act in which knowledge of computer technology is essential. any act in which cash is stolen using a computer. an illegal act in which a computer is an integral part of the crime Questio n 22 Which of the following is the greatest risk to information systems and causes the greatest dollar losses? Answer human errors and omissions physical threats such as natural disasters dishonest employees fraud and embezzlement Question 23 The most efficient way to conceal asset misappropriation is to Answer write - off a customer receivable as bad debt. alter monthly bank statements before reconciliation. alter monthly physical inventory counts to reconcile to perpetual inventory records. record phony payments to vendors. Question 24 Most fraud perpetrators are insiders because Answer insiders are more dishonest than outsiders. insiders know more about the system and its weaknesses than outsiders. outsiders are more likely to get caught than insiders. insiders have more need for money than outsiders Question 25 The simplest and most common way to commit a computer fraud is to Answer alter computer input. alter computer output. modify the processing. corrupt the database Question 26 Telefarm Industr ies is a telemarketing firm that operates in the Midwest. The turnover rate

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    among employees is quite high. Recently, the information technology manager discovered that an unknown employee had used a Bluetooth - enabled mobile phone to access the firm's database and copy a list of customers from the past three years that included credit card information. Telefarm was a victim of Answer Bluesnarfing. splogging. vishing. typosquatting. Question 27 Illegally obtaining and using confidential information about a person for economic gain is known as Answer eavesdropping. identity theft. packet sniffing. piggybacking. Question 28 A fraud technique that slices off tiny amounts from many projects is called the ________ technique. Answer Trojan horse round down salami trap door Question 29 Computer fraud perpetrators that modify programs during systems development, allowing access into the system that bypasses normal system controls are using Answer a Trojan horse. a trap door. the salami technique. superzapping. Question 30 Which of the following is the easiest method for a computer crim inal to steal output without ever being on the premises? Answer dumpster diving by use of a Trojan horse using a telescope to peer at paper reports electronic eavesdropping on computer monitors Question 31 What is one reason why AIS threats are increasing? Answer LANs and client/server systems are easier to control than centralized, mainframe systems. Many companies do not realize that data security is crucial to their survival.

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