Department of Accountancy and Taxation

COLLEGE OF ARTS AND SCIENCES

San Beda College
(Subject)
ACC18 AUDIT IN CIS ENVIRONMENT
Quiz 2 finals:

Prof. Sir AIAN Bauzon

2nd Sem AY 2014-2015

CHAPTER 8
TRUE/FALSE
1.
2.

The database approach to data management is sometimes called the flat file approach.
The two fundamental components of data structures are organization and access method.

3.

6.
7.
8.
9.
10.
11.
12.

When a large portion of the file is to be processed in one operation such as payroll, sequential data
structures are an inefficient method of organizing a file.
An advantage of using an indexed random file structure is that records are easily added and deleted.
The hierarchical database model forces users to navigate between data elements using predefined
structured paths.
A network model does not allow children files to have multiple parent files.
The physical database is an abstract representation of the database.
A customer name and an unpaid balance is an example of a one-to-many relationship.
In the relational model, a data element is called a relation.
Data normalization groups data attributes into tables in accordance with specific design objectives.
Under the database approach, data is viewed as proprietary or owned by users.
VSAM file structures are most effective where rapid access to individual records is a priority need.

13.
14.
15.

A join builds a new table by creating links.

The deletion anomaly is the least important of the problems affecting unnormalized databases.
EAMs allow auditors to identify significant transactions for substantive testing.

16.
17.
18.
19.
20.
21.
22.

Generalized audit software packages are used to assist the auditor in performing substantive tests.
GAS can be used with simple data structures but not complex structures
Logical database design is the foundation of the conceptual design.
An entity is any physical thing about which the organization wishes to capture data.
An ER diagram is a graphical representation of a data model.
The term occurrence is used to describe the number of attributes or fields pertaining to a specific entity.
Cardinality describes the number of possible occurrences in one table that are associated with a single
occurrence in a related table.
A table in third normal form is free of partial dependencies, multiple dependencies, and transitive
dependencies.
Improperly normalized databases are associated with three types of anomalies: the update anomaly, the
insertion anomaly, and the deletion anomaly.

4.
5.

23.
24.

MULTIPLE CHOICE
1.

2.

3.

4.

An inventory record contains part number, part name, part color, and part weight. These individual items are
called
a.
fields.
b.
stored files.
c.
bytes.
d.
occurrences.
It is appropriate to use a sequential file structure when
a.
records are routinely inserted.
b.
single records need to be retrieved.
c.
records need to be scanned using secondary keys.
d.
a large portion of the file will be processed in one operation.
Which of the following statements is not true?
a.
Indexed random files are dispersed throughout the storage device without regard for physical
proximity with related records.
b.
Indexed random files use disk storage space efficiently.
c.
Indexed random files are efficient when processing a large portion of a file at one time.
d.
Indexed random files are easy to maintain in terms of adding records.
Which characteristic is associated with the database approach to data management?
a. data sharing
b. multiple storage procedures
c. data redundancy
d. excessive storage costs

5.

6.

7.

8.

9.

10.

11.

12.

Which statement is not correct? The VSAM structure

a.
is used for very large files that need both direct access and batch processing.
b.
may use an overflow area for records.
c.
provides an exact physical address for each record.
d.
is appropriate for files that require few insertions or deletions.
Which statement is true about a hashing structure?
a.
The same address could be calculated for two records.
b.
Storage space is used efficiently.
c.
Records cannot be accessed rapidly.
d.
A separate index is required.
In a hashing structure,
a.
two records can be stored at the same address.
b.
pointers are used to indicate the location of all records.
c.
pointers are used to indicate the location of a record with the same address as another record.
d.
all locations on the disk are used for record storage.
Pointers can be used for all of the following except
a.
to locate the subschema address of the record.
b.
to locate the physical address of the record.
c.
to locate the relative address of the record.
d.
to locate the logical key of the record.
Pointers are used
a.
to link records within a file.
b.
to link records between files.
c.
to identify records stored in overflow.
d.
all of the above.
In a hierarchical model
a. links between related records are implicit
b. the way to access data is by following a predefined data path
c. an owner (parent) record may own just one member (child) record
d. a member (child) record may have more than one owner (parent)
Which term is not associated with the relational database model?
a. tuple
b. attribute
c. collision
d. relation
In the relational database model
a. relationships are explicit
b. the user perceives that files are linked using pointers
c. data is represented on two-dimensional tables
d. data is represented as a tree structure

13.

In the relational database model all of the following are true except
a. data is presented to users as tables
b. data can be extracted from specified rows from specified tables
c. a new table can be built by joining two tables
d. only one-to-many relationships can be supported

14.

In a relational database
a. the users view of the physical database is the same as the physical database
b. users perceive that they are manipulating a single table
c. a virtual table exists in the form of rows and columns of a table stored on the disk
d. a programming language (COBOL) is used to create a users view of the database

15.

The update anomaly in unnormalized databases

a. occurs because of data redundancy
b. complicates adding records to the database
c. may result in the loss of important data
d. often results in excessive record insertions

16.

The most serious problem with unnormalized databases is the

a. update anomaly
b. insertion anomaly
c. deletion anomaly
d. none of the above

17.

The deletion anomaly in unnormalized databases

a. is easily detected by users
b. may result in the loss of important data
c. complicates adding records to the database
d. requires the user to perform excessive updates

18.

Which statement is correct?

a. in a normalized database, data about vendors occur in several locations
b. the accountant is responsible for database normalization
c. in a normalized database, deletion of a key record could result in the destruction of the audit

d.

trail
connections between M:M tables are provided by a link table

19.

Which of the following is not a common form of conceptual database model?

a. hierarchical
b. network
c. sequential
d. relational

20.

Which of the following is a relational algebra function?

a. restrict
b. project
c. join
d. all are relational algebra functions

21.

Entities are
a. nouns that are depicted by rectangles on an entity relationship diagram
b. data that describe the characteristics of properties of resources
c. associations among elements
d. sets of data needed to make a decision
A user view
a. presents the physical arrangement of records in a database for a particular user
b. is the logical abstract structure of the database
c. specifies the relationship of data elements in the database
d. defines how a particular user sees the database
All of the following are advantages of a partitioned database except
a. increased user control by having the data stored locally
b. deadlocks are eliminated
c. transaction processing response time is improved
d. partitioning can reduce losses in case of disaster

22.

23.

24.

Each of the following is a relational algebra function except

a. join
b. project
c. link
d. restrict

25.

A table is in first normal form when it is

a. free of repeating group data
b. free of transitive dependencies
c. free of partial dependencies
d. free of update anomalies
e. none of the above

26.

A table is in second normal form when it is

a. free of repeating group data
b. free of transitive dependencies
c. free of partial dependencies
d. free of insert anomalies
e. none of the above
A table is in third normal form when it is
a. free of repeating group data
b. free of transitive dependencies
c. free of partial dependencies
d. free of deletion anomalies
e. none of the above

27.

28.

Which statement is not true? Embedded audit modules

a. can be turned on and off by the auditor.
b. reduce operating efficiency.
c. may lose their viability in an environment where programs are modified frequently.
d. identify transactions to be analyzed using white box tests.

29.

Generalized audit software packages perform all of the following tasks except
a. recalculate data fields
b. compare files and identify differences
c. stratify statistical samples
d. analyze results and form opinions

30.

A transitive dependency
a.
is a database condition that is resolved through special monitoring software.
b.
is a name given to one of the three anomalies that result from unnormalized database tables.
c.
can exist only in a table with a composite primary key.
d.
cannot exist in tables that are normalized at the 2NF level.
e.
is none of the above.

CHAPTER 11
TRUE/FALSE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.

The primary goal of installing an ERP system is reducing system maintenance costs.
The recommended data architecture for an ERP includes separate operational and data warehouse
databases.
A closed database architecture shares data easily.
ERP systems support a smooth and seamless flow of information across organizations.
OLAP stands for on-line application processing.
The primary goal of installing an ERP system is achieving business process reengineering to improve
customer service, reduce production time, increase productivity, and improve decision-making.
Day-to-day transactions are stored in the operational database.
Data mining typically focuses on the operational databases.
Companies are more likely to modify an ERP to accommodate the company than to modify company
processes to accommodate the ERP.
If a chosen ERP cannot handle a specific company process bolt-on software may be available.
Core applications are also called OLAP.
The client/server model is a form of network technology in which user computers, called clients, access ERP
programs and data via a host computer called a server.
A data warehouse is a relational or multi-dimensional database that may require hundreds of gigabytes of
storage.
Drill-down capability is an OLAP feature of data mining tools.
Supply-chain management software is a type of program that supports efforts relative to moving goods from
the raw material stage to the customer.
In two-tier architecture, the database and application functions are separated.
Slicing and dicing permits the disaggregation of data to reveal underlying details.
Data entered into the data warehouse must be normalized.
OLAP includes decision support, modeling, information retrieval, and what-if analysis.
Efficient supply-chain management provides firms with a competitive advantage.
The big-bang approach involves converting from old legacy systems to the new ERP in one implementation
step.
In a two-tier architecture approach is used primarily for wide area network (WAN) applications.
Data cleansing is a step performed by external auditors to identify and repairing invalid data prior to the
audit.
Organizations using ERP systems employ an internal control tool called a role.
In spite of the high technology employed in ERP systems, critical business controls such as a three way
match always performed manually.
The role model assigns specific access privileges directly to individuals.
An access control list specifies the user-ID, the resources available to the user, and the level of permission
granted.
RBAC assigns access permissions to the role an individual plays in the organization rather than directly to
the individual.
A problem with RBAC is that managers tend to create unnecessary roles
The implementation of an ERP creates an environment with a single point of failure, which places the
organization at risk.

MULTIPLE CHOICE
1.

Goals of ERP include all of the following except

a. improved customer service
b. improvements of legacy systems
c. reduced production time
d. increased production

2.

Core applications are

a. sales and distribution
b. business planning
c. shop floor control and logistics
d. all of the above

3.

Data warehousing processes does not include

a. modeling data
b. condensing data
c. extracting data
d. transforming data

4.

Which of the following is usually not part of an ERPs core applications?

a. OLTP applications
b. sales and distribution applications
c. business planning applications
d. OLAP applications

5.

Which of the following is usually not part of an ERPs OLAP applications?

a. logistics
b. decision support systems

c.
d.

ad hoc analysis
what-if analysis

6.

Which of the following statements is least likely to be true about a data warehouse?
a. It is constructed for quick searching and ad hoc queries.
b. It was an original part of all ERP systems.
c. It contains data that are normally extracted periodically from the operating databases.
d. It may be deployed by organizations that have not implemented an ERP.

7.

Which of the following statements is not true?

a. In a typical two-tier client server system, the server handles both application and database
duties.
b. Client computers are responsible for presenting data to the user and passing user input back
to the server.
c. In three-tier client server architecture, one tier is for user presentations, one is for database
and applications, and the third is for Internet access.
d. The database and application functions are separate in the three-tier model.
Which statements about data warehousing is not correct?
a. The data warehouse should be separate from the operational system.
b. Data cleansing is a process of transforming data into standard form.
c. Drill-down is a data-mining tool available to users of OLAP.
d. Normalization is an requirement of databases included in a data warehouse.

8.

9.

Which statement about ERP installation is least accurate?

a. For the ERP to be successful, process reengineering must occur.
b. ERP fails because some important business process is not supported.
c. When a business is diversified, little is gained from ERP installation.
d. The phased-in approach is more suited to diversified businesses.

10.

Which statement is true?

a. ERPs are infinitely scalable.
b. Performance problems usually stem from technical problems, not business process
reengineering.
c. The better ERP can handle any problems an organization can have.
d. ERP systems can be modified using bolt-on software.

11.

Auditors of ERP systems

a. need not worry about segregation of duties.
b. may feel that the data warehouse is too clean and free from errors.
c. find independent verification easy.
d. need not worry about system access since the ERP determines it.

12.

Legacy systems are

a. old manual systems that are still in place.
b. flat file mainframe systems developed before client-server computing became standard.
c. stable database systems after debugging.
d. advanced systems without a data warehouse.

13.A data
a.
b.
c.
d.

mart is
another name for a data warehouse.
a database that provides data to an organizations customers.
an enterprise resource planning system.
a data warehouse created for a single function or department.

14.

Most ERPs are based on which network model?

a. peer to peer
b. client-server
c. ring topology
d. bus topology

15.

On-line transaction processing programs

a. are bolt-on programs used with commercially available ERSs.
b. are available in two modelstwo-tier and three-tier.
c. handle large numbers of relatively simple transactions.
d. allow users to analyze complex data relationships.

16.

Supply chain management software

a. is typically under the control of external partners in the chain.
b. links all of the partners in the chain, including vendors, carriers, third-party firms, and
information systems providers.
c. cannot be integrated into an overall ERP.
d. none of the above

17.

The setup of a data warehouse includes

a. modeling the data
b. extracting data from operational databases

18.

c. cleansing the data

d. all of the above
Extracting data for a data warehouse
a. cannot be done from flat files.
b. should only involve active files.
c. requires that the files be out of service.
d. follows the cleansing of data.

19.

Data cleansing involves all of the following except

a. filtering out or repairing invalid data
b. summarizing data for ease of extraction
c. transforming data into standard business terms
d. formatting data from legacy systems

20.

Separating the data warehouse from the operations databases occurs for all of the following reasons except
a. to make the management of the databases more economical
b. to increase the efficiency of data mining processes
c. to integrate legacy system data into a form that permits entity-wide analysis
d. to permit the integration of data from diverse sources

21.

Closed database architecture is

a. a control technique intended to prevent unauthorized access from trading partners.
b. a limitation inherent in traditional information systems that prevents data sharing.
c. a data warehouse control that prevents unclean data from entering the warehouse.
d. a technique used to restrict access to data marts.
e. a database structure that many of the leading ERPs use to support OLTP applications.

22.

Which of the following is NOT as a risk associated with ERP implementation.?

a. A drop in firm performance after implementation because the firm looks and works
differently than it did while using a legacy system.
b. Implementing companies have found that staff members, employed by ERP consulting firms,
do not have sufficient experience in implementing new systems.
c. Implementing firms fail to select systems that properly support their business activities.
d. The selected system does not adequately meet the adopting firms economic growth.
e. ERPs are too large, complex, and generic for them to be well integrated into most company
cultures.
Which statement is LEAST accurate?
a. Implementing an ERP system has as much to do with changing the way an organization does
business than it does with technology.
b. The big-bang approach to ERP implementation is generally riskier than the phased in
approach.
c. To take full advantage of the ERP process, reengineering will need to occur.
d. A common reason for ERP failure is that the ERP does not support one or more important
business processes of the organization

23.

24.

Auditors of ERP systems

a. are concerned about segregation of duties just as they would be in traditional systems.
b. focus on output controls such as independent verification because internal processing
controls are known to be correct since best practices are used..
c. routinely audit data in the data warehouse because it is know to be clean and free from
errors.
d. need not review access levels granted to users since these are determined when the system
is configured and never change.

25.

Which statement is most correct?

a. SAP is more suited to service industries than manufacturing clients.
b. J.D. Edwardss ERP is designed to accept the best practices modules of other vendors.
c. Oracle evolved from a human resources system.
d. PeopleSoft is the worlds leading supplier of software for information management.
e. SoftBrands provides enterprise software for the hospitality and manufacturing sectors.

26.

Auditors of ERP systems

a. need not be concerned about segregation of duties because these systems possess strong computer
controls.
b. focus on output controls such as independent verification to reconcile batch totals.
c. are concerned that managers fail to exercise adequate care in assigning permissions.
d. do not view the data warehouse as an audit or control issue at all because financial records are not
stored there.
e. need not review access levels granted to users because these are determined when the system is
configured and never change.
END OF EXAM
THAT IN ALL THINGS, GOD MAY BE GLORIFIED

ANSWER SHEET: QUIZ 2 CIS FINALS

NAME: ____________________________________ SECTION: _____________ SCORE: ______

1.
2.
3.
4.
5.
6.

7.
8.
9.
10.
11.
12.

1.
2.
3.
4.
5.

6.
7.
8.
9.
10.

1.
2.
3.
4.
5.

6.
7.
8.
9.
10.

1.
2.
3.
4.
5.

6.
7.
8.
9.
10.

CHAPTER 8 TRUE or FALSE

13.
14.
15.
16.
17.
18.
Multiple Choice
11.
16.
12.
17.
13.
18.
14.
19.
15.
20.

CHAPTER 9 TRUE or FALSE

11.
16.
12.
17.
13.
18.
14.
19.
15.
20.
Multiple Choice
11.
16.
12.
17.
13.
18.
14.
19.
15.
20.

19.
20.
21.
22.
23.
24.
21.
22.
23.
24.
25.

26.
27.
28.
29.
30.

21.
22.
23.
24.
25.

26.
27.
28.
29.
30.

21.
22.
23.
24.
25.

26.

THAT IN ALL THINGS, GOD MAY BE GLORIFIED