AIS Chapter 2

Each Account in the chart of accounts has a separate records in the general ledger master file
True
Designing an effective management reporting system does not require an understanding of the information managers need to deal with the problems they face
False
The Database approach to data management is sometimes called the flat file approach
False
The database management system provides a controlled environment fir accessing the database
True
Application controls apply to a wide range of exposures that threaten the integrity of all programs processed within the computer environment
False
IT auditing is a small part of the most external and internal audits
False (General Controls)
Firewalls are special materials used to insulate computer facilities
True LOLOLOLOLOL JK
Cloud Computing allows for the storage of data and software safely off premise via a vendor
True
The Database administrator authorizes access to the database
True
Scavenging involves searching through the trash of the computer center for discarded output
True
Input, processing and output controls are the three broad categories of general controls
False (Application Control)
A Secondary Key is a unique attribute that can identify each record in a database table
False (primary)
The Database Management system is a set of programs that control access to the database
True
Some advantages of a database versus a flat file system included no data redundancy, single update and current value
True
Primary recipients of financial statement information are internal management
False (External User)
A formal log on procedure is the operating systems last line of defense against unauthorized access
False (First)
To preserve audit trails in a computerized environment, transaction logs are permanent records of transactions
True
Tests of controls determine whether the database contents fairly reflect the organizations transactions
(False) Internal Control Tests
The most common access point for perpetrating computer fraud is at the data collection stage
True
In the Database method of the data management access authority is maintained by systems programming
False ( maintained by the data base administrator)
What Accounts Appears on the post closing Trial balance
A. Income Summary
B. Machinery
C. Rent Expense
D. Interest income
B. Machinery
Financial Statements are prepared from the
A. trial Balance
B. Adjusted Trial Balance
C. General Ledger
D. General Journal
B. Adjusted Trial Balance
Which Characteristic is associated with the database approach to data management?
A. Dara Sharing
B. Multiple Storage Procedures
C. Data Redundancy
D. Excessive Storage Costs
A. Data Sharing
The textbook refers to four interrelated components or the database concept. Which of the following is not one of the componets?
a. The database management system
b. The database administrator
c. the physical database
d. the conveptual database
D the conceptual database
Adequate backups will protect against all of the following except
A. natural disasters such as fires
B. Unauthorized Access
C. Data Corruption caused by the program errors
D. System Crashes
B. Unauthorized Access
All of the following are steps in an IT audit Except
A. Substantive Testing
B. Tests of control
C. Post audit testing
D. Audit Planning
C. Post Audit Testing
Computer Fraud can take on many forms including each of the following except
a. theft or illegal use of computer readable information
b. Theft…. of computer equipment
c. Theft…. by altering computer readable records and files
d. theft…. of printer supplies
D. Theft… of printer supplies
Which of the following is not an implication of section 302 of the Sarbanes Oxley Act
a. Auditors must determine whether changes in internal control has or is likely to materially affect internal control over financial reporting
b. Auditors must interview management regarding significant changes in the design or operation of internal control that occurred since the last audit
c. Corporate management (including the CEO) must certify monthly and annually their organization’s internal controls over financial reporting
d. Management must disclose any material changes in the companys internal controls that have occurred during the most recent fiscal quarter
c. Corporate management…
Which of the following is not a requirement in managements report on the effectiveness of internal controls over financial reporting
a. A statement of managements responsibility for establishing and maintaining adequate internal control user satisfaction
b. A statement that the organizations internal auditors has issued an attestation report on management’s assessment of the companies internal controls
c. A statement identifying the framework used by management to conduct their assessment of internal controls
d. An explicit written conclusion as to the effectiveness of internal control over financial reporting
b. A statement that the organizations internal auditors
Which Statement is not true
a. Auditors must maintain independence
B. IT Auditors attest to the integrity of the computer system
C. IT auditing is independent of the general financial audit
D. IT auditing can be performed by both external and internal auditors
C. IT auditing is independent of the general financial audit
Users access the database
a. by direct query
b. by developing operating software
c. by constantly interacting which systems programmers
d. all of the above
a. by direct query
Which Statement is false
a. the DBMS is special software that is programmed to know which data elements each user is authorized to access
b. user programs send requests for data to the DBMS
c. During processing the DBMS periodically makes backup copies of the physical database
d. The DBMS does not control access to the database
D. The DBMS does not control access to the database
All the following are elements of the DBMS which facilitate users
a. query language
b. data access language
c. data manipulation language
d. data definition language
b. data access language
A software program that replicates itself in areas of idle memory until the system fails is called a
a. Trojan horse
b Worm
c. Logic Bomb
d. None of the above
b Worm
Which is not a bio metric device
a. a password
b. retina prints
c. voice prints
d. signature
a. a password
Which of the following is not a basic database backup and recovery feature
a. checkpoint
b. backup database
c. transaction log
d. database authority table
d. database authority table
All of the following are designed to control exposures from subversive threats except.
a. firewalls
b. onetime passwords
c. field interrogation
d. data encryption
c. field interrogation
Which statement is not correct? the general ledger master file
a. is based on the firms chars of account
b. contains a record for control accounts
c. is an output of the financial reporting system
d. supplies information for management decsion making
c. is an output of the financial reporting system
What type of data is found in the general ledger master file
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 hte chart of accounts
d, subsidiary details supporting a control account
b. the balance of each account in the chart of accounts
which report is not output of financial reporting system
a. variance analysis report
b. statement of cash flows
c. tax returns
d. comparative balance sheet
a. variance analysis report