COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

MIDTERM EXAM
in CS 46G

NAME :____________________________ DATE :___________

COURSE/YEAR :____________________________ TIME/DAYS :___________ Score

Chapters 7,8 Exequiel C. Cruspero Jr., MBA, CPA

TRUE OR FALSE.

________1) Because the Internet offers businesses an easier way to link with other businesses and individuals at a
very low cost, it is quickly becoming the infrastructure of choice for electronic commerce.
________2) E-business and e-commerce mean the same thing.
________3) Third-party Web sites purchase content from syndicators.
________4) Providing a digital environment where buyers and sellers can establish prices for products is a
characteristic of the online marketplace Internet business model.
________5) Maintaining a micropayment system and online credit transaction processing are essential to any
company pursuing electronic commerce.
________6) Order fulfillment can be the most expensive and sometimes the most critical operation in e-commerce.
________7) Generalized Audit Software (GAS) are powerful tools in the IT auditor's toolkit.
________8) CAATs are procedures that assist IT auditors in obtaining sufficent, reliable, relevant and useful evidence
to support predefined audit objectives.
________9) One of the disadvantages of Integrated Test Facility (ITF) is that it does not allow testing of “live” data.
________10) The objective of parallel simulation method is to test the integrity of a client's application.

MULTIPLE CHOICE: Encircle the letter of the correct answer. NO ERASURES ALLOWED.

1) The Internet:

A) is providing the infrastructure for electronic business because its technology and technology standards can
also be used to make information flow seamlessly from one part of the organization to another.
B) is rapidly becoming the infrastructure of choice for electronic commerce because it offers businesses an
even easier way to link with other businesses and individuals at a very low cost.
C) is creating a universal technology platform for buying and selling goods and for driving important business
processes inside the firm.
D) reduces agency costs.
E) provides a much lower cost and easier to use alternative for coordination activities than proprietary
networks.
F) all of the above.

2) Which of the following is a graphic display on a Web page used for advertising?

A) Banner ad
B) Pop-up ad
C) Icon
D) Exchange

4) The ability of a party engaged in a transaction to deny either their participation or certain characteristics of the
transaction itself

A) Audit trailing
B) Protocol
C) Repudiation
D) EDI

5) A private intranet that is extended to authorized users outside the company is called a(n):

A) extranet.
B) none of the above.
C) outernet.
D) virtual network.
E) intranet.

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 F) consumer net.

6) Electronic payment systems include:

A) stored value payment systems.

B) credit card payments.
C) peer-to-peer payment systems.
D) electronic billing presentment and payment systems.
E) accumulated balance digital payment systems.
F) all of the above.

7) Doing business over the Internet:

A) can waste thousands and even millions of dollars building and maintaining a Web site that fails to deliver
the desired results.
B) is not necessarily more efficient or cost effective than traditional business methods.
C) may be successful, yet even successful Web sites can incur very high costs.
D) may require heavy outlays for warehousing, customer service call centres, and customer acquisition.
E) means retailers may not need to pay for costly storefronts and retail workers.
F) all of the above.

8) The following are application validation techniques except

A) test data
B) integrated Test Facility
C) stratification
D) parallel simulation

9) Which of the following will not be detected by CAATs

A) ghost employees in payroll

B) duplicate claims in expenditures/payables
C) vendor kickbacks and bid rigging
D) management fraud

10) The two main types of CAATs

A) techniques to validate client applications

B) techniques to verify data integrity
C) both A and B
D) A only

-END OF EXAM-

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