BS Accountancy Qualifying Exam: Auditing

Which of the following statements is false? In data processing *

The source of data is within the firm and outside the firm.
Data refers to facts which have been organized in a meaningful manner.

Data processing refers to the operation needed to collect and transform data into
useful information

Mechanical data processing is a system in which the operations are performed with
the assistance of major mechanical device.

The following are subsystems of the Accounting Information System, except *

Transaction Processing System
Management Reporting System

General Ledger/Financial Reporting System

Human Resources System

When viewed from most elemental level to highest, the data hierarchy is *
attribute, record, file
record, attribute, file

file, record, attribute

Key, record, file

Which of the following is not an objective of all information systems? *

Support for the stewardship function of clients.
Support for the management decision making.

Support for the day-to-day operations of the firm.

Useful for proper management of firm resources.

Which of the following characteristics distinguishes computer processing from

manual processing? *
Computer processing virtually eliminates the occurrence of computational error
normally associated with manual processing.
Errors and fraud in computer processing will be detected soon after their occurrence.

Most potential for systematic error is ordinarily greater in manual processing than in
computerized processing.

Most computer systems are designed so that transaction trails useful for audit Do
not exist.

Some examples of business forms commonly used by a typical business organization

are the following, except *
Sales invoice
Purchase order

Financial statements

Official receipt

Which of the following files is a temporary file? *

Transaction file
Master file
Reference file

None of the above

Which is not an accountant’s primary role in information systems? *

System user
System auditor

System designer

System programmer

A documentation tool that depicts the physical flow of information relating to a

particular transaction through an organization is a *
Documentation flowchart
Program flowchart
Decision table

System survey

They comprise the books of accounts of a company where transactions are recorded *
Journals and ledgers
Business machines
Chart of accounts

Financial reports

Which of the following is a primary example of source data automation? *

A subsidiary ledger
A utility bill

A bill of lading

Point-of-sale (POS) scanner in malls

It is classified list of ledger accounts *

General ledger
Chart of accounts

Flowchart

Subsidiary ledger

Which of the following computer software is used to create, maintain and operate a
database? *
Application software
System software

Database management system (DBMS)

Database administrator

Usually considered as the end-product of accounting work. They include the statement
of financial position, statement of comprehensive income, and other schedules about
the firm’s financial position and results of operation. *
Financial data
Financial reports
Financial ratios

Financial analysis

A type of electronic data processing wherein data are processed immediately after a
transaction is made to update current information is called *
Online processing or real-time processing
Batch processing

Offline processing

Random-access processing

The advantage of pre-numbering source documents is that it helps to verify that *

All cash has been collected.
No inventory has been misplaced.

All transactions have been recorded since the numerical sequence serves as a
control.

Documents have been used in order.

It is an intentional deception, misappropriation of a company`s assets, or manipulation

of its financial data to the advantage of the perpetrator. *
Ethics
Computer ethics

Fraud

Error

Which of the following is not a necessary condition under common law to constitute a
fraudulent act? *
Injury or loss
Material fact

Written documentation

Justifiable reliance
The following are the risk factors that affect the fraudulent activity of a person,
except *
Incentives/ pressure
Accurate personality

Opportunities

Attitudes/rationalization

Which of the following is not a fraudulent activity? *

Recording fictitious sales.
Bookkeeper’s failure to understand proper accounting principle for a transaction.

Receiving kickbacks.

Purchasing goods for personal use.

Consist of misappropriating a collection from one customer and concealing this

defalcation by applying a subsequent collection made from one customer *
Window dressing
Kitting

Lapping

Charged to expense account

The most important segregation of duties in the organization of the information

systems function is *
Using different programming personnel to maintain utility programs from those who
maintain the application programs.
Having a separate information officer at the top level of the organization outside of
the accounting function.
Assuring that those responsible for programming the system do not have access to
data processing operations.

Not allowing the data librarian to assist in data processing operations.

The party responsible for the prevention and detection of fraud *

Management
Persons in charge of corporate governance

Both A and B

Neither A or B

What is the computer process called when data processing is performed concurrently
with a particular activity and the results are available soon enough to influence the
particular course of actions being taken or the decision being made? *
Real time processing
Batch processing
Random access processing

Integrated data processing

When certain customers made cash payments to reduce their accounts receivable, the
bookkeeper embezzled the cash and wrote off the accounts as uncollectible. Which
control procedure would most likely prevent this irregularity? *
Segregation of duties
Accounting records
Accounting system

Access control

It is a computer program that attaches itself to a legitimate program or data fie and
uses it as a transport mechanism to reproduce itself without the knowledge of the
user.

Virus
Germs
Encryption

Disc operating system

Some examples of business forms commonly used by a typical business organization

are the following, except *
Sales invoice
Purchase order
Financial statements

Official receipts

Who is responsible for establishing and maintaining the internal control system? *
The internal auditor
The accountant
Management

The external auditor

All of the following are input device, except *

Scanner
POS recorders
Keyboard

Plotter

Which is not considered a hardware? *

Mouse
Monitor

Database systems

Disk drive