Quiz
ITAC Midterm 2 Part 1
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Questions in this quiz (200)
1Identify all the controls that mitigate the threat of picking the wrong items or the wrong quantity of an item: (Check all that apply.)
- APeriodic physical counts of inventory, and reconciliation to recorded quantities
- BBar-code and RFID technology
- CData entry edit controls
- DReconciliation of picking lists to sales order details
- ERestriction of physical access to inventory
- FDocumentation of all inventory transfers
2 Identify all the controls that mitigate the threat of theft of inventory: (Check all that apply.)
- AReconciliation of shipping documents with sales orders, picking tickets, and packing slips
- BData entry edit controls
- CReconciliation of picking lists to sales order details
- DDocumentation of all inventory transfers
- EPeriodic physical counts of inventory, and reconciliation to recorded quantities
- FBar-code and RFID technology
- GRestriction of physical access to inventory
3Identify all the controls that mitigate the threat of shipping errors: (Check all that apply.)
- Aa)Periodic physical counts of inventory, and reconciliation to recorded quantities
- BBar-code and RFID technology
- CData entry edit controls
- DRestriction of physical access to inventory
- EDocumentation of all inventory transfers
- FReconciliation of picking lists to sales order details
4The control procedure for separating the duties of the billing and shipping functions is designed to mitigate the threat of:
- Athe failure to bill customers.
- Bposting errors in accounts receivable
- Cinaccurate or invalid credit memos.
- Dbilling errors.
5 The control procedure for restricting access to pricing master data is designed to mitigate the threat of:
- Ainaccurate or invalid credit memos.
- Bposting errors in accounts receivable.
- Cthe failure to bill customers.
- Dbilling errors.
6 The control procedure for mailing monthly statements to customers is designed to mitigate the threat of:
- Athe failure to bill customers.
- Binaccurate or invalid credit memos.
- Cposting errors in accounts receivable.
- DAll of these are correct.
7To minimize the risk of the theft of cash, the person who handles customer payments should not also have the duties of: (Check all that apply.)
- Areconciling the bank account
- Bcreating or authorizing credit memos.
- Cpicking merchandise.
- Dtaking customer orders.
- Eposting remittances to customer accounts.
8Which activity is part of the sales order entry process?
- ASetting customer credit limits
- BPreparing a bill of lading
- CApproving sales returns
- DChecking customer credit
9Which document often accompanies merchandise shipped to a customer?
- APicking ticket
- BPacking slip
- CCredit memo
- DSales order
10Which method is most likely used when a company offers customers discounts for prompt payment?
- AOpen-invoice method
- BBalance-forward method
- CAccounts receivable aging method
- DCycle billing method
11Which of the following techniques is the most efficient way to process customer payments and update accounts receivable?
- AEFT
- BUPIC
- CFEDI
- DACH
12Which of the following revenue cycle activities can potentially be eliminated by technology?
- ASales order entry
- BShipping
- CBilling
- DCash Collections
13The integrated database underlying an ERP system results in which of the following general threats to the revenue cycle?
- AInaccurate or invalid master data
- BUnauthorized disclosure of sensitive information
- CLoss or destruction of data
- DAll of the above
14Which document is used to authorize the release of merchandise from the inventory control (warehouse) to shipping?
- APicking ticket
- BPacking slip
- Cshipping order
- Dsales invoice
15Which of the following provides a means to both improve the efficiency of processing customer payments and to enhance control over those payments?
- ACRM
- BLockboxes
- CAging of accounts receivable
- DEDI
16For good internal control, who should approve credit memos?
- ACredit manager
- BSales manager
- CBilling manager
- DController
17For good internal control over customer remittances, the mailroom clerk should separate the checks from the remittance advices and send the customer payments to which department?
- ABilling
- BAccounts Receivable
- CCashier
- DSales
18To minimize the risk of theft of consumer remittances, the person who handles and deposits customer payments can also
- Apost adjustments to accounts receivable
- Bnone of these activities can be performed by the person who handles and deposits customer payments
- Cauthorize credit memos
- Dreconcile the bank statements
19Which of the following controls could be used to mitigate the threat of uncollectible accounts?
- ARestriction of physical access to inventory.
- BCredit limits.
- CEncryption
- DRestriction of access to pricing master data.
20Restricting physical access to inventory is designed to minimize the threat of
- Apicking the wrong items or the wrong quantity
- BTheft of inventory
- Cfailure to bill
- Dshipping errors
21Which control procedure is designed to minimize the threat of posting errors to accounts receivable?
- Aapproval of credit memos by the credit manager
- Bseparation of the shipping and billing functions
- Call of these controls minimize the threat of posting errors to accounts receivable
- Daging of accounts receivable
- Emailing of monthly statements to customers
22A legal contract that defines responsibility for goods while they are in transit is called
- AA picking ticket
- BA bill of lading
- CA packing slip
- Dan invoice
23Which of the following is a threat to the shipping process?
- AIncomplete/inaccurate orders.
- BStockouts or excess inventory.
- CPicking the wrong items or the wrong quantity.
- DInaccurate or invalid credit memos.
24Which of the following is used to change a customer's accounts receivable balance?
- Asales order
- Bbill of lading
- Cpicking list
- Dpacking slip
- Esales invoice
25Which control would help reduce the threat of cash flow problems?
- AAll of these controls reduce the threat of cash flow problems
- BNone of these controls reduce the threat of cash flow problems
- CLockbox arrangements
- DHaving the person who opens the mail immediately create a list of all customer payments received
- EPrompt, restrictive endorsement of all customer checks
26What is financial electronic data interchange (FEDI)?
- AIt is a document listing names and amounts of all customer payments received in the mail.
- BIt is the transfer of funds through use of online banking software.
- CIt is a lockbox arrangement in which the bank electronically sends the company information about the customer account number and the amount remitted as soon as it receives payments.
- DIt is the combination of EFT and EDI that enables both remittance data and funds transfer instructions to be included in one electronic package.
27Which control would help reduce the threat of theft of cash?
- ACash flow budgets
- BLockbox arrangements
- CDiscounts for prompt payment by customers
- DNone of these controls reduce the threat of theft of cash
- EAll of these controls reduce the threat of theft of cash
28The source of back orders for inventory items is
- Aproduction cycle
- Binventory control
- Crevenue cycle
- Dsupplier
29Supplier invoices are sent to which function?
- AOrdering
- BReceiving
- CApprove supplier invoices
- Dcash disbursements
30The process of ordering inventory can be initiated by communication from
- AThe production cycle
- Binventory control
- Cthe revenue cycle
- Dall of the above
31Which process directly updates the Accounts Payable file?
- AOrdering
- BReceiving
- CApprove supplier invoices
32Which process directly updates the Inventory file?
- Areceiving
- Bapprove supplier invoices
- Ccash disbursement
33 The control procedure of supplier audits is designed to mitigate the risk of:
- Apurchasing at inflated prices.
- Bpurchasing from unauthorized suppliers.
- Cunreliable suppliers.
- Dpurchasing items not needed.
- Epurchasing goods of inferior quality.
- Fkickbacks.
- Gstockouts and excess inventory.
34The control procedure of requiring competitive bidding is primarily designed to mitigate the risk of:
- Akickbacks.
- Bunreliable suppliers
- Cpurchasing items not needed.
- Dpurchasing at inflated prices.
- Estockouts and excess inventory.
- Fpurchasing from unauthorized suppliers.
- Gpurchasing goods of inferior quality.
35Which of the following controls is designed to mitigate the risk of purchasing goods of inferior quality?
- APrice lists
- BHolding purchasing managers responsible for the costs associated with rework and scrap
- CCollecting and monitoring supplier delivery performance data
- DPeriodic physical counts of the inventory
36Identify all the controls that mitigate the threat of mistakes when counting deliveries from suppliers: (Check all that apply.)
- ABudgetary controls
- BRequiring receiving employees to sign the receiving report
- CDocumentation of all transfers of inventory
- DUse of bar codes and RFID tags
- ERequiring the existence of an approached purchase order prior to accepting any delivery
- FNot informing receiving employees about the quantities ordered
- GRestriction of physical access to inventory
- HSegregation of duties of inventory custody and receiving
37Identify all the controls that mitigate the threat of the theft of inventory: (Check all that apply.)
- ADocumentation of all transfers of inventory
- BUse of bar codes and RFID tags
- CNot informing receiving employees about the quantities ordered
- DBudgetary controls
- ERequiring the existence of an approved purchase order prior to accepting any delivery
- FRequiring receiving employees to sign the receiving report
- GSegregation of duties of inventory custody and receiving
- HRestriction of physical access to inventory
38Which documents are used to create a three-way match when approving the payment of a supplier invoice? (Check all that apply.)
- ASupplier invoice
- BPurchase order
- CReceiving report
- DCredit memo
39Which document is no longer used to approve a supplier payment when a company is using ERS?
- ASupplier invoice
- BReceiving REport
- CPurchase order
- DCredit memo
40To minimize the risk of the theft of cash, the person who makes cash disbursements should not also have the duties of: (Check all that apply.)
- AApproving suppliers invoice
- Bordering goods
- Creceiving goods
- Dreconciling the bank account
41Which of the following control procedures is designed to mitigate the threat of the theft of cash? (Check all that apply.)
- AUse of a dedicated computer and browser for online banking
- BPhysical security of blank checks
- CRestriction of access to the supplier master file
- DCash flow budgets
- EFiling invoices by discount due date
- FUse of corporate credit cards for travel expenses
- GRequiring that all supplier invoices be matched to supporting documents
- HPositive Pay arrangements with banks
42Which of the following inventory control methods is most likely to be used for a product for which sales can be reliably forecast?
- AJIT
- BEOQ
- CMRP
- DABC
43Which of the following matches is performed in evaluated receipt settlement (ERS)?
- AThe vendor invoice with the receiving report
- BThe purchase order with the receiving report
- CThe vendor invoice, the receiving report, and the purchase order
- DThe vendor invoice with the purchase order
44Which of the following is true?
- AThe EOQ formula is used to identify when to reorder inventory.
- BA voucher package usually includes a debit memo.
- CSetting up petty cash as an imprest fund violates segregation of duties.
- DIt is easier to verify the accuracy of invoices for purchases of services than invoices for purchases of raw materials.
45Which document is used to establish a contract for the purchase of goods or services from a supplier?
- AVendor invoice
- BPurchase recquisition
- Cpurchase order
- DDisbursement voucher
46Which method would provide the greatest efficiency improvements for the purchase of non-inventory items such as miscellaneous office supplies?
- ABar-coding
- BEDI
- CProcurement cards
- DEFT
47Which of the following expenditure cycle activities can be eliminated through the use of IT or reengineering?
- AOrdering goods
- BApproving vendor invoices
- CReceiving goods
- DCash disbursements
48What is the best control procedure to prevent paying the same invoice twice?
- ASegregate check-preparation and check-signing functions.
- BPrepare checks only for invoices that have been matched to receiving reports and purchase orders.
- CRequire two signatures on all checks above a certain limit.
- DCancel all supporting documents when the check is signed.
49For good internal control, who should sign checks?
- ACashier
- BAccounts Payable
- CPurchasing Agent
- DController
50Which of the following procedures is designed to prevent the purchasing agent from receiving kickbacks
- AMaintaining a list of approved suppliers and requiring all purchases to be made from suppliers on that list
- BRequiring purchasing agents to disclose any financial investments in potential suppliers
- CPre-numbering and periodically accounting for all purchase orders
- DRequiring approval of all purchase orders
51Which document is used to record adjustments to accounts payable based on the return of unacceptable inventory to the supplier?
- AReceiving report
- Bcredit memo
- Cdebit memo
- Dpurchase order
52Separation of the check-writing and accounts payable functions is designed to mitigate the threat of:
- ADuplicate payments
- BTheft of cash
- CFailure to take advantage of discounts for prompt payment
- DPay for items not received
53Which of the following controls could be used to mitigate the threat of unauthorized disclosure of sensitive information in the expenditure cycle?
- ATracking and monitoring product quality by supplier.
- BCompetitive bidding.
- CEncryption.
- DReview and approval of purchases from new suppliers.
54An approach to inventory management that seeks to reduce required inventory levels by improving the accuracy of forecasting techniques to better schedule purchases to satisfy production needs is called
- AReorder point
- BJust in time inventory system
- CMaterials requirements planning
- Deconomic order quantity
55Which of the following controls could be used to mitigate the threat of kickbacks?
- ACentralized purchasing function.
- BCompetitive bidding
- CReview and approval of purchase requisitions.
- DJob rotation and mandatory vacations.
56Which document is used to reduce the balance owed to a supplier?
- ADebit memo
- BCredit memo
- CPurchase order
- DSupplier invoice
57 Which of the following controls could be used to mitigate the threat of accepting unordered items?
- AUse of bar codes and RFID tags.
- BRequiring existence of approved purchase order prior to accepting any delivery.
- CSupplier audits.
- DConfiguration of the ERP system to flag discrepancies between received and ordered quantities that exceed tolerance threshold for investigation.
58A method for processing accounts payable in which each approved invoice is posted to individual supplier records in the accounts payable file and is then stored in an open invoice file is called
- Adisbursement voucher
- Bvoucher system
- Cvoucher package
- Dnonvoucher system
59Evaluated Receipt Settlement reduces the threat of:
- ATheft of inventory
- BMistakes in posting to accounts payable
- CAccepting unordered items
- DErrors in supplier invoices
60The _____, who reports to the treasurer, is responsible for paying suppliers.
- AThe chief executive officer
- Bthe chief financial officer
- Ccontroller
- Dcashier
61Cancelling all supporting documents when payment is made to a supplier is a control procedure designed to mitigate the threat of:
- Apaying for items not received
- BFailure to take advantage of discounts for prompt payment
- CDuplicate payments
- DCash flow problems
62When opening an Excel file, Evan received a message saying that the file is locked for editing. This is happening because....
- AEvan opened the file as read only
- Bthere is no problem - Evan is editing the file, so it is locked
- CThe file is corrupted due to a computer virus
- Dconcurrent update controls have locked the file
63A _______ control ensures that correct and most current files are being updated
- Afile labels
- Bdata matching
- Cwrite-protect mechanisms
- Dcross-footing balance test
64Cancellation and storage of documents means
- Acancellation data are copied from documents before they are stored
- Bdocuments are defaced before they are shredded
- Cdata are copied from a document and stored before it is being shredded
- Ddocuments are defaced and stored
65All of the following controls for online data entry of a sales order would be useful except
- AValidity check on the inventory item numbers
- Bfield check on the customer ID and dollar amount of the order
- Cconcurrent update controls
- DCheck digit verification on the dollar amount of the order
66Which of the following is a control that can be used to verify the accuracy of information transmitted over a network?
- ACompleteness check
- BCheck digit
- CParity bit
- Dsize check
67Which of the following provides detailed procedures to resolve the problems resulting from a flash flood that completely destroys a company’s data center?
- ABackup Plan
- BBusiness Continuity Plan
- CDisaster recovery plan
- DArchive plan
68Which of the following statements is true?
- ABackups still need to be made when using either virtualization or cloud computing.
- BCloud computing reduces the risk that a single catastrophe from either a natural disaster or terrorist attack would result in significant downtime and loss of availability.
- CVirtualization significantly reduces RTO for hardware problems.
- DAll of the above
69Which of the following is an example of the kind of batch total called a hash total?
- AThe sum of the purchase amount field in a set of purchase orders
- BThe sum of the purchase order number field in a set of purchase orders
- CThe number of completed documents in a set of purchase orders
- DAll of the above
70Information that needs to be stored securely for 10 years or more would most likely be stored in which type of file?
- ABackup
- BArchive
- CEncryption
- DLog
71Which of the following statements is true?
- AIncremental daily backups are faster to perform than differential daily backups, but restoration is slower and more complex.
- BIncremental daily backups are faster to perform than differential daily backups and restoration is faster and simpler.
- CDifferential daily backups are faster to perform than incremental daily backups, but restoration is slower and more complex.
- DDifferential daily backups are faster to perform than incremental daily backups and restoration is faster and simpler.
72Which disaster recovery strategy involves contracting for use of a physical site to which all necessary computing equipment will be delivered within 24 to 36 hours?
- AVirtualization
- BCold site
- CHot site
- DData mirroring
73Which of the following controls would prevent entry of a nonexistent customer number in a sales transaction?
- AField check
- BCompleteness check
- CValidity check
- DBatch total
74Which data entry application control would detect and prevent entry of alphabetic characters as the price of an inventory item?
- AField check
- BLimit check
- CReasonableness check
- Dsign check
75Which of the following measures the amount of data that might be potentially lost as a result of a system failure?
- ARecovery Time Objective (RTO)
- BRecovery Point Objective (RPO)
- CDisaster Recovery Plan (DRP)
- DBusiness Continuity Plan (BCP)
76Most costs are locked in at which stage in the production cycle?
- ACost accounting
- BProduct design
- CProduction planning
- DProduction operations
77Which of the following is an advantage of bar-coding over RFID?
- ASpeed
- BSafety
- CCost
- DAccuracy
78Which document lists the components needed to manufacture a specific product?
- AProduction order
- BBill of materials
- COperations List
- DMaster production schedule
79Which document captures information about labor used in production?
- ABill of materials
- BOperations list
- CJob-time ticket
- DMove ticket
80An increase in which component of quality costs is most likely to result in a decrease in the other three components?
- AInspection cost
- BExternal failure costs
- CPrevention costs
- DInternal failure costs
81Activity-based costing can be used to refine which of the following?
- AJob-order costing
- BNeither job-order nor process costing
- CBoth job-order and process costing
- DProcess costing
82Which system is most likely to be used by a company that mass-produces large batches of standard items in anticipation of customer demand?
- AMRP II
- BThroughput
- CLean manufacturing
- DActivity based costing
83The development of an MPS would be most effective in preventing which of the following threats?
- ALoss of inventory
- BExcess production
- CRecording and posting errors
- DProduction of poor quality goods
84Which control procedure is probably least effective in reducing the threat of inventory loss?
- APeriodically counting inventory and investigating any discrepancies between those counts and recorded amounts
- BLimiting physical access to inventory
- CDocumenting all transfers of inventory within the company
- DRegular materials usage reports that highlight variances from standards
85What is the number of good units produced in a given period of time called?
- AProductive capacity
- BProductive processing time
- CThroughput
- DYield
86Which of the following is a characteristic of auditing?
- AAuditing is a systematic, step-by-step process.
- BAuditing involves the collection and review of evidence.
- CAuditing involves the use of established criteria to evaluate evidence.
- DAll of the above are characteristics of auditing.
87Which of the following is not a reason an internal auditor should participate in internal control reviews during the design of new systems?
- AIt is more economical to design controls during the design stage than to do so later.
- BIt eliminates the need for testing controls during regular audits.
- CIt minimizes the need for expensive modifications after the system is implemented.
- DIt permits the design of audit trails while they are economical.
88Which type of audit involves a review of general and application controls, with a focus on determining if there is compliance with policies and adequate safeguarding of assets?
- AInformation systems audit
- BFinancial audit
- COperational audit
- DCompliance audit
89At what step in the audit process do the concepts of reasonable assurance and materiality enter into the auditor’s decision process?
- APlanning
- BEvidence collection
- CEvidence evaluation
- DThe concepts are important in all three steps.
90What is the four-step approach to internal control evaluation that provides a logical framework for carrying out an audit?
- Ainherent risk analysis
- Bsystems review
- Ctest of controls
- Drisk based approach to auditing
91Which of the following procedures is not used to detect unauthorized program changes?
- ASource code comparison
- BParallel simulation
- CReprocessing
- DReprogramming code
92Which of the following is a concurrent audit technique that monitors all transactions and collects data on those that meet certain characteristics specified by the auditor?
- AITF
- BSnapshot technique
- CSCARF
- DAudit hook
93Which of the following is a computer technique that assists an auditor in understanding program logic by identifying all occurrences of specific variables?
- AMapping program
- BProgram tracing
- CAutomated flowcharting
- DScanning routine
94Which of the following is a computer program written especially for audit use?
- AGAS
- BCATAS
- CITF
- DCIS
95The focus of an operational audit is on which of the following?
- AReliability and integrity of financial information
- BAll aspects of information systems management
- CInternal controls
- DSafeguarding assets
96What role should an auditor play in system development
- AAn independent reviewer only
- BA developer of internal controls
- CThe final decision authority on the design of internal controls
- DAn advisor and developer of internal control specifications
97The scope of an ______ audit encompasses all aspects of system management
- AInternal control
- BOperational
- Cfinancial
- DInformation systems
98Who generally receives the findings and conclusions of an operational audit
- AThe board of directors
- BManagement
- CThe IRS
- DThe internal auditor
99With regards to an accounting information system, a financial audit is most concerned with
- AThe systems processing
- BThe systems output
- Cthe systems storage
- DThe systems input
100Which of the following is not one way CAATS could be used
- Ato test files for specific risks
- Bmerge files
- Cto query data files to retrieve records meeting specified criteria
- Dprocess electronic transactions
101Traditionally, accountants have been most involved with which portion of the HRM/payroll cycle?
- Ahiring
- Bpayroll
- Ctraining
- Dperformance evaluation
102Which of the following statements is true?
- AFinancial statements report the value of employee knowledge and skills.
- BTurnover and absenteeism are costly.
- CAll employees must fill out time cards.
- DDefault configurations of ERP packages typically provide good segregation of duties.
103Which document lists the current amount and year-to-date totals of gross pay, deductions, and net pay for one employee?
- APayroll register
- BTime card
- CPaycheck
- DEarnings statement
104Online processing is most useful for which of these tasks?
- APreparing payroll checks
- BReconciling job-time tickets and time cards
- CPaying payroll tax obligations
- DMaking changes in employee benefit choices
105Use of a payroll service bureau or a PEO provides which of the following benefits?
- AFewer staff needed to process payroll
- BLower cost of processing payroll
- CLess need for developing and maintaining payroll tax expertise
- DAll of the above
106Which control procedure would be most effective in detecting the failure to prepare a paycheck for a new employee before paychecks are distributed?
- AValidity checks on the employee number on each time card
- BRecord counts of time cards submitted and time cards processed
- CZero-balance check
- DUse of a separate payroll bank account
107Which department should have responsibility for authorizing pay-rate changes?
- ATimekeeping
- BPayroll
- CHRM
- DAccounting
108To maximize effectiveness of internal controls over payroll, which of the following persons should be responsible for distributing employee paychecks?
- ADepartmental secretary
- BPayroll clerk
- CController
- DDepartmental supervisor
109Where should unclaimed paychecks be returned?
- AHRM department
- BCashier
- CPayroll department
- DAbsent employee's supervisor
110Which of the following is an important supporting document to authorize the transfer of funds to the payroll bank account?
- AEarnings statement
- BTime card
- Cpayroll register
- Dw-2 form
111Which person makes original journal entries in the general ledger and reporting system about events such as dividend payments and payments to creditors?
- AController
- BTreasurer
- CBudget Director
- DDepartment manager
112Which person makes adjusting entries in the general ledger and reporting system?
- AController
- BTreasurer
- CDepartment Manager
- DBudget Director
113Which person makes closing entries in the general ledger and reporting system?
- AController
- BTreasurer
- CBudget director
- DDepartment manager
114 The purpose of employing data entry processing integrity controls is to mitigate the threat of
- Aunauthorized journal entries
- BNone of these are correct
- Cboth unauthorized journal entries and inaccurate updating of the general ledger.
- Dinaccurate updating of the general ledger.
115For sound internal control, which of the following sources should be permitted to update the general ledger?
- ANeither the Treasurer nor the Controller
- BBoth the Treasurer and Controller
- CController
- DTreasurer
116Which of the following controls is designed to ensure that after updating the general ledger, assets have debit balances and liabilities have credit balances?
- AField check
- BSign check
- CCompleteness check
- DValidity check
117An adjusting entry that is made to reflect the exchange of cash prior to performance of the related business activity is called a(n)
- AEstimate
- BAccrual
- CRevaluation
- DDeferral
118 An adjusting entry that is made to record a portion of expenses that are expected to occur over multiple time periods is called a(n)
- ARevaluation
- BDeferral
- CEstimate
- DAccrual
119An adjusting entry that is made to reflect events that have occurred but for which cash has not yet been received or disbursed is called a(n)
- ADeferral
- BRevaluation
- CAccrual
- DEstimate
120An XBRL file that explains the relationships among and between financial statement categories (e.g., that Short-term Liabilities and Long-term Liabilities are both part of the Liabilities section is called a(n)
- ASchema
- BStyle Sheet
- CInstance document
- DDefinition linkbase
121An XBRL file presented to end users and that contains tagged data is called a(n)
- ADefinition linkbased
- BInstance document
- CStyle sheet
- DSchema
122An XBRL file that provides instructions on how to display an XBRL report on a computer monitor or in a printed report is called a(n)
- AInstance document
- BSchema
- CStyle sheet
- DDefinition linkbase
123Which principle of graph design mitigates the threat that viewers will mistake an increasing trend for a decreasing trend?
- AUsing 2D rather than 3D bar charts
- BIncluding a meaningful title
- COrdering the x-axis chronologically from left to right
- DDisplaying data values for each bar in a bar chart
- EBeginning the vertical axis at zero
124Which principle of graph design mitigates the threat that the graph will mislead viewers about the magnitude of a trend?
- AUsing 2D rather than 3D bar charts
- BOrdering the x-axis chronologically from left to right
- CBeginning the vertical axis at zero
- DDisplaying data values for each bar in a bar chart
- EIncluding a meaningful title
125 Which principles of graph design make graphs easier to read? (Check all that apply.)
- AIncluding a meaningful title
- BOrdering the x-axis chronologically from left to right
- CBeginning the vertical axis at zero
- DUsing 2D rather than 3D bar charts
- EDisplaying data values for each bar in a bar chart
126Where do adjusting entries usually come from?
- ATreasurer
- BController
- CVarious accounting cycle subsystems, such as a sales order entry
- DUnit Manager
127Preparing performance reports that contain data only about items that a specific organizational unit controls is an example of which of the following?
- AFlexible budget system
- BResponsibility Accounting system
- CClosing the books
- DManagement by exception
128The definition of an XBRL element, including such information as whether its normal account balance is a debit or a credit, is found in which of the following?
- ALinkbase
- BInstance document
- CSchema
- DStyle sheet
129Which of the following shows the implied causal linkages among the portions of the balanced scorecard?
- AFinancial → internal → innovation and learning → customer
- BInnovation and learning → internal → customer → financial
- CCustomer → financial → internal → innovation and learning
- DInternal → customer → innovation and learning → financial
130Which of the following XBRL documents contains the actual data values for a company's net income for a particular year?
- AStyle sheet
- BSchema
- CLinkbases
- DINstance document
131The number of orders shipped per warehouse worker each day is a metric that would most likely appear in which part of the balanced scorecard?
- AInnovation and learning
- BCustomer
- CInternal operations
- DFinancial
132Which of the following is an important part of the audit trail?
- AJournal vouchers
- BFlexible Budgets
- CTrial balance
- DData warehouse
133An adjusting journal entry to record interest revenue that has been earned but not yet received is an example of which of the following?
- AAccrual
- BDeferral
- CEstimate
- DRevaluation
134Which of the following is designed primarily to improve the efficiency of financial reporting?
- AXML
- BXBRL
- CIFRS
- DThe balance scorecard
135Which of the following graph design principles is most important for ensuring that financial data is accurately interpreted?
- AIncluding a title that summarizes the point of the graph
- BAttaching data values to specific elements in the graph
- CStarting the y-axis of the graph at zero
- DUsing different colors for different variables
136 Data entry processing integrity controls such as field checks, completeness tests, and closed-loop verification are NOT needed for journal entries made by
- AThe Controller
- BAll of the listed sources of journal entries (Treasurer, Controller, Other Accounting Subsystems) need to employ field checks, completeness tests, and closed-loop verification to ensure accuracy.
- CThe Treasurer
- DOther accounting subsystems
137Which control could be used to mitigate the threat of inaccurate or invalid general ledger data?
- AReconciliations and control reports.
- BAudit trail creation and review.
- C)Spreadsheet error protection controls.
- DReview of all changes to general ledger data.
138Which control could be used to mitigate the threat of inaccurate updating of the general ledger?
- AAudit trail creation and review.
- BAudit.
- CTraining and experience in applying IFRS and XBRL.
- DUse of packaged software.
139The control that is used to match account numbers with account descriptions, to ensure that the correct general ledger account is being accessed is called
- AField (format) checks.
- BA validity check.
- CClosed-loop verification.
- DA completeness test.
140Recognizing advance insurance payments from customers as a liability would result in what type of adjusting entries?
- ADeferrals.
- BCorrections.
- CAccruals.
- DEstimates.
141Entries that are made to counteract the effects of errors found in the general ledger are called
- ACorrections.
- BEstimates
- CAccruals
- DDeferrals
142Which XBRL document provides the instructions on how to display or print an XBRL-encoded report?
- ANone of the listed documents provides instructions on how to display or print an XBRL-encoded report
- BSchema
- CTaxonomy
- DStyle sheet
143Which control could be used to mitigate the threat of fraudulent financial reporting?
- ABalance score card
- BUse of packaged software
- CAudit
- DResponsibility accounting
144A management report that measures four dimensions of performance: financial, internal operations, innovation and learning, and customer perspectives of the organization is known as
- AExtension taxonomy
- BBalance scorecard
- CSchema
- DFlexible budget
145 Which statement(s) about graphic design are true?
- AStarting the y-axis at a point other than zero ensures that the magnitude of any trend is accurately portrayed.
- BAll of the statements are true.
- CReversing the sequence of years on the x-axis causes an increasing trend to look like a decreasing trend.
- DStarting the y-axis at zero causes an increasing trend to look like a decreasing trend.
146The component of throughput that divides total units produced by processing time is referred to as:
- Ayield
- Bproductive capacity
- Cproducing processing time
147The component of throughput that divides good units produced by total units produced is referred to as:
- Aproductive capacity
- Bproductive processing time
- Cyield
148The threat of inappropriate allocation of overhead costs is best mitigated by which of the following controls?
- ACategorizing quality control costs as prevention, inspection, internal failure, and external failure
- BData processing integrity controls
- CInnovative performance metrics, such as throughput
- DActivity-based costing systems
149The costs associated with testing products as part of quality control are referred to as:
- Ainternal failure costs
- Bprevention costs
- Cinspection costs
- Dexternal failure costs
150The costs associated with warranty and repairs for defective products sold to customers are referred to as:
- Aprevention costs
- Binternal failure costs
- Cexternal failure costs
- Dinspection costs
151The costs associated with scrap, rework, and waste as part of quality control are referred to as:
- Ainternal failure costs
- Binspection costs
- Cprevention costs
- Dexternal failure costs
152Traditional cost-accounting systems treat set-up costs, inspections, and materials handling costs as components of overhead. Activity-based costing systems assign those three elements to:
- Acompany wide overhead
- Bproduct related overhead
- CNone of the are correct
- Dbatch related overhead
153 Whereas traditional cost accounting systems just assign the costs associated with research and development, expediting, and purchasing to overhead, activity-based costing systems would assign those costs to:
- Acompanywide overhead
- Bproduct related overhead
- Cnone of these are correct
- Dbatch related overhead
154 Which of the following controls could be used to mitigate the threat of inaccurate or invalid master data in the production cycle?
- AData processing integrity controls.
- BMaintaining detailed records of fixed assets, including disposal.
- CRestriction of physical access to fixed assets.
- DPhysical inventory of all fixed assets.
155Which of the following controls would be effective in preventing the threat that poor product design results in excess costs?
- AProduction planning systems.
- BAnalysis of warranty and repair costs.
- CReview and approval of production schedules and orders.
156A document authorizing the manufacture of a specified quantity of a particular product is called
- Aa bill of materials
- Bmove tickets
- Cproduction order
- Dmaterials requisition
157Which of the following controls could be used to mitigate the threat of over- and underproduction?
- APhysical access controls.
- BRestriction of access to production orders and production schedules.
- CSegregation of duties—custody of assets from recording and authorization of removal.
- DDocumentation of all inventory movement.
158A request by an organization or department for suppliers to bid to supply a fixed asset that possesses specific characteristics is called
- Aa request for proposal
- BBid request
- Cproposal request
- Drequisition for proposal
159Which of the following controls could be used to mitigate the threat of disruption of operations?
- AInsurance
- BSource data automation
- CBackup and disaster recovery plans
- DTime driven activity based costing
160A cost system that assigns costs to specific production batches or jobs is known as
- Aprocess costing
- Bjob time ticket
- Cmanufacturing overhead
- Djob order costing
161The production planning method that is referred to as "pull manufacturing" is called
- Acomputer integrated manufacturing
- Bmaster production scheduling
- Cmanufacturing resource planning
- DLean manufacturing
162The control procedure for conducting criminal background investigation checks for all job applicants is designed to mitigate the risk of:
- Aloss or destruction of data
- Bunauthorized disclosure of sensitive information
- Cviolations of employment laws
- Dhiring unqualified or larcenous employees
- Einaccurate or invalid master data
163Which of the following control procedures best protect sensitive information about employee financial data from unauthorized viewing by the employees who process and update payroll? (Check all that apply.)
- Atokenization
- Bencryption
- CReviewing all changes to master data
- Dsound hiring procedures
- EData processing integrity controls
- FThorough documentation of hiring, performance evaluation, and dismissal procedures
164Which of the following control procedures are designed to mitigate the risk of theft or the fraudulent disbursement of paychecks? (Check all that apply.)
- ARedepositing unclaimed paychecks and investigating the cause
- BRestriction of access to blank payroll checks and the check signature machine
- CEmployee review of earnings statements
- DCriminal background checks for all job applicants
- EPre-numbering and periodically accounting for all payroll checks
165Segregation of duties is one of the recommended control procedures designed to mitigate which of the following threats? (Check all that apply.)
- AUnauthorized changes to payroll master data
- BInaccurate payments
- CInaccurate updating of payroll master data
- Duntimely payments
- EFailure to make required payments to government tax authorities and insurance companies
- FTheft or fraudulent disbursement of paychecks
- GErrors in processing payroll
- HInaccurate time and attendance data
166Data processing integrity controls are recommended control procedures that are designed to mitigate which of the following threats? (Check all that apply.)
- AFailure to make required payments to government tax authorities and insurance companies
- BInaccurate time and attendance data
- CTheft or fraudulent disbursement of paychecks
- DInaccurate payments
- EUntimely payments
- FInaccurate updating of payroll master data
- GErrors in processing payroll
- HUnauthorized changes to payroll master data
167Which document is used to track the time worked by office professionals such as accountants and lawyers?
- ATime sheet
- Bworkforce inventory
- CTime card
- DForm 1099 misc
168 To more effectively use employees' knowledge and skills, many organizations are implementing ______________.
- Aprofessional employer organizations
- Bknowledge management systems
- Cpayroll service bureaus
- DHRM systmes
169Which control could be used to mitigate the threat of hiring unqualified or larcenous employees?
- AContinuing education on changes in employment laws.
- BCriminal background investigation checks of all applicants for finance related positions.
- C)Segregation of duties: HRM department updates master data, but only payroll department issues paychecks
- DThorough documentation of hiring, performance evaluation, and dismissal procedures.
170Encryption of payroll master data is a control designed to reduce the risk of _____________.
- Aunauthorized disclosure of sensitive information.
- Berrors in processing payroll
- Cinaccurate or invalid master data
- Dloss or destruction of data
171A document that records the employee’s arrival and departure times for each work shift is known as
- Atime card
- Btime sheet
- Cposition control report
- Dpayroll register
172The primary control benefit associated with issuing earnings statements to employees is to reduce the threat of
- Atheft or fraudulent distribution of paychecks.
- Ball of these are correct
- CLoss or destruction of payroll data
- Derrors in processing payroll
173Which control reduces the risk of theft or fraudulent distribution of paychecks?
- AUse of a separate checking account for payroll
- BRegular review of all changes to master payroll data
- CBatch totals
- DEncryption of all payroll data
174Segregating the duties of HRM and payroll functions reduces the risk of _________________.
- Ainaccurate paymets
- Berrors in processing payroll
- Cunauthorized changes to payroll master data
- Dinaccurate time and attendance data
175Using biometrics to authenticate time cards reduces the risk of __________________.
- Atheft or fraudulent disbursement of checks.
- Bfailure to make required payments
- Cinaccurate time and attendance data.
- Dhiring unqualified or larcenous employees.
176Payroll service bureaus and PEOs are especially attractive to small and midsized businesses for which of the following reason(s)?
- Awider range of benefits
- Breduced costs
- Cfreeing up computer resources
- Dall of these are correct
177If at least one instance of entity A must participate in a relationship with an instance of entity B, the minimum cardinality for entity A in this relationship is:
- Amany
- Bone
- Czero
178If it is optional whether a specific instance of entity A participates in a relationship with an instance of entity B, the minimum cardinality for entity A in this relationship is
- Azero
- Bone
- Cmany
179If an instance of entity A can only be linked to one instance of entity B, the maximum cardinality for entity A in this relationship is:
- Aone
- Bmany
- Czero
180If an instance of entity A can be linked to multiple instances of entity B, the maximum cardinality for entity A in this relationship is:
- Aone
- Bmany
- Czero
181Accounts receivable would appear in an REA diagram as an example of which kind of entity?
- AResource
- BEvent
- CAgent
- DNone of the above
182Which of the following is not likely to be depicted as an entity in the REA data model?
- ACustomers
- BSales
- CInvoices
- DDelivery trucks
183In most cases, the relationship between agent entities and event entities is:
- A1:1
- B1:N
- CM:N
- D0:M
184If customers pay for each sales transaction with a separate check and are not permitted to make installment payments on any sales, then the relationship between the Sale and Receive Cash events would be modeled as being which of the following?
- A1:1
- B1:N
- CM:N
- D0:N
185Data modeling occurs during which stages of database design?
- ASystem analysis and physical design
- BSystem analysis and conceptual design
- CConceptual design and implementation and conversion
- DPhysical design and implementation and conversion
186Which of the following statements about the REA data model is true?
- AEvery event must be linked to at least two agents.
- BEvery resource must be linked to at least two agents.
- CEvery agent must be linked to at least two events.
- DEvery event must be linked to at least two resources.
187Which of the following is the first stage of the database design process?
- AConceptual design
- BConversion
- CPhysical design
- DSystem analysis
188In an REA diagram, information about all the payments received from customers would be stored in which type of entity?
- AAgent
- BEvent
- CNone of these choices are correct
- DResource
189 Which of the following statements is NOT true?
- AThe minimum cardinality in a relationship in an REA diagram can be one.
- BThe minimum cardinality in a relationship in an REA diagram can be zero.
- CThe minimum cardinality in a relationship in an REA diagram can be many.
- DThe maximum cardinality in a relationship in an REA diagram can be one.
- EThe maximum cardinality in a relationship in an REA diagram can be many.
190In an E-R diagram, relationships are depicted as
- Aovals
- Bdiamonds
- Cretctangles
- Dinverted triangle
191In an REA model, activities about which management wants to collect information for planning or control purposes are known as
- Aacitivities
- Bagents
- Cresources
- Devents
192In an REA diagram, information about the various cash accounts that an organization has (checking, payroll, savings, etc.) would be found in which type of entity?
- AResource
- BNone of these are correct
- Cevent
- Dagent
193Developing an REA diagram for a specific business cycle consists of which of the following step(s)?
- AIdentify the events about which management wants to collect information.
- BAll of these are correct.
- CDetermine the cardinalities of each relationship.
- DIdentify the resources affected by each event and the agents who participate in those events.
194In an REA diagram, suppliers would be examples of the type of entity called a(n):
- AResource
- BAgent
- CNone of these are correct
- DEvent
195Every employee at the Grizzley Corp can enroll in more than one training program, and each training program can have more than one employee to participate. Thus, the cardinality that exists between employee and training program is
- Aa one-to-one (1:1) relationship
- Ba one-to-many (1:N) relationship
- Ca many-to-many (M:N) relationship
- Dnone of these are correct
196Which statement is true?
- AThe choice of cardinalities in an REA diagram reflects facts about the organization's business practices.
- BThe choice of cardinalities in an REA diagram depends upon the wishes of the data modeler.
- CThe choice of cardinalities in an REA diagram is arbitrary.
- DNone of these are true.
197At what stage(s) in the database design process is a data model used? (Check all that apply.)
- AOperation and maintenance
- BPhysical design
- CSystems analysis
- DImplementation and conversion
- E)Conceptual design
198 At what stage(s) in the database design process is a data model created? (Check all that apply.)
- AConceptual design
- BImplementation and conversion
- COperation and maintenance
- D)Systems analysis
- EPhysical design
199In an E-R diagram, entities are represented as:
- ADiamonds
- BRectangles
- CLines
200Which of the following is an entity?
- ANone of these are correct
- BSuppliers
- CSales
- DPurchases
- EAll of these are correct
- FCustomers
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- Accounting Quiz on ITAC Midterm 2 Part 1, created by Kelsey M Krutilek on 25/06/2020.
- Author
- Kelsey M Krutilek
- Language
- English
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- History
- Created on 25 Jun 2020 · updated on 2 Jul 2020
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