Accounting Information Systems Global 14th Edition Romney Test Bank

Accounting Information Systems
Global 14th Edition Romney Test Bank

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Accounting Information Systems, 14e, Global Edition (Romney/Steinbart)
Chapter 10 Processing Integrity and Availability Controls
1 Identify and explain the input, processing, and output controls designed to ensure processing
integrity.
1) The best example of an effective payroll transaction file hash total would most likely be
A) sum of net pay.
B) total number of employees.
C) sum of hours worked.
D) total of employees' social security numbers.
Answer: D
Concept: Processing integrity
Objective: Learning Objective 1
Difficulty: Easy
AACSB: Analytical Thinking
2) The best example of an effective payroll transaction file financial total would most likely be
A) sum of net pay.
C) sum of hours worked.
Answer: A
Difficulty: Easy
3) The best example of an effective payroll transaction file record count would most likely be
A) sum of net pay.
C) sum of FICA.
Answer: B
Difficulty: Easy
1
Copyright © 2018 Pearson Education, Ltd.
4) Error logs and review are an example of
A) data entry controls.
B) data transmission controls.
C) output controls.
D) processing controls.
Answer: A
Difficulty: Easy
5) Following is the result of batch control totals on employee Social Security numbers in a
payroll processing transaction:
Values
Correct Entered
Values From During
Masterfile Processing
487358796 487358796
534916487 534916487
498374526 498374526
514873420 514873420
534196487 534916487
678487853 678487853
471230589 471230589
3719438158 3720158158
The difference in the control totals is 720,000. Which data entry control would best prevent
similar data entry errors in the future?
A) Batch check.
B) Validity check.
C) Check digit.
D) Sequence check.
Answer: C
Difficulty: Moderate
AACSB: Reflective Thinking
2
6)
Employee Overtime
Name Hours
Mary Jones 10
Tom Davis -5
Amy Dunn 3
Kate Smith 2
Kevin White -4
Jill Brown 800
The total overtime hours is 806. Which data entry control would best prevent similar data entry
errors in the future?
A) Sequence check.
B) Validity check.
C) Check digit.
D) Reasonableness test.
Answer: D
7) Which of the following data entry controls would not be useful if you are recording the
checkout of library books by members?
A) Sequence check.
B) Prompting.
C) Validity check.
D) Concurrent update control.
Answer: A
8) A customer forget to include her account number on her check, and the accounts receivable
clerk credited her payment to a different customer with the same last name. Which control could
have been used to most effectively to prevent this error?
A) Closed-loop verification.
B) Duplicate values check.
C) Reasonableness test.
D) Reconciliation of a batch control total.
Answer: A
Difficulty: Easy
3
9) If invoices are processed in groups of fifty, which fields from the document shown below
would not be used to create a hash control total?
A) Amount.
B) Item Number.
C) Quantity Ordered.
D) Sales Order number.
Answer: A
4
10) ________ is a data entry input control that involves summing the first four digits of a
customer number to calculate the value of the fifth digit, then comparing the calculated number
to the number entered during data entry.
A) Validity check
B) Duplicate data check
C) Closed-loop verification
D) Check digit verification
Answer: D
Difficulty: Easy
11) ________ is a data entry input control that involves checking the accuracy of input data by
using it to retrieve and display other related information.
A) Validity check
Answer: C
Difficulty: Easy
12) ________ is a data entry input control that requests each input data item and waits for an
acceptable response, ensures that all necessary data are entered.
A) Prompting
Answer: A
Difficulty: Easy
13) All of the following controls for online entry of a sales order would be useful except
A) check digit verification on the dollar amount of the order.
B) validity check on the inventory item numbers.
C) field check on the customer ID and dollar amount of the order.
D) concurrent update control.
Answer: A
Difficulty: Challenging
5
14) The inventory tracking system shows that 12 laptop were on hand before a customer brings
two laptops to the register for purchase. The cashier accidentally enters the quantity sold as 20
instead of 2. Which data entry control would most effectively prevent this error?
A) Limit check.
B) Sign check.
C) Field check.
D) Validity check.
Answer: B
Difficulty: Easy
15) A payroll clerk accidentally entered an employee's hours worked for the week as 380 instead
of 38. The data entry control that would best prevent this error would be
A) a limit check.
B) a check digit.
C) batch total reconciliation.
D) a field check.
Answer: A
Difficulty: Easy
16) The data entry control that would best prevent entering an invoice received from a vendor
who is not on an authorized supplier list is
A) a validity check.
B) an authorization check.
C) a check digit.
D) closed-loop verification.
Answer: A
Difficulty: Easy
17) Form design is one example of a(n)

A) output control.
B) processing control.
C) input control.
D) data entry control.
Answer: C
Difficulty: Easy
6
18) Cancellation and storage of documents is one example of a(n)
A) output control.
B) processing control.
C) input control.
D) data entry control.
Answer: C
Difficulty: Easy
19) Sequentially prenumbered forms are an example of a(n)

A) data entry control.
B) data transmission control.
C) processing control.
D) input control.
Answer: D
Difficulty: Easy
20) Turnaround documents are an example of a(n)

B) output control.
D) input control.
Answer: D
Difficulty: Easy
21) A validity check is an example of

A) a data entry control.
B) an output control.
C) a data transmission control.
D) an input control.
Answer: A
Difficulty: Easy
7
22) Checksums is an example of a(n)
C) output control.
D) processing control.
Answer: B
Difficulty: Easy
23) Reconciliation procedures is an example of

A) a data entry control.
B) a data transmission control.
C) an output control.
D) a processing control.
Answer: C
Difficulty: Easy
24) Data matching is an example of a(n)

D) input control.
Answer: C
Difficulty: Easy
25) A hash total is an example of which control below?

A) Data entry control.
B) Data transmission control.
C) Processing control.
D) Output control.
Answer: A
8
26) Cancellation and storage of documents means
A) documents are defaced and stored.
B) documents are defaced before being shredded.
C) cancellation data are copied from documents before they are stored.
D) data are copied from a document and stored before it is being shredded.
Answer: A
27) A completeness check is an example of a(n)

A) data transmission control.
B) output control.
D) input control.
Answer: D
Difficulty: Easy
28) A ________ ensures input data will fit into the assigned field.
A) limit check
B) size check
C) range check
D) field check
Answer: B
Difficulty: Easy
29) A ________ determines whether the input data are of the proper type.
A) limit check
B) size check
C) range check
D) field check
Answer: D
Difficulty: Easy
9
30) ________ tests a numerical amount to ensure that it does not exceed a predetermined value
nor fall below another predetermined value.
A) Completeness check
B) Field check
C) Limit check
D) Range check
Answer: D
Difficulty: Easy
31) A ________ determines if all required data items have been entered.
A) completeness check
B) field check
C) limit check
D) range check
Answer: A
Difficulty: Easy
32) A ________ determines the correctness of the logical relationship between two data items.
A) range check
B) reasonableness test
C) sign check
D) size check
Answer: B
Difficulty: Easy
33) A ________ determines the correctness of the logical relationship between two data items.
A) field check
B) alpha-numeric check
C) range check
D) reasonableness test
Answer: D
Difficulty: Easy
10
34) A ________ tests a numerical amount to ensure that it does not exceed a predetermined
value.
A) completeness check
B) limit check
C) range check
D) sign check
Answer: B
Difficulty: Easy
35) The batch processing data entry control that sums a field that contains dollar values is called
A) record count.
B) financial total.
C) hash total.
D) sequence check.
Answer: B
Difficulty: Easy
36) The batch processing data entry control that sums a non-financial numeric field is called
A) record count.
B) financial total.
C) hash total.
D) sequence check.
Answer: C
Difficulty: Easy
37) When the staff accountant enters a correct customer number, the data entry screen displays
the customer name and address. This is an example of
A) prompting.
B) preformatting.
C) closed-loop verification.
D) error checking.
Answer: C
Difficulty: Easy
11
38) A ________ control ensures that the correct and most current files are being updated.
A) cross-footing balance test
B) data matching
C) file labels
D) write-protect mechanism
Answer: C
39) The batch processing data entry control that sums the number of items in a batch is called
A) financial total.
B) hash total.
C) record count.
D) sequence check.
Answer: C
Difficulty: Easy
40) A ________ is a data entry control that compares the ID number in transaction data to a
master file to verify that the ID number exists.
A) reasonableness test
B) user review
C) data matching
D) validity check
Answer: D
Difficulty: Easy
41) What control are zero balance tests an example of?

A) Data entry controls.
B) Output controls.
C) Processing controls.
D) Source data controls.
Answer: C
Difficulty: Easy
12
42) A computer operator accidentally used the wrong master file when updating a transaction
file. As a result, the master file data is now unreadable. Which control could best have prevented
this from happening?
A) Header record.
B) Validity check.
C) Trailer record.
D) Parity check.
Answer: A
Difficulty: Easy
43) When opening an Excel file, Sonja received a message saying that the file is locked for
editing. This is happening because
A) the file is corrupted due to a computer virus.
B) Sonja opened the file as read-only.
C) concurrent update controls have locked the file.
D) there is no problem. Sonja is editing the file, so it is locked.
Answer: C
44) The control that protects records from errors that occur when two or more users attempt to
update the same record simultaneously is called
A) concurrent update controls.
B) cross-footing balance test.
C) data conversion controls.
D) recalculation of batch totals.
Answer: A
Difficulty: Easy
13
45) The control that verifies accuracy by comparing two alternative ways of calculating the same
total is called
A) concurrent update controls.
B) cross-footing balance test.
C) data conversion controls.
D) recalculation of batch totals.
Answer: B
Difficulty: Easy
46) Modest Expectations Investment Services (MEIS) allows customers to manage their
investments over the Internet. If customers attempt to sell more shares of a stock than they have
in their account, an error message is displayed. This is an example of a
A) reasonableness test.
B) field check.
C) validity check.
D) limit check.
Answer: A
47) Modest Expectations Investment Services (MEIS) allows customers to manage their
investments over the Internet. If customers attempt to spend more money than they have in their
account, an error message is displayed. This is an example of a
A) reasonableness test.
B) field check.
C) validity check.
D) limit check.
Answer: A
14
48) The Spontaneous Combustion Rocket Shoppe in downtown Fargo, North Dakota, generates
three quarters of its revenue from orders taken over the Internet. The revenue clearing account is
debited by the total of cash and credit receipts and credited by the total of storefront and Internet
sales. This is an example of a
A) data integrity test.
B) zero-balance test.
C) trial balance audit.
D) cross-footing balance test.
Answer: B
49) A ________ control entails verifying that the proper number of bits are set to the value 1 in
each character received.
A) echo check
B) field check
C) parity check
D) trailer record
Answer: C
Difficulty: Easy
50) Which of the following is not a risk associated with the data input process?
A) Data is invalid.
B) Data is incomplete.
C) Data is inaccurate.
D) Data is corrupted.
Answer: D
51) Which of the following is an example of a turnaround document?

A) A receipt a customer must use to return the goods purchased.
B) A telephone bill the customer must return with payment.
C) A paycheck stub that must be used in the employee's tax return.
D) A customer loyalty card used every time a customer purchases goods or services.
Answer: B
15
52) Which of the following is an important control to prevent buffet overflow vulnerabilities?
A) Limit check.
B) Size check.
C) Range check.
D) Field check.
Answer: B
53) Prompting is a control that helps ensure

A) transaction data are not lost.
B) transactions data are accurate.
C) transactions data are complete.
D) transaction data are valid.
Answer: C
54) Discuss ways that can help ensure the processing integrity of electronic voting.
Answer: Here are several ways that can help ensure the processing integrity of electronic voting:
(1) Access to the source code. The government should keep copies of the source code of
electronic voting software. (2) Hardware checks. Frequent on-site spot checks of the computer
chips in voting machines. (3) Tests of physical security. Voting machines should be tested. (5)
Background checks. All voting machine manufacturers should be carefully scrutinized and
registered.
16
2 Identify and explain controls designed to ensure systems availability by minimizing the risk
of system downtime and enabling efficient recovery and resumption of operations.
1) What is the most effective way to ensure information system availability?

A) High bandwidth.
B) Maintain a hot site.
C) Maintain a cold site.
D) Frequent backups.
Answer: B
Concept: Availability
Difficulty: Easy
2) Which of the following statements is true with regards to system availability?

A) Human error does not threaten system availability.
B) Threats to system availability can be completely eliminated.
C) Proper controls can maximize the risk of threats causing significant system downtime.
D) Threats to system availability include hardware and software failures as well as natural and
man-made disasters.
Answer: D
Difficulty: Easy
3) Which of the following is not an objective of a disaster recovery plan?

A) Minimize the extent of the disruption, damage or loss.
B) Establish a permanent alternative means of processing information.
C) Resume normal operations as soon as possible.
D) Train employees for emergency operations.
Answer: B
Difficulty: Easy
4) A disaster recovery plan typically does not include

A) scheduled electronic vaulting of files.
B) backup computer and telecommunication facilities.
C) a system upgrade due to operating system software changes.
D) uninterruptible power systems installed for key system components.
Answer: C
Difficulty: Easy
17
5) A facility that contains all the computing equipment the organization needs to perform its
essential business activities is known as a
A) cold site.
B) hot site.
C) remote site.
D) subsidiary location.
Answer: B
Difficulty: Easy
6) A facility that is pre-wired for necessary telecommunications and computer equipment, but
doesn't have equipment installed, is known as a
A) cold site.
B) hot site.
C) remote site.
D) subsidiary location.
Answer: A
Difficulty: Easy
7) When a computer system's files are automatically duplicated on a second data storage system
as they are changed, the process is referred to as
A) real-time mirroring.
B) batch updating.
C) consistency control.
D) double-secure storage.
Answer: A
Difficulty: Easy
18
8) ________ enables a system to continue functioning in the event that a particular component
fails.
A) An incremental backup procedure
B) Fault tolerance
C) Preventive maintenance
D) A concurrent update control
Answer: B
9) ________ is a plan that specifies how to resume not only IT operations but all business
processes in the event of a major calamity.
A) Disaster recovery plan
B) Business continuity plan
C) Real-time monitoring plan
D) Business contingency plan
Answer: B
10) A copy of a database, master file, or software that will be retained indefinitely as a historical
record is known as a(n)
A) archive.
B) cloud computing.
C) differential backup.
D) incremental backup.
Answer: A
Difficulty: Easy
11) While this type of backup process takes longer than the alternative, restoration is easier and
faster.
A) archive
B) cloud computing
C) differential backup
D) incremental backup
Answer: C
19
12) ________ involves copying only the data items that have changed since the last partial
backup.
A) Archive
B) Cloud computing
C) Differential backup
D) Incremental backup
Answer: D
Difficulty: Easy
13) ________ copies all changes made since the last full backup.
A) Archive
B) Cloud computing
C) Differential backup
D) Incremental backup
Answer: C
Difficulty: Easy
14) The maximum amount of time between backups is determined by a company's

A) recovery time objective.
B) recovery point objective.
C) recovery objective.
D) maximum time recovery objective.
Answer: B
15) The maximum acceptable down time after a computer system failure is determined by a
company's
A) recovery time objective.
B) recovery point objective.
C) recovery objective.
D) maximum time recovery objective.
Answer: A
20
16) The recovery point objective is inversely related to the frequency of backups.
Answer: TRUE
17) The accounting department at Synergy Hydroelectric records an average of 12,500

transactions per hour. By cost-benefit analysis, managers have concluded that the maximum
acceptable loss of data in the event of a system failure is 50,000 transactions. If the firm's
recovery time objective is 120 minutes, then the worst case recovery time objective is
A) 2 hours.
B) 4 hours.
C) 6 hours.
D) 8 hours.
Answer: D
18) The accounting department at Aglaya Telecom records an average of 8,000 transactions per
hour. A cost-benefit analysis leads management to conclude that the maximum acceptable
amount of data loss is 32,000 transactions. If the firm's recovery time objective is 240 minutes,
then the worst case recovery time objective is
A) 4 hours.
B) 8 hours.
C) 16 hours.
D) 24 hours.
Answer: C
21
hour and have a recovery time objective of 240 minutes. Aglaya recently suffered a hardware
malfunction and it took the company 16 hours to recover their lost data. How many transactions
did Aglaya recover?
A) 52,000 transactions.
B) 5,200 transactions.
C) 32,000 transactions.
D) 3,200 transactions.
Answer: C
hour and have a recovery time objective of 120 minutes. Aglaya recently suffered a hardware
malfunction and it took the company 20 hours to recover their lost data. How many transactions
did Aglaya recover?
A) 20,000 transactions.
B) 30,000 transactions.
C) 40,000 transactions.
D) 50,000 transactions.
Answer: D
21) Probably the most important change management control is

A) monitoring user rights and privileges during the change process.
B) testing all changes thoroughly prior to implementation on a stand-alone computer.
C) updating all documentation to reflect changes made to the system.
D) management's careful monitoring and review.
Answer: D
Difficulty: Easy
22
22) Identify the statement below which is true.
A) Cloud computing is a control technique for system availability.
B) Cloud computing eliminates the need for backup of applications and data.
C) Cloud computing eliminates the need for companies to own their own software and servers.
D) Cloud computing refers to the practice of storing application files and backup data on
satellites "in the clouds."
Answer: A
Difficulty: Easy
23) Discuss how cloud computing could both positively and negatively affect system
availability.
Answer: Cloud computing significantly reduces the risk that a single event would result in
system unavailability, since the 'cloud' consists of banks of redundant servers, in multiple
locations. However, since users don't own the cloud, if a provider goes out of business, users
may find it very difficult to access applications and data stored in the cloud. Additionally, users
should evaluate the security and availability controls of the cloud provider before transacting
business.
Difficulty: Easy
24) Define and contrast a recovery point objective and a recovery time objective. Provide a
numeric example.
Answer: A recovery point objective is the maximum amount of time that a firm is willing to risk
the possible loss of transaction data. A recovery time objective is the maximum amount of time
that a firm is willing to risk losing access to its accounting information system due to disaster.
Students' answers may vary depending on example given.
25) What is the primary objective of ensuring systems and information are available for use
whenever needed?
A) To minimize system downtime.
B) To minimize system expense.
C) To maximize system processing speed.
D) To maximize sales.
Answer: A
23
26) It is impossible to eliminate the risk of downtime.
Answer: TRUE
Difficulty: Easy
27) Training can also reduce the risk of system downtime.

Answer: TRUE
Difficulty: Easy
28) With regards to systems availability, deploying and using multiple components provides an
AIS with
A) fault tolerance.
B) cost savings.
C) enhanced processing speed.
D) maximum sales.
Answer: A
29) Which of the following is not a common design feature of housing mission-critical servers
and databases?
A) Adequate air-conditioning systems to reduce the likelihood of damage due to overheating.
B) Overhead sprinklers to provide protection from fire.
C) Cables with special plugs that cannot be easily removed.
D) Surge-protection devices to provide protection against temporary power fluctuations.
Answer: B
24
30) To protect against malware, it is important that antivirus software automatically examine
________ introduced into a system.
A) CDs
B) e-mail
C) flash drives
D) all of the above
Answer: D
Difficulty: Easy
31) Which of the following is a key control regarding the minimization of system downtime?
A) fault tolerance
B) disaster recovery plans
C) backup procedures
D) all of the above
Answer: A
32) To minimize the risk of system downtime, Grizzly Corporation stores its data on multiple
disk drives simultaneously. This practice is called
A) downtime minimization plan.
B) redundant arrays of independent drives.
C) redundant arrays of independent backups.
D) patch backup management.
Answer: B
33) Which COBIT5 management practice addresses the importance of locating and designing the
data centers housing mission-critical servers and databases so as to minimize the risks associated
with natural and human-caused disasters?
A) DSS01.04
B) DSS04.07
C) DSS03.05
D) DSS04.04
Answer: A
25
34) Whose responsibility is it to determine the amount of time an organization can afford to be
without its information system?
A) The board of directors.
B) Senior management.
C) External auditors.
D) COBIT.
Answer: B
35) Is it best practice for an organization to practice periodically restoring a system from its
backup files?
A) No, doing so might introduce errors into the system's data.
B) No, doing so takes the system offline and prevents customers from being able to access the
system.
C) Yes, doing so verifies the procedure and backup media are working correctly.
D) Yes, doing so improves the efficiency of the system.
Answer: C
36) Best practice requires backups be retained indefinitely.

Answer: FALSE
Difficulty: Easy
37) Which of the following is incorrect with regards to a data archive?

A) Archives can be a copy of a database.
B) Archives should be stored in different locations.
C) Archives are usually encrypted.
D) Physical and logical controls are the primary means of protecting archive files.
Answer: C
26
38) Loreen Tina is the chief lawyer for Tamara Incorporated. The CEO of Tamara Incorporated
asks Loreen whether the company should periodically delete all company e-mail. If Loreen is
well-versed in AIS best practices, she would mostly likely respond,
A) Yes, if we are ever sued, the other attorney will not be able to comb through our e-mail for
evidence.
B) Yes, since e-mail requires a lot of storage space, deleting it periodically will reduce the
amount of information we need to store.
C) No, deleting an organization's e-mail is against the law.
D) No, if we are ever sued we will not be able to draw upon our e-mail records to defend
ourselves.
Answer: D
39) Identify the most important component of a disaster recovery plan below.
A) Documentation.
B) Operating instructions.
C) Periodic testing.
D) On-site and off-site storage.
Answer: C
40) Identify one organization that quickly recovered from September 11th, 2001 due to its
disaster recovery and business continuity plan.
A) New York Stock Exchange
B) NASDAQ
C) New York Fire Department
D) United Airlines
Answer: C
27
41) According to COBIT 5, what should be the common features for locating and designing data
centers housing mission-critical servers and databases?
Answer: Common design features include: (1) Raised floors provide protection from damage
caused by flooding. (2) Fire detection and suppression devices reduce the likelihood of fire
damage. (3) Adequate air-conditioning systems reduce the likelihood of damage to computer
equipment due to overheating or humidity. (4) Cables with special plugs that cannot be easily
removed reduce the risk of system damage due to accidental unplugging of the device. (5) Surge-
protection devices provide protection against temporary power fluctuations that might otherwise
cause computers and other network equipment to crash. (6) An uninterruptible power supply
(UPS) system provides protection in the event of a prolonged power outage, using battery power
to enable the system to operate long enough to back up critical data and safely shut down. (7)
Physical access controls reduce the risk of theft or damage.
28

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Accounting Information Systems

Global 14th Edition Romney Test Bank

17) Form design is one example of a(n)

19) Sequentially prenumbered forms are an example of a(n)

20) Turnaround documents are an example of a(n)

21) A validity check is an example of

23) Reconciliation procedures is an example of

24) Data matching is an example of a(n)

25) A hash total is an example of which control below?

27) A completeness check is an example of a(n)

41) What control are zero balance tests an example of?

51) Which of the following is an example of a turnaround document?

53) Prompting is a control that helps ensure

1) What is the most effective way to ensure information system availability?

2) Which of the following statements is true with regards to system availability?

3) Which of the following is not an objective of a disaster recovery plan?

4) A disaster recovery plan typically does not include

14) The maximum amount of time between backups is determined by a company's

17) The accounting department at Synergy Hydroelectric records an average of 12,500

21) Probably the most important change management control is

27) Training can also reduce the risk of system downtime.

36) Best practice requires backups be retained indefinitely.

37) Which of the following is incorrect with regards to a data archive?

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