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