Al – albyt University

Faculty of Finance and Administration

Accounting Department

Intermediate Exam in Advanced Accounting Information Systems

First semester 2013/2014

1. This results when a subsystem achieves its goals while contributing to the
organization's overall goal.
Goal conflict )a
Goal congruence )b
Value of information )c
Systems congruence )d
2. Goal conflict may result when
.A decision or action of a subsystem is inconsistent with the system as a whole )a
.A subsystem achieves its goals while contributing to the organization's overall goal )b
.Duplicate recording, storage and processes are eliminated )c
.The data exceeds the amount the human mind can absorb and process )d
3. Information is
.What happens when the data exceeds the amount the human mind can absorb )a
.The benefit produced by the information minus the cost of producing it )b
.Facts that are collected, recorded, stored, and processed by an information system )c
.Data that have been organized and processed to provide meaning to a user )d
4. Which of the following statements below shows the contrast between data and
information?
.Data is the output of an AIS )a
.Information is the primary output of an AIS )b
.Data is more useful in decision-making than information )c
.Data and information are the same )d
5. An accounting information system in part consists of
.People, hardware and programs )a
.Information, programs and computers )b
.People, procedures, data, software and information technology infrastructure )c
.Internal controls and accounting records )d
6. One of the steps in the data processing cycle is data input. What is the catalyst for
data input into a system?
The production transaction system automatically checks each hour to see if any )a
.new data is available for input and processing
The performance of some business activity generally serves as the trigger for )b
.data input
A general ledger program is queried to produce a trial balance at the end of an )c
.accounting period
.Data is only input when an authorized party permits the input to occur )d
7. Fraud is any and all means a person uses to gain an unfair advantage over another
person. Current and former employees of an organization are much more likely to
 perpetrate fraud than external parties. The act by a person or group of persons
resulting in materially misleading financial statements is called a(n)
.misappropriation of assets )a
.employee fraud )b
.fraudulent financial reporting )c
.theft of assets )d
8. Most fraud perpetrators are insiders because
.insiders are more dishonest than outsiders )a
.insiders know more about the system and its weaknesses than outsiders )b
.outsiders are more likely to get caught than insiders )c
.insiders have more need for money than outsiders )d
9. Researchers have compared the psychological and demographic characteristics of
white-collar criminals, violent criminals, and the general public. They found that
.few differences exist between white-collar criminals and the general public )a
.white-collar criminals eventually become violent criminals )b
.most white-collar criminals invest their illegal income rather than spend it )c
.most white-collar criminals are older and not technologically proficient )d
10. Which of the factors listed below is not a common factor for fraud?
pressure to commit fraud )a
opportunity to commit fraud )b
desire to get even with the employer )c
rationalization for the crime )d
11. What is one reason why AIS threats are increasing?
LANs and client/server systems are easier to control than centralized, )a
.mainframe systems
.Many companies do not realize that data security is crucial to their survival )b
Computer control problems are often overestimated and overly emphasized by )c
.management
.Many companies believe that protecting information is a strategic requirement )d

12. Which of the following is not a reason for the increase in security problems for
AIS?
a) Confidentiality issues caused by interlinked inter-company networks
b) Difficult to control distributed computing networks
c) Increasing efficiency resulting from more automation
d) Increasing numbers of information systems and users
13. One reason why many organizations do not adequately protect their systems is
because
.control problems may be overestimated by many companies )a
productivity and cost cutting cause management to forgo implementing and maintaining )b
.internal controls
.control technology has not yet been developed )c
all of the above )d
14. Any potential adverse occurrence or unwanted event that could be injurious to
either the AIS or the organization is referred to as a(n)
.threat )a
.exposure )b
.risk )c
.phenomenon )d

15. The potential dollar loss that could result if an unwanted event occurs is called
a(n)
.threat )a
.exposure )b
.risk )c
.extraordinary loss )d

ESSAY QUESTIONS:
1- What are some of the distinguishing characteristics of fraud perpetrators?
2- Describe the basic business activities and transactions for a typical
merchandising company.
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