Question 1

Why is the audit trail necessary?

Accepted Answer

The audit trail is needed for several re

Question 2

Time lag is one characteristic used to distinguish between batch and real-time systems. Explain. Give an example of when each is a realistic choice.

Accepted Answer

Batch processing collects similar transa

Question 3

The process of acquiring raw materials is part of the conversion cycle.

Accepted Answer

A) True 
 B)False

Question 4

For a given field size, a system that uses alphabetic codes can represent far more situations than a system with that uses numeric codes.

Accepted Answer

A) True 
 B)False

Question 5

XBRL

Accepted Answer

A)  is the basic protocol that permits communication between Internet sites. 
B)  controls Web browsers that access the Web. 
C)  is the document format used to produce Web pages. 
D)  was designed to provide the financial community with a standardized method for preparing 
E)  is a low-level encryption scheme used to secure transmissions in higher-level (HTTP) format. 
A)  is the basic protocol that permits communication between Internet sites. 
B)  controls Web browsers that access the Web. 
C)  is the document format used to produce Web pages. 
D)  was designed to provide the financial community with a standardized method for preparing 
E)  is a low-level encryption scheme used to secure transmissions in higher-level (HTTP) format.

Question 6

The order of the entries made in the general journal is by

Accepted Answer

A)  date 
B)  account number 
C)  user 
D)  customer number 
A)  date 
B)  account number 
C)  user 
D)  customer number

Question 7

Categorize each of the following activities into the expenditure, conversion or revenue cycles and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel.
b. Releasing raw materials for use in the manufacturing cycle.
c. Recording the receipt of payment for goods sold.
d. Recording the order placed by a customer.
e. Ordering raw materials.
f. Determining the amount of raw materials to order.

Accepted Answer

a. Expenditure cycle-payroll subsystem.

Question 8

System flowcharts represent the input sources, programs, and output products of a computer system.

Accepted Answer

A) True 
 B)False

Question 9

In one sentence, what does updating a master file record involve?

Accepted Answer

Updating a master file record

Question 10

Give an example of how cardinality relates to business policy.

Accepted Answer

Cardinality reflects normal business rul

Question 11

With regard to an entity relationship diagram, what is an entity?

Accepted Answer

Entities are physical resources (automob

Question 12

The block code is the coding scheme most appropriate for a chart of accounts.

Accepted Answer

A) True 
 B)False

Question 13

Explain when it is appropriate to use special journals.

Accepted Answer

Special journals are used to r

Question 14

An inverted triangle with the letter "N" represents a file in "name" order.

Accepted Answer

A) True 
 B)False

Question 15

The general journal is used to record recurring transactions that are similar in nature.

Accepted Answer

A) True 
 B)False

Question 16

The most important advantage of an alphabetic code is that

Accepted Answer

A)  meaning is readily conveyed to users 
B)  sorting is simplified 
C)  the capacity to represent items is increased 
D)  missing documents can be identified 
A)  meaning is readily conveyed to users 
B)  sorting is simplified 
C)  the capacity to represent items is increased 
D)  missing documents can be identified

Question 17

What are the subsystems of the expenditure cycle?

Accepted Answer

purchasing, cash dis

Question 18

Discuss the primary advantage of XBRL over traditional HTML as a means of on-line reporting of financial information to users.

Accepted Answer

The primary advantage of XBRL over tradi

Question 19

A file that stores data used as a standard when processing transactions is

Accepted Answer

A)  a reference file 
B)  a master file 
C)  a transaction file 
D)  an archive file 
A)  a reference file 
B)  a master file 
C)  a transaction file 
D)  an archive file

Question 20

Both the revenue and the expenditure cycle can be viewed as having two key parts. These are

Accepted Answer

A)  manual and computerized 
B)  physical and financial 
C)  input and output 
D)  batch and real-time 
A)  manual and computerized 
B)  physical and financial 
C)  input and output 
D)  batch and real-time

Why is the audit trail necessary?

Time lag is one characteristic used to distinguish between batch and real-time systems. Explain. Give an example of when each is a realistic choice.

The process of acquiring raw materials is part of the conversion cycle.

For a given field size, a system that uses alphabetic codes can represent far more situations than a system with that uses numeric codes.

XBRL

The order of the entries made in the general journal is by

System flowcharts represent the input sources, programs, and output products of a computer system.

In one sentence, what does updating a master file record involve?

Give an example of how cardinality relates to business policy.

With regard to an entity relationship diagram, what is an entity?

The block code is the coding scheme most appropriate for a chart of accounts.

Explain when it is appropriate to use special journals.

An inverted triangle with the letter "N" represents a file in "name" order.

The general journal is used to record recurring transactions that are similar in nature.

The most important advantage of an alphabetic code is that

What are the subsystems of the expenditure cycle?

Discuss the primary advantage of XBRL over traditional HTML as a means of on-line reporting of financial information to users.

A file that stores data used as a standard when processing transactions is

Both the revenue and the expenditure cycle can be viewed as having two key parts. These are

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

Why is the audit trail necessary?

Time lag is one characteristic used to distinguish between batch and real-time systems. Explain. Give an example of when each is a realistic choice.

The process of acquiring raw materials is part of the conversion cycle.

For a given field size, a system that uses alphabetic codes can represent far more situations than a system with that uses numeric codes.

XBRL

The order of the entries made in the general journal is by

System flowcharts represent the input sources, programs, and output products of a computer system.

In one sentence, what does updating a master file record involve?

Give an example of how cardinality relates to business policy.

With regard to an entity relationship diagram, what is an entity?

The block code is the coding scheme most appropriate for a chart of accounts.

Explain when it is appropriate to use special journals.

An inverted triangle with the letter "N" represents a file in "name" order.

The general journal is used to record recurring transactions that are similar in nature.

The most important advantage of an alphabetic code is that

What are the subsystems of the expenditure cycle?

Discuss the primary advantage of XBRL over traditional HTML as a means of on-line reporting of financial information to users.

A file that stores data used as a standard when processing transactions is

Both the revenue and the expenditure cycle can be viewed as having two key parts. These are

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