ACCOUNTING INFORMATION SYSTEMS
15TH EDITION FINAL PAPER EXAM PREP
QUESTIONS AND ANSWERS GUARANTEED
TO PASS
◉ A VAN is
Answer: In an EDI environment, a client's trading partner's
computer automatically generates electronic transactions, which are
relayed across a value-added network (VAN), and the client's
computer processes the transactions without human intervention.
◉ Encryption is
Answer: Encryption is the conversion of data into a secret code for
storage in databases and transmission over networks. The sender
uses an encryption algorithm to convert the original message (called
cleartext) into a coded equivalent (called ciphertext). At the
receiving end, the ciphertext is decoded (decrypted) back into
cleartext.
◉ A firewall is
Answer: A firewall is a system used to insulate an organization's
intranet from the Internet. It can be used to authenticate an outside
user of the network, verify his or her level of access authority, and
,then direct the user to the program, data, or service requested. In
addition to insulating the organization's network from external
networks, firewalls can also be used to protect LANs from
unauthorized internal access
◉ Seals of assurance
Answer: In response to consumer demand for evidence that a web-
based business is trustworthy, a number of trusted third-party
organizations are offering seals of assurance that businesses can
display on their website home pages. To legitimately bear the seal,
the company must show that it complies with certain business
practices, capabilities, and controls. This best known six seal-
granting organizations are - Better Business Bureau (BBB), TRUSTe,
Verisign, Inc., International Computer Security Association (ICSA),
AICPA/CICA WebTrust, and AICPA/CICA SysTrust.
◉ A digital signature is
Answer: A digital signature is derived from the digest of a document
that has been encrypted with the sender's private key. A digital
signature is an electronic authentication technique that ensures the
transmitted message originated with the authorized sender and that
it was not tampered with after the signature was applied.
◉ Which of the following statements about continuous auditing is
true?
, Answer: Continuous auditing enables the auditor to review
transactions at frequent intervals or as they occur. The growth of
electronic commerce requires the auditors to rethink their
traditional practices. Using intelligent electronic agents, transactions
can be continuously monitored, and alarms can sound when an
anomaly occurs.
◉ Authentication
Answer: Authentication requires accountants to develop a new skill
set in the electronic environment. In traditional systems, the
business paper on which it was written determines the authenticity
of a sales order from a trading partner or customer.
◉ What is a characteristic of the flat-file approach to data
management?
Answer: Exclusive data ownership is a characteristic of the flat-file
system.
◉ Which three types of data management problems are a result of
data redundancy?
Answer: Data storage, data updating, and currency of information
problems are caused by data redundancy.
◉ An organization uses a flat-file data management system. Which
problem is caused when customers change their address?
15TH EDITION FINAL PAPER EXAM PREP
QUESTIONS AND ANSWERS GUARANTEED
TO PASS
◉ A VAN is
Answer: In an EDI environment, a client's trading partner's
computer automatically generates electronic transactions, which are
relayed across a value-added network (VAN), and the client's
computer processes the transactions without human intervention.
◉ Encryption is
Answer: Encryption is the conversion of data into a secret code for
storage in databases and transmission over networks. The sender
uses an encryption algorithm to convert the original message (called
cleartext) into a coded equivalent (called ciphertext). At the
receiving end, the ciphertext is decoded (decrypted) back into
cleartext.
◉ A firewall is
Answer: A firewall is a system used to insulate an organization's
intranet from the Internet. It can be used to authenticate an outside
user of the network, verify his or her level of access authority, and
,then direct the user to the program, data, or service requested. In
addition to insulating the organization's network from external
networks, firewalls can also be used to protect LANs from
unauthorized internal access
◉ Seals of assurance
Answer: In response to consumer demand for evidence that a web-
based business is trustworthy, a number of trusted third-party
organizations are offering seals of assurance that businesses can
display on their website home pages. To legitimately bear the seal,
the company must show that it complies with certain business
practices, capabilities, and controls. This best known six seal-
granting organizations are - Better Business Bureau (BBB), TRUSTe,
Verisign, Inc., International Computer Security Association (ICSA),
AICPA/CICA WebTrust, and AICPA/CICA SysTrust.
◉ A digital signature is
Answer: A digital signature is derived from the digest of a document
that has been encrypted with the sender's private key. A digital
signature is an electronic authentication technique that ensures the
transmitted message originated with the authorized sender and that
it was not tampered with after the signature was applied.
◉ Which of the following statements about continuous auditing is
true?
, Answer: Continuous auditing enables the auditor to review
transactions at frequent intervals or as they occur. The growth of
electronic commerce requires the auditors to rethink their
traditional practices. Using intelligent electronic agents, transactions
can be continuously monitored, and alarms can sound when an
anomaly occurs.
◉ Authentication
Answer: Authentication requires accountants to develop a new skill
set in the electronic environment. In traditional systems, the
business paper on which it was written determines the authenticity
of a sales order from a trading partner or customer.
◉ What is a characteristic of the flat-file approach to data
management?
Answer: Exclusive data ownership is a characteristic of the flat-file
system.
◉ Which three types of data management problems are a result of
data redundancy?
Answer: Data storage, data updating, and currency of information
problems are caused by data redundancy.
◉ An organization uses a flat-file data management system. Which
problem is caused when customers change their address?
