Question 1

Which report is not an output of the Financial Reporting System (FRS)?

Accepted Answer

A)  variance analysis report 
B)  statement of cash flows 
C)  tax return 
D)  comparative balance sheet 
A)  variance analysis report 
B)  statement of cash flows 
C)  tax return 
D)  comparative balance sheet

Question 2

Compare and contrast the relative advantages and disadvantages of sequential, block, group, alphabetic and mnemonic codes.

Accepted Answer

Sequential codes are appropriate for ite

Question 3

What is destructive update?

Accepted Answer

Destructive update involves re

Question 4

List two of the three transaction cycles.

Accepted Answer

expenditure cycle, c

Question 5

What is XML?

Accepted Answer

XML (eXtensible Markup Language) is a me

Question 6

Why is the audit trail important?

Accepted Answer

The audit trail is used to track transac

Question 7

Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems.

Accepted Answer

A) True 
 B)False

Question 8

Which system produces information used for inventory valuation, budgeting, cost control, performance reporting, and make-buy decisions?

Accepted Answer

A)  sales order processing 
B)  purchases/accounts payable 
C)  cash disbursements 
D)  cost accounting 
A)  sales order processing 
B)  purchases/accounts payable 
C)  cash disbursements 
D)  cost accounting

Question 9

How may batch processing be used to improve operational efficiency?

Accepted Answer

A single transaction may affect several

Question 10

Real-time processing would be most beneficial in handling a firm's

Accepted Answer

A)  fixed asset records 
B)  retained earnings information 
C)  merchandise inventory 
D)  depreciation records 
A)  fixed asset records 
B)  retained earnings information 
C)  merchandise inventory 
D)  depreciation records

Question 11

If an organization processes large numbers of transactions that use common data records, what type of system would work best (all else being equal)?

Accepted Answer

Large-scale systems that process high vo

Question 12

Document flowcharts are used to represent systems at different levels of detail.

Accepted Answer

A) True 
 B)False

Question 13

List two duties that the general ledger clerk should not perform.

Accepted Answer

make entries in special journa

Question 14

How is backup of database files accomplished?

Accepted Answer

The destructive update approach leaves n

Question 15

Data flow diagrams represent the physical system.

Accepted Answer

A) True 
 B)False

Question 16

Mnemonic codes are appropriate for items in either an ascending or descending sequence, such as the numbering of checks or source documents.

Accepted Answer

A) True 
 B)False

Question 17

Which symbol represents a manual operation?

Accepted Answer

A)    
B)    
C)    
D) 
  
A)    
B)    
C)    
D)

Question 18

What type of data is found in the general ledger master file?

Accepted Answer

A)  a chronological record of all transactions 
B)  the balance of each account in the chart of accounts 
C)  budget records for each account in the chart of accounts 
D)  subsidiary details supporting a control account 
A)  a chronological record of all transactions 
B)  the balance of each account in the chart of accounts 
C)  budget records for each account in the chart of accounts 
D)  subsidiary details supporting a control account

Question 19

Which situation indicates an internal control risk in the General Ledger/Financial Reporting Systems (GL/FRS)?

Accepted Answer

A)  the employee who maintains the cash journal computes depreciation expense 
B)  the cash receipts journal voucher is approved by the Treasurer 
C)  the cash receipts journal vouchers are prenumbered and stored in a locked safe 
D)  the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger 
A)  the employee who maintains the cash journal computes depreciation expense 
B)  the cash receipts journal voucher is approved by the Treasurer 
C)  the cash receipts journal vouchers are prenumbered and stored in a locked safe 
D)  the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger

Question 20

The portion of the monthly bill from a credit card company is an example of a turn-around document.

Accepted Answer

A) True 
 B)False

Which report is not an output of the Financial Reporting System (FRS)?

Compare and contrast the relative advantages and disadvantages of sequential, block, group, alphabetic and mnemonic codes.

What is destructive update?

List two of the three transaction cycles.

What is XML?

Why is the audit trail important?

Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems.

Which system produces information used for inventory valuation, budgeting, cost control, performance reporting, and make-buy decisions?

How may batch processing be used to improve operational efficiency?

Real-time processing would be most beneficial in handling a firm's

If an organization processes large numbers of transactions that use common data records, what type of system would work best (all else being equal)?

Document flowcharts are used to represent systems at different levels of detail.

List two duties that the general ledger clerk should not perform.

How is backup of database files accomplished?

Data flow diagrams represent the physical system.

Mnemonic codes are appropriate for items in either an ascending or descending sequence, such as the numbering of checks or source documents.

Which symbol represents a manual operation?

What type of data is found in the general ledger master file?

Which situation indicates an internal control risk in the General Ledger/Financial Reporting Systems (GL/FRS)?

The portion of the monthly bill from a credit card company is an example of a turn-around document.

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

Which report is not an output of the Financial Reporting System (FRS)?

Compare and contrast the relative advantages and disadvantages of sequential, block, group, alphabetic and mnemonic codes.

What is destructive update?

List two of the three transaction cycles.

What is XML?

Why is the audit trail important?

Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems.

Which system produces information used for inventory valuation, budgeting, cost control, performance reporting, and make-buy decisions?

How may batch processing be used to improve operational efficiency?

Real-time processing would be most beneficial in handling a firm's

If an organization processes large numbers of transactions that use common data records, what type of system would work best (all else being equal)?

Document flowcharts are used to represent systems at different levels of detail.

List two duties that the general ledger clerk should not perform.

How is backup of database files accomplished?

Data flow diagrams represent the physical system.

Mnemonic codes are appropriate for items in either an ascending or descending sequence, such as the numbering of checks or source documents.

Which symbol represents a manual operation?

What type of data is found in the general ledger master file?

Which situation indicates an internal control risk in the General Ledger/Financial Reporting Systems (GL/FRS)?

The portion of the monthly bill from a credit card company is an example of a turn-around document.

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