BUS-120A AIS EXAM (CHAPTER 1-4) QUESTIONS AND
ANSWERS
Management is responsible for implementing and evaluating the internal control system
of an organization. - Answers - True
Shipments at Ever Ltd, are entered into PCs in the shipping department office. The
paperwork often gets lost between the shipping dock and the office, and some
shipments do not get entered. This is a violation of completeness. - Answers - True
The information has understandability when it is capable of making a difference in a
decision-making situation - Answers - False
Brooks Company has been recording shipments of goods that were not ordered by their
customers. This is a violation of Accuracy. - Answers - False
Horizontal information flows relate to specific business events. This information is
narrow in scope, detailed, accurate, and comes largely from within the organization. -
Answers - True
Section 409 of Sarbanes-Oxley mandates auditors to report on the
effectiveness of an organization's systems of internal controls. - Answers - False
When evaluating the quality of information, relevance is the synonym of reliability. -
Answers - False
Top executives make more unstructured decisions than lower level
employees. - Answers - True
Ralph is reluctant to change the cost flow assumption from last-input first-output to
average because of the impact this change is likely to have on the quality of information.
Which particular information quality is Ralph concerned about?
Comparability
Verifiability
Completeness
Timeliness - Answers - Comparability
The three logical components of a business process include all of the following except:
operations process
organization process
management process
, information process - Answers - organization process
The three logical components of a business process include all of the following
operations process, management process, information process. - Answers - True
The information quality that enables users to identify similarities and differences in two
pieces of information is
Comparability
Verifiability
Completeness
Timeliness - Answers - Comparability
Thomas has identified multiple errors when counting the physical inventory. To correct
this problem, Thomas is evaluating whether to implement RFID tags to keep track of the
inventory.
Which information quality Thomas wants to improve with the implementation of RFID
tags?
Accuracy
Predictive value
Comparability
Neutrality - Answers - Accuracy
The ability of different individuals to reach consensus about the
information using the same measurement methods is known as
verifiability
accuracy
completeness
comparability - Answers - verifiability
The correspondence or agreement between the information and the actual events or
objects that the information represents is known as
neutrality
completeness
comparability
accuracy - Answers - accuracy
When choosing modules for an organization's ERP system, it is generally best to select
them all from a single vendor. - Answers - False
The activities performed to collect money from customers are part of the purchase-to-
payment cycle (expenditure cycle) - Answers - False
A customer table is created for every new customer added to the ERP system. -
Answers - False
ANSWERS
Management is responsible for implementing and evaluating the internal control system
of an organization. - Answers - True
Shipments at Ever Ltd, are entered into PCs in the shipping department office. The
paperwork often gets lost between the shipping dock and the office, and some
shipments do not get entered. This is a violation of completeness. - Answers - True
The information has understandability when it is capable of making a difference in a
decision-making situation - Answers - False
Brooks Company has been recording shipments of goods that were not ordered by their
customers. This is a violation of Accuracy. - Answers - False
Horizontal information flows relate to specific business events. This information is
narrow in scope, detailed, accurate, and comes largely from within the organization. -
Answers - True
Section 409 of Sarbanes-Oxley mandates auditors to report on the
effectiveness of an organization's systems of internal controls. - Answers - False
When evaluating the quality of information, relevance is the synonym of reliability. -
Answers - False
Top executives make more unstructured decisions than lower level
employees. - Answers - True
Ralph is reluctant to change the cost flow assumption from last-input first-output to
average because of the impact this change is likely to have on the quality of information.
Which particular information quality is Ralph concerned about?
Comparability
Verifiability
Completeness
Timeliness - Answers - Comparability
The three logical components of a business process include all of the following except:
operations process
organization process
management process
, information process - Answers - organization process
The three logical components of a business process include all of the following
operations process, management process, information process. - Answers - True
The information quality that enables users to identify similarities and differences in two
pieces of information is
Comparability
Verifiability
Completeness
Timeliness - Answers - Comparability
Thomas has identified multiple errors when counting the physical inventory. To correct
this problem, Thomas is evaluating whether to implement RFID tags to keep track of the
inventory.
Which information quality Thomas wants to improve with the implementation of RFID
tags?
Accuracy
Predictive value
Comparability
Neutrality - Answers - Accuracy
The ability of different individuals to reach consensus about the
information using the same measurement methods is known as
verifiability
accuracy
completeness
comparability - Answers - verifiability
The correspondence or agreement between the information and the actual events or
objects that the information represents is known as
neutrality
completeness
comparability
accuracy - Answers - accuracy
When choosing modules for an organization's ERP system, it is generally best to select
them all from a single vendor. - Answers - False
The activities performed to collect money from customers are part of the purchase-to-
payment cycle (expenditure cycle) - Answers - False
A customer table is created for every new customer added to the ERP system. -
Answers - False
