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web.groovymark@gmail.com
- December 12, 2024
Question 21
What is an example of a preventive control in accounting systems?
A) A reconciliation report
B) A system-generated alert for unauthorized access
C) A security review after a breach
D) A post-transaction audit
Answer: B) A system-generated alert for unauthorized access
Explanation: Preventive controls are designed to stop undesirable events before they occur, such as system alerts for unauthorized access.
Question 22
Which document shows gross pay, deductions, and net pay for employees?
A) Payroll register
B) Tax report
C) Depreciation ledger
D) Employee time card
Answer: A) Payroll register
Explanation: The payroll register includes details about gross pay, deductions, and net pay for employees in each pay period.
Question 23
What is the primary risk posed by automating general ledger postings?
A) Incomplete tax records
B) Errors in transaction data without human review
C) Delays in data processing
D) Inaccurate time-keeping records
Answer: B) Errors in transaction data without human review
Explanation: Automation of general ledger postings may introduce errors if transaction data is not carefully monitored for accuracy.
Question 24
What does a validity test ensure in transaction processing?
A) All transactions are complete
B) Data values conform to specified tolerances
C) Reports are generated correctly
D) Transactions are processed in real time
Answer: B) Data values conform to specified tolerances
Explanation: Validity tests ensure that data values are within acceptable ranges, reducing the risk of erroneous transactions.
Question 25
What type of internal control involves verifying a user’s identity through passwords or biometrics?
A) Preventive control
B) Application control
C) Access control
D) Detective control
Answer: C) Access control
Explanation: Access controls verify user identities and limit their ability to interact with sensitive data, ensuring only authorized users have access.
Question 26
In an audit, what does a redundancy test ensure?
A) Data is processed once without duplication
B) Data is consistent across departments
C) Data is retained for future audits
D) Data is accessible to all users
Answer: A) Data is processed once without duplication
Explanation: Redundancy tests check that data is only processed once, preventing errors such as duplicate entries in accounting systems.
Question 27
What is a mnemonic code?
A) A code that uses numbers to represent alphabetical data
B) A code that uses letters to represent numbers
C) A code that conveys meaning through acronyms or abbreviations
D) A code that assigns sequential numbers to data entries
Answer: C) A code that conveys meaning through acronyms or abbreviations
Explanation: Mnemonic codes use letters or acronyms to represent data in a meaningful way, making it easier to understand.
Question 28
What is the primary purpose of an archive file?
A) To update current transaction records
B) To store historical transaction data for future reference
C) To generate real-time reports
D) To manage system user access
Answer: B) To store historical transaction data for future reference
Explanation: Archive files contain historical records that are retained for audits, legal purposes, or future analysis.
Question 29
What is the role of the Better Business Bureau (BBB) in online commerce?
A) It verifies the security of transmitted data
B) It promotes ethical business practices through self-regulation
C) It monitors transactions for fraud
D) It manages financial statements for e-commerce companies
Answer: B) It promotes ethical business practices through self-regulation
Explanation: The BBB promotes ethical business practices through self-regulation and extends this mission to online businesses through BBBOnline.
Question 30
What is a grandfather-father-son (GFS) backup system used for?
A) It is a backup system that stores copies of digital data in different locations
B) It provides a three-tier backup of master files
C) It ensures that deleted data can be retrieved
D) It monitors system performance
Answer: B) It provides a three-tier backup of master files
Explanation: GFS is a backup system that creates multiple versions of master files, with the "grandfather" version being the oldest and retained for recovery purposes.
Question 31
What is the purpose of sequential codes in accounting?
A) To track the number of times data is accessed
B) To organize data by date or event order
C) To store transaction details alphabetically
D) To represent large datasets with minimal coding
Answer: B) To organize data by date or event order
Explanation: Sequential codes are used to organize data in chronological order, simplifying the tracking of transactions and events.
Question 32
Which control type is most effective in stopping unauthorized data access before it occurs?
A) Detective control
B) Corrective control
C) Preventive control
D) Access control
Answer: C) Preventive control
Explanation: Preventive controls are proactive measures designed to stop unauthorized access or errors before they happen.
Question 33
How does a database management system (DBMS) help manage data in an accounting information system?
A) It stores only historical transaction data
B) It provides controlled access to the database for authorized users
C) It automates all financial reports
D) It processes payroll checks
Answer: B) It provides controlled access to the database for authorized users
Explanation: A DBMS helps manage data by ensuring that only authorized users can access and modify the data, maintaining security and integrity.
Question 34
Which document reflects changes in pay rates and payroll deductions for employees?
A) Payroll register
B) Personnel action form
C) General ledger
D) Tax report
Answer: B) Personnel action form
Explanation: Personnel action forms document changes in employee status, including pay rates, payroll deductions, and job classifications.
Question 35
What is the function of indexed files in data management?
A) To sort data alphabetically
B) To allow quick access to data using predefined indexes
C) To store archive data
D) To ensure sequential data processing
Answer: B) To allow quick access to data using predefined indexes
Explanation: Indexed files are organized so that specific data can be quickly retrieved through index searches, improving efficiency.
Question 36
Which phase of the systems development life cycle (SDLC) involves assessing information needs and system specifications?
A) Implementation
B) Design
C) Analysis
D) Maintenance
Answer: C) Analysis
Explanation: The analysis phase involves assessing user needs and defining the system specifications required to meet those needs.
Question 37
What type of anomaly involves duplicating information when a database is updated?
A) Update anomaly
B) Deletion anomaly
C) Redundancy anomaly
D) Insertion anomaly
Answer: A) Update anomaly
Explanation: Update anomalies occur when redundant information is stored and duplicated as updates are made in multiple locations.
Question 38
Which control mechanism is used to filter incoming and outgoing network traffic?
A) Sequential code
B) Firewall
C) Archive file
D) Validity test
Answer: B) Firewall
Explanation: Firewalls act as barriers between internal networks and external sources, filtering network traffic to prevent unauthorized access.
Question 39
What is the role of substantive tests in auditing?
A) To monitor password strength
B) To determine if database contents accurately reflect organizational transactions
C) To update payroll information
D) To generate invoices for vendors
Answer: B) To determine if database contents accurately reflect organizational transactions
Explanation: Substantive tests check whether the data in a database is accurate and reflects the actual transactions of the organization.
Question 40
What function does the International Computer Security Association (ICSA) serve for certified organizations?
A) It monitors tax compliance
B) It certifies firewalls against external threats
C) It verifies sales orders for e-commerce
D) It manages payroll processes
Answer: B) It certifies firewalls against external threats
Explanation: The ICSA provides certification services to ensure that an organization's firewall and data security measures meet specific standards.
