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Auditing in CIS Environmnet
Auditing in CIS Environmnet
Multiple Choice. Identify the letter of the choice that best completes the statement or answers the question.
1. The file created yesterday is called the [A] “Son” file. Management by exception. [C] Predictive reports.
[B] “Father” file. [C] “Mother” file. [D] “Grandfather” [D] Control. [E] None of the above.
file. [E] None of the above. 13. _____ decisions are those decisions for which policy
2. Data has to be _____ before it can be converted into standards or guidelines are already established. [A]
information. [A] Transformed. [B] Processed. [C] Programmable. [B] Control. [C] Predictive reports.
Changed. [D] Engineered. [E] None of the above. [D] Relevant. [E] None of the above.
3. A device is said to be _____ when it is accessible to, 14. _____ is the use of a model in an attempt to identify
or under the control of, the processor [A] People. [B] and/or reflect the behavior of a real person, process,
Icons. [C] Information system. [D] On-line. [E] None or system. [A] Master. [B] Decision. [C] Plan. [D]
of the above. Simulation. [E] None of the above.
4. The computer is a part of the firm's [A] Physical 15. One of the three most common types of payment
system. [B] Conceptual system. [D] Both A and B. [D] systems is the [A] Pinion fund transaction system. [B]
Neither A nor B. [E] None of the above. Travel expense reimbursement system. [C] Accounts
5. Which of the following is(are) true of the EDP payable system. [D] All of the above. [E] None of the
auditors? [A] They should have computer expertise. above.
[B] They will be replaced by traditional auditors in 16. Which of the following is not an important principle
the near future. [C] Choices A and B. Two of the for evaluating the raw data for decision-making? [A]
above. [D] Currently, there is a very high demand for Selection. [B] Pattern. [C] Leverage. [D] Overview. [E]
them, particularly from firms that use personal None of the above.
computers. [E] None of the above. 17. The analysis and design of application systems are
6. Controls of data communication deal with [A] The the responsibility of a _____ [A] Computer operator.
communication channel. [B] The computer. [C] [B] Programmer. [C] System analyst. [D] Data entry
Terminals. [D] All of the above. [E] None of the operator. [E] None of the above.
above. 18. _____ decisions concern the execution of specific
7. Inventory is also referred to as [A] Stock. [B] tasks to assure that they are. carried out efficiently
Warehouse capacity. [C] Materials. [D] Materials in and effectively. [A] Tactical. [B] Strategic. [C]
hand. [E] None of the above. Operational. [D] Management. [E] None of the
8. The computer can potentially be used to monitor above.
most of our actions, thus robbing us of _________ 19. The DBA is [A] A person. [B] A computer device. [C] A
[A] Tapping. [B] Privacy. [C] Back log. [D] Security. [E] communication technique. [D] All of the above. [E]
None of the above. None of the above.
9. A systems theory of organization sees the firms as a 20. Error reports are an example of [A] Scheduled
[A]Network of resource flows. [B] System reports. [B] Demand reports. [C] Exception reports.
transforming inputs into outputs. [C] Physical system [D] Predictive reports. [E] Management reports.
managed by a manager using a conceptual system. 21. A constraint that does not, affect the feasible
[D] All of the above. [E] None of the above. solution region is known as [A] Redundant
10. A financial modeling package for a PC is similar to a constraint. [B] Unbounded solution. [C] Slack
spreadsheet package, but it can handle larger data variable. [D] Surplus variable. [E] None of the above.
files than a spreadsheet, and it has a built-in _____ 22. The products structure file is also called the [A] Item
seeking function. [A] Aim. [B] Target. [C] Goal. [D] master file. [B] Bill of materials file. [B] Operations
Plan. [E]None of the above. file. [D] All of the above. [E] None of the above.
11. A primary use of decision support system (DSS) is to 23. Econometric models include techniques from [A]
simulate an experiment over by using different Economics. [B] Statistics. [C] Mathematics. [D] All of
parameters and assumptions. What is it called? [A] the above. [E] None of the above.
Artificial intelligence. [B] What if analysis. [C] 24. Computer support to the manager has been least in
Exception report. [D] Computer assisted [A] Alternative identification. [B] Alternative
experimenting. [E] None of the above. selection. [C] Problem identification. [D] Alternative
12. _____ means that the manager spends his or her evaluation. [E] None of the above.
time dealing with exceptions or those situations
which are out of control [A] Relevant. [B]
25. Slack is the calculated time span within which the 38. Production machines were first controlled by the
event must occur [A] True. [B] False. [C] Cannot be computer by means of [A] Punched cards. [B]
said. [D] All of the above. [E] None of the above. Punched paper tape. [C] Magnetic tape. [D]Magnetic
26. The online, softcopy display of a customer's charge cards. [E] None of the above.
account to respond to an inquiry is an example of 39. Encryption is being used primarily with [A] File
a(n) [A] Regularly scheduled report [B] On-demand retention. [B] Transaction entry. [C] Computer
report. [C] Exception report. [D] Forecasting report. processing. [D] Data communication. [E] None of the
[E] None of the above. above.
27. A _____ is a brief message to an operator that 40. Which of the following is (are) true of system
describes what data are to be entered. [A] Prompt. analysts? [A] Their responsibility is to analyze and
[B] Passwords. [C] MIS. [D] Tactical. [E] None of the design system software. [B] They may be looked
above. upon as an intermediary between users and
28. A _____ decision is routine one that's made programmers. [C] They are heavily involved with the
following the completion of a preplanned series of system-development life cycle. [D] Both A and B. [E]
steps. [A] Strategic. [B] Structured. [C] Simulation. None of the above.
[D] Tactical. [E] None of the above. 41. Critical _____ factors are those that are vital if a
29. The most straightforward resource flow is [A] manager is to make a full contribution to the
Manpower. [B] Machines. [C] Material. [D] Money. achievement of an organization's goals. [A] Tactical.
[E] None of the above. [B] Success. [C] Decision. [D] Concise. [E] None of the
30. To _____ is to decide in advance on a course of above.
action. [A] Master. [B] Decision. [C] Plan. [D] Control. 42. External data is stored in the [A] Market forecast file.
[E] None of the above. [B] Forecast allocation file. [C] Customer file. [D] All
31. Order-filling activity in the physical system is of the above. [E] None of the above.
triggered by the [A] Manufacturing information 43. The manager of inventory would most likely be
system. [B] Order entry subsystem. [C] Billing found in the [A] Finance function. [B] Marketing
subsystem. [D] Accounts receivable subsystem.[E] function. [C] Manufacturing function. [D]
None of the above. Information systems functions. [E] None of the
32. Is the ratio of correct information to the total above.
amount of information produced over a period? [A] 44. In which way is a managerial information system
Accuracy. [B] Concise. [C] Simulation. [D] Decision. (MIS) superior to electronic data processing (EDP)?
[E] None of the above. [A] It is batch oriented. [B] It is most cost effective.
33. Standards are provided by [A] Standards [C] It provides summary reports without details. [D]
organizations. [B] User groups. [C] Computer All of the above. [E] None of the above.
vendors. [D] All of the above. [E] None of the above. 45. Working at home might seem like an interesting
34. The four major corporate resources are money, option. However, _____ contact with other co-
materials, information, and [A] People. [B] Icons. [C] workers does have advantages. [A]
Information system. [D] On-line. [E] None of the Teleconferencing. [B] Communication. [C] Face-to-
above. face. [D] Top-to-bottom. [E] None of the above.
35. An optional facilitates location program can be used 46. The question "what?" can be answered by [A]
to study [A] Factory location alternative. [B] Survey. [B] Observation. [C] Controlled experiment.
Warehouse location alternatives. [C] Plant location [D] All of the above. [E] None of the above.
alternatives. [D] All of the above. [E] None of the 47. An example of a management by exception report is
above. a(n) [A] Aged accounts receivable report. [B]
36. A standards manual specifies standards that are to Overtime earnings report. [C] Both A and B. [D]
be followed in [A] System design. [B] System Neither A nor B. [E] None of the above.
operation. [C] Both A and B. [D] Neither A nor B. [E] 48. A key verifier machine is used In controlling [A]
None of the above. Transaction entry. [B] Data communication. [C]
37. The use of computers in data processing has had Computer processing. [D] Transaction origination.
several impacts on business. Which of the following [E] None of the above.
is not one of them? [A] Easier business growth. [B] 49. The vice-president of information has primary
Fewer clerical workers. [C] Increased data- responsibility for [A] Recognizing information needs.
processing costs. [D] More and better information. [B] Preparing an MIS study proposal. [C] Setting MIS
[E] None of the above.
objectives. [D] Establishing MIS constraints. [E] None 60. The MIS consists of [A] The central processing unit of
of the above. the computer only. [B] The central processing unit of
50. An organization containing manufacturing, the computer and input/output units only. [C] The
marketing, and finance areas is called a [A] Matrix central processing unit of the computer,
organization. [B] Flow network organization. [C] input/output units, and data storage units only. [D]
Modular organization. [D] Functional organization. All of the above. [E] None of the above.
[E] None of the above. 61. Which of the following is not true about expert
51. The major function of the language system is [A] to systems? [A] Expert systems are collections of
perform various processing tasks. [B] To provide human knowledge. [B] Export systems are expensive
artificial-intelligence capabilities to the DSS. [C] To to design. [C] Export systems are usually designed to
provide data to the DSS. [D] To enable the users to run on small general-purpose computers. [D]
interact with the DSS. [E] None of the above. Maintenance support may be difficult to obtain for
52. A systems theory of management includes [A] The an expert system. [E] None of the above.
manager as the control mechanism. [B] The use of 62. A spreadsheet package is one type of _____ support
both environmental and internal information tool. [A] Operational. [B] Decision. [C] Success. [D]
describing what should be achieved. [C] The use of Simulation. [E] None of the above.
objectives or standards of performance describing 63. Data base preparation would be most difficult in a
what is being achieved. [D] All of the above. [E] None [A] College or university. [B] Supermarket. [C]
of the above. Hospital. [D] Bank. [E] None of the above.
53. The files required to maintain general ledger records 64. The manager attempts to slow down the flow of [A]
include [A] Inventory file. [B] Detail postings file. [C] Machines. [B] Material. [C] Money. [D] All of the
Chart of accounts file. [D] All of the above. [E] None above. [E] None of the above.
of the above. 65. MIS constraints are imposed by [A] The firm’s
54. A central purpose of most decision-support systems managers. [B] The firm’s finance. [C] The
is [A] To build a model of the decision-making environment. [D] All of the above. [E] None of the
problem. [B] To design a data-base management above.
system. [C] To build an expert system. [D] To 66. Assembly languages are most commonly used to
determine the key decisions in the problem area. [E] write computing systems that provide [A]
None of the above. Supervisory information. [B] Priority setting
55. Which of the following is considered to be an information. [C] Planning information. [D] All of the
interface between the functional applications and above. [E] None of the above.
the data base? [A] Management information 67. Lower-level managers make day-to-day ______
systems. [B] Data-base management systems. [C] decisions to schedule and control specific tasks. [A]
Decision-support systems. [D] Data-processing Operational. [B] Decision. [C] Success. [D]
systems. [E] None of the above. Simulation. [E] None of the above.
56. One of the purchases order system's procedure sets 68. The executive vice-president usually has
is [A] Automatic purchase order writing. [B] responsibility for the [A] Physical system of the firm.
Receiving. [C] Accounts payable. [D] All of the above. [B] Conceptual information system of the firm. [C]
[E] None of the above. Vice-president of finance. [D] All of the above. [E]
57. The journal voucher file includes [A] General ledger None of the above.
accounts involved. [B] Data of entry. [C] Pesos posted 69. General ledger is also referred to as [A] Main ledger.
to each account. [D] All of the above. [E] None of the [B] Extra ledger. [C] Nominal ledger. [D] All of the
above. above. [E] None of the above.
58. The functional area showing the greatest interest in 70. A person who has the responsibility for development
the concept of functional information systems is the of a new product (such an instant coffee) in a firm is
[A] Financial function. [B] Manufacturing function. called a [A] Brand manager. [B] Project manager. [C]
[C] Both A and B. [D] Neither A nor B. [E] None of the Development manager. [D] Market manager. [E]
above. None of the above.
59. The funds management subsystem attempts to [A] 71. Sensitivity Analysis is the ability to perform [A] What-
Increase cash input. [B] Decrease cash output. [C] if analysis. [B] If-so analysis. [C] And-or analysis. [D]
Balance cash inflow with outflow. [D] All of the What-then analysis. [E] None of the above.
above. [E] None of the above. 72. MRP stands for [A] Management resource planning.
[B] Marketing research planning. [C] Manufacturing
resource planning. [D] Material requirements
planning. [E] None of the above.
73. The subsystem appearing in each of the functional
information systems is the [A] Internal accounting
subsystem. [B] Environmental intelligence
subsystem. [C] Information processor subsystem. [D]
System analysis subsystem. [E] None of the above.
74. A person who has a high-school diploma would be
least likely to obtain which of the following jobs? [A]
Data-entry operator. [B] Librarian. [C] Compute
operator. [D] Programmer. [E] None of the above.
75. Which of the following is(are) true concerning
information-system careers? [A] The primary reason
for this increase is the declining cost of hardware. [B]
The number of information-system specialists
recruited is expected to be greater than any other
profession in the 2000s. [C] An information-system
career is one of the few areas that is recession-proof.
[D] Both A and B. [E] None of the above.