THE QUAIDE MILLETH COLLEGE FOR MEN

Medavakkam, Chennai-600100.

BBA
COMPUTER APPLICATIONS IN BUSINESS
MAM3H

Question Bank and Answer Key

UNIT – I
Part - A
1. What is word processor?

A word processor enables you to create a document, store it electronically

on a disk, display it on a screen, modify it by entering commands and
characters from the keyboard, and print it on a printer.

2. List any four advantages of Word processing software.

 Easily correct any mistakes which are made.

 Spell and grammar checking.
 Format the text and general page layout so that you can make the
page look more beautiful or easier to read.
 Mail Merge from a database so that you can easily send out letters
to multiple people at a time.

3. How will you open an existing document in MS-Word?

 Choose Start  All Programs to see a list of all your applications. Select
MS-Word application from the Microsoft Office group.
 The application will be opened. Select the menu File  Open, to open the
existing document in your system.

1
4. What are the properties of font setting in MS-Word?

 Font (Text)
 Style
 Size
 Color

5. State the use of spelling check.

MS-Word automatically checks spelling of words and underlines the text

which is not a correct word with a wavy red line and grammatical mistakes
with green wavy line.

6. What is Thesaurus in Word?

A thesaurus is a software tool included with some word processors that

provides synonyms for selected words. Users using Microsoft Word can open
a thesaurus by highlighting the word and pressing the shortcut key
Shift+F7.

7. Mention the usage of Auto Correct.

Choose AutoCorrect options for capitalization, spelling, and symbols. You

can use the AutoCorrect feature to correct typos, capitalization errors, and
misspelled words, as well as automatically insert symbols and other pieces
of text.

8. Define MS Excel.

MS-Excel is Electronic Spreadsheet software. MS-Excel is having a number

of worksheet in it. There are number of rows and columns in a worksheet.
MS-Excel is used for data entry purpose.

2
9. What is Electronic spreadsheet?

MS-Excel is having workbook. A workbook in MS-Excel file is having a

number of worksheet which is called electronic spreadsheet.

10. What is a cell?

A cell is the intersection between a row and a column on a spreadsheet that

starts with cell A1. For example, "D8" (column D, row 8) is a cell.

11. What is the use of Formula bar?

You can use to enter or copy an existing formula in to cells or charts. It is

labeled with function symbol (fx). By clicking the Formula Bar, or when you
type an equal (=) symbol in a cell, the Formula Bar will activate.

12. Name any two built functions of worksheet.

Excel provides a large number of built-in functions that can be used to

perform specific calculations
1. Mathematical function
2. Statistical function

13. State the uses of SUM function.

 Click on the cell in your table where you want to see the total of the
selected cells.
 Enter =sum( to this selected cell.
 Now select the range with the numbers you want to total and press Enter
on your keyboard.

14. State the uses of VLOOKUP function.

VLOOKUP function returns a value from a range (one row or one column) or
from an array. The VLOOKUP function is a built-in function in Excel that is

3
 categorized as a Lookup/Reference Function. It can be used as a
worksheet function in Excel.

15. What is pivot table?

Pivot tables let you analyze large amounts of data using a variety of
functions. Excel makes it easy to create a new pivot table that suits your
needs. Pivot tables let you summarize data without the hassle of creating
formulas.

Part - B
1. Discuss the role of word processing in creating documents.
 A word processor is an electronic device or computer software application
that performs the task of composition, editing, formatting and printing of
documents.
 Having editing features like cut, copy and paste.
 Typical features of a modern word processor include font application,
spell checking, grammar checking.
 Creation of tables of contents.
 Non-printing comments and annotations.
 Generation of document statistics.
 Linking and Embed objects, Mail Merge, Envelops and Labels, Letter
Wizard, Macro options etc. are the proof of stunning word processing
software.

2. Explain the procedure for formatting documents.

Word 2007 offers a great amount of formatting options: such as bold, italic,
normal, single and double spaces; underline; subscript and superscript; and
paragraph formats such as alignment, spacing and indentation.
1. Select the text you want to format.
2. Click the Home tab.

4
 3. Click the Font Dialog Box Launcher.
4. Select the Font, Font style, and Font size you want.

3. How can we check spelling? Discuss.

The spelling and grammar checkers check for misspelled words or
grammar errors. The red wavy lines will appear underneath misspelled
words. The green wavy lines will appear underneath grammatical errors.
To use the spelling and grammar checker, follow these steps:
1. Select button from the main tab bar or press F7 button on the key board.
2. The “Spelling and Grammar” dialog box will notify you of the first
mistake in the document and misspelled words will be highlighted in red.
3. If the word is spelled correctly, click the “Ignore” button or click the
“Ignore All” button if the word appears more than once in the document.
4. If the word is spelled incorrectly, choose one of the suggested spellings in
the “Suggestions” box and click the “Change” button or “Change All”
button to correct all occurrences of the word in the document. If the
correct spelling is not suggested, enter the correct spelling in the “Not In
Dictionary” box and click the “Change” button.
5. If the word is spelled correctly and will appear in many documents you
type (such as your name), click the “Add” button to add the word to the
dictionary so that it will no longer appear as a misspelled word.

4. Explain absolute and relative cell reference.

A cell reference refers to a cell or a range of cells on a worksheet and can be
used in a formula so that Microsoft Office Excel can find the values or data
that you want the formula to calculate.
Absolute cell references do not change when copied or filled. You can use
an absolute reference to keep a row and/or column constant. An absolute
reference is designated in a formula by the addition of a dollar sign ($). It
can precede the column reference, the row reference, or both.

5
 Relative cell references change when a formula is copied to another cell.
By default, a cell reference is relative. For example, when you refer to cell A2
from cell C2. A formula that contains a relative cell reference changes as
you copy it from one cell to another.

5. Write the steps involved in creating charts in MS-Excel.

Steps in creating a Chart:
1. Enter the numbers into a workbook.
2. Select the data to be charted.
3. Choose Chart from the Insert menu.
4. Choose either Chart Type from the Format menu or click on the Chart
Wizard button.
5. Define parameters such as titles, scaling color, patterns, and legend.
6. Chart will appear on you worksheet.

Part - C
1. Discuss different types of tools in MS Word.
 Formatting options
 Word count
 AutoCorrect
 Spelling and Grammar check
 Fonts in WordArt
 AutoText
 AutoSummarize
 Mail Merge
 Creating Labels
 Macros
 Office Assistant

6
2. Discuss the various types of saving a document in word.
Word offers two ways to save a file: Save and Save As. These options work in
similar ways, with a few important differences:
 Save: When we want to create or edit a document, we can use
the Save command to save the changes. We may use this command most
of the time. When we save a file, only need to choose a file name and
location for the first time. After that, we can click the Save command to
save it with the same name and location.
 Save As: We'll use this command to create a copy of a document while
keeping the original. When we use Save As, we need to choose a different
name and/or location for the copied version.
To save a document:
It's important to save our document whenever we start a new project or
make changes to an existing one. Saving early and often can prevent our
work from being lost. Also need to pay close attention to, where you save the
document so it will be easy to find later.
1. Locate and select the Save command on the Quick Access toolbar.
2. If you're saving the file for the first time, the Save As dialog box will
appear in Backstage view.
3. Select the location where we want to save the document.
4. Enter a file name for the document to save the document to our
computer, then click Save.
5. The document will be saved. We can click the Save command again to
save our changes as we modify the document.
We can also access the Save command by pressing Ctrl+S on your
keyboard.
Using Save As to make a copy:
If you want to save a different version of a document while keeping the
original, you can create a copy. For example, if you have a file named ‘Sales
Report’, you could save it as ‘Sales Report 2’ so you'll be able to edit the new
file and still refer back to the original version.
7
 To do this, you have to click the Save As command in Backstage view.
Just like when saving a file for the first time, you need to choose where to
save the file and give it a new file name.

3. Explain the formatting of a text in MS-Word.

Word 2007 offers a great amount of formatting options: such as bold, italic,
normal, single and double spaces; underline; subscript and superscript; and
paragraph formats such as alignment, spacing and indentation.
1. Select the text you want to format.
2. Click the Home tab.
3. Click the Font Dialog Box Launcher.
4. A menu of font styles will appear.
5. Move the mouse over the various font options.
6. Select the Font, Font style, and Font size, Font Color you want.
7. A live preview of the font will appear in the document.
8. The font will change in the document.

4. Explain the process of paragraph formatting in Word.

In Word 2007, a paragraph is any amount of text, graphics, object or
other items that are followed by a paragraph mark. A paragraph mark is
inserted each time while pressing the ENTER key. In order to change the
formatting of a paragraph, select the paragraph and then apply the formats
you want apply.
You can format a paragraph by placing the cursor within the paragraph
and selecting Home→Paragraph subtask menu.
The options in the paragraph formatting:
 Alignment
 Indentation
 Spacing
 Line spacing

8
5. Explain the process of mail merge in MS-Word.
Select document type
1. In the Mail Merge task pane, click Letters. This will allow you to send
letters to a group of people and personalize the results of the letter that
each person receives.
2. Click Next: Starting document.
Select the starting document
1. Click one of the following options:
 Use the current document: Use the currently open document as your
main document.
 Start from a template: Select one of the ready-to-use mail merge
templates.
 Start from existing document: Open an existing document to use as
your mail merge main document.
2. In the Mail Merge task pane, click Next: Select recipients.
When you open or create a data source by using the Mail Merge Wizard,
you are telling Word to use a specific set of variable information for your
merge. Use the following method to attach the main document to the data
source.
Use an existing data source
To use an existing data source, follow these steps:
1. In the Mail Merge task pane, click Use an existing list.
2. In the Use an existing list section, click Browse.
3. In the Select Data Source dialog box, select the file that contains the
variable information that you want to use, and then click Open.
4. If the data source is not listed in the list of files, select the appropriate
Drive and Folder. If necessary, select the appropriate option in the All
Data Sources list. Select the file, and then click Open.
5. Word displays the Mail Merge Recipients dialog box. You can sort and
edit your data if you want to.
9
 6. Click OK to return to the main document.
7. Save the main document.
8. When you save the main document at this point, you are also saving the
data source and attaching the data source to the main document.
9. Type the name that you want to give to your main document, and then
click Save.

6. Explain the key components of the Excel worksheet.

 Continuous numbers or ranges can be given with the help of cell
reference.
 Functions are very much helpful to compute any type of calculations.
 To highlight the values based on the criteria Conditional Formatting can
be used.
 Set key notes as comments for the cell.
 Sorting data in order.
 Various types of Charts are available which is helpful in showing the
graphical representation of data.
 Values can be validated.
 Goal Seek and Solver Tool is another key component in MS-Excel.
 Pivot Table is used to summarise large number of data.

7. Discuss the various mathematical functions offered by Excel.

1. ABS
Returns the absolute value of a supplied number.
2. POWER
Returns the result of a given number raised to a supplied power.
3. SQRT
Returns the positive square root of a given number.
4. QUOTIENT
Returns the integer portion of a division between two supplied numbers.

10
 5. MOD
Returns the remainder from a division between two supplied numbers.
6. PRODUCT
Returns the product of a supplied list of numbers.

8. Explain the application of Spreadsheet in finance.

1. SLN
Returns the straight-line depreciation of an asset for one period.
2. PV
Calculates the present value of an investment (i.e. the total amount that
a series of future payments is worth now).
3. FV
Calculates the future value of an investment with periodic constant
payments and a constant interest rate.
4. PMT
Calculates the payments required to reduce a loan, from a supplied
present value to a specified future value.
5. IPMT
Calculates the interest payment for a given period of an investment, with
periodic constant payments and a constant interest rate.
6. PPMT
Calculates the payment on the principal for a given investment, with
periodic constant payments and a constant interest rate.
7. NOMINAL
Calculates the annual nominal interest rate.
8. EFFECT
Calculates the effective annual interest rate.

11
 UNIT – II
Part - A
1. Define ‘DBMS’.
Database Management System (DBMS) helps to store and retrieve data from
the database. It is also used for data processing information, generation and
decision-making for implementing almost all the organisation process.

2. What is a database?
A database is an organized collection of data. A relational database, on the
other hand, is a collection of schemas, tables, queries, reports, views, and
other elements.

3. What is a record?
A collection of related fields that constitute a row in a table.

4. What do you mean by data field?

Fundamental unit of information in a table refers to a column in a database.

5. What are queries?

Queries are used to view, change and analyse data in different ways. It is
also used to design forms and reports.

6. Define indexing.
Indexes are used to quickly locate data without having to search every row
in a database table every time a database table is accessed.

7. Define DDL.
Data Definition Language (DDL) is a standard for commands that define the
different structures in a database. DDL statements create, modify, and
remove database objects such as tables, indexes, and users.

12
8. What is the purpose of DML?
DML is short name of Data Manipulation Language which deals with data
manipulation, and includes most common SQL statements.

Part - B
1. Explain the concepts of data base management system.
 Tables are used to store and retrieve the data whenever needed.
 Queries are used to view, change and analyse data.
 Report shows the data in a desired format for print.
 Primary key indexes the number in a sequence.
 Indexing option enables no duplication or repetition of numbers.
 Sorting the data in anyone of the two orders.
 The query languages DDL, DML, TCL etc. helps to organize and
manipulate the data stored in the database.

2. Discuss the advantages and drawbacks of a database.

The different advantages of DBMS are as follows:
 Reduced data redundancy.
 Reduced updating errors and increased consistency.
 Greater data integrity and independence from applications programs.
 Improved data access to users through use of host and query languages.
 Improved data security.
 Reduced data entry, storage, and retrieval costs.
 Facilitated development of new applications program.
Drawbacks of Database:
 Database systems are complex, difficult, and time-consuming to design.
 Substantial hardware and software start-up costs.
 Damage to database affects virtually all applications programs.

13
  Extensive conversion costs in moving form a file-based system to a
database system.
 Initial training required for all programmers and users.

3. Discuss the steps involved in physical database design.

 Physical database design is to translate the logical description of data
into the technical specifications for storing retrieving data.
 Create a design for storing data that will provide adequate performance
and insure database integrity, security and recoverability.
 To balance between efficient storage space and processing speed.
 Efficient processing tends to dominate as storage is getting cheaper.
 Processes of modifying a database structure to improve the performance
of the run-time environment.

4. Explain sorting and indexing in MS-Access.

Sorting is any process of arranging items systematically, and arranging
items in a sequence ordered by some criterion; categorizing, grouping items
with similar properties. We can sort the field by selecting the Ascending or
Descending command.
Indexes are used to quickly locate data without having to search every
row in a database table every time a database table is accessed. Indexes can
be created using one or more columns of a database table, providing the
basis for both rapid random lookups and efficient access of ordered records.
An index is used to speed up the performance of queries. An index is
created on a column of a table. Example, we have a database table called
User with three columns – Name, Age, and Address. Index is used to speed
up search queries by essentially cutting down the number of records/rows
in a table that need to be examined.

14
5. How can you understand the Menu Driven application programming?
Explain.
Menu
A list of options that may be displayed either vertically or horizontally on
a screen and from which one or more items may be selected using an input
device.
A menu driven form is one that allows you to navigate your way through
different levels of a system.
Method of creating a Menu Form:
1. Start by opening the database you want to use to create the form.
2. Now select the ‘CREATE’ tab at the top. Choose ‘Blank Form’.
3. To customise the form, click on the ‘VIEW’ icon and choosing the
‘DESIGN VIEW’ option.
4. Create buttons to open different parts of the database like label, text box,
command button etc.
5. Preview the form in ‘FORM VIEW’ and check your button to see if it
works.

Part - C
1. Explain the various functions of DBMS.
 DBMS helps to store and retrieve data from the database.
 To organize data processing information, generation and decision-making
for implementing almost all the organisation process.
 The key components: Table, Query, Form, Report etc.
 Tables are used to store and retrieve the data whenever needed.
 Queries are used to view, change and analyse data.
 Report shows the data in a desired format for print.
 Primary key indexes the number in a sequence.
 Indexing option enables no duplication or repetition of numbers.

15
  Sorting the data in anyone of the two orders.
 The query languages DDL, DML, TCL etc. helps to organize and
manipulate the data stored in the database.

2. Discuss about designing queries and reports.

Query
Queries are used to view, change and analyse data in different ways. It is
also used to design forms and reports. A query is a request for data results,
for action on data, or for both. You can use a query to perform calculations,
to combine data from different tables, or even to add, change, or delete table
data. You can also use queries to automate many data management tasks
and to review changes in your data before you commit to those changes.
 Open the database and on the Create tab, click Query Design.
 In the Show Table box, on the Tables tab, double-click the Products table
and then close the dialog box.
 In the Products table, let's say that you have Product Name and List
Price fields.
 On the Design tab, click Run.
Report
A report is an object in Microsoft Access that is used to display and print
your data in an organized manner. The Navigation Pane is where you can
find all of the saved reports in the database.
 On the Create tab, in the Reports group, click Report Wizard.
 Click the Tables/Queries drop-down list and choose the table or query
that contains the fields you want on your report.
 Double-click fields in the Available Fields list to choose them.

3. Explain the steps to create a report using Auto Report.

 Open the Navigation pane.
 Click the table or query on which you want to create your report.

16
  Activate the Create tab.
 On the Create tab, in the Reports group, click Report Wizard.
 Click the Report button in the Reports group.
 Access creates your report and displays your report in Layout view. You
can modify the report.
 Access reports created simply by using the Report button which have
several sections. They are,
 Sections of a Report: Report Header, Page Header, Detail Section, Page
Footer, Report Footer.
 Arrange the controls like label, text box, command button etc. in the
above said sections with its field.
 Run the Report.

4. Explain in brief about the understanding of programming environment

in DBMS.
DDL:
DDL is short name of Data Definition Language, which deals with
database schemas and descriptions, of how the data should reside in the
database. Data Definition Language (DDL) is a standard for commands that
define the different structures in a database.
DDL statements create, modify, and remove database objects such as
tables, indexes, and users. Common DDL statements are CREATE, ALTER,
and DROP.
DML:
DML is short name of Data Manipulation Language which deals with
data manipulation, and includes most common SQL statements such
SELECT, INSERT, UPDATE, DELETE etc, and it is used to store, modify,
retrieve, delete and update data in database.
A Data Manipulation Language (DML) is a family of syntax elements
similar to a computer programming language used for selecting, inserting,

17
deleting and updating data in a database. Performing read-only queries of
data is sometimes also considered a component of DML.
TCL:
TCL is short name of Transaction Control Language which deals with
transaction within a database.
Transaction Control Language (TCL) commands are used to manage
transactions in database. These are used to manage the changes made by
DML statements. It also allows statements to be grouped together into
logical transactions. Statements are COMMIT, ROLLBACK, SAVEPOINT etc.

18
 UNIT – III
Part - A
1. Define EDI.
Electronic Data Interchange is the exchange as structured business
information between applications among trading partners through electronic
means.

2. What is EFT?
Electronic Funds Transfer (EFT) is the term used for EDI that involves the
transfer of funds between financial institutions. EFT (Electronic Funds
Transfer) refers to the sending of money electronically, that is required in
order to post the payment and credit the non-custodial parent.

3. What is transaction?
An instance of buying or selling something. A business deal and an
occurrence in which goods, services, or money are passed from one
person, account etc., to another. The act or process of doing business
with another person, company etc.

4. Write any two standards of EDI.

 EDI for Administration, Commerce, and Transport (EDIFACT).
 American National Standards Institute / Accredited Standards
Committee X12 (ANSI ASC X12).

5. Explain ANSI ASC X12 standards.

The Accredited Standards Committee X12 (also known as ASC X12) is a
standards organization. Chartered by the American National Standards
Institute (ANSI) in 1979, it develops and maintains the X12 Electronic Data
Interchange (EDI) standards along with XML schemas which drive business
processes globally.

19
6. Write the applications of EDI.
 Retail Sector
 Manufacturing Sector
 Automobile Sector
 Financial Sector

7. Explain FEDI.
The electronic transmission of payments and payment related information
in standard formats between companies and/or their banks. Financial
Electronic Data Interchange (FEDI) includes electronic formats for invoices,
payment initiation, and remittance information processed through a
financial institution or communications intermediary.

8. State the uses of EDI.

 Electronic Data Interchange (EDI) is the computer-to-computer exchange
of business documents between companies.
 EDI replaces the faxing and mailing of paper documents.
 EDI documents use specific computer record formats that are based
on widely accepted standards.

9. What are the futures of EDI?

Since Electronic Data Interchange (EDI) contain both data and data schema
in the same file and publish by the X12 organisation every year has
Technology evolved. There are new file formats technology in which XML
have not successfully implemented.

20
 Part - B
1. Discuss about the basic concepts of EDI.
 EDI is the computer-to-computer exchange of business documents, such
as purchase orders and invoices, in a standard electronic format,
between trading partners.
 A payee’s bank account is electronically credited and the payer’s account
is electronically credited, such an exchange is known as Electronic Fund
Transfer (EFT).
 Business partners: The exchange of EDI documents is typically between
two different companies, referred to as business partners or trading
partners.
 A standard format describes what each piece of information is and in
what format, named as EDI Standard, which is used to read and
understand the documents.
 There are several EDI standards in use today, including ANSI, EDIFACT,
TRADACOMS and ebXML.

2. Discuss the impact of EDI.

 Since the purchasing function is among one of the most affected
by EDI adoption, a survey of purchasing manager was conducted to
assess the extent of EDI′s impact on purchasing. However, those
organizations that have encouraged their vendors to use EDI appear to
have significantly improved organizational efficiencies.
 Errors due to illegible faxes, lost orders or incorrectly taken phone orders
are eliminated, saving your staff valuable time from handling data
disputes.
 EDI can speed up the business cycles, Exchange transactions in minutes
instead of the days.

21
  Using EDI can reduce the order-to-cash cycle time by more than 20%,
improving business partner transactions and relationships.
 Promotes corporate social responsibility and sustainability by replacing
paper-based processes with electronic alternatives. This will both save
you money and reduce your CO2 (Carbon dioxide) emissions.

3. Discuss the advantages of EDI.

 It is a convenient way to exchange business documents.
 It ensures speed, economy and accuracy in handling business
documents.
 It reduces business transaction costs.
 It improves customer service.
 Data can be shared by various departments.
 Reduces the paper work.
 It improves cash flow management.
 Payment can also be made.

4. Explain the future of EDI.

The EDI movement began when more and more businesses computerized
their internal operations.
EDI has grown rapidly with usage up 50% a year since mid 1980s. Most
Fortune 1000 companies use it. Major users swear by it.
As large companies increase their use of EDI, all businesses within the
associated enterprise will be forced to use EDI. The National Automated
Clearing House Association (NACHA), which administers the electronic
banking network in the United States, is exploring whether to require banks
to be EDI-capable. A 1995 article noted that there were 30,000 users of EDI
in Europe and the number is expected to rise to 3,00,000 by the year 2000.

22
 Part - C
1. Explain the various EDI standards.
An EDI standard is the series of uniform message formats used to create
Computer readable versions of traditional paper documents.
There are several EDI standards in use today, including ANSI ASC X12,
EDIFACT, TRADACOMS and ebXML. And, for each standard there are many
different versions, e.g., ANSI 5010 or EDIFACT version D12, Release A.
When two businesses decide to exchange EDI documents, they must agree
on the specific EDI standard and version.
The Accredited Standards Committee X12 is also known as ASC X12.
The membership of ASC X12 includes technologists and business process
experts, encompassing health care, insurance, transportation, finance,
government, supply chain and other industries.
United Nations recommends the Electronic Data Interchange for
Administration, Commerce and Transport (EDIFACT) is a set of
internationally agreed upon standards, directories and guidelines for the
electronic interchange of structured data that relate, in particular, to trade
in goods and services.

2. Discuss the various applications of EDI.

 Retail Sector
In the retail sector profit margins usually depend upon efficient inventory
management. EDI provides a structured way to maintain and reload
goods stocked at a retail outlet. Retailers use a common model stock for
each shop location.
 Manufacturing Sector
EDI ensures effective and efficient management of materials required for
production of a commodity. In manufacturing sector, EDI facilitates
material requirement planning and just in time manufacturing.

23
  Automobile Sector
In automobile sector, EDI is used to keep customers updated with the
current product and pricing information during the purchase cycle. An
advance shipping notice is transmitted through EDI to the customers to
prepare a loading schedule and to ensure proper receipt of the product.
 Financial Sector
In the financial sector, EDI replaces the labour intensive activities of
collecting, processing and dispersing payments with an electronic
system. It facilitates the flow of payment. A payee’s bank account is
electronically credited and the payer’s account is electronically credited,
such an exchange is known as Electronic Fund Transfer (EFT).

3. Discuss the FEDI for international trade transaction.

International trade is the exchange of capital, goods, and services across
international services across international borders or territories. In most
countries, such trade represents a significant share of gross domestic
product (GDP). While international trade has existed throughout history (for
example Uttarapatha, Silk Road, Amber Road, Salt Roads). International
trade is also a branch of economics, which together with international
finance, forms the larger branch called international economics.
Trading globally gives consumers and countries the opportunity to be
exposed to new markets and products. Almost every kind of product can be
found on the international market: food, clothes, spare parts, oil, jewellery,
stocks, currencies and water.
Services are also traded: tourism, banking, consulting and
transportation. A product that is sold to the global market is an export, and
a product that is bought from the global market is an import. Imports and
exports are accounted for a country's current account in the balance of
payments.

24
 Industrialization, advanced technology, including transportation,
globalization, multinational corporations, and outsourcing are all having a
major impact on the international trade system. Increasing international
trade is crucial to the continuance of globalization.
For import and export of goods, materials, payments, receipts etc. may
need EDI compulsorily. For this purpose, Financial EDI (FEDI) may be
helpful. FEDI can be done through Bank, Bank Cheque, ACH (Automated
Clearing House) etc. Through FEDI, International Trade can be possible.

25
 UNIT – IV
Part - A
1. What is an Internet?

The Internet is the biggest world-wide communication network of

computers. Internet connects computer all over the world. The term is
sometimes abbreviated as "the net".

2. Define WWW.

The World Wide Web (abbreviated WWW or the Web) is an information space
where documents and other web resources are identified by Uniform
Resource Locators (URLs), and can be accessed via the Internet.

3. What is e-mail?

Electronic mail (e-mail) is a method of exchanging messages between people

using electronics i.e. by using Computer System or through its other related
devices. For example, abcxyz123@gmail.com.

4. What is an IP address?

Each host Computer on the Internet has a unique number called the IP
(Internet Protocol) address. An IP address is a number that identifies a
device.

5. What is a protocol?

A protocol is the special set of rules governing the exchange or transmission

of data between devices. Protocols specify interactions between the
communicating entities. Internet uses two main protocols, they are TCP and
IP.

26
6. What is Inter protocol suite?

A protocol is a collection of rules for formatting, ordering and error checking

the data sent across a network. The two main protocols in the internet
protocol suite serve specific functions. TCP/IP specifies how data is
exchanged over the Internet by providing end-to-end communications.
Internet uses two main protocols.

7. What is TCP/IP?

Transmission Control Protocol (TCP) controls disassembling of a message

into packets before it is transmitted over the Internet. Internet Protocol (IP)
specifies the addressing details of each packet.

8. Define HTTP.

Hypertext Transfer Protocol (HTTP) is the foundation of data communication

for the World Wide Web. HTTP is the protocol to exchange or transfer
hypertext.

9. Define client-server model.

The Computer that requests some service from another Computer is called
Client. And the Computer which gets the requests of Client and responses
to the request is called Server in a Network.

10. What is distributed computing?

Distributed computing is a field of computer science that studies distributed

systems. A distributed system is a model in which components located on
networked computers communicate and coordinate their actions by passing
messages.

11. Define DNS.

The Domain Name System (DNS) is a hierarchical naming system for

computers, services, or other resources connected to the Internet or a
27
 private network. It associates various information with domain names
assigned to each of the participating entities. It can be created with different
categories with respect to the work of the organization.

12. What is domain name?

Every system on the Internet has a unique address called IP address. The
DNS makes easier by allowing a familiar string of letters, the Domain Name,
to be used instead of IP address. It can be created with different categories.

13. What is gTLD?

A top-level domain is one of the domains at the highest levels in the

hierarchical domain name system (DNS). Generic Top-Level Domain is one
of the two TLD. It defines the type of organisation associated with the
domain such as the .com.

14. What is ccTLD?

A top-level domain is one of the domains at the highest levels in the

hierarchical domain name system (DNS). Country Code Top-Level Domain is
one of the two TLD. It is two letters TLD which is generally used for a
Country.

15. Define HTML.

Hypertext Markup Language (HTML) is the standard markup language for

creating web pages and web applications. HTML describes the structure of a
web page. Web browsers receive HTML documents from a web server or from
local storage and render them into multimedia web pages.

16. What is Intranet?

An Intranet is a private network that is contained within an organization

and accessible only to members of an organization.

28
 Part - B
1. Explain the basic concepts of Internet.
 The World Wide Web (abbreviated WWW or the Web) is an information
space where documents and other web resources are identified by
Uniform Resource Locators (URLs), and can be accessed via the Internet.
 A protocol is a collection of rules for formatting, ordering and error
checking the data sent across a network.
 An IP address is a number that identifies a device.
 The DNS makes easier by allowing a familiar string of letters, the Domain
Name, to be used instead of IP address.
 The Computer that requests some service from another Computer is
called Client.
 The Computer which gets the requests of Client and responses to the
request is called Server.

2. Explain the technological foundation of Internet.

 The technological foundation of the Internet lies in Distributed
Computing. This technology has helped in significant savings in time and
money.
 The File Transfer Protocol (FTP) is used to access files from Computers
linked to the Internet. These files are those that are freely available to the
public as distributed documents.
 Browser, software that allows a computer user to find and view
information on the Internet. Web browsers interpret the HTML tags in
downloaded documents and format the displayed data.
 The Computer that requests some service from another Computer is
called Client.
 The Computer which gets the requests of Client and responses to the
request is called Server.

29
  It supports human communication via electronic mail (e-mail), chat
rooms, newsgroups, and audio and video transmission and allows people
to work collaboratively at many different locations.

3. Discuss the applications of distributed computing.

 Distributed computing is a field of computer science that studies
distributed systems. A distributed system is a model in which
components located on networked computers communicate and
coordinate their actions by passing messages.
 The components interact with each other in order to achieve a common
goal.
 Distributed computing also refers to the use of distributed systems to
solve computational problems.
 In distributed computing, a problem is divided into many tasks, each of
which is solved by one or more computers, which communicate with
each other by message passing.
 There are many alternatives for the message passing mechanism,
including pure HTTP, RPC-like connectors and message queues.
 In distributed computing, each processor has its own private memory
(distributed memory).
 The very nature of an application may require the use of a
communication network that connects several computers: for example,
data produced in one physical location and required in another location.
 There are many cases in which the use of a single computer would be
possible in principle, but the use of a distributed system is beneficial for
practical reasons.
 A distributed system can provide more reliability than a non-distributed
system, as there is no single point of failure.
 Moreover, a distributed system may be easier to expand and manage.

30
4. Explain the allocation of second level domains in DNS.
The DNS makes easier by allowing a familiar string of letters, the Domain
Name, to be used instead of IP address. A second level forms the core of a
web address and it is based on the nature of the owner. Second-level
domains commonly refer to the organization that registered the domain
name. A two-letter second-level domain is formally reserved. For example,
in example.com, example is the second-level domain of the .com TLD.
Some domain name registries introduce a second-level hierarchy to a TLD
that indicates the type of entity intended to register an SLD under it.

5. Explain the different types of DNS.

Domain Name System can be classified into three parts.
 Sub domain :
It is a sub division of a domain. A sub domain is a domain that is part of
a larger domain. This prefixes the main part of a web address.
 Second level domain :
A second level forms the core of a web address and it is based on the
nature of the owner. Second-level domains commonly refer to the
organization that registered the domain name. A two-letter second-level
domain is formally reserved. For example, in example.com, example is
the second-level domain of the .com TLD.
 Top level domain :
A top-level domain (TLD) is one of the domains at the highest level in the
hierarchical Domain Name System of the Internet. Top-level
domain (TLD) refers to the last segment of a domain name, or the part
that follows immediately after the "dot" symbol. TLDs are mainly
classified into two categories: generic TLDs and country-specific TLDs.
Examples of some of the popular TLDs include .com, .org, .net, .gov, .biz
and .edu.

31
 Generic Top-Level Domain is one of the two TLD. It defines the type of
organization associated with the domain such as the .com.
Country Code Top-Level Domain is one of the two TLD. It is two letters
TLD which is generally used for a Country.

6. Discuss the models of E-governance.

Internet application helps in global communication and commerce for
enhancing governance.
 Automation of government systems.
 Use of Information and Communication Technologies (ICTs) for
business and economics growth.
 For the new levels of democracy and citizen engagement.

Part - C
1. Discuss about IP address and Internet protocol.
IP address:
Each host Computer on the Internet has a unique number called the IP
(Internet Protocol) address. An IP address is a number that identifies a
device.
TCP/IP:
Transmission Control Protocol (TCP) controls disassembling of a message
into packets before it is transmitted over the Internet. Internet Protocol (IP)
specifies the addressing details of each packet. IP is responsible for moving
packet of data from node to node. TCP/IP specifies how data is exchanged
over the internet by providing end-to-end communications. The two main
protocols in the internet protocol suite serve specific functions.
HTTP:
Hypertext Transfer Protocol (HTTP) is the foundation of data communication
for the World Wide Web. This protocol governs the rule that is used to send

32
 a page or pages containing hypertext. HTTP is the protocol to exchange or
transfer hypertext.
FTP:
File Transfer Protocol (FTP) helps the Internet users to transfer files such as
text, graphics, sound and so on from one Computer to another. The File
Transfer Protocol (FTP) is a standard network protocol used for the transfer
of Computer files between a client and server on a Computer network.

2. Describe the advantages and disadvantages of Internet.

Advantages:
 The most used service on the Internet is the World Wide Web which
contains websites.
 The Internet is used for many things, such as electronic mail, online
chat, file transfer etc.
 Emails are delivered extremely fast when compared to traditional post.
 Emails can be sent 24 hours a day, 365 days a year.
 We can also sell old items.
 Powerful search engines.
 News, of all kinds is available.
 Internet gives you access to your bank account to view your balance,
make transactions, and send money.
 Online shopping is another huge advantage of the Internet.
 Internet gives everyone access to entertainment, with access to watch
videos, watch movies, listen to music, and even play games online.
Disadvantages:
 The Internet can also be dangerous. People sometimes use it to spread
lies or other people's secrets or dangerously bad advice.
 Some websites may trick people into downloading viruses that can harm
a Computer or Spyware.

33
  In Internet chatrooms, people might be preying on others or trying to
stalk or abuse them.
 The Internet contains content that many people find offensive.
 Criminals may steal people's personal information or trick people into
sending them money.

3. Discuss the applications of Internet in business.

Some of the Internet application in different fields of business is the
following:
 In marketing and sales organization.
 Today’s financial services are totally dependent on Computer Networks
like EFT, Foreign exchange etc.
 CAD and CAM helps in manufacturing.

4. Explain the various technologies that are part of E-Commerce.

 Marketing and sales organization.
 Financial services.
 Manufacturing using CAD and CAM.
 Information services.
 Electronic Data Interchange.

34
 UNIT – V
Part - A
1. What is an audit?
An audit is a systematic and independent examination of books, accounts,
statutory records, documents and vouchers of an organization to ascertain
how far the financial statements as well as non-financial disclosures present
a true and fair view of the concern.

2. What is an IS audit?
An Information Technology audit, or Information Systems audit, is an
examination of the management controls within an Information
Technology (IT) infrastructure. The evaluation of obtained evidence
determines if the information systems are safeguarding assets,
maintaining data integrity.

3. What is internal audit?

Internal auditing is an independent, objective assurance and consulting
activity designed to add value and improve an organization's operations. It
helps an organization accomplish its objectives by bringing a systematic,
disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes.

4. What are the objectives of IS audit?

 Effectiveness and efficiency of operations.
 Reliability of financial and management reporting.
 Compliance with laws and regulations.
 Safeguarding of Assets.

35
5. What are the requirements of IS audit?
 Change controls
 Data consistency
 Documentation
 Backup, recovery

6. What are the approaches to audit information systems?

 Substantive Procedures Audit Approach
 Balance Sheet Audit Approach
 System Based Approach
 Risk-based Audit Approach

7. What do you mean by Audit Trail?

An audit trail (also called audit log) is a security-relevant chronological
record, set of records, and/or destination and source of records that provide
documentary evidence of the sequence of activities that have affected at any
time a specific operation, procedure, or event. Audit records typically result
from activities such as financial transaction, scientific research and health
care data transactions or communications by individual people, systems,
accounts or other entities.

8. What are the merits of Auditing with the computer?

 The matters to be observed are whether the transactions entered into
and decision taken by the management.
 Discovery of wastes and misuse of fund.
 Detection of fraud or misappropriation of fund.

36
 Part - B
1. Make a comparison between Traditional audit and IS audit.
Traditional audit:
 In traditional audit, all business transactions are checked with the help
of vouchers.
 It will not prefer to discover waste and misuse of fund.
 Detection of fraud is the secondary object.
IS audit:
 The decision taken by the management.
 Prefers to discover waste and misuse of fund.
 Detection of fraud is the primary object.

2. Explain the various traditional concepts of audit.

 In traditional audit, all business transaction is checked with the help of
vouchers and document to ascertain whether the financial statement
prepared gives a true and fair view of the enterprise.
 It is not the purpose of traditional audits to discover wastes and misuse
of fund.
 Detection of fraud and misappropriation of fund is a secondary object.
 It is not within the function of traditional audit to see whether the
business is being managed prudently and profitably.

3. Explain the basic ideas of information audit.

 An IS audit is the process of collecting and evaluating evidence of an
organization information systems, practices and operations.
 Internal audit and External audit are also useful in the audit system.
 Automated Data Processing (ADP) audit and Computer Audits were
formerly called Electronic Data Processing Audits.

37
4. Discuss the various applications of IS audit.
 IS Auditing involves providing independent evaluations of an
organization’s policies, procedures, standards, measures, and practices
for safeguarding electronic information from loss, damage, unintended
disclosure, or denial of availability.
 An application audit is a specific audit of one application. For example,
an audit of an excel spreadsheet with embedded macros used to analyze
data and generate reports could be considered an Application Audit.
 An example would be the payroll process of a company, which may span
across several different servers, databases, operating systems,
applications, etc.
 Application audits usually involve in-depth evaluation of logical security
for the application.

Part - C
1. Explain the basic terms in IS auditing.
 Independent
 Examination
 Records
 Opinion
 Integrity
 Recommend
 Limit
 Risk

2. Explain the components of IS audit.

 An audit is the examination and verification of an organization’s financial
statements and records.
 Audits provide independent and impartial opinion as to whether the
information is presented objectively.

38
  Financial Statements can be broken down into two key components:
the profit-and-loss statement and the balance sheet.
 There are three components of an audit risk from the viewpoint of
the auditor – inherent risk, control risk and detection risk.

3. Discuss the role IS audit in the management of the business.

 Mapping business
 Business process re-engineering
 IT security policy
 Security awareness
 Risk management.

4. Explain the solutions of IS audit processing system.

An information technology audit, or information systems audit, is an
examination of the management controls within an Information
Technology (IT) infrastructure. The evaluation of obtained evidence
determines if the information systems are safeguarding assets,
maintaining data integrity, and operating effectively to achieve the
organization's goals or objectives.
The primary functions of an IT audit are to evaluate the systems that are
in place to guard an organization's information. Specifically, information
technology audits are used to evaluate the organization's ability to protect
its information assets and to properly dispense information to authorized
parties.
IT Audit process
The following are basic steps in performing the Information Technology
Audit Process:
1. Planning IN
2. Studying and Evaluating Controls
3. Testing and Evaluating Controls

39
 4. Reporting
5. Follow-up
6. Reports
Emerging Issues
There are also new audits being imposed by various standard boards
which are required to be performed, depending upon the audited
organization, which will affect IT and ensure that IT departments are
performing certain functions and controls appropriately to be considered
compliant. Examples of such audits are SSAE 16, ISAE 3402, and
ISO27001:2013.
Security
Auditing information security is a vital part of any IT audit. The broad
scope of auditing information security includes such topics as data
centers (the physical security of data centers and the logical security of
databases, servers and network infrastructure components), networks and
application security.

5. Explain IS audit applications in detail.

 External audits improve understanding of underlying business trends
and provide an objective opinion.
 Internal audits let managers know whether a business can expand or
needs to adopt a more conservative approach.
 IS Auditing involves providing independent evaluations of an
organization’s policies, procedures, standards, measures, and practices
for safeguarding electronic information from loss, damage, unintended
disclosure, or denial of availability.
 An application audit is a specific audit of one application. For example,
an audit of an excel spreadsheet with embedded macros used to analyze
data and generate reports could be considered an Application Audit.

40
  An example would be the payroll process of a company, which may span
across several different servers, databases, operating systems,
applications, etc.
 Application audits usually involve in-depth evaluation of logical security
for the application.

6. Discuss the merits and demerits of IS audit.

Advantages:
 Faster and efficient in processing of information.
 Automatic generation of accounting documents like invoices, cheques
and statement of account.
 With the larger reductions in the cost of Hardware and Software and
availability of user-friendly accounting software package, it is relatively
cheaper like maintaining a manual accounting system.
 More timely information can be produced.
 No more manual processing of the data, all automatically been posted to
the various ledgers/accounts and
 Many types of useful reports can be generated for management to make
decisions.
Disadvantages:
 Power failure, Computer Viruses and Hackers are the inherent problems
of using Computerized systems.
 Once data been input into the system, automatically the output are
obtained hence the data being input needs to be validated for accuracy
and completeness.
 Accounting system not properly set up to meet the requirement of the
business due to badly programmed or inappropriate Software or
Hardware or Personnel problems can caused more confusion and
 Danger of Computer fraud if proper level of control and security whether
internal and external are not properly been instituted.

41