Question 1 7 pts

(TCO 1) Data are

facts entered, stored, and processed by an information system.

processed output that is useful to decision makers.

another word for information.

quantitative facts that are not qualitative by nature.

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Question 2 7 pts

(TCO 2) This control framework’s intent includes helping the organization to provide reasonable assurance that objectives are achieved and problems are minimized, and to avoid adverse publicity and damage to the organization’s reputation.

ISACA’s control objectives for information and related technology

COSO’s internal control framework

COSO’s enterprise risk management framework

None of the above

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Question 3 7 pts

(TCO 3) Which of the following is true regarding public key infrastructure (PKI)?

PKI is intended for e-business use and is typically available through commercial certificate authorities.

PKI includes a tree of trust that’s checked each time a certificate is presented as proof of one’s identity.

PKI assumes asymmetric encryption to create legally-binding electronic documents.

PKI refers to the system and processes used to issue and manage asymmetric keys and digital certificates.

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Question 4 7 pts

(TCO 3) Restricting access of users to specific portions of the system as well as specific tasks, is

authentication.

authorization.

identification.

threat monitoring.

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Question 5 7 pts

(TCO 4) What is the normal procedure for new customers or customers making a purchase that causes their credit limit to be exceeded?

Routine approval is granted without authorization

Specific approval must be granted by the credit manager

Reject the sale in either case without question

Check the credit bureau for a credit rating on the customer

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Question 6 7 pts

(TCO 5) Folding squid technologies has installed a new production monitoring system that is expected to reduce system breakdowns by 28%. This system will increase throughput by

increasing productive capacity.

increasing productive processing time.

increasing yield.

increasing all components of throughput.

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Question 7 7 pts

(TCO 6) Bobby Burns, CEO of Maudlin Motors, walked into the office of Tom Sanchez, chief information officer. “Tom,” he said. “We need some way of getting a better handle on our overall performance. The financial reports are all well and good, but we need to track customer satisfaction and other aspects of the business.” Tom should recommend that Maudlin Motors

implement a data warehouse system.

set up a data mining operation.

use online analytical processing (OLAP.)

implement balanced scorecard reporting.

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Question 8 7 pts

(TCO 7) The potential inconsistency problem could arise when there are multiple occurrences of a data item in a database. This is called the

update anomaly.

insert anomaly.

inconsistency anomaly.

integrity anomaly.

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Question 9 7 pts

(TCO 8) Which of the following transaction processing modes provides the most accurate and complete information for decision making?

Batch

Distributed

Online, real-time

Application

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Question 10 7 pts

(TCO 8) In which phase of the systems development life cycle are the new hardware and software for a system tested?

Conceptual design

Implementation and conversion

Operations and maintenance

Physical design

Question 11 20 pts

(TCO 1) Michael Porter developed five primary activities that directly provide value to customers. Think about how a company such as Walmart, or any retail-based company, provides value using these activities.

Required:

a: Describe briefly each of the five activities.

b: Develop a specific example for each activity related to how that retail-based company can use its AIS to provide value.

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Question 12 20 pts

(TCO 2) Think of a local bookstore, such as Borders, and describe in detail the risks associated with this bookstore’s sale of merchandise (not limited to books) to customers, and propose at least four internal controls that would mitigate those risks. Now take a look at Amazon.com (or some other online bookstore.) Evaluate the differences that exist in an online selling environment, and explain how those risks are mitigated.

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Question 13 20 pts

(TCO 3) How and to whom does an auditor communicate the audit results?

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Question 14 20 pts

(TCO 4) Explain how can information technology be used to improve the vendor invoice approval process.

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Question 15 20 pts

(TCO 5) A small family-owned business is rapidly expanding. Payroll is currently processed by the owner’s wife but she can no longer keep up. You’ve been hired to evaluate whether or not the company should outsource the payroll function. What questions must be answered for you to make a recommendation? What are the advantages and disadvantages of outsourcing payroll?

What factors should be considered in outsourcing payroll to a payroll service bureau? Discuss the advantages and disadvantages of using a payroll service bureau to process a payroll.

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Question 16 20 pts

(TCO 6) Explain the preparation of financial statements as the third step in the general ledger and reporting system.

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Question 17 20 pts

(TCO 7) Describe the main constraints when a relational database model is being logically designed.

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Question 18 20 pts

(TCO 8) Discuss the relative advantages and disadvantages of the four different methods for gathering data during a systems survey.

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