DATA MODELING

1. The type of diagram in which the operations are specified on objects is considered as
a. functional diagrams
b. class diagrams
c. attribute diagrams
d. entity diagrams
2. The particular database and the set of related programs which helps in implementation of
updates and queries is called
a. implemented applications
b. backup applications
c. utility programs
d. database application
3. In traditional DBMS, the application programs are considered to be the part of domain of
a. database designs
b. software engineering
c. network design utility
d. utility designs
4. The Universal Modeling Language in database management system is classified as
a. object modeling methodology
b. query modeling methodology
c. entity modeling methodology
d. attribute modeling methodology
5. The most popular high level conceptual model in database management system is
a. close end relation model

b. query relation model

c. entity relationship model
d. attribute relationship model
6. Which of the following indicates the maximum number of entities that can be involved in
a relationship?
a.

minimum cardinality
b

Maximum cardinality

c.

ERD

d.

Greater Entity Count (GEC)

7. Which type of entity cannot exist in the database unless another type of entity also exists
in the database, but does not require that the identifier of that other entity be included as
part of its own identifier?
a.

Weak entity

b.

Strong entity

c.

ID-dependent entity
d.

ID- independent entity

8. In a one-to-many relationship, the entity that is on the one side of the relationship is
called a(n) ________ entity.

a.

Parent
c.

Instance

b.

child
d.

subtype

9. Which type of entity represents an actual occurrence of an associated generalized entity?

a.

Supertype entity

b.

Subtype entity

c.

Archetype entity

Instance entity

10. A recursive relationship is a relationship between an entity and _______.

d.

a.

Itself

b.

a subtype entity

c.

an archetype entity

d.

an instance entity

11. In which of the following is a single-entity instance of one type related to many entity
instances of another type?
a.

One-to-One Relationship

b.

One-to-Many Relationship

c.

Many-to-Many Relationship

d.

Composite Relationship

12. Entities of a given type are grouped into a(n):

a.

Database

b.

entity class

c.

Attribute

d.

ERD
13. Which of the following is NOT a basic element of all versions of the E-R model?

a.

Entities

b.

Attributes

c.

Relationships

d.

Primary keys
14. Which of the following is a Data Model?
a. Entity-Relationship Model
b. Relational Data Model
c. Object-based data model
d. All of the above
15. Which of the following is not a Storage Manager Component?
a. Transaction Manager
b. Logical Manager
c. Buffer Manager
d. File Manager

AUDIT COMMAND LANGUAGE

1. It is one of the most popular Computer Aided Audit Tools (CAATs) among auditors.
a. Audit Procedure

c. Audit Command Language

b. Audit Trail

d. Audit Trail

2. Which of the following is not used for Audit Command Language (ACL)?
a. Gather essential information for effective decision-making
b. Access server data
c. Both a and b
d. None of the above

3. Which of the following is the disadvantage of Audit Command Language (ACL)?

a. Steep learning curve

c. Vast online community

b. Widely used and extremely popular

d. Excellent online support and training

4. Which of the following statement is/are correct regarding why choose ACL over other
software product?
Statement I. ACL has maintained its first to market lead
Statement II. Only ACL provides ease of scalability
a. Statement I is correct

c. Statement I and II are correct

b. Statement II is correct

d. Neither statement I and II is correct

5. Which of the following is not considered as application of ACL?

a. Improve control environments

c. Acquire the data

b. Plan your project

d. Verify the integrity of the data

6. Items associated with an ACL project include:

a. Numbers

c. Pictures

b. Table

d. Formula

7. It is used to make it easy to create tables for all common data types.
a. Data Definition Wizard

c. Data Table

b. Data Language

d. Data Validation

8. Which of the following is false?

a. Use the Total command to total numeric fields or expressions in the active table.
b. Use the Count command to count the number of records in the active table, or only those that
meet a specified filter condition.
c. Each time you use Count, ACL saves the result in the command log and displays it in the status
bar.
d. You can use the Total command to rebut the completeness and accuracy of the data and
to produce control totals.
9. Which of the following is false?
a. Use Stratify to summarize data according to numeric ranges.
b. Use Age to summarize data according to ranges based on unique values in a single
character field.
c. Use Cross-tabulate to summarize by setting character fields in rows and columns and
accumulating numeric values.
d. Use Summarize to produce a summary of the data according to ranges based on multiple
character or date fields, and display the results with selected data from associated fields.

10. Which of the following command used to determine values for the Stratify, Histogram, and
Sample commands?
a. Statistics

c. Profile

b. Benford

d. Export

11. Which of the following command used to provides a more complete overview of the
significant properties of a numeric file?
a. Statistics

c. Profile

b. Benford

d. Export

12. Which of the following command used to digital analysis identifies anomalies in certain
types of data?
a. Statistics

c. Profile

b. Benford

d. Export

13. It is use to summarize data according to date ranges.

a. Stratify

c. Summarize

b. Classify

d. Age

14. It is use to summarize data according to ranges based on unique values in a single character
field.
a. Stratify

c. Cross-tabulate

b. Classify

d. Age

15. It is use to produce a summary of the data according to ranges based on multiple character or
date fields, and display the results with selected data from associated fields.
a. Classify

c. Age

b. Cross-tabulate

d. Summarize

ACCOUNTING ON THE INTERNET

1. It is the collection of a local and wide-area networks that are now connection together via
the Internet Backbone.

a)
b)
c)
d)

World Wide Web (www)

Internet
Universal Resource Locator (url)
Internet Backbone

2. Maintains its own Internet computers.

a)
b)
c)
d)

Internet Service Provider

Intranet
Extranet
Universal Resource Locator (url)

3. The primary repository of financial information on the Internet is the Security and
Exchange Commissions Electronic Data Gathering and Retrieval Database.
a)
b)
c)
d)

Hypertext Transfer Protocol

eXtensible Business Reporting Language (XBRL)
World Wide Web
Internet Service Provider

4. It developed Edgar Scan to take information in EDGAR and change it to a common

format.
a)
b)
c)
d)

Hypertext Mark-up Language (HTML)

Hypertext Transfer Protocol (HTTP)
Pricewaterhouse Coopers
Electronic Mail

5. It is a specialize software language for the financial reporting industry.

a)
b)
c)
d)

Hyperlink
EDGAR
eXtensibleMarkup Language (XML)
eXtensible Business Reporting Language (XBRL)

6. How does XBRL affect accountants?

a) Provides lesser transparency

b) Permits automatic and reliable exchange of financial information across

different formats and technologies
c) Does require a change to existing accounting standards or disclosure
requirements.
d) Highers the cost of the preparation and distribution of financial statements.

7. Refers to conducting business with computers and data communication.

a)
b)
c)
d)

E-Payments
Electronic Commerce (EC)
E-Wallets
None of the Above

8. It may be a more desirable payment method. It eliminates the need to transmit credit card
number over the Internet.
a)
b)
c)
d)

Electronic Data Interchange (EDI)

E-Wallets
E-Payments
All of the Above

9. Auditors review transactions at frequent intervals or as they occur.

a)
b)
c)
d)

Continuous process auditing

Intelligentcontrol agents
Electronic audit trails
Confidentiality of data

10. Electronic transactions generated without human intervention.

a)
b)
c)
d)

Continuous process auditing

Intelligentcontrol agents
Confidentiality of data
Electronic audit trails

11. Open system designs allow mission-critical information to be at the risk to intruders.

a)
b)
c)
d)

Authentication
Nonrepudiation
Confidentiality of data
Data integrity

12. Allows organizations to transmit standard business documents over high-speed data
communications channels.
a)
b)
c)
d)

Electronic Data Interchange (EDI)

Value Added Networks (VAN)
Proxy Servers
Firewalls

13. It guards against unauthorized access to sensitive file information from external Internet
users.
a)
b)
c)
d)

Firewalls
Value Added Networks (VAN)
Electronic Data Interchange (EDI)
Proxy Servers

14. It is a computer and related software that creates a transparent gateway to and from the
Internet, and that can be used to control Web access.
a)
b)
c)
d)

Value Added Networks (VAN)

Electronic Data Interchange (EDI)
Proxy Servers
None of the Above

15. It is used to authenticate business documents transmitted or received over the internet.
a)
b)
c)
d)

Digital Time-Stamping Services (DTSSs)

Digital Signature
Data Encryption
Data encryption standard

INFORMATION TECHNOLOGY AND AIS

1. In an accounting information system, inputs often come in the form of:
a. Source documents
b. Financial statements

c. Computer reports
d. Internal Controls
2. Documents in an accounting information system are:
a. Always paper-based
b. Always electronic
c. Either paper-based or electronic
d. Neither paper-based nor electronic
3. Which of the following best demonstrates the relationship between accounting
information systems and other areas of accounting?
a. Tax accountants have to create budgets.
b. Auditors often prepare tax returns for their clients.
c. Virtually all areas of accounting involve inputs, processes, outputs, storage and
internal controls.
d. Accounting information systems is the most important area of accounting.
4. The relationship between accounting information systems and information technology is
most clearly shown by:
I.
Using debits and credits to record transactions
II.
Incorporating journals and ledgers as processing tools
a.
b.
c.
d.

I only
II only
Both I and II
Neither I nor II

5. Which of the following is not an example of an input to the accounting information

system?
a. Sales invoice
b. Purchase order
c. Customer check
d. Balance sheet

6. Source documents in an accounting information system include sales invoices, purchase

orders and:
a. Bank statements
b. Reports of projected stock prices
c. Evaluations of accounting staff

d. Currency and coin

7. The information to be communicated in a data communications system is the:
a. Medium
b. Protocol
c. Message
d. Transmission
8. A ____ is a data communication system spanning states, countries, or the whole world.
a. Metropolitan Area Network
b. Wide Area Network
c. Local Area Network
d. None of the above
9. A ____ is a set of rules that governs data communication.
a. Protocol
b. Forum
c. Standard
d. None of the above
10. What exactly is cloud computing?
a. A way to organize desktop computers.
b. Lightweight software that takes up little space on a hard drive.
c. Computing resources that can be accessed on demand, like electricity from a utility.
d. The World Wide Web
11. Internal controls in an accounting information system help promote information integrity.
Which of the following best explains the concept of information integrity?
a. Financial statements are subject to audit.
b. Users can rely on the financial statements as the sole basis for decisions.
c. The information in AIS outputs is reliable.
d. Accounting information systems that incorporate computer software are more reliable
than paper-based systems.

The following scenario relates to Questions 12 through 15:

Alex Gaskarth wrote a check to pay a suppliers invoice. The check had to be signed by
two company officers and was later part of a monthly bank reconciliation. The canceled
check was filed under the suppliers name.

12. The inputs mentioned in the preceding scenario are:

a. The check and the invoice
b. The check and the bank reconciliation
c. The bank reconciliation and the file
d. The file and the suppliers invoice
13. The internal controls mentioned in the preceding scenario are:
a. The dual signatures on the check and the file
b. The bank reconciliation and the file
c. The dual signatures on the check and the bank reconciliation
d. The suppliers invoice and the bank reconciliation
14. In the preceding scenario, ___ was both an input and an output.
a. The invoice
b. The suppliers name
c. The two signatures
d. Alex Gaskarth
15. Filing the check under the suppliers name is an example of:
a. Input
b. Processing
c. Output
d. Storage
ACCOUNTING AND ENTERPRISE SOFTWARE
1. Process all types of accounting transactions
a. Dynamic Program
b. Integrated accounting software programs
c. Enterprise resource planning (ERP) systems
d. Central database
2. In order to accomplish integration, ERP systems architecture is configured around a
what?
a. Dynamic Program
b. Integrated accounting software programs
c. Enterprise resource planning (ERP) systems
d. Central database
3. This software enhances the working relationship of partners, particularly when they use
the internet.

a. Partner relationship management (PRM)

b. Business Intelligence (BI) tools
c. Hosted solution
d. Integrated accounting software programs
4. Are data analysis software that helps managers to get the most information form their
customer
a. Customer Relationship Management (CRM)
b. Business Intelligence (BI) tools
c. Central database
d. Extended application interfaces (EAI)
5. A tool that helps companies optimize their supply chain is?
a. Advanced Planning and Scheduling (APS) systems
b. Business Intelligence (BI) tools
c. Central database
d. Customer Relationship Management (CRM)
6. Systems synchronize the flow of materials within the supply chain, it helps an
organization to determine whether its capacity is adequate to meet expected orders.
a. Advanced Planning and Scheduling (APS) systems
b. Business Intelligence (BI) tools
c. Central database
d. Customer Relationship Management (CRM)
7. These systems were integrated with the accounting and finance functions to produce cash
forecasts and other budget information.
a. Material Requirements Planning (MRP I) systems
b. Supply Chain Management (SCM)
c. Manufacturing Resource Planning (MRP II) systems
d. Manufacturing Requirements Planning (MRP II) systems
8. These information systems used marketing sales projections, combined with production
schedules to plan for raw materials purchases.
a. Material Requirements Planning (MRP I) systems
b. Supply Chain Management (SCM)
c. Advanced Planning and Scheduling (APS) systems
d. Manufacturing Requirements Planning (MRP II) systems
9. Extend ERP systems interface with individuals inside and outside an organization
through e-business?
a. Blog
b. Site
c. Portals
d. Internet
10. One feature that even low-end packages incorporate today is _____ which permits small
businesses to create web sites and engage in electronic commerce.
a. Site
b. Internet connectivity
c. Internet
d. Blog

11. These software solutions include financial functions interfaced with manufacturing, sales
and distribution, and human resource applications.
a. Integrated Accounting Software programs
b. Extended application interfaces
c. Central Database
d. Enterprise Resource Planning (ERP) systems.
12. A software package that has everything offers maximum integration. However, the
flexibility of choosing the best software in different categories may argue for a
__________.
a. Outsourcing
b. Internal outsourcing
c. External outsourcing
d. Best-of-breed
13. These services are necessary due to the complexity of the mid-range accounting
programs, this offers a broader array of services for more software programs,
a. Value Added Reseller (VAR)
b. Requirements Analysts
c. Value Added Buyer( VAB)
d. Computer Training Services (CTS)
14. Describes an approach to cutting expenses to their bare minimum.
a. Best-of-Breed Approach
b. Spend Management
c. Procurement Expenses
d. Strategic Finance
15. It is a program instruction written in a high-level computer language.
a. Bar code
b. Encryption
c. Source Code
d. Customer ID
ACCOUNTING INFORMATION SYSTEM AND THE ACOUNTANT
1. Which of the following is the correct definition of accounting information system?
a. It is a way of using business applications over the Internet.
b. It is all about providing relevant information to individuals and groups outside an
organizations boundaries.
c. It is a collection of data and processing procedures that creates needed
information for its users.
d. It stores important nonfinancial information that are relevant to the decision-making
processes of their users.
2. It is about reallocating the IT budget from maintenance to improve business processes
and deliver innovation to the finance organization.
a. Cloud computing

b. Accounting Information System

c. Information technology
d. Enterprise Resource Planning
3. It refers to conducting business over the Internet or dedicated proprietary networks.
a.
b.
c.
d.

E-Business
Information age
Trade-offs
Website trading

4. It combines the skills of investigation, accounting, and auditing to find and collect pieces
of information that collectively provide evidence that criminal activity is in progress or
has happened.
a.
b.
c.
d.

Governmental accounting
Forensic accounting
Management accounting
Financial accounting

5. They provide help with issues concerning information systems.

a.
b.
c.
d.

Accountants
Knowledge workers
Computer programmers
System consultants

6. Information technology (IT) auditors:

a. Concern themselves with analyzing the risks associated with computerized
information systems.
b. Produce, analyze, manipulate, and distribute information about business activities.
c. Store important nonfinancial information about resources, events, and agents in
databases.
d. Provide relevant information to users who are internal to a company or government
agency.
7. It is used to measure business performance in four categories: (1) financial performance,
(2) customer knowledge, (3) internal business processes, and (4) learning and growth.
a.
b.
c.
d.

key performance indicators

balanced scorecard
dashboards
cloud computing

8. It is a set of professional service areas built around a set of common principles and

criteria related to the risks and opportunities presented by IT environments.

a. CPA Trust Services
b. Health Insurance Portability and Accountability Services
c. Assurance Services
d. Accounting Information Services
9. All of the following are the major areas of accounting that are impacted by information
technology except:
a.
b.
c.
d.

Taxation
Auditing
Managerial Accounting
Sustainability Accounting

10. Its main objective is to provide relevant information to individuals and groups outside an
organizations boundaries.
a.
b.
c.
d.

Managerial Accounting
Auditing
Taxation
Financial Accounting

11. Interactive data:

a. Are mainly raw facts about events that have little organization or meaning.
b. Focuses on nonfinancial performance measures that might impact an organizations
income, value, or future performance.
c. Are data that can be reused and carried seamlessly among a variety of
applications or reports.
d. Does not require a language for standardization that tags the data at its most basic
level.
12. It is a part of managerial accounting that specifically assists management in measuring
and controlling the costs of an organization.
a.
b.
c.
d.

Cost Accounting
Financial Accounting
Auditing
Risk Accounting

13. An accountant can acquire this certification by meeting the qualifications of the
Association of Certified Fraud Examiners (ACFE).
a. Certified Public Accountant (CPA)
b. Certified Fraud Examiner (CFE)
c. Certified Managerial Accountant (CMA)

d. Certified Information Systems Auditor (CISA)

14. It includes a variety of methodologies that managers might use to analyze current and
past data to help predict future events.
a.
b.
c.
d.

Cloud computing
Sustainability reporting
Predictive analytics
Forensic accounting

15. This refers to one of the abilities of computers which is to output vast amounts of
information quickly.
a.
b.
c.
d.

Information age
Information overload
Interactive data
System failure

ORGANIZING AND MANIPULATING THE DATA IN DATABASES

1

In MS Access, Text Data type may contain maximum character of

________________________.
a 255 characters
c 1064 characters
d No limit
b 256 characters

The command center of Access file that appears when you create or open the MS Access
database file.
a Switchboard
c Design View Window
d Database Window
b Query Window

The third stage in designing a database is when we analyze our tables more closely and
create a _________________ between tables.
a Join
c Query
d None of these
b Relationship

This is the stage in database design where one gathers and list all the necessary fields for
the database project.
a Data Definition
c Establishing Relationship
d None of these
b Data Refinement

Which of the following statements is true?

a Foreign key fields dont allow duplicate values.
b In primary key field, you can enter duplicate value.

c
d

In an indexed field, you may or may not enter duplicate value depending
upon the setting.
All statements are true.

A database language concerned with the definition of the whole database structure and
schema.
a Data Control Language (DCL)
b Data Manipulation Language (DML)
c Data Definition Language (DDL)
d All of these.

Which of the following is not a type of MS Access database object?

a Table
c Worksheets
d Modules
b Form

Which of the following data type is used to store logical value in MS Access?
a True/False
c Yes/No
d All of these.
b On/Off

The appropriate Data Type to store Time in MS Access is

___________________________.
a Date/Time
c
d
b Time only

Date only.
Time cannot be stored.

10 In MS Access, Lookup Wizard is used ___________________________________.

a To select from previous values.
b To select values from Excel sheet.
c To select value from another table.
d Not a valid Data Type.
11 Which of the following Data Type is used to store picture in MS Access?
a Picture
c Memo
d Picture cannot be stored
b OLE Object
12 In MS Access, which Data Type is appropriate to store large text and numbers?
a Text
c OLE Object
d Large Text
b Memo
13 In MS Access, OLE Object Data Type can store _________________________.
a MS Word Documents
c Sounds
d All of these
b MS Excel Spreadsheets

14 In MS Access, AutoNumber Data Type can be _______________________.

a Sequential
c Edited
d Only A and B
b Random
15 Which of the following is not a valid Data Type in MS Access?

a
b
c
d

Memo
Picture
Currency
AutoNumber

CREATING DATABASE FORMS AND REPORTS

1. The following are the major sections in a form, except one:
a. Heading Section
c. Design section
b. Detail Section
d. Navigation bar
2. It is a custom-designed screen for entering records or displaying existing record in a
database.
a. Reports
c. Screen
b. Forms
d. Tables
For questions 3 to 5 write:
a.
b.
c.
d.

If statement 1 is true, Statement 2 is false

If statement 1 is false, Statement 2 is true
If both statements are true
If both statements are false

3. Statement 1: One advantage of a form is that it can display all the data-entry textboxes for
an entire record in multiple screens.
Statement 2: Objects such as textboxes and labels that appear on a form are examples of
form controls.
Answer: B
4. Statement 1: Bound controls are textboxes, drop-down boxes, and similar controls that
depend on the underlying data and therefore change from record to record.
Statement 2: Unbound controls are labels, pictures, and similar items that are consistent
from record to record in a form and do not display underlying database information.
Answer: C
5. Statement 1: If youre using Access to print something on paper, the chances are high that
you are using a report to perform this task.
Statement 2: Unlike forms, reports are strictly outputs and do not allow users to input
data into databases.
Answer: C
6. The following are the steps to create a form in Access using Form Wizard:
1. Customize the form
2. Enter the appropriate settings in the Form Wizard dialog boxes
3. Refine your design
4. Reset the tab order

The order in which the above steps should be preferably followed is

a. 2, 1, 3, 4
c. 4, 1, 2, 3
b. 1, 2, 4, 3
d. 3, 4, 2, 1
7. Which of the following statement is false?
a. Forms also enable you to change the information already in a database table.
b. A form is a custom-designed screen for entering records or displaying existing
records.
c. Report displays subordinate information related to the information in the main
form.
d. Database reports provide custom information to database users.
8. A Subform is
a. A custom-designed screen for entering records or displaying existing records
b. A form within a form that displays data related to the information in the main
form
c. the technical term for the point at which a group changes from one type to the next in
a report
d. none of the above
9. It can be simple documents that display only the contents of a table or complex outputs
that combine the information from several tables and show selected subsets of database
information useful for decision making.
a. Reports
c. Tables
b. Database
d. Forms
10. A common task when creating reports is to include ___________.
a. Subform
c. Calculated fields
b. Design tab
d. Dialog Box
11. The following are the steps to create a report using Report Wizard in Access:
1. Launch the report wizard
2. Name the report
3. Indicate any sort fields and select the desired report format.
4. Select the underlying data source and desired fields.
5. Indicate any grouping levels.
6. Modify the design of the report as desired.
The order in which the above steps should be preferably followed is
a. 1, 2, 3, 4, 5, 6
c. 4, 2, 1, 3, 5, 6
b. 2, 1, 4, 5, 3, 6
d. 1, 4, 5, 3, 2, 6
12. The following are considered as part of the seven major components of a report except
one:
a. Report heading
c. Detail Lines
b. Group header
d. Dialog Box

13. It is the technical term for the point at which a group changes from one type to the next in
a report.
a. Control break
c. Report Wizard
b. Calculated Fields
d. Query
14. Which of these is not a typical content of a report header?
a. Company name and address
b. Page number
c. Date Prepared
d. Company logo
15. It is often the points at which managers want to see subtotals, maximums, minimums,
averages, or similar subgroup summaries.
a. Calculated Fields
c. Control breaks
b. Forms
d. Tables
BUSINESS PROCESS PART 2
1.) Source documents generally help to improve accuracy in transaction
processing because
A. They specify which information to collect due to their structure.
B. Standard information is preprinted on the document.
C. They provide directions and steps for completing the form.
D. All of the above are correct.
2.) Federal Express stated in one of its mission statements that "positive control
of each package will be maintained by utilizing . . . electronic tracking and
tracing systems. This is an example of which type of data processing?
A. Real-time processing which features immediate updating as to the
location of
packages.
B. Batch processing which features updating at fixed time periods.
C. Real-time processing which features updating at fixed time periods such as
at the end of an accounting period.
D. Batch processing which features immediate updating as to the location of
packages.
3.) When the sum of all entries in the subsidiary ledger equals the amount in the
corresponding general ledger account, it is assumed that
A. The recording and posting process are accurate.
B. All of the transaction cycles have been completed.
C. Since the ledgers are in balance, adjusting entries are not required.
D. No errors exist in the subsidiary ledger and corresponding general ledger
account.

4.) Transaction cycles can be summarized on a high level as "give-get"

transactions. An example of "give-get" in the expenditure cycle would be
A. Give cash, get cash
B. Give cash, get goods.
C. Give cash, get labor.
D. Give goods, get cash.
5.) To be effective, the chart of accounts must
A. Be as concise as possible.
B. Contain only five account categories.
C. Limited account codes to 10 digits or less.
D. Contain sufficient detail to meet the information needs of the
specific organization's AIS.
6.) It has been said that a controller in a small business has at least four distinct
roles. In the role identified as "technician," the controller is responsible for
A. Collecting and processing the data needed to prepare financial
statement and a wide variety of managerial reports.
B. Establishing procedures to ensure that business activities are performed
correctly.
C. Helping managers and staff understand how their individual duties fit into the
company's overall goals and objectives.
D. Keeping abreast of new and changing technology and accounting
developments and how they impact the business.
7.) Some information will have to be collected from __________sources to
determine, for example, customer satisfaction.
A. External
B. Internal
C. Regulatory
D. Competitive
8.) A report which shows actual results, budgets, and variances is called a
A. Financial plan
B. Cash budget
C. Performance report
D. Managerial report
9.) One of the most important assumptions about how managers will act in a
budget-controlled environment is that:
A. Managers will largely ignore budgets.
B. Budgets must be too tight to encourage high aspirations.
C. Budget slack will exist in almost every budget and is negotiated by all
managers.
D. Measurement affects behavior.

10.)
The efficiency of recording numerous business transactions can be best
improved by the use of
A. Prenumbered source documents.
B. Specialized journals.
C. Posting references.
D. Segregation of duties.
11.)
One of the objectives of the segregation of duties is to
A. Ensure that no collusion will occur.
B. Make sure that different people handle different transactions.
C. Achieve an optimal division of labor.
D. Make sure that different people handle different parts of the same
transactions.
12.)
Which of the following cash receipts activities would be incompatible
with the others?
A. Opening the mail and endorsing the checks.
B. Counting cash and making out a deposit slip.
C. Posting the cash receipts to the customer accounts
D. Carrying the cash deposit to the bank.
13.)
The main area of weakness in the practical application of the
separation of duties is
A. When collusion between employees occurs.
B. Poor supervision.
C. Poor documentation.
D. Inadequate training of employees.
14.)
Which managerial tool below is used to provide the organization with
financial control?
A. A cash budget
B. A performance report
C. A sales budget
D. A customer satisfaction survey
15.)
Regarding internal control considerations, the key to accountability for
all business transactions is
A. Processing internal and external data together into meaningful information.
B. Ensuring that business activities are performed efficiently and in accordance
with management's objectives.
C. Possessing and maintaining adequate documentation.
D. Realizing that AIS can directly affect employee behavior.

ACCOUNTING INFORMATION SYSTEMS AND BUSINESS PROCESS: PART I

1.)

Statement 1: A Ledger is a chronological record of business events by accounts.

Statement 2: A Journal is a collection of detailed monetary information about an
organizations account.
a. Both statements are correct
b. Both statements are wrong

2.)

3.)

4.)

d. Only statement 2 is correct

These are sequential codes in which specific blocks of numbers are reserved for
particular uses.
a. Group codes

c. Number codes

b. Sequence code

d. Block codes

It is the primary output of a financial accounting system.

a. Journal entries

c. AIS report

b. Management report

d. Financial statements

Companies use variety of source documents to collect data for the AIS. Which among the
following does not concerns the chief in the process of the collection of data?
a. Verifiability
b. Accuracy

5.)

c. Only statement 1 is correct

c. Timeliness
d. Cost-effectiveness

A business process is a collection of activities and work flows in an organization that

creates value. Which among the following statements are incorrect?
a. The nature and type of business process might vary from industry to industry.
b. An AIS collects and reports data related to an organizations business processes.
c. Most businesses and government agencies have some common core process. Two
core business processes that are common to many businesses are sales and stock
investment.
d. All statements are correct.

6.)

It is a business process that begins with a customer order for goods or services and ends
with the collection of cash from the customer.

7.)

a. Sales process

c. Purchase process

b. Order Report

d. Accounts collection cycle

Business model called Business without Boundaries means that:

a. Companies no longer have all of their employees in one location.
b. All business process are not accomplished in only one business location, some may be
located anywhere in the world.
c. Both a and b are correct
d. None of the above

8.)

9.)

These are software packages that help companies collect corporate knowledge, data, and
business system to improve core business processes.
a. BPM software

c. CRM software

b. AIS

d. Database

Statement 1: Companies outsource or offshore business process to remain competitive

and to generate value for shareholders.
Statement 2: Outsourcing or offshoring is not necessary to small scale business.

10.)

a. Statement 1 is correct

c. Both statements are correct

b. Statement 2 is correct

d. Both statements are wrong

All, except one are the benefits of using and accounting system in business processes.
a. Accounting system makes recording transactions easier and faster.
b. Using an accounting system allows data storage and collection to be more systematic
and organized.
c. Accounting systems enables the company to be more competitive.
d. Accounting systems eliminate the need for accountants.

11.)

Statement 1: Recording of transactions in a journal is the first step in an accounting

process.

Statement 2: Adjusting entries are not necessary in an accounting process.

12.)

13.)

14.)

a. Both Statements are correct

c. Statement 1 is correct

b. Both statements are wrong

d. Statement 2 is correct

The following are examples of AIS outputs, except:

a. Reports to management

c. Reports to investors

b. Transaction Data files

d. All are examples of AIS outputs

It is a report issued only when a particular event occurs, containing lists of exceptional
conditions.
a. Events report

c. Conditional Report

b. Exception report

d. Specific Report

Statement 1: All business events must be journalized.

Statement 2: Most business events are necessary for decision making.

15.)

a. Statement 1 is correct

c. Both statements are correct

b. Statement 2 is correct

d. Both statements are wrong

Which among the following shows that an AIS in a sales process is good:
a. It matches each revenue with a valid transaction.
b. It maintains customer records.
c. Allows an interface with the inventory control function.
d. All of the above

MS ACCESS

1. What Are The Different Views To Display A Table

A) Datasheet View
B) Design View
C) Pivote Table & Pivot Chart View
D) All Of Above

2. Which Of The Following Creates A Drop Down List Of Values To Choose From?
A) Ole Object
B) Hyperlink
C) Memo
D) Lookup Wizard
3. The Command Center Of Access File That Appears When You Create Or Open The Ms
Access Database File.
A) Database Window
B) Query Window
C) Design View Window
D) Switchboard
4. The Third Stage In Designing A Database Is When We Analyze Our Tables More Closely And
Create A ___________ Between Tables
A) Relationship
B) Join
C) Query
D) None Of These
5. What is a form in MS Access
A) It is a printed page where users will write their data to fill it up
B) It is an input screen designed to make the viewing and entering data easier
C) This is an important part of database used by analysts to draw conclusions
D) All of above
6. This Key Uniquely Identifies Each Record
A) Primary Key
B) Key Record
C) Unique Key
D) Field Name
7. It Is An Association Established Between Common

A) Line
B) Relationship
C) Primary Key
D) Records
8. Which of the following is not a type of relationship that can be applied in Access database
A) One to One
B) One to Many
C) Many to Many
D) All of above can be applied
9. A Database Language Concerned With The Definition Of The Whole Database Structure And
Schema Is ________
A) DCL
B) DML
C) DDL
D) All Of Above
10. Which Of The Field Has Width 8 Bytes?
A) Memo
B) Number
C) Date/time
D) Hyperlink
11. Which Of The Following Statement Is True?
A) Foreign Key Fields Don\'t Allow Duplicate Values
B) In Primary Key Field You Can Enter Duplicate Value
C) In An Indexed Field You May Or May Not Enter Duplicate Value
Setting
D) All Statements Are True
12. Following Is Not A Database Model
A) Network Database Model
B) Relational Database Model
C) Object Oriented Database Model
D) None

Depending Upon

13. Microsoft Access Is A

A) RDBMS
B) OODBMS
C) ORDBMS
D) Network Database Model
14. What Are The Columns In A Microsoft Access Table Called?
A) Rows
B) Records
C) Fields
D) Columns
15. What happens when you release mouse pointer after you drop the primary key of a table into
foreign key of another table?
A) A relationship is created
B) Edit relationship dialog box appears
C) Error occurs
D) Nothing happens
COMPUTER CONTROLS FOR ORGANIZATIONS AND ACCOUNTING
INFORMATION SYSTEMS
1. The following are examples of protections for systems and data with
personnel policies, except:
a. Use of computer accounts
c. Controls for
personal computers
b. Identifying suspicious behavior
d. None of the above
2. A ______ is a location where power and environmentally controlled
space are available to install processing equipment on short notice.
a. Cold site
c. Hot site
b. Flying-start site
d. Hot-Cold site
3. It is an auxiliary power supply that can smooth the flow of power to the
computer, thereby preventing the loss of data due to monetary surges
or dips in power.
a. Cold backup

b. Hot backup
c. Electronic vaulting
d. UPS (Uninterruptible power system)
4. In a routing verification procedure, any transaction or message
transmitted over network should have a:
a. Header label
c. Trailer label
b. Checkpoint
d. Footer label
5. Logical security include the following except:
a. System authentication
c. Biometrics
b. Alarm systems
d. Smart cards
6. Organizations should encourage employees to create strong
passwords. Each character that is added to a password increases the
protection that it provides. Passwords should be 8 or more characters
in length; ___ characters or longer is ideal.
a. 14
c. 12
b. 10
d. 13
7. Statement 1: Preprinted recording forms ensure that all the data
required for processing have been collected and also enhance
accuracy in the recording process.
Statement 2: Output controls focus on the manipulation of accounting
data after they are input to the computer system.
a. Statement 1 and 2 is true
b. Only Statement 2 is false
c. Only Statement 1 is false
d. Statement 1 and 2 is false
8. When cash receipts from customers are processed, the manual sum of
the customers account numbers in a batch of transactions might be
computed to form a:
a. Batch total
c. Hash total
b. Control total
d. Record count
9. These listings provide complete, detailed information about all changes
to master files and thus contribute to a good audit trail.
a. Output listings
c. Software
documentation
b. Compiler
d. Activity listings

10.
An_______ system, supported by a comprehensive security
policy, can significantly reduce the risk of attack because it increases
the costs and resources needed by an intruder.
a. Integrated system
c. Logical system
b. Physical system
d. Internal control
11.

The following are control procedures for laptops, except;

a. Load Antivirus software onto the hard disk
c. Identify your
laptop
b. Back up laptop information
d. None of these

12.
It is a function within an IT environment that maintains custody
of files, databases, and computer programs in separate storage area.
a. Programming function
c. Computer operations
function
b. AIS library function
d. Systems analysis
function
13.

Read-only file designation is an example of a:

a. Computer processing
c. File security
control
b. Physical security
d. Disk shadowing

14.
A fault-tolerant system can use _______, in which transactions
are never written to disk until they are complete.
a. Disk mirroring
c. Watchdog processor
b. Rollback processing
d. Backup
15.
Under batch processing, the procedure that uses the three
generations of reference data retained with the transaction data used
during the general ledger updating process is called:
a. Grandfather-parent-child procedure
b. Great-great-grandfather procedure
c. Parent-parent-child procedure
d. None of the above
IT AUDITING
1. A companys own accounting employees perform a(n):

a. Internal Audit
b. External Audit

c. Both
d. None of the above

2. Accountants working for an independent CPA firm conduct a(n):

a. Internal Audit
c. Both
b. External Audit
d. None of the above
3. Which of these is not a component of a computer-based AIS?
a. Databases
c. Technology
b. Hardware
d. Procedure
4. An _____________ auditor is likely to audit the information systems of
many different client organizations.
a. Internal Auditor
c. Both
b. External Auditor
d. None of the above
5. The purpose of this hacking technique is to evaluate risk and design
controls to protect against unauthorized access.
a. Red Hat
c. White Hat
b. Blue Hat
d. Black Hat
6. It is a productivity tool that auditors employ to improve their work.
a. General-Use Software c. Generalized Audit Software
b. Auditing Software
d. Automated Work Papers
7. Its purpose is to audit an AIS in an operational setting.
a. Parallel Stimulation c. Integrated Test Facility
b. Test Date
d. Validating Computer Programs
8. An auditor that can provide assurance to a companys top
management and the board of directors about the efficiency and
effectiveness of almost any aspect of its organization.
a. Internal Auditor
c. Both
b. External Auditor
d. None of the above
9. The following are the steps that provides a logical framework for
performing a risk-based audit.
I. Evaluate weaknesses within the AIS
II. Determine the threats
III. Identify the control procedures that should be in place
IV. Evaluate the control procedures within the AIS.

The order in which the above steps should be preferably followed is:
a. II, IV, III, I
c. II, I, IV, III
b. II, III, I, IV
d. II, III, IV, I
For items 10 to 12 write:
e.
f.
g.
h.

If
If
If
If

statement 1 is true, Statement 2 is false

statement 1 is false, Statement 2 is true
both statements are true
both statements are false

10.
Statement 1: Spreadsheet software doesnt allowed both
accountants and auditors to make complex calculations automatically.
Statement 2: Spreadsheet software can be used to perform analytical
procedures such as computing ratios.
Answer: A
11.
Statement 1: Database Management System can sort data and
make certain mathematical computations.
Statement 2: A Databes Management System is the backbone of
almost all organizational accounting systems.
Answer: C
12.
Statement 1: Automated workpapers cant help auditors create
common-size income statements and balance sheets that show
account balances as percentages.
Statement 2: Automated workpapers doesnt allow internal and
external auditors to automate and standardize specific audit tests and
audit documentations.
Answer: D
13.
A parallel simulation
a. Creates a second system that duplicates a portion of the
clients system.
b. Develop a set of transactions that tests, as completely as possible,
the range of exception situations that might occur.
c. Validates an applications input control.
d. Sort data and make certain mathematical computations.
14.
It describes itself as a global resource for auditors.
a. AuditBlog
c. AuditNet

b. AuditPage

d. AuditWeb

15.
It is the required minimum password length by the auditors to
use in software tools to review systems software.
a. 7
c. 9
b. 6
d. 5

1. This section in the Sarbanes-Oxley Act of 2002 reaffirms that management is

responsible for establishing and maintaining an adequate internal control
structure.
a. Section 401
b. Section 402
c. Section 403
d. Section 404
2. The purpose of this is to identify organizational risks, analyze their potential
in terms of costs and likelihood of occurrence, and implement only those
controls whose projected benefits outweigh their costs.
a. Risk Assessment
b. Risk Implementation
c. Risk Avoidance
d. Risk Examination
3. These are the policies and procedures that the management of a company
develops to help protect all of the different assets of the firm, based on a
careful risk assessment
a. Control Activities
b. Corporate Governance
c. Control Environment
d. Asset Protection Program
4. One of the following is not an example of control activities done by an
organization.
a. A Good Audit Trail
b. Separation of Duties
c. Random Performance Reports
d. Physical Protection of Assets
5. These are procedures a company uses to solve or correct a problem.
a. Preventive Controls
b. Detective Controls
c. Discretionary Controls
d. Corrective Controls
6. These controls alert managers when the preventive controls fail.
a. Preventive Controls
b. Detective Controls
c. Discretionary Controls
d. Corrective Controls
7. These are controls that management puts in place to prevent problems from
occurring.

a.
b.
c.
d.

Preventive Controls
Detective Controls
Discretionary Controls
Corrective Controls

8. It describes the policies, plans, and procedures implemented by the

management of an organization to protect its assets, to ensure accuracy and
completeness of its financial information, and to meet its business objectives.
a. External Control
b. Internal Control
c. Management Control
d. Risk Control
9. One of the following is not an application are of physical protection of assets.
a. Inventory Controls
b. Document Controls
c. Audit Controls
d. Cash Controls
10.This describes the purpose of each general ledger account so that employees
enter the debits and credits of accounting transactions in the correct
accounts.
a. General Journal
b. Trial Balance
c. Adjusting Entries
d. Chart of Accounts
11.The objective of this is to manage and control risk by identifying threats,
analyzing the risks, and implementing cost-effective countermeasures to
avoid, mitigate, or transfer the risks to a third party.
a. Risk Assessment
b. Risk Implementation
c. Risk Avoidance
d. Risk Examination
12.This establishes a common definition of internal control for assessing control
systems, as well as determined how to improve controls.
a. 1972 COSO Report
b. 1986 COSO Report
c. 1992 COSO Report
d. 2005 COSO Report
13. One of these is not a perspective of how an enterprises objectives are
viewed.
a. Strategic
b. Operations
c. Managerial
d. Compliance
14.The purpose of this is to structure work assignments so that one employees
work serves as a check on another employee.
a. A Good Audit Trail
b. Separation of Duties
c. Periodic Performance Reports
d. Physical Protection of Assets

15.This includes functions such as preparing source documents, maintaining

journals and ledgers, preparing reconciliations, and preparing performance
reports.
a. Recording
b. Classifying
c. Custody of Assets
d. Authorizing

DEVELOPING AND IMPLEMENTING EFFECTIVE AIS

1. When converting to a new system, which of the following conversion alternatives would
be the most risky for a financial services firm.
a. preliminary investigation of current conducted by the steering committee
b. planning for a success
c. direct conversion
d. follow up implementation
2. A feasibility area that anticipated benefits of the system exceed its projected costs.
a. Legal
b. Economic
c. Technical
d. Operational
3. The study team must analyze the results which includes:
a. Highlighting bottlenecks in information flows
b. Reporting redundancy
c. Both A and b
d. None of the Above
4. There are several ways of gathering data, including:
a. Review of existing documentation.
b. Observation of the current system
c. Using questionnaires and surveys
d. All of the Above
5. A feasibility area which examines its compatibility with the current operating
environment.
a. Legal
b. Economic
c. Technical
d. Operational

6. It provides a system study team with an objective means for selecting a final AIS.
a. A point-scoring analysis
b. Documentation
c. Constraints
d. Controls
7. This step involves performing a preliminary investigation of the existing system,
organizing a systems study team, and developing strategic plans for the remainder of the
study.
a. Planning and Investigation
b. Analysis
c. Design
d. Implementation, Follow-up, and Maintenance
8. This documentation includes descriptive data such as organizational charts, strategic
plans, budgets, policy and procedure manuals, job descriptions, and charts of accounts, as
well as technical documentation such as owcharts, process diagrams, and training
manuals.
a. Observe the Current System in Operation
b. Use Questionnaires and Surveys
c. Review Existing Documentation
d. Interview System Participants
9. Gantt charts are useful
a. for managers to identify critical paths
b. for observing employee work performance
c. for evaluating the control procedures
d. for scheduling and tracking the activities of systems implementation projects
10. It requires the design team to estimate how long it will take a new or revised system to
become operational and to communicate this information to the steering committee.
a. Schedule Feasibility
b. Economic Feasibility
c. Legal Feasibility
d. Operational Feasibility

11. It is a scaled-down, experimental version of a nonexistent information system that a

design team can develop cheaply and quickly for user-evaluation purposes.
a. Process Design
b. Prototyping
c. Designing System Inputs
d. Documentation
12. A primary motivator for outsourcing is______.
a. Cost Savings
b. Inexibility
c. Systems implementation
d. Functional Changes
13. With PERT, a/an _____ rst prepares a list of systems implementation activities,
identies the prerequisite activities that must be completed before others can start, and
estimates the amount of time required to complete each activity.
a. member
b. project leader
c. adviser
d. economist
14. It is often called the action phase of a systems study because the recommended
changes from the prior analysis, design, and development work are now put into
operation.
a. Systems implementation
b. Selecting a Finalist
c. Vendor Support
d. Cost Benefit Analysis
15. Which of the following example is not correct when organizations do not plan carefully?
a. Systems do not meet users needs, causing employee frustration, resistance, and
even sabotage.
b. Top management does not approve or support the new systems
c. Project expenditures signicantly overrun what once seemed like very
unsatisfactory budgets.
d. Systems solve the wrong problems.
COMPUTER CRIME, ETHICS AND PRIVACY
1.

In the world of computing, the essential element that controls how computers are used is
a. Ethics
b. Legal laws
c. Security requirements
d. Business demands

2.

The guidelines for the morally acceptable use of computers in society are
a. Computer ethics
b. Privacy
c. Morality
d. Legal systems

3.

The issues that deal with the collection and use of data about individuals is
a. Access
b. Property
c. Accuracy
d. Privacy

4.

The ethical issue concerned with the correctness of data collected is

a. Access
b. Property
c. Exactness
d. Privacy

5.

The ethical issue that involves who is able to read and use data is
a. Access
b. Property
c. Accuracy
d. Privacy

6.

Identity theft is the

a. Impersonation by a thief of someone with a large bank account
b. Impersonation by a thief of someone with computer skills
c. Impersonation by a thief of someone with good credit
d. Impersonation by a thief of someones identity for the purpose of economic gain

7.

Businesses search employees electronic mail and computer files using so-called
a. Trojan horses
b. Cookies
c. Snoopware
d. Theft-ware

8.

Small files that are deposited on a users hard drive when they visit a Web site are best
describe as
a. Cookies
b. Codes
c. Profiles
d. Trackers

9.

__________ commit the majority of computer crimes.

a. Employees
b. Hackers

c. Outside users
d. Members of organized crime
10.

A computer crime is
a. Any activity in which the thief uses computer technology
b. An illegal action in which the perpetrator uses special knowledge of computer
technology
c. An immoral action in which the thief uses special knowledge of computer technology
without the other person knowing
d. Any threat to computer or data security

11.

People who gain unauthorized access to computers for the fun of it, but do not
intentionally do damage, are
a. Employees
b. Hackers
c. Crackers
d. Members of organized crime

12.

A computer virus is
a. A software written with malicious intent to cause annoyance or damage
b. A process of scrambling a message so that it cannot be read until it is unscrambled
c. A small device that scans the number of credit cards
d. An ID-checking tool used to monitor who is logged onto a network

13.

__________ is the process of protecting information, hardware, and software from

unauthorized use as well as from damage from intrusions, sabotage, and natural disasters.
a. Protectors
b. Security
c. Antivirus
d. Drivers

14.

A __________ acts as a security buffer between a companys private network and all
external networks.
a. Firewall
b. Password
c. Disaster recovery plan
d. Virus checker

15.

A __________ can help to avoid loss o information and data and protect computer
systems from access by unauthorized persons.
a. Firewall
b. Password
c. Disaster recovery plan

d. Back-up files
DOCUMENTING AIS
1. Many documentation tools are available to explain how a system works. Which tool provides a
graphical description of the sources and destinations of data as well as data flow within the
organization and the processes that transform and store that data?
o
o
o
o

Data flow diagram

Document flowchart
Program flowchart
System flowchart

2. A Data Flow Diagram (DFD) is composed of which elements?

o
o
o
o
o

Data sources and destinations

Data flows
Transformation processes
Data stores
All of the above

3. Which function does the rectangle symbol represent in a flowchart.

o
o
o
o

Online keying
Display
Computer processing
Manual operation

4. A document flowchart is particularly useful

o
o
o
o

In identifying the inputs that enter the system.

In analyzing the adequacy of control procedures.
In identifying the sequence of logical operations performed by the computer.
In system analysis.

5. What do the circles on a data flow diagram represent?

o
o
o
o

Data sources and destinations

Data flows
Transformation processes
Data stores

6. Why are documentation tools important?

o
o
o
o

They are needed to determine how a system works.

They are needed to evaluate internal control systems.
Both answers #1 and #2 are correct.
Neither answer #1 nor #2 is correct.

7. The data flow diagram symbol which represents data flows is the
o
o
o
o
o

Square.
Arrow.
Circle.
Parallel lines.
Parallelogram.

8. A flowchart is
o An analytical technique used to describe the data flows and sources and destinations and
data stores of a system.
o An analytical technique used to describe some aspect of an information system in a
clear, concise, and logical manner.
o A piece of hard plastic used to draw symbols.
o A graphical description of the flow of data within an organization and the processes
performed on that data, as well as the sources and destinations of data.
9. An example of a data input would be a(n)
o
o
o
o

Payroll check.
Tax payment.
Tax report.
Employee change form.

10. Which documentation technique illustrates the flow of documents and information among
areas of responsibility within an organization?
o
o
o
o

Data Flow Diagram

Document flowchart
Process flowchart
System flowchart

11. Which of the following is not a guideline for drawing a Data Flow Diagram (DFD)?
o Develop a context diagram
o Subdivide the DFD

o Determine system boundaries

o Display the physical location of data files

12. Which of the following is a guideline for preparing flowcharts?

o
o
o
o
o
o

Flowchart only the normal flow of operations.

Assume that the reader will know the direction of the flow.
Identify the entities to be flowcharted.
A manual process should have an input and an output.
Include data stores where appropriate.
Answers to 1, 3, and 4

13. I. In a systems flowchart, a document symbol may be directly linked to a magnetic disk/drive
symbol.
II. The highest level DFD is called a Context Diagram.
o
o
o
o

Both I and II are true.

Both I and II are false.
Only I is correct.
Only II is correct.

14. I. The Program Flowchart depicts the relationships among the input, processing, and output
of an Accounting Information System (AIS).
II. Data Flows represent the transformation of data.
o
o
o
o

Both I and II are true.

Both I and II are false.
Only I is correct.
Only II is correct.

15. I. Data Flow Diagrams (DFDs) generally have to be subdivided to be made more
understandable.
II. Inverted triangle serves as multiple copies of a specific document.
o
o
o
o

Both I and II are true.

Both I and II are false.
Only I is correct.
Only II is correct.