Deck 2: Systems Techniques and Documentation

Question 1

Section 404 of the Sarbanes-Oxley Act requires that monthly filings of publicly traded companies include a statement of management's responsibility for establishing and maintaining adequate internal control as well as an assessment of the effectiveness of that internal control.

Answer 1

False

Question 2

The interim audit requires some type of substantive testing.

Answer 2

False

Question 3

The usual focus of an audit is to review an existing system rather than design a new system.

Answer 3

True

Question 4

Auditors primarily use IPO and HIPO charts.

Question 5

Auditors undertake compliance testing to determine the degree of reliance of existing internal controls.

Question 6

In the United States,the AICPA is responsible for establishing standard flowchart symbols.

Question 7

The decision symbol represents a named procedure consisting of one or more operations or program steps that are not specified within the set of flowcharts.

Question 8

If no special symbol exists to depict a function,verbal descriptions are used in the flowchart.

Question 9

Section 404 of the Sarbanes-Oxley Act requires that annual filings of publicly traded companies include a statement of management's responsibility for establishing and maintaining adequate internal control as well as an assessment of the effectiveness of that internal control.

Question 10

The decision symbol represents a decision or switching type of operation that determines which of a number of alternative paths is to be followed.

Question 11

It is desirable for auditors to have a basic understanding of systems techniques.

Question 12

Systems analysis involves formulating a blueprint for a completed system.

Question 13

Substantive testing involves direct verification of financial statement figures.

Question 14

The four basic symbols corresponding to basic data processing functions are the input/output symbol,the process symbol,the flowline symbol,and the annotation or comment symbol.

Question 15

Systems techniques assist the analyst in the collection and organization of facts.

Question 16

Tools used in the analysis,design,and documentation of system and subsystem relationships are known as system techniques.

Question 17

Analytic and system flowcharts are seldom found in the working papers of auditors.

Question 18

When evaluating internal controls,auditors are usually not concerned with the flow of processing and distribution of documents within an application system.

Question 19

Manual input/output and connector symbols are among the basic flowchart symbols.

Question 20

A systems development project generally consists of three main phases.

Question 21

The intent of using DFDs is to clearly separate the logical process of systems analysis from the physical process of systems design.

Question 22

A program flowchart is also known as a block flowchart.

Question 23

BPMN basic symbols include the task,sequence flow,gateway,and event symbols.

Question 24

BPMN basic symbols include input/output,process,flowline,and annotation symbols.

Question 25

A HIPO chart contains two segments: a hierarchy chart and one or more IPO charts.

Question 26

The normal flow direction of a flowchart is from left to right and top to bottom.

Question 27

When the flow is bidirectional,it can only be shown by double lines.

Question 28

A systems flowchart is more detailed concerning individual processing functions than a program flowchart.

Question 29

HIPO structures a "bottom-up" strategy in structured systems analysis and design.

Question 30

A DFD may consist of either DFD or ANSI flowchart symbols.

Question 31

A document flowchart is similar to a systems flowchart.

Question 32

The triangle is a specialized symbol representing a decision process.

Question 33

An IPO chart provides a narrative description of the inputs needed to generate desired system outputs.

Question 34

The sandwich rule states that every process symbol should be placed between an input and output symbol.

Question 35

UML is a United States standard,not yet supported by the International Standards Organization.

Question 36

In UML,use case diagrams model the flow of activities involved in a single process.

Question 37

The forms distribution chart is closely related to the document flowchart.

Question 38

The business process diagram focuses on the sequence of activities in a business process.

Question 39

UML is a collection of modeling tools used to model the specifics of software development including functional equivalents of data flow diagrams,document flowcharting,and analytical flowcharting.

Question 40

An IPO chart can provide much detail concerning the processing function.

Question 41

The ________ is a specialized process symbol that represents a decision process in a flowchart.

Question 42

All BPDs contain at least two pools.

Question 43

A branching table depicts a decision function by means of a statement of the ________ to be made,a list of ________ that can occur,and the path to be followed for each condition.

Question 44

Terminator,process,data store,and data flow are the primary symbols used in the construction of ________ ________ ________ ________.

Question 45

The formula for capacity utilization can be expressed as Total time ________ / Total ________ time.

Question 46

When a flowchart covers more than one page,the continuation between pages is shown with a(n)________ symbol.

Question 47

Preparing flowcharts can be viewed as more ________ than ________.

Question 48

Section ________ of the Sarbanes-Oxley Act states management's responsibility for establishing and maintaining adequate internal control and procedures for financial reporting.

Question 49

A(n)________ flowchart identifies the overall flow of operations in a system,and focuses on storage media and processing functions.

Question 50

After operational characteristics of a system have been identified and selected through some form of work measurement,a work ________ ________ must be undertaken to assign specific tasks to employees.

Question 51

The ________ symbol is used when additional descriptions or explanations are needed to clarify a point on the flowchart.

Question 52

The most basic symbols of BPMN are ________,________,________,and ________ symbols.

Question 53

The acronym for the organization responsible for standardizing flowchart symbols is

A) FASB.
B) ANSI.
C) AICPA.
D) CMA.

Question 54

Unified ________ Language is an international standard supported by ISO that uses a variety of graphical techniques to depict the different aspects and views of software development projects at various levels of abstraction.

Question 55

________ flowcharts are organized into columns or groups representing processing functions performed by different entities.

Question 56

"Work" or "spread" sheets used in accounting systems are common examples of the ________ method.

Question 57

________ ________ might be used in lieu of program flowcharts to analyze and document the logic of an application system.

Question 58

________ ________ are a fact-gathering technique where persons provide written answers to general,rather than specific,questions.

Question 59

________ ________ is based on the premise that quantitative measurement is essential to the design of efficient procedures.

Question 60

The basic ________ symbol represents the making available of data for processing or the recording of processed information.

Question 61

In a logical data flow diagram for a payroll system,the employees would best be represented by which of the following symbols?

A) The process symbol
B) The terminator symbol
C) The data store symbol
D) The data flow symbol

Question 62

The charting technique which emphasizes a logical rather than a physical description of a system is a(n)

A) analytic flowchart.
B) forms distribution flowchart.
C) data flow diagram.
D) document flowchart.

Question 63

In a HIPO chart of a payroll system,which of the following activities would appear higher in the chart than the other activities?

A) Calculate gross pay
B) Accumulate hours worked
C) Find correct pay rate
D) Look up authorized deductions

Question 64

The manual input symbol could be used to represent

A) the entering of data at an on-line keyboard.
B) the entering of data using switch settings.
C) the entering of data using touch screens.
D) All of these answers are correct.

Question 65

An internal auditor wants to flowchart a file of (hardcopy)purchase orders.Which of the following would be the best symbol to use for the file?

A) The on-line storage symbol
B) The off-line storage symbol
C) The terminal symbol
D) The auxiliary operation symbol

Question 66

Audit tests that follow compliance tests and rely on the interim audit's results are called

A) substantive tests.
B) follow-up tests.
C) internal control tests.
D) evaluation tests.

Question 67

Which of the following is a procedure included in systems design?

A) Computer program documentation
B) Forms design
C) Training personnel
D) Document review

Question 68

Which of the following would not appear in a HIPO chart of a payroll system?

A) Data preparation
B) Calculate gross pay
C) Payroll master file
D) Look up authorized deductions

Question 69

In an analytic flowchart,the symbol which could be used to indicate the computation of gross pay is the

A) connector symbol.
B) terminal symbol.
C) input/output symbol.
D) process symbol.

Question 70

In an analytic flowchart,the symbol which could be used to indicate unclaimed payroll checks is the

A) connector symbol.
B) terminal symbol.
C) document symbol.
D) process symbol.

Question 71

The "hierarchy" aspect of HIPO charts refers to the fact that this technique factors a task into modules by

A) using the entity's organization chart.
B) utilizing a horizontal approach.
C) going from the general to the specific.
D) None of these answers are correct.

Question 72

Which of the following symbols should not be used to specify an input/output operation?

A) Decision symbol
B) Document symbol
C) Off-line storage symbol
D) Communication link

Question 73

In an analytic flowchart,the symbol which could be used to indicate the payroll data is the

A) connector symbol.
B) magnetic disk symbol.
C) terminator symbol.
D) decision symbol.

Question 74

The off-line storage symbol could be used to represent data stored

A) on a USB thumb drive.
B) on a magnetic tape or disk.
C) in paper form.
D) on all of these named media.

Question 75

In an IPO chart of a payroll system,the payroll master file would

A) appear as an input.
B) appear as an output.
C) Answers A and B are correct.
D) not be represented in the chart

Question 76

In an analytic flowchart,the symbol which could be used to indicate unclaimed payroll checks is the

A) connector symbol.
B) terminal symbol.
C) document symbol.
D) process symbol.

Question 77

In a logical data flow diagram for a payroll system,the employees' time cards would best be represented by which of the following symbols?

A) The terminator symbol
B) The process symbol
C) The data store symbol
D) The data flow symbol

Question 78

Instead of using the on-line storage symbol,a systems analyst wants to use an analytic flowcharting symbol that represents the medium that is used for the file.Which of the following would be the best symbol to use in place of the on-line analytic storage symbol?

A) The display symbol
B) The magnetic tape symbol
C) The document symbol
D) None of these answers are correct.

Question 79

In the preparation of a logical data flow diagram for a payroll system,which of the following symbols could be used to indicate the payroll data?

A) Magnetic disk symbol
B) Data store symbol
C) Terminator symbol
D) Input/output symbol

Question 80

Which of the following analytic flowcharting symbols is most appropriate to represent the accounts receivable subsidiary records?

A) The basic input/output symbol
B) The basic manual operation symbol
C) The document symbol
D) None of these answers are correct.