Question 1

The most common means of making entries in the general ledger is via the journal voucher.

Accepted Answer

A) True 
 B)False  True

Question 2

What are the major exposures in the general ledger/financial reporting system?

Accepted Answer

The primary exposures are: a defective or lost audit trail, unauthorized access, GL accounts out of balance with subsidiary ledger accounts, and incorrect account balances due to unauthorized or incorrect entries.

Question 3

Data flow diagrams

Accepted Answer

A)  depict logical tasks that are being performed, but not who is performing them 
B)  illustrate the relationship between processes, and the documents that flow between them and trigger activities 
C)  represent relationships between key elements of the computer system 
D)  describe in detail the logic of the process 
A)  depict logical tasks that are being performed, but not who is performing them 
B)  illustrate the relationship between processes, and the documents that flow between them and trigger activities 
C)  represent relationships between key elements of the computer system 
D)  describe in detail the logic of the process A

Question 4

Why do many firms no longer use a general journal? What has taken its place?

Accepted Answer

Many firms have replaced a traditional g

Question 5

In contrast to a batch processing system, in a real-time system

Accepted Answer

A)  a lag occurs between the time of the economic event and when the transaction is recorded 
B)  relatively fewer hardware, programming, and training resources are required 
C)  a lesser resource commitment per unit of output is required 
D)  processing takes place when the economic event occurs 
A)  a lag occurs between the time of the economic event and when the transaction is recorded 
B)  relatively fewer hardware, programming, and training resources are required 
C)  a lesser resource commitment per unit of output is required 
D)  processing takes place when the economic event occurs

Question 6

List, in order, the steps in the Financial Accounting Process.

Accepted Answer

1. Capture the transaction on source doc

Question 7

With a limited work force and a desire to maintain strong internal control, which combination of duties performed by a single individual presents the least risk exposure?

Accepted Answer

A)  maintaining the inventory ledger and recording the inventory journal voucher in the general ledger 
B)  recording the inventory journal voucher in the general ledger and maintaining custody of inventory 
C)  maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs 
D)  preparing the accounts payable journal voucher and recording it in the general ledger 
A)  maintaining the inventory ledger and recording the inventory journal voucher in the general ledger 
B)  recording the inventory journal voucher in the general ledger and maintaining custody of inventory 
C)  maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs 
D)  preparing the accounts payable journal voucher and recording it in the general ledger

Question 8

Give a brief description of each of the following documentation techniques: systems flowchart, and program flowchart.

Accepted Answer

System flowcharts portray the relationsh

Question 9

What information is provided by a record layout diagram?

Accepted Answer

Record layout diagrams are used to revea

Question 10

What are the reasons companies use coding schemes in their accounting information systems?

Accepted Answer

Companies use coding schemes in their AI

Question 11

List and explain the six basic files in the general ledger database.

Accepted Answer

The general ledger master file is the ma

Question 12

Batch processing systems can store data on direct access storage devices.

Accepted Answer

A) True 
 B)False

Question 13

What are the key distinguishing features of legacy systems?

Accepted Answer

Legacy systems tend to have the followin

Question 14

Describe the key activities in the revenue, conversion, and expenditure cycles.

Accepted Answer

Revenue cycle: Sales order processing in

Question 15

For what purpose are ER diagrams used?

Accepted Answer

An entity relationship (ER) di

Question 16

Name four documentation techniques.

Accepted Answer

entity-relationship

Question 17

Risk exposures in the General Ledger and Financial Reporting Systems include all of the following except

Accepted Answer

A)  loss of the audit trail 
B)  unauthorized access to the general ledger 
C)  loss of physical assets 
D)  general ledger account out of balance with the subsidiary account 
A)  loss of the audit trail 
B)  unauthorized access to the general ledger 
C)  loss of physical assets 
D)  general ledger account out of balance with the subsidiary account

Question 18

Real-time processing in systems that handle large volumes of transactions each day can create operational inefficiencies.

Accepted Answer

A) True 
 B)False

Question 19

Only four symbols are used in data flow diagrams. What are they?

Accepted Answer

process, d

Question 20

Is a DFD an effective documentation technique for identifying who or what performs a particular task? Explain.

Accepted Answer

No. A DFD shows which tasks ar

The most common means of making entries in the general ledger is via the journal voucher.

What are the major exposures in the general ledger/financial reporting system?

Data flow diagrams

Why do many firms no longer use a general journal? What has taken its place?

In contrast to a batch processing system, in a real-time system

List, in order, the steps in the Financial Accounting Process.

With a limited work force and a desire to maintain strong internal control, which combination of duties performed by a single individual presents the least risk exposure?

Give a brief description of each of the following documentation techniques: systems flowchart, and program flowchart.

What information is provided by a record layout diagram?

What are the reasons companies use coding schemes in their accounting information systems?

List and explain the six basic files in the general ledger database.

Batch processing systems can store data on direct access storage devices.

What are the key distinguishing features of legacy systems?

Describe the key activities in the revenue, conversion, and expenditure cycles.

For what purpose are ER diagrams used?

Name four documentation techniques.

Risk exposures in the General Ledger and Financial Reporting Systems include all of the following except

Real-time processing in systems that handle large volumes of transactions each day can create operational inefficiencies.

Only four symbols are used in data flow diagrams. What are they?

Is a DFD an effective documentation technique for identifying who or what performs a particular task? Explain.

Auditing and Internal Control

Auditing IT Governance Controls

Auditing Operating Systems and Networks

Auditing Database Systems

Systems Development and Program Change Activities

Computer Assisted Audit Tools and Techniques

Data Structures and Caatts for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Enterprise Resource Planning Systems

Business Ethics, Fraud, and Fraud Detection

Filters

Exam 6: Transaction Processing and Financial Reporting Systems Overview

The most common means of making entries in the general ledger is via the journal voucher.

What are the major exposures in the general ledger/financial reporting system?

Data flow diagrams

Why do many firms no longer use a general journal? What has taken its place?

In contrast to a batch processing system, in a real-time system

List, in order, the steps in the Financial Accounting Process.

With a limited work force and a desire to maintain strong internal control, which combination of duties performed by a single individual presents the least risk exposure?

Give a brief description of each of the following documentation techniques: systems flowchart, and program flowchart.

What information is provided by a record layout diagram?

What are the reasons companies use coding schemes in their accounting information systems?

List and explain the six basic files in the general ledger database.

Batch processing systems can store data on direct access storage devices.

What are the key distinguishing features of legacy systems?

Describe the key activities in the revenue, conversion, and expenditure cycles.

For what purpose are ER diagrams used?

Name four documentation techniques.

Risk exposures in the General Ledger and Financial Reporting Systems include all of the following except

Real-time processing in systems that handle large volumes of transactions each day can create operational inefficiencies.

Only four symbols are used in data flow diagrams. What are they?

Is a DFD an effective documentation technique for identifying who or what performs a particular task? Explain.

Auditing and Internal Control

Auditing IT Governance Controls

Auditing Operating Systems and Networks

Auditing Database Systems

Systems Development and Program Change Activities

Computer Assisted Audit Tools and Techniques

Data Structures and Caatts for Data Extraction

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Enterprise Resource Planning Systems

Business Ethics, Fraud, and Fraud Detection

Filters