WGU D560 INTERNAL AUDITING I OA
OBJECTIVE ASSESSMENT 59 QUESTIONS
FINAL SCRIPT 2026 FULL SOLUTIONS AND
CORRECT ANSWERS GRADED A+
⩥ FRS provides information to external users; the MRS provides
information to internal users. Answer: The major difference between the
financial reporting system (FRS) and the management reporting system
(MRS) is the
⩥ whether the transactions are financial or nonfinancial that directly
affect the processing of financial transactions Answer: The author
distinguishes between the accounting information system and the
management information system based on
⩥ the purchase of computer Answer: An example of a financial
transactions is
⩥ log of customer calls Answer: An example of a nonfinancial
transaction is
⩥ the conversion cycle Answer: The transaction processing system
includes which of the following
,⩥ the production of useful information Answer: The goal of data
processing is
⩥ tax authorities Answer: Which of the following is an external end
user?
⩥ internal auditing Answer: An appraisal function housed within the
organization that performs a wide range of services for management is
⩥ constituents Answer: What factor conceptually distinguishes external
auditing and internal auditing?
⩥ cash disbursements Answer: What system is part of the expenditure
cycle?
⩥ physical and financial Answer: Both the revenue and the expenditure
cycle can be viewed as having two parts. These key parts are
⩥ represent relationships between key elements of both manual and
computer systems Answer: System flowcharts do which one of the
following?
⩥ oval Answer: Which symbol is used to represent a data source or
destination of documents and reports in a system flowchart?
,⩥ Sales Order Processing Answer: Which accounting application is least
suited to batch processing?
⩥ there is a lag between the time when the economic event occurs, and
the financial records are updated. Answer: In contrast to a real-time
system, in a batch processing system
⩥ processing takes place when the economic event occurs. Answer: In
contrast to a batch processing system, in a real-time system
⩥ block code Answer: The coding scheme most appropriate for a chart
of accounts is
⩥ a mnemonic code Answer: When a firm wants its coding system to
convey meaning without reference to any other document, it would
choose
⩥ missing or unrecorded documents can be identified. Answer: The most
important advantage of sequential coding is that
⩥ Management Reporting System (MRS) Answer: Li has implemented a
new accounting information system (AIS) to help him manage his
construction company. Li uses the information captured by the system to
, plan each project, forecasting the requirements for raw materials and the
cash flow expected. Which AIS subsystem helps Li in planning?
⩥ Variance reports Answer: Which information does the management
reporting system (MRS) provide?
⩥ The decision maker wastes resources analyzing outdated information.
Answer: Useful information has the following characteristics: relevance,
timeliness, accuracy, completeness, and summarization. What happens if
the information is old?
⩥ The decision maker receives materially wrong information. Answer:
Useful information has the following characteristics: relevance,
timeliness, accuracy, completeness, and summarization. What happens if
the information is inaccurate?
⩥ The organization needs to review its credit-granting policies. Answer:
Which important information does external feedback about the level of
uncollected customer accounts indicate to the management information
system?
⩥ Raw material is moved into work-in process. Answer: What is a type
of data source for the accounting information system (AIS)?
OBJECTIVE ASSESSMENT 59 QUESTIONS
FINAL SCRIPT 2026 FULL SOLUTIONS AND
CORRECT ANSWERS GRADED A+
⩥ FRS provides information to external users; the MRS provides
information to internal users. Answer: The major difference between the
financial reporting system (FRS) and the management reporting system
(MRS) is the
⩥ whether the transactions are financial or nonfinancial that directly
affect the processing of financial transactions Answer: The author
distinguishes between the accounting information system and the
management information system based on
⩥ the purchase of computer Answer: An example of a financial
transactions is
⩥ log of customer calls Answer: An example of a nonfinancial
transaction is
⩥ the conversion cycle Answer: The transaction processing system
includes which of the following
,⩥ the production of useful information Answer: The goal of data
processing is
⩥ tax authorities Answer: Which of the following is an external end
user?
⩥ internal auditing Answer: An appraisal function housed within the
organization that performs a wide range of services for management is
⩥ constituents Answer: What factor conceptually distinguishes external
auditing and internal auditing?
⩥ cash disbursements Answer: What system is part of the expenditure
cycle?
⩥ physical and financial Answer: Both the revenue and the expenditure
cycle can be viewed as having two parts. These key parts are
⩥ represent relationships between key elements of both manual and
computer systems Answer: System flowcharts do which one of the
following?
⩥ oval Answer: Which symbol is used to represent a data source or
destination of documents and reports in a system flowchart?
,⩥ Sales Order Processing Answer: Which accounting application is least
suited to batch processing?
⩥ there is a lag between the time when the economic event occurs, and
the financial records are updated. Answer: In contrast to a real-time
system, in a batch processing system
⩥ processing takes place when the economic event occurs. Answer: In
contrast to a batch processing system, in a real-time system
⩥ block code Answer: The coding scheme most appropriate for a chart
of accounts is
⩥ a mnemonic code Answer: When a firm wants its coding system to
convey meaning without reference to any other document, it would
choose
⩥ missing or unrecorded documents can be identified. Answer: The most
important advantage of sequential coding is that
⩥ Management Reporting System (MRS) Answer: Li has implemented a
new accounting information system (AIS) to help him manage his
construction company. Li uses the information captured by the system to
, plan each project, forecasting the requirements for raw materials and the
cash flow expected. Which AIS subsystem helps Li in planning?
⩥ Variance reports Answer: Which information does the management
reporting system (MRS) provide?
⩥ The decision maker wastes resources analyzing outdated information.
Answer: Useful information has the following characteristics: relevance,
timeliness, accuracy, completeness, and summarization. What happens if
the information is old?
⩥ The decision maker receives materially wrong information. Answer:
Useful information has the following characteristics: relevance,
timeliness, accuracy, completeness, and summarization. What happens if
the information is inaccurate?
⩥ The organization needs to review its credit-granting policies. Answer:
Which important information does external feedback about the level of
uncollected customer accounts indicate to the management information
system?
⩥ Raw material is moved into work-in process. Answer: What is a type
of data source for the accounting information system (AIS)?
