, Question 1
Which of the following best describes the primary objective of the COBIT
framework in an accounting information systems context?
A. To provide a set of financial reporting standards for public companies.
B. To align IT goals with business objectives and manage IT-related risks.
C. To prescribe detailed accounting journal entries for complex
transactions.
D. To certify accountants in information systems auditing.
Correct Answer: B - To align IT goals with business objectives
and manage IT-related risks.
RATIONALE
COBIT is a governance framework that aligns IT with business
strategy and manages IT risks, not financial reporting or accounting
entries. It is not a certification but a framework for IT governance and
control.
Question 2
In the revenue cycle, which control activity is most effective in preventing the
shipment of goods to a customer with poor credit?
A. Segregation of duties between billing and accounts receivable.
B. Credit approval by the credit department before order entry.
C. Monthly reconciliation of the accounts receivable subsidiary ledger.
D. Use of prenumbered shipping documents.
Correct Answer: B - Credit approval by the credit department
before order entry.
Page 2
, RATIONALE
Credit approval before order entry ensures that sales are only made to
customers with acceptable credit, preventing shipment to poor-credit
customers. Segregation of duties, reconciliation, and prenumbered
documents address other risks but not creditworthiness.
Question 3
During the systems development life cycle (SDLC), which phase involves
determining whether a proposed system is economically and technically
feasible?
A. Systems analysis
B. Systems design
C. Feasibility study
D. Implementation
Correct Answer: C - Feasibility study
RATIONALE
The feasibility study assesses economic, technical, and operational
viability before proceeding. Systems analysis defines requirements,
systems design creates specifications, and implementation builds and
deploys the system.
Question 4
Which of the following is a primary risk associated with cloud computing in
accounting information systems?
A. Increased need for on-site hardware maintenance.
B. Loss of control over data security and privacy.
C. Higher upfront capital expenditure.
D. Limited scalability for growing businesses.
Correct Answer: B - Loss of control over data security and
privacy.
Page 3
, RATIONALE
Cloud computing shifts data storage to third-party providers, raising
concerns about data security, privacy, and compliance. It typically
reduces hardware maintenance and capital expenditure, and offers
scalability.
Question 5
In an integrated enterprise resource planning (ERP) system, which of the
following is a key benefit for accounting?
A. Elimination of the need for internal controls.
B. Real-time access to financial and operational data across functions.
C. Reduced need for user training due to simplicity.
D. Decentralization of data storage to improve security.
Correct Answer: B - Real-time access to financial and operational
data across functions.
RATIONALE
ERP integrates data across business functions, providing real-time
information for decision-making. It does not eliminate internal
controls, reduce training needs, or decentralize data storage.
Question 6
Which of the following best illustrates the concept of segregation of duties in
the expenditure cycle?
A. The same employee authorizes purchases and records accounts
payable.
B. The same employee receives goods and approves payment.
C. The employee who orders goods is different from the one who
approves payment.
D. The employee who records purchases also reconciles the bank
statement.
Page 4
Which of the following best describes the primary objective of the COBIT
framework in an accounting information systems context?
A. To provide a set of financial reporting standards for public companies.
B. To align IT goals with business objectives and manage IT-related risks.
C. To prescribe detailed accounting journal entries for complex
transactions.
D. To certify accountants in information systems auditing.
Correct Answer: B - To align IT goals with business objectives
and manage IT-related risks.
RATIONALE
COBIT is a governance framework that aligns IT with business
strategy and manages IT risks, not financial reporting or accounting
entries. It is not a certification but a framework for IT governance and
control.
Question 2
In the revenue cycle, which control activity is most effective in preventing the
shipment of goods to a customer with poor credit?
A. Segregation of duties between billing and accounts receivable.
B. Credit approval by the credit department before order entry.
C. Monthly reconciliation of the accounts receivable subsidiary ledger.
D. Use of prenumbered shipping documents.
Correct Answer: B - Credit approval by the credit department
before order entry.
Page 2
, RATIONALE
Credit approval before order entry ensures that sales are only made to
customers with acceptable credit, preventing shipment to poor-credit
customers. Segregation of duties, reconciliation, and prenumbered
documents address other risks but not creditworthiness.
Question 3
During the systems development life cycle (SDLC), which phase involves
determining whether a proposed system is economically and technically
feasible?
A. Systems analysis
B. Systems design
C. Feasibility study
D. Implementation
Correct Answer: C - Feasibility study
RATIONALE
The feasibility study assesses economic, technical, and operational
viability before proceeding. Systems analysis defines requirements,
systems design creates specifications, and implementation builds and
deploys the system.
Question 4
Which of the following is a primary risk associated with cloud computing in
accounting information systems?
A. Increased need for on-site hardware maintenance.
B. Loss of control over data security and privacy.
C. Higher upfront capital expenditure.
D. Limited scalability for growing businesses.
Correct Answer: B - Loss of control over data security and
privacy.
Page 3
, RATIONALE
Cloud computing shifts data storage to third-party providers, raising
concerns about data security, privacy, and compliance. It typically
reduces hardware maintenance and capital expenditure, and offers
scalability.
Question 5
In an integrated enterprise resource planning (ERP) system, which of the
following is a key benefit for accounting?
A. Elimination of the need for internal controls.
B. Real-time access to financial and operational data across functions.
C. Reduced need for user training due to simplicity.
D. Decentralization of data storage to improve security.
Correct Answer: B - Real-time access to financial and operational
data across functions.
RATIONALE
ERP integrates data across business functions, providing real-time
information for decision-making. It does not eliminate internal
controls, reduce training needs, or decentralize data storage.
Question 6
Which of the following best illustrates the concept of segregation of duties in
the expenditure cycle?
A. The same employee authorizes purchases and records accounts
payable.
B. The same employee receives goods and approves payment.
C. The employee who orders goods is different from the one who
approves payment.
D. The employee who records purchases also reconciles the bank
statement.
Page 4
