CACC 696 EXAM REVIEW QUESTIONS AND
ANSWERS 2025
What are internal controls that prevent fraud? - CORRECT ANSWER -1. Independent
Verification
2. Transaction Authorization
3. Segregation of Duties
4. Supervision
5. Accounting Records
6. Access Control
What is segregation of duties? - CORRECT ANSWER -Separating key operations to
prevent one person having control over critical processes
What does the Accounting Clerk Flowchart look like? - CORRECT ANSWER -Daily
Procedures -> End of Month Procedures
What is a data warehouse? - CORRECT ANSWER -A relational database that can be
accessed using queries and other tools
Do companies separate data warehouses from operational databases? - CORRECT
ANSWER -Yes
What are the purposes of data warehousing? - CORRECT ANSWER -1. Optimize the
business
2. Strategic benefit can be gained by sharing data externally
3. Able to provide customers with information quickly
4. Internet technologies and OLAP applications can share data warehouse with trading
departments
What are control issues with data warehouses? - CORRECT ANSWER -1.
Authorization of users at customer and supplier sites
2. Users views
3. Access Privileges for outside users controlled by passwords
4. Internet Sessions should be secured using firewall, encryption and digital signatures
5. Periodic Audits to assess the risk assessment and review of access levels granted
What is the procedure of building a data warehouse? - CORRECT ANSWER -1.
Modeling the data in the data warehouse
2. Extracting data from operational databases
, 3. Cleansing extracted data
4. Transforming data into the warehouse model
5. Loading the data into the date warehouse database
What is data cleansing? - CORRECT ANSWER -Filtering out and cleansing invalid data
When can you use a data warehouse in place of an operational database? - CORRECT
ANSWER -When you can confirm that the data in the data warehouse is clean and
accurately represents the organization
What are the 2 components of the expenditure cycle? - CORRECT ANSWER -1.
Purchase System
2. Cash disbursement system
What are the 11 data objects in the expenditure cycle? - CORRECT ANSWER -1.
Inventory Subsidiary Ledger
2. Hardcopy PO
3. Packing Slip
4. Receiving Report
5. Digital Inventory Control Account
6. Inventory Subsidiary Ledger
7. AP Subsidiary Ledger
8. AP Summary
9. Payment Voucher
10. Cash Disbursement Journal
11. Journal Voucher
Who are the 4 actors in the expenditure cycle? - CORRECT ANSWER -1. Department
clerk
2. Warehouse Clerk
3. AP Clerk
4. General Ledger Clerk
What tests can be done to identify flaws in the expenditure cycle system? - CORRECT
ANSWER -1. Left Join (Receiving Report and Disbursement Voucher)
2. Review Accurate Invoie Prices (Join Inventory and Purchase Order)
3. Review Disbursment Voucher for unusual trends (Sort, Count, Sum the Amount)
What are the 3 objects in a system flow chart? - CORRECT ANSWER -Data Files,
Stakeholders and Activities
ANSWERS 2025
What are internal controls that prevent fraud? - CORRECT ANSWER -1. Independent
Verification
2. Transaction Authorization
3. Segregation of Duties
4. Supervision
5. Accounting Records
6. Access Control
What is segregation of duties? - CORRECT ANSWER -Separating key operations to
prevent one person having control over critical processes
What does the Accounting Clerk Flowchart look like? - CORRECT ANSWER -Daily
Procedures -> End of Month Procedures
What is a data warehouse? - CORRECT ANSWER -A relational database that can be
accessed using queries and other tools
Do companies separate data warehouses from operational databases? - CORRECT
ANSWER -Yes
What are the purposes of data warehousing? - CORRECT ANSWER -1. Optimize the
business
2. Strategic benefit can be gained by sharing data externally
3. Able to provide customers with information quickly
4. Internet technologies and OLAP applications can share data warehouse with trading
departments
What are control issues with data warehouses? - CORRECT ANSWER -1.
Authorization of users at customer and supplier sites
2. Users views
3. Access Privileges for outside users controlled by passwords
4. Internet Sessions should be secured using firewall, encryption and digital signatures
5. Periodic Audits to assess the risk assessment and review of access levels granted
What is the procedure of building a data warehouse? - CORRECT ANSWER -1.
Modeling the data in the data warehouse
2. Extracting data from operational databases
, 3. Cleansing extracted data
4. Transforming data into the warehouse model
5. Loading the data into the date warehouse database
What is data cleansing? - CORRECT ANSWER -Filtering out and cleansing invalid data
When can you use a data warehouse in place of an operational database? - CORRECT
ANSWER -When you can confirm that the data in the data warehouse is clean and
accurately represents the organization
What are the 2 components of the expenditure cycle? - CORRECT ANSWER -1.
Purchase System
2. Cash disbursement system
What are the 11 data objects in the expenditure cycle? - CORRECT ANSWER -1.
Inventory Subsidiary Ledger
2. Hardcopy PO
3. Packing Slip
4. Receiving Report
5. Digital Inventory Control Account
6. Inventory Subsidiary Ledger
7. AP Subsidiary Ledger
8. AP Summary
9. Payment Voucher
10. Cash Disbursement Journal
11. Journal Voucher
Who are the 4 actors in the expenditure cycle? - CORRECT ANSWER -1. Department
clerk
2. Warehouse Clerk
3. AP Clerk
4. General Ledger Clerk
What tests can be done to identify flaws in the expenditure cycle system? - CORRECT
ANSWER -1. Left Join (Receiving Report and Disbursement Voucher)
2. Review Accurate Invoie Prices (Join Inventory and Purchase Order)
3. Review Disbursment Voucher for unusual trends (Sort, Count, Sum the Amount)
What are the 3 objects in a system flow chart? - CORRECT ANSWER -Data Files,
Stakeholders and Activities
