Title of exam: (PE1/PE2)

Last name: Pepito

First name: Riezel
RATIONALE
1 A. Preventive control is the most cost-effective type of internal control because preventive controls are proactive
2 A. Credit check before approving a sale on account prevents a sale transaction that exceeds the credit limit. The
3 B. Detective control. A physical inventory count is an example detective control since are designed to detect erro
4 C. Performance evaluations are prepared every three years suggests a weakness in the internal control environm
5 A. The internal audit group reports to the audit committee of the board of directors indicates a strong internal con
6 C. To prevent the record keeper from authorizing transactions. The best reason to separate duties in a manual s
7 B. Management’s operating style. Management’s operating style is not an internal control procedure while the re
8 A. The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run th
9 D. All of the above duties should be separated. All of the following duties needs to be separated
10 B. Unauthorized access. The rest Adequate backups will protect software.
11 A. Separate systems development from systems maintenance. It is most likely to result in good documentation p
12 C. System interdependency. System interdependency is not a control risks associated with the distributed data p
13 B. Computer services function. The rest are essential feature of a disaster recovery plan.
14 B. The initial recovery period is very quick. An advantage of a recovery operations center is that the initial recove
15 A. Month-end adjustments. For most companies, month-end adjustments which of the following is the least critic
16 B. Worm. Worm a software program that replicates itself in areas of idle memory until the system fails
17 B. Trojan horse. Trojan horse is a software program that allows access to a system without going through the * n
18 D. Install public-domain software from reputable bulletin boards. The rest of the choices will reduce the exposure
19 B. Using obscure passwords unknown to others. Passwords are secret codes that users enter to gain access to
20 B. Data encryption standard. The rest do not to detect unauthorized access to the system.
21 D. All of the above. All of choices from a- c are audit objectives for communications controls.
22 D. The policy that permits users to take. In determining whether a system is adequately protected from attacks b
23 C. Access the vendor's inventory. In an electronic data interchange environment, customers routinely access the
24 C. Data attribution. Data attribution does not fall under basic data management tasks.
25 D. Data retrieval. Data retrieval is the task of searching the database to locate a stored record for processing
A. Identifies, for the database management system, the names and relationships of
26 D. The conceptual database. The rest of the choices are components of the database.
all data elements, records, and files that comprise the database. The rest of the choices
27 does not fall under this definition.
28 C. Enables application programs to interact with and manipulate the database. The rest of the choices does not a
29 C. To design application programs. The rest of the choices are responsibilities of the database administrator
30 A. Verifying that the security group monitors and reports on fault tolerance violations. Since A is an exception, th
31 B. Reconciling program version numbers. Reconciling program version numbers is an exception since the rest of
32 C. Tests were conducted at the individual module and total system levels prior to implementation. C is the correc
33 A. Protect applications from unauthorized changes. The rest of the choices should not be tested.
34 B. Insurance. B is the correct answer since insurance is an examples of recurring costs.
35 C. Personnel costs. C is the the correct answer since Personnel costs is an examples of one-time costs.
36 A. The accountant is responsible for designing the physical system. A is the correct answer since this is an exce
37 C. Selecting the programming techniques to be used. C is the the correct answer since the other choices are not
38 C. Selecting hardware vendors. C is the correct answer since this is an exception since the rest of the choices fa
39 D. All of the above. D is the correct answer since all given choices are tangible benefit.
40 D. When measured, do not lend themselves to manipulationD is the correct answer since the rest of the choices
41 b. simulation models. B is the correct answer since the rest of the choices are most likely to be used to quantify i
42 c. production planning/control. C is the correct answer since the rest are part of the expenditure cycle
43 c. depreciation. C is the correct answer while the others have their own role in a special journal.
44 a. archive. A is the correct answer since the rest of the choices are files that are not comparable * to a journal in
45 c. merchandise inventory. C is the correct answer since the rest of the choices are not beneficial in handling a fir
46 c. sales order processing. C is the correct answer since the rest of the choices are accounting applicat
47 b. block code. B is the correct answer because the rest does not fall under its given definition base from the ques
48 a. missing or unrecorded documents can be identied. The most important advantage of sequential cod
49 a. variance analysis report. The rest of the choices are report is an output of the Financial Reporting Sy
50 c. loss of physical assets. C is the the correct answer since it is an exception and the rest are inclusions under R
51 d. the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidia
52 c. maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs. Although
53 d. cost accounting. Manufacturing companies are the main users of cost accounting. The moment the transaction
54 d. processing takes place when the economic event occurs. The moment the transaction is registered and the ec
55 a. remittance advice. This paper serves as a source or starting document for another system.
56 b. authorization. The ones with authorization obligations are the ones having the authority to make choices. The
57 a. separating the programmer from the computer operator. The one who designs the prorgrams must
58 a. When management outsources their organization’s IT functions, they also outsource responsibility for internal
59 D. The policy that permits users to take . The rest of the policies are important for safeguarding a system from co
60 b. is an electronic log of all transactions received, translated, and processed by the system. It is used for tracing
61 c. field interrogation. Programed processes are used to examine the data field's features.
62 C. is so named because it effects many victims simultaneously, which are distributed across the interne
63 B. is the unique address that every computer node and host attached to the Internet must have. It refe
64 D. inference controls. Users are prevented from inferring specific data values that they are otherwise n
65 A. antivirus software. It is a software that prevents virus to corrupts the system. It is software that guard
66 A. partitioned database. It is an illustration of a distributed database that divides the main database into
67 D. specify the system processing methods. The system's aims and objectives are clearly stated in the
68 C. the detailed system design. Other options available during the SDLC selection phase are not official
69 C. master document. The other options might show proof of an economic occurrence.
70 D. processing takes place when the economic event occurs. When an economic event happens, there
preventive controls are proactive and emphsize quality.
that exceeds the credit limit. The other options are detective controls
since are designed to detect errors or irregularities that may have occurred
ss in the internal control environment, the rest are not strength.
ors indicates a strong internal control environment and the rest are weaknesses.
to separate duties in a manual system is to prevent the record keeper from authorizing transactions, the rest are weaknesses.
nal control procedure while the rest are internal cotrol procedure.
o the assistant treasurer to run the check-signing machine. It is not a segregation of duties violation
to be separated

o result in good documentation procedures and the rest do not.

ociated with the distributed data processing structure

ns center is that the initial recovery period is very quick and the rest are disadvantages.
of the following is the least critical application for disaster recovery purposes, the rest are not.
y until the system fails
em without going through the * normal logon procedures
choices will reduce the exposure to computer viruses
hat users enter to gain access to systems. Security can be compromised by the rest of the choices.

ons controls.
quately protected from attacks by computer viruses, the policy that permits users to take is not include in the relevant policies.
t, customers routinely access the vendor's inventory, the rest of the choices are not correct.

stored record for processing

The rest of the choices does not answer the given question.
f the database administrator
tions. Since A is an exception, then the rest are included as an audit objectives for the database management system
s is an exception since the rest of the choices are tests of controls will provide evidence that access to the data files.
o implementation. C is the correct answer since it is a test of controls will provide evidence that the system as originally * implemented was
uld not be tested.

mples of one-time costs.

rect answer since this is an exception against the rest of the choices. Thus, A is not included in the The role of the accountant/internal audit
er since the other choices are not inlcuded as the role of the steering committee
n since the rest of the choices fall under project planning.
 wer since the rest of the choices are not intangible benefits.
most likely to be used to quantify intangible benefits
the expenditure cycle
special journal.
not comparable * to a journal in a computerized environment
are not beneficial in handling a firm’s
oices are accounting application is most suited to batch processing
ven definition base from the question.
nt advantage of sequential coding is that missing or unrecorded documents can be identied and the rest are not the correct ans
ut of the Financial Reporting System
d the rest are inclusions under Risk exposures in the General Ledger and Financial Reporting Systems.
the accounts receivable subsidiary ledge. If these responsibilities are not divided, the employee will have little trouble collecting money for
applied to specific jobs. Although the custody and recording are performed by one employee, the nature of these accounts aren't necessaril
nting. The moment the transaction is registered and the economic occurrence occur simultaneously.
ansaction is registered and the economic occurrence occur simultaneously.
other system.
e authority to make choices. The one who develops the programs must be kept apart from the person who codes, maintains, and operates t
o designs the prorgrams must be separated from the one who codes the program an maintains/operate it. Moreover, the rest of
tsource responsibility for internal control. It's because management wants improved management and robust internal controls.
or safeguarding a system from computer virus assaults.
the system. It is used for tracing or locating transactions or documentations.

e distributed across the internet. It refers to a DDoS attack, which targets a web server to keep it from serving its legitimate use
the Internet must have. It refers to IP address which stands for Internet Protocol
lues that they are otherwise not authorized to access through query features by inference controls.
ystem. It is software that guards against viruses that might damage the system.
divides the main database into sections or partitions and distributes them to their main user.
tives are clearly stated in the system analysis report.
selection phase are not official products.
c occurrence.
conomic event happens, there is no time lag in the real-time processing.
he rest are weaknesses.

in the relevant policies.

gement system
the data files.
tem as originally * implemented was free from material errors and free from fraud.

e role of the accountant/internal auditor in the conceptual design phase of the Systems Development Life Cycle
nd the rest are not the correct answers.

ave little trouble collecting money for his own benefit without disclosing the sources of the funds.
e of these accounts aren't necessarily incompatible.

who codes, maintains, and operates the program. Additionally, none of the other options are computer-based information systems.
s/operate it. Moreover, the rest of the choices are not computer-based information system.
robust internal controls.

p it from serving its legitimate users.

based information systems.