Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing.
Errors or fraud in computer processing will be detected soon after their occurrences.
The potential for systematic error is ordinarily greater in manual processing than in computerized processing.
Most computer systems are designed so that transaction trails useful for audit purposes do not exist.

A general type of IT system that is designed to improve the productivity of daily office work is referred to as a(n)

Office automation system.
Transaction processing system.
Decision support system.
Executive information system.

The Systems Development Life Cycle (SDLC) is the traditional methodology for developing information systems. In which phase of the SDLC would the ac...

Analysis.
Implementaion.
Planning.
Development.

Samco Inc. is in the process of designing a new customer relations system. In which phase of the development life-cycle would a needs assessment mos...

Analysis.
Design.
Development.
Testing.

Which of the following system implementation models has the advantage of achieving a full operational test of the new system before it is implemente...

Parallel implementation.
Plunge implementation.
Pilot implementation.
Phased implementation.

Which computer application is most frequently used on mainframe computers?

Databases.
Graphics.
Spreadsheets.
Word processing.

Which computer application is most frequently used to analyze numbers and financial information?

Computer graphics programs.
WAN applications.
Spreadsheets.
Word processing programs.

Analysis of data in a database using tools which look for trends or anomalies without knowledge in advance of the meaning of the data is referred to...

Artificial intelligence.
Data mining.
Virtual reality.
Transitory analysis.

The most common type of primary storage in a computer is referred to as

CMAN.
RAM.
ROM.
Flash memory.

A set of step-by-step procedures used to accomplish a task is a(n)

Algorithm.
Compilation master.
Linux.
Transistor.

Which of the following compiles a complete translation of a program in a high-level computer language before the program is run for the first time? ...

Visual Basic.
Java.
Algorithm.
Compiler.

GUI is the abbreviation for

Grandfather, Uncle, Individual.
Graphical User Interface.
Graphics Utilization Institutes.
Grand Union Internet.

Unix is a(n)

Operating system.
Singular disk drive.
Central processing unit.
Logic unit.

In a spreadsheet, each specific cell may be identified by a specific

Address.
Column.
Row.
Diagonal.

In a spreadsheet, which of the following is correct concerning rows and columns? Rows . . . . Columns

Numbered Numbered
Numbered Lettered
Lettered Numbered
Lettered Lettered

Which of the following is least likely to be considered an advantage of a database?

Easy to store large quantities of information.
Easy to retrieve information quickly.
Easy to organize and reorganize information.
Easy to distribute information to every possible user.

Most current computers process data using which of the following formats?

Analog.
Digital.
Memory enhanced.
Organic.

Which term below describes the technology that allows multiple operating systems to run simultaneously on a single computer?

Client.
Mainframe.
Linux.
Virtualization.

What type of secondary storage device requires no moving parts for read/write operations?

Magnetic tape.
Compact discs.
Solid State drives.
RAID.

Another term for cloud-based storage is

RAID.
Solid state storage.
Analog.
Storage-as-a-Service.

The wireless input device that is used for inventory control and similar to bar-codes technology but does not require line-of sight access is

MICR.
RFID.
Touch screen.
Point-of-sale recorders.

The 2nd generation programming language that is generally specific to a computer architecture (i.e., it is not portable) is

Binary.
Assembly language.
COBOL.
C++.

The online analytical processing term that represents a combination of systems that help aggregate, access, and analyze business data and assist in ...

Artificial intelligence.
Data mart.
Decision support system.
Business intelligence.

What is the hierarchy of data organization, from smallest to largest unit, for a relational database?

Bit, byte, field, record, table, database.
Byte, bit, record, field, table, database.
Byte, bit, table, field, record, database.
Database, table, field, record, byte, bit.

A current day instruction to a computer such as “Extract all Customers where ‘Name’ is Smith” would most likely relate to a

First generation programming language.
Fourth generation programming language.
Seventh generation programming language.
Ninth generation programming language

Several language interfaces exist in a database management system. These typically include a data definition language (DDL), a data control language...

DDL.
DCL.
DML.
DQL.

Users making database queries often need to combine several tables to get the information they want. One approach to combining tables is known as

Joining.
Merging.
Projecting.
Pointing.

User acceptance testing is more important in an objectoriented development process than in a traditional environment because of the implications of ...

Absence of traditional design documents.
Lack of a tracking system for changes.
Potential for continuous monitoring.
Inheritance of properties in hierarchies.

A companys management has expressed concern over the varied system architectures that the organization uses. Potential security and control concerns...

Users may have different user ID codes and passwords to remember for the several systems that they use.
There are difficulties in developing uniform security standards for the various platforms.
Backup file storage administration is often decentralized.
Having data distributed across many computers throughout the organization increases the risk that a single disaster would destroy large portions of the organization’s data.

All of the following are methods for distributing a relational database across multiple servers except:

Snapshot (making a copy of the database for distribution).
Replication (creating and maintaining replica copies at multiple locations).
Normalization (separating the database into logical tables for easier user processing).
Fragmentation (separating the database into parts and distributing where they are needed).

Client/server architecture may potentially involve a variety of hardware, systems software, and application software from many vendors. The best way...

A combination of application and general access control techniques.
Use of a commercially available authentication system.
Encryption of all network traffic.
Thorough testing and evaluation of remote procedure calls.

What technology is needed in order to convert a paper document into a computer file?

Optical character recognition.
Electronic data interchange.
Bar-coding scanning.
Joining and merging.

Unauthorized alteration of online records can be prevented by employing

Key verification.
Computer sequence checks.
Computer matching.
Database access controls.

A manufacturer of complex electronic equipment such as oscilloscopes and microscopes has been shipping its products with thick paper manuals but wan...

Write-once-read-many.
Digital audio tape.
Compact disc/read-only memory.
Computer-output-to-microform.

Misstatements in a batch computer system caused by incorrect programs or data may not be detected immediately because

Errors in some transactions may cause rejection of other transactions in the batch.
The identification of errors in input data typically is not part of the program.
There are time delays in processing transactions in a batch system.
The processing of transactions in a batch system is not uniform.

Which of the following is not a characteristic of a batch processed computer system?

The collection of like transactions which are sorted and processed sequentially against a master file.
Keypunching of transactions, followed by machine processing.
The production of numerous printouts.
The posting of a transaction, as it occurs, to several files, without intermediate printouts.

Able Co. uses an online sales order processing system to process its sales transactions. Able’s sales data are electronically sorted and subjected...

Report of all missing sales invoices.
File of all rejected sales transactions.
Printout of all user code numbers and passwords.
List of all voided shipping documents.

First Federal S & L has an online real-time system, with terminals installed in all of its branches. This system will not accept a customer’s cash...

Online recording of the transaction on an audit override sheet.
Increasing the dollar amount to $1,500.
Requiring manual, rather than online, recording of all such transactions.
Using parallel simulation.

Mill Co. uses a batch processing method to process its sales transactions. Data on Mill’s sales transaction tape are electronically sorted by cust...

Report showing exceptions and control totals.
Printout of the updated inventory records.
Report showing overdue accounts receivable.
Printout of the sales price master file.

Where disk files are used, the grandfather-father-son updating backup concept is relatively difficult to implement because the

Location of information points on disks is an extremely time-consuming task.
Magnetic fields and other environmental factors cause off-site storage to be impractical.
Information must be dumped in the form of hard copy if it is to be reviewed before used in updating.
Process of updating old records is destructive.

In a computerized system, procedure or problem-oriented language is converted to machine language through a(n)

Interpreter.
Verifier.
Compiler.
Converter.

What type of computer system is characterized by data that are assembled from more than one location and records that are updated immediately?

Microcomputer system.
Minicomputer system.
Batch processing system.
Online real-time system.

Which of the following characteristics distinguishes electronic data interchange (EDI) from other forms of electronic commerce?

EDI transactions are formatted using the standards that are uniform worldwide.
EDI transactions need not comply with generally accepted accounting principles.
EDI transactions ordinarily are processed without the Internet.
EDI transactions are usually recorded without security and privacy concerns.

LAN is the abbreviation for

Large Area Network.
Local Area Network.
Longitudinal Analogue Network.
Low Analytical Nets.

A computer that is designed to provide software and other applications to other computers is referred to as a

Microcomputer.
Network computer.
Server.
Supercomputer.

Which is least likely to be considered a component of a computer network?

Applications programs.
Computers.
Software.
Routers.

The network most frequently used for private operations designed to link computers within widely separated portions of an organization is referred t...

Bulletin board service.
Local area network.
Wide area network.
Zero base network.

A set of rules for exchanging data between two computers is a

Communicator.
Operating system.
Protocol.
Transmission speed.

A webpage is most frequently created using

Java or C++.
Visual Basic.
SQL.
HTML or XML.

Laptop computers provide automation outside of the normal office location. Which of the following would provide the least security for sensitive dat...

Encryption of data files on the laptop computer.
Setting up a password for the screensaver program on the laptop computer.
Using a laptop computer with a removable hard disk drive.
Using a locking device that can secure the laptop computer to an immovable object.

When developing a new computer system that will handle customer orders and process customer payments, a high-level systems design phase would includ...

How the new system will affect current inventory and general ledger systems.
How the file layouts will be structured for the customer order records.
Whether to purchase a turn-key system or modify an existing system.
Whether formal approval by top management is needed for the new system.

A company using EDI made it a practice to track the functional acknowledgments from trading partners and to issue warning messages if acknowledgment...

Transactions that have not originated from a legitimate trading partner may be inserted into the EDI network.
Transmission of EDI transactions to trading partners may sometimes fail.
There may be disagreement between the parties as to whether the EDI transactions form a legal contract.
EDI data may not be accurately and completely processed by the EDI software.

Management is concerned that data uploaded from a microcomputer to the company’s mainframe system in batch processing may be erroneous. Which of t...

The mainframe computer should be backed up on a regular basis.
Two persons should be present at the microcomputer when it is uploading data.
The mainframe computer should subject the data to the same edits and validation routines that online data entry would require.
The users should be required to review a random sample of processed data.

One major category of computer viruses is programs that attach themselves to other programs, thus infecting the other programs. While many of these ...

Frequent power surges that harm computer equipment.
Unexplainable losses of or changes to data.
Inadequate backup, recovery, and contingency plans.
Numerous copyright violations due to unauthorized use of purchased software.

One major category of computer viruses is programs that attach themselves to other programs, thus infecting the other programs. While many of these ...

Encryption of data files.
Frequent backup of files.
Downloading public-domain software from electronic bulletin boards.
Installing original copies of purchased software on hard disk drives.

Which of the following is a risk that is higher when an electronic funds transfer (EFT) system is used?

Improper change control procedures.
Unauthorized access and activity.
Insufficient online edit checks.
Inadequate backups and disaster recovery procedures.

The use of message encryption software

Guarantees the secrecy of data.
Requires manual distribution of keys.
Increases system overhead.
Reduces the need for periodic password changes

A company’s management is concerned about computer data eavesdropping and wants to maintain the confidentiality of its information as it is transm...

Data encryption.
Dial-back systems.
Message acknowledgement procedures.
Password codes.

Which of the following is likely to be a benefit of electronic data interchange (EDI)?

Increased transmission speed of actual documents.
Improved business relationships with trading partners.
Decreased liability related to protection of proprietary business data.
Decreased requirements for backup and contingency planning.

The internal auditor is reviewing a new policy on electronic mail. Appropriate elements of such a policy would include all of the following except:

Erasing all employee’s electronic mail immediately upon employment termination.
Encrypting electronic mail messages when transmitted over phone lines.
Limiting the number of electronic mail packages adopted by the organization.
Directing that personnel do not send highly sensitive or confidential messages using electronic mail.

Which of the following risks is more likely to be encountered in an end-user computing (EUC) environment as compared to a mainframe computer system?...

Inability to afford adequate uninterruptible power supply systems.
User input screens without a graphical user interface (GUI).
Applications that are difficult to integrate with other information systems.
Lack of adequate utility programs.

Which of the following risks is not greater in an electronic funds transfer (EFT) environment than in a manual system using paper transactions?

Unauthorized access and activity.
Duplicate transaction processing.
Higher cost per transaction.
Inadequate backup and recovery capabilities.

Methods to minimize the installation of unlicensed microcomputer software include all of the following except:

Employee awareness programs.
Regular audits for unlicensed software.
Regular monitoring of network access and start-up scripts.
An organizational policy that includes software licensing requirements.

In traditional information systems, computer operators are generally responsible for backing up software and data files on a regular basis. In distr...

User management.
Systems programmers.
Data entry clerks.
Tape librarians.

An auditor is least likely to find that a client’s data is input through

Magnetic tape reader.
Dynamic linking character reader.
Point-of-sale recorders.
Touch sensitive screens.

End-user computing is an example of which of the following?

Client/server processing.
A distributed system.
Data mining.
Decentralized processing.

End-user computing is most likely to occur on which of the following types of computers?

Mainframe.
Minicomputers.
Personal computers.
Personal reference assistants.

Which of the following statements is correct regarding the Internet as a commercially viable network?

Organizations must use firewalls if they wish to maintain security over internal data.
Companies must apply to the Internet to gain permission to create a homepage to engage in electronic commerce.
Companies that wish to engage in electronic commerce on the Internet must meet required security standards established by the coalition of Internet providers.
All of the above.

To reduce security exposure when transmitting proprietary data over communication lines, a company should use

Asynchronous modems.
Authentic techniques.
Call-back procedures.
Cryptographic devices.

Securing client/server systems is a complex task because of all of the following factors except:

The use of relational databases.
The number of access points.
Concurrent operation of multiple user sessions.
Widespread data access and update capabilities.

Which of the following would an auditor ordinarily consider the greatest risk regarding an entity’s use of electronic data interchange (EDI)?

Authorization of EDI transactions.
Duplication of EDI transmissions.
Improper distribution of EDI transactions.
Elimination of paper documents.

Which of the following characteristics distinguish electronic data interchange (EDI) from other forms of electronic commerce?

The cost of sending EDI transactions using a valueadded network (VAN) is less than the cost of using the Internet.
Software maintenance contracts are unnecessary because translation software for EDI transactions need not be updated.
EDI commerce is ordinarily conducted without establishing legally binding contracts between trading partners.
EDI transactions are formatted using strict standards that have been agreed to worldwide.

Which of the following is considered a component of a local area network?

Program flowchart.
Loop verification.
Transmission media.
Input routine.

Which of the following represents an additional cost of transmitting business transactions by means of electronic data interchange (EDI) rather than...

Redundant data checks are needed to verify that individual EDI transactions are not recorded twice.
Internal audit work is needed because the potential for random data entry errors is increased.
Translation software is needed to convert transactions from the entity’s internal format to a standard EDI format.
More supervisory personnel are needed because the amount of data entry is greater in an EDI system.

Many entities use the Internet as a network to transmit electronic data interchange (EDI) transactions. An advantage of using the Internet for elect...

Permits EDI transactions to be sent to trading partners as transactions occur.
Automatically batches EDI transactions to multiple trading partners.
Possesses superior characteristics regarding disaster recovery.
Converts EDI transactions to a standard format without translation software.

Which of the following is not considered an exposure involved with electronic data interchange (EDI) systems as compared to other systems?

Increased reliance upon computer systems.
Delayed transaction processing time.
Possible loss of confidentiality of information.
Increased reliance upon third parties.

Which of the following statements is correct concerning internal control when a client is using an electronic data interchange system for its sales?...

Controls should be established over determining that all suppliers are included in the system.
Encryption controls may help to assure that messages are unreadable to unauthorized persons.
A value-added-network (VAN) must be used to assure proper control.
Attention must be paid to both the electronic and “paper” versions of transactions.

Which of the following statements most likely represents a disadvantage for an entity that keeps microcomputer-prepared data files rather than manua...

Random error associated with processing similar transactions in different ways is usually greater.
It is usually more difficult to compare recorded accountability with physical count of assets.
Attention is focused on the accuracy of the programming process rather than errors in individual transactions.
It is usually easier for unauthorized persons to access and alter the files.

Which of the following is usually a benefit of transmitting transactions in an electronic data interchange (EDI) environment?

A compressed business cycle with lower year-end receivables balances.
A reduced need to test computer controls related to sales and collections transactions.
An increased opportunity to apply statistical sampling techniques to account balances.
No need to rely on third-party service providers to ensure security.

Which of the following is a network node that is used to improve network traffic and to set up as a boundary that prevents traffic from one segment ...

Router.
Gateway.
Firewall.
Heuristic.

Which of the following is an example of how specific controls in a database environment may differ from controls in a nondatabase environment?

Controls should exist to ensure that users have access to and can update only the data elements that they have been authorized to access.
Controls over data sharing by diverse users within an entity should be the same for every user.
The employee who manages the computer hardware should also develop and debug the computer programs.
Controls can provide assurance that all processed transactions are authorized, but cannot verify that all authorized transactions are processed.

A retail entity uses electronic data interchange (EDI) in executing and recording most of its purchase transactions. The entity’s auditor recogniz...

Increase the sample of EDI transactions to be selected for cutoff tests.
Perform tests several times during the year, rather than only at year-end.
Plan to make a 100% count of the entity’s inventory at or near the year-end.
Decrease the assessed level of control risk for the existence or occurrence assertion.

Which of the following is an encryption feature that can be used to authenticate the originator of a document and ensure that the message is intact ...

Heuristic terminal.
Perimeter switch.
Default settings.
Digital signatures.

In building an electronic data interchange (EDI) system, what process is used to determine which elements in the entity’s computer system correspo...

Mapping.
Translation.
Encryption.
Decoding.

Which of the following passwords would be most difficult to crack?

OrCa!FlSi
language
12 HOUSE 24
pass56word

Which of the following is a password security problem?

Users are assigned passwords when accounts are created, but do not change them.
Users have accounts on several systems with different passwords.
Users copy their passwords on note paper, which is kept in their wallets.
Users select passwords that are not listed in any online dictionary.

Many of the Web 2.0 applications rely on an XML-based application that facilitates the sharing and syndication of web content, by subscription, Whic...

Wiki.
Blog.
RSS/Atom Feeds.
Twitter.

Which of the following is not one of the five principles of COBIT 5?

Meeting stakeholder needs.
Business processes.
Covering the enterprise end-to-end.
Applying a single integrated framework.

The Control Objectives for Information and Related Technology (COBIT) framework has been established by:

The American Institute of Certified Public Accountants.
The Information Technology Institute.
The Information Systems Audit and Control Association.
The Committee of Sponsoring Organizations.

Which of the following procedures would an entity most likely include in its computer disaster recovery plan?

Develop an auxiliary power supply to provide uninterrupted electricity.
Store duplicate copies of critical files in a location away from the computer center.
Maintain a listing of entity passwords with the network manager.
Translate data for storage purposes with a cryptographic secret code.

A company is concerned that a power outage or disaster could impair the computer hardwareâ€™s ability to function as designed. The company desi...

Cold site.
Cool site.
Warm site.
Hot site.

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Information Technology MCQs