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business
accounting information systems

Questions and Answers of Accounting Information Systems

Regarding GDPR, which of the following statements is/are correct?a. It is a regulation enforced by EU.b. It is to protect EU citizens’ personal data.c. It is not relevant to the companies in the
Which organization created the Reporting on an Entity’s Cybersecurity Risk Management Program and Controls: Attestation Guide in 2017?a. SECb. AICPAc. U.S. Congressd. Department of Homeland Security
Match correct descriptions with each network device. COSO ERM Principles a. Using IP address to transport packets b. Using MAC address to transport packets c. Using rules to screen incoming and
Business continuity management is a:a. Preventive control.b. Detective control.c. Corrective control.d. Two of the above are correct.
Encryption is a:a. Preventive control.b. Detective control.c. Corrective control.d. Two of the above are correct.
What is fault tolerance?a. A policy allowing employees to make mistakesb. Using redundant units to continue functioning when a system is failingc. An application that can detect mistakes and correct
Comparing encryption with hashing,a. Hashing process is reversible.b. Encryption is used to ensure data integrity.c. Hashing results are large data.d. Encryption results are called cyphertext.
Disaster recovery plan is a:a. Preventive control.b. Detective control.c. Corrective control.d. Two of the above are correct.
Select a correct statement describing encryption or hashing process.a. Encryption process is reversible.b. Hashing results are called message digests.c. Hashing process is used to obtain a digital
Select a correct statement regarding encryption methods.a. Most companies prefer using asymmetric-key encryption method for data transmission.b. Symmetric-key encryption method is used to
What are the main reasons for using a VPN?
A group of computers, printers, and other devices connected to the same network and covering a limited geographic range is called a:a. LAN.b. VAN.c. VPN.d. WAN.
The most common security threats for wireless LANs include:a. Man-in-the-middle.b. System malfunction.c. Social engineering.d. Virus.
The test data technique uses:a. A programmed audit module that is added to the system under review.b. A computer program to reprocess the firm’s actual data for a past period to generate simulated
Which of the following is not one of the main purposes for a WAN?a. Provide remote access to employees and/or customersb. Link two or more geographically dispersed sites within a companyc. Provide
An operational database:a. Contains data that are volatile.b. Covers the data of current and previous fiscal years.c. Is updated before transactions are processed.d. Contains data that are uploaded
What is the main purpose of using VPN today?a. Secure the data transmission between e-business trading partners.b. Examine the internet traffic and to prevent from DoS attacks.c. Maintain a secured
Select the correct statement(s) regarding network devices.a. Firewalls are used to screen and secure data transmitted among internal networks.b. Routers use IP addresses for data transmission over
Select a correct statement regarding routers.a. Routers are used for data transmission over internal networks.b. Routers use MAC addresses to pass the packets over the internet.c. Routers and hubs
Select a correct statement regarding database systems.a. Data mining are often used to analyze data in the data warehouse.b. A data warehouse is the operational database.c. A company’s ERP system
Which of the following is not a generalized audit software (GAS)?a. ACLb. SAPc. IDEA
Which of the following would be an example of network IT?a. Spreadsheetsb. Emailc. ERP systemsd. CRM systemse. None of the above
Which of the following is part of an organization’s value proposition?a. Product priceb. Product qualityc. Product availabilityd. Brand imagee. All of these are part of the value proposition.
Consider a large, Fortune 500 company. They are probably too complicated for one business model canvas. What advice would you give them about how to divide up their business into multiple business
Which of the following is a typical key performance indicator for the financial perspective?a. Process costb. Satisfactionc. New customer acquisition rated. Return on equitye. Change readiness
Name a company that sells to a mass market customer segment. What are some characteristics of that company’s products?
Which of the following is a typical key performance indicator for the customer perspective?a. Process costb. Satisfactionc. Process qualityd. Return on equitye. Change readiness
Information capital can include which of the following?a. Employee ability to use technologyb. Communications networksc. Accounting systemsd. Computing hardwaree. All of these are information capital.
Which of the following is the best description of Val IT?a. A Balanced Scorecard systemb. A customer relationship management systemc. An enterprise resource planning systemd. A structured IT
Which one of the following is not one of the four major questions that Val IT focuses on?a. Doing the right thingb. Doing things differentlyc. Doing things welld. Doing things the right waye. Getting
In the Val IT framework, a program is which of the following?a. An IT governance practiceb. An individual IT investmentc. The description of a portfoliod. A collection of interdependent projectse.
In the Val IT framework, portfolio management includes which of the following?a. Establishing strategic prioritiesb. Determining required characteristics of the portfolioc. Monitoring performance of
In the Val IT framework, investment management includes which of the following?a. Governs the Val IT frameworkb. Establishes strategic prioritiesc. Monitors portfolio performanced. Executes projects
Val IT is designed to work in concert with COBIT. Which of the following is true with respect to the roles of these two frameworks?a. Val IT focuses on delivering business value; COBIT focuses on
Which of the following is the first step in implementing Val IT?a. Forming programs of IT investmentsb. Making specific IT investmentsc. Recognizing problems with prior IT investmentsd. Assessing the
Which of the following is the second step in implementing Val IT?a. Defining the ideal future state for IT investmentsb. Making specific IT investmentsc. Recognizing problems with prior IT
Which of the following is the third step in implementing Val IT?a. Defining the ideal future state for IT investmentsb. Making specific IT investmentsc. Recognizing problems with prior IT
Which of the following is the fourth step in implementing Val IT?a. Defining the ideal future state for IT investmentsb. Taking action to redefine processes, roles, and responsibilitiesc. Recognizing
Which of the following is not integrated in a business model?a. Internal controlsb. Business Strategyc. Information technologyd. Organizational structuree. None of these
In the business model canvas, a description of the value proposition should answer which of the following questions?a. What do we do for our customers?b. How do we produce our products?c. How much
In the business model canvas, a description of the revenue streams should answer which of the following questions?a. What do we do for our customers?b. How much do we make by serving our customers?c.
In the business model canvas, a description of the cost structure should answer which of the following questions?a. What do we do for our customers?b. How do we produce our products?c. How much does
In the business model canvas, a description of the key resources should answer which of the following questions?a. What do we need to produce our products?b. How do we produce our products?c. How
In the business model canvas, a description of the key partners should answer which of the following questions?a. How do we produce our products?b. How much does it cost to produce our products?c.
In the business model canvas, a description of the channels should answer which of the following questions?a. How do we produce our products?b. How much does it cost to produce our products?c. How do
A firm is considering two projects. Both have an initial investment of $1,000,000 and pay off over the next 5 years in this fashion. The cost of capital is 8 percent.a. Which of these has a faster
Which of the following is not an example of benefits of an IT investment?a. Increased revenues from access to new marketsb. Decreased costs from automating manual tasksc. Facilitating employee
Which of the following can be used to quantify benefits on an IT investment?a. Gathering expert opinionsb. Benchmarking against competitor performancec. Comparing against the probability of future
Use Microsoft Excel to assess the internal rate of return for an IT initiative. Suppose the initial investment is $60,000. The returns on investment in dollars for the following 5 years are (a)
Consider two projects. Project 1 costs $262,000 and returns $60,000 per year for 8 years. Project 2 costs $390,000 and returns $70,000 per year. Project 2 is determined to be less risky, so your
Which of the following is not a category of IT initiative risk?a. Alignmentb. Technologicalc. Financial misstatementd. Solutione. All of the above are examples of IT initiative risk.
Congratulations. You’ve won the state lottery. You have a choice of three options: (a) $12 million 5 years from now, (b) $2.15 million at the end of each year for 5 years, (c) $7
If an IT project costs $150,000 and returns net cash flows of $100,000 per year, what is the payback period?a. 1 yearb. 1.5 yearsc. 2 yearsd. 2.5 yearse. None of the above
What is the order of events for the economic justification process?a. Identify potential solutions → Assess business requirements → Estimate costs → Assess valueb. Assess business
Which of the following would be considered direct acquisition costs when estimating costs associated with an IT initiative?a. Networking and communicationsb. Business disruptionc. Employee downtimed.
Which of the following would be considered indirect acquisition costs when estimating costs associated with an IT initiative?a. Networking and communicationsb. Business disruptionc. Ongoing
What type of IT initiative risk is it if top management does not have active support for the project?a. Alignment riskb. Solution riskc. Financial riskd. Project riske. Technological risk
What type of IT initiative risk is it if hardware/software vendors do not meet system requirements?a. Alignment riskb. Solution riskc. Financial riskd. Project riske. Technological risk
According to the 2015 Standish Report, the percentage of IT projects that either fail or are challenged is:a. 52 percent.b. 19 percent.c. 71 percent.d. 29 percent.
Brainstorm a list of reasons why 71 percent (including 52 percent challenged plus 19 percent failed) of the information technology projects either failed or were challenged in 2015. Consider
Which member of the project team will take responsibility for the success of the project?a. IT leadb. Project managerc. Project sponsord. CEOe. None of the above
In this chapter, projects are defined as:a. A series of tasks performed in a defined sequence.b. Turning raw talent into an NFL-quality quarterback.c. Turning blueprints from an architect into a
The technology acceptance model addresses:a. Intention to adopt mobile technology.b. Perceived ease of use.c. Perceived usage.d. Perceived ability to address technical difficulties.e. None of the
Which term defines the broadening of a project that occurs after the project begins?a. Project planningb. Scope creepc. Cost overrund. 15-15 rulee. None of the above
Ben goes to his bank to wire transfer $1,000 to his sister Jennifer. The role of the bank in this transaction is best described as:a. Miner.b. Blockchain.c. Middleman.d. Consensus.
Bitcoin was introduced in 2009. The total Bitcoin amount that exists today is much more than the total Bitcoin amount in 2009 or 2010. How can this happen?
Which of the following statements is true?a. Because blockchain transactions are stored in chronological order, you may trace a block from an earlier transaction block to the most recent block in the
Since Bitcoin uses blockchain technology and is cheaper than the traditional way of doing business, why is Bitcoin not accepted by many government agencies?
Which feature cannot be found in Bitcoin?a. Double spendb. Anyone can join and leave the Bitcoin network at any timec. Immutable history of transactionsd. A new block is added every 10 minutes
Why is Ethereum a better choice over Bitcoin for business-related applications?
In the Ethereum network:a. Transaction fees are higher than Bitcoin.b. Mining of Ether occurs at a constant rate.c. Because a smart contract describes business rules and is also flexible for
What are the three types of blockchain? What are major differences among these blockchains?
A selected set of organizations may run a blockchain node separately for keeping the transaction records. Administrators from the organizations establish the access rights and permissions for each
You have been tasked with forming an audit and assurance team to work with companies that have adopted blockchain technology. What skill sets will you emphasize when choosing your team members and
Which of the following statements is false?a. A distributed ledger contains many copies of the same ledger.b. A distributed ledger stores the same set of transaction records.c. Because a distributed
Recently, more than 20 percent of companies surveyed indicated they were testing or considering artificial intelligence applications in their business, but only 4 percent were actively using AI. Why
Which of the following statements is false?a. Hyper ledger is an open source blockchain platform created by the Linux foundation.b. Hyper ledger is a permissioned blockchain with capabilities of
Review the five basic questions that AI/machine learning can answer. Develop additional business questions for each question.
Which of the following statements is false?a. Private blockchain requires permission to join the network.b. Bitcoin uses smart contract to specify the business rules.c. In Ethereum, a new block is
When we refer to smart contract in blockchain, we mean:a. A contract that can be edited at any time for business rules.b. A digital copy of paper contract such as a Word file.c. A digital contract
Which of the following is created mainly for cryptocurrency application?a. Ethereumb. Hyper ledgerc. Cordad. Bitcoin
What information does a block in the Bitcoin network not contain?a. The senderb. The receiverc. The quantity of Bitcoins to transferd. a and be. None, a block contains all of this information.
What is a requirement of the proof of authority algorithm?a. A few members have known identities.b. A portion of the miner’s blocks will be locked until it is validated.c. Large quantities of
Which of the following is not true with respect to artificial intelligence?a. AI is a broad field in computer science.b. AI is intelligence exhibited by machines rather than humans.c. AI began in the
Which of the following best describes the difference between artificial intelligence and machine learning?a. Machine learning is a subset of AI.b. Machine learning only applies to deep learning
Which of the following best describes machine learning?a. Machine learning is driven by programming instructions.b. Machine learning is a different branch of computer science from AI.c. Machine
Which of the following is not part of the virtuous cycle of machine learning?a. Modelb. Learnc. Predictd. Datae. None of these
Which of the following best describes artificial neural networks?a. Training a neural network involves the use of real-world data.b. Deep learning is required for a neural network.c. Neural networks
Which of the following best describes deep learning?a. Deep learning is used to solve philosophical problems.b. Deep learning involves complex, multilayer neural networks.c. Deep learning is
Which of the following is not directly related to one of the five questions that machine learning/AI is best suited to answer?a. Which business strategy will be most successful?b. Is this firm a good
Which of the following best describes supervised learning?a. The training data contain missing labels or incomplete data.b. The training data match inputs to nodes in the network.c. The training data
Which of the following best describes unsupervised learning?a. The training data contain missing labels or incomplete data.b. The training data match inputs to nodes in the network.c. The training
Which of the following best describes semi-supervised learning?a. The training data contain some missing labels or incomplete data.b. The training data match inputs to nodes in the network.c. The
Which of the following best describes reinforcement learning?a. The model determines how elements of the dataset are alike.b. The training data match inputs to nodes in the network.c. The training
Which of the following best describes a confusion matrix?a. It is a table summarizing the prediction results.b. It has as many rows and columns as classifications to predict.c. It can be used to
If a confusion matrix shows 46 TP, 6 FN, 500 TN, and 4 FP, what is the precision ratio?a. 0.90b. 0.92c. 0.98d. 0.88e. None of these
If a confusion matrix shows 46 TP, 6 FN, 500 TN, and 4 FP, what is the recall ratio?a. 0.90b. 0.92c. 0.98d. 0.88e. None of these
If a confusion matrix shows 46 TP, 6 FN, 500 TN, and 4 FP, what is the accuracy ratio?a. 0.90b. 0.92c. 0.98d. 0.88e. None of these
If a confusion matrix shows 25 TP, 5 FN, 1000 TN, and 5 FP, what is the precision ratio?a. 0.90b. 0.92c. 0.99d. 0.83e. None of these
If a confusion matrix shows 25 TP, 5 FN, 1000 TN, and 5 FP, what is the recall ratio?a. 0.90b. 0.92c. 0.99d. 0.83e. None of these

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