CACC 696 Exam Review Questions and Answers Solved Correctly
What are internal controls that prevent fraud? - Answers 1. Independent Verification
2. Transaction Authorization
3. Segregation of Duties
4. Supervision
5. Accounting Records
6. Access Control
What is segregation of duties? - Answers Separating key operations to prevent one person having
control over critical processes
What does the Accounting Clerk Flowchart look like? - Answers Daily Procedures -> End of Month
Procedures
What is a data warehouse? - Answers A relational database that can be accessed using queries and
other tools
Do companies separate data warehouses from operational databases? - Answers Yes
What are the purposes of data warehousing? - Answers 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? - Answers 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? - Answers 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? - Answers Filtering out and cleansing invalid data
When can you use a data warehouse in place of an operational database? - Answers 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? - Answers 1. Purchase System
2. Cash disbursement system
What are the 11 data objects in the expenditure cycle? - Answers 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? - Answers 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? - Answers 1. Left Join
(Receiving Report and Disbursement Voucher)
2. Review Accurate Invoie Prices (Join Inventory and Purchase Order)
What are internal controls that prevent fraud? - Answers 1. Independent Verification
2. Transaction Authorization
3. Segregation of Duties
4. Supervision
5. Accounting Records
6. Access Control
What is segregation of duties? - Answers Separating key operations to prevent one person having
control over critical processes
What does the Accounting Clerk Flowchart look like? - Answers Daily Procedures -> End of Month
Procedures
What is a data warehouse? - Answers A relational database that can be accessed using queries and
other tools
Do companies separate data warehouses from operational databases? - Answers Yes
What are the purposes of data warehousing? - Answers 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? - Answers 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? - Answers 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? - Answers Filtering out and cleansing invalid data
When can you use a data warehouse in place of an operational database? - Answers 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? - Answers 1. Purchase System
2. Cash disbursement system
What are the 11 data objects in the expenditure cycle? - Answers 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? - Answers 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? - Answers 1. Left Join
(Receiving Report and Disbursement Voucher)
2. Review Accurate Invoie Prices (Join Inventory and Purchase Order)
