Question 1

Credit cards given to employees by the organization in order for the employees to make designated purchases are called:
A)Employee Debit Cards
B)Organization Purchase Cards
C)Expenditure Cards
D)Procurement Cards

Accepted Answer

Procurement Cards, also known as P-Cards or Purchasing Cards, are specifically designed for employees to make designated purchases on behalf of the organization. These cards simplify the purchasing process and improve control and accountability over organizational spending. They function like credit cards but are restricted to particular vendors and amounts.

Question 2

This type of system matching takes place without invoices.The receipt of goods is carefully evaluated and, if it matches the purchase order, settlement of the obligation occurs through the system.
A)Business Process Engineering
B)Controlled Access Invoicing
C)Evaluated Receipt Settlement
D)Double Matching System

Accepted Answer

Evaluated Receipt Settlement is the system matching that occurs without invoices, where the receipt of goods is evaluated and settlement occurs if it matches the purchase order.

Question 3

There are four primary functions of corporate governance.Which of the following is NOT one of those functions?
A)Availability
B)Management Oversight
C)Internal Controls and Compliance
D)Financial Stewardship

Accepted Answer

Availability is not one of the primary functions of corporate governance. The four primary functions are management oversight, internal controls and compliance, financial stewardship, and accountability to stakeholders.

Question 4

One of the newest technologies related to payables is one where invoices are exchanged and payments are made via the internet.The name given to this process is:
A)Random Array of Invoice and Disbursements (RAID)
B)Electronic Invoice Payment Procedures (EIPP)
C)Electronic Invoice Presentment and Payment (EIPP)
D)Routing Application Invoice Delivery (RAID)

Accepted Answer

Electronic Invoice Presentment and Payment (EIPP) is the name given to the process where invoices are exchanged and payments are made via the internet, making it the best choice from the options given. The other options, Random Array of Invoice and Disbursements (RAID) and Routing Application Invoice Delivery (RAID), do not accurately describe this technology.

Question 5

The examination of the system to determine the adequacy of security measures and to identify security deficiencies is called:
A)Intrusion detection
B)Penetration testing
C)Vulnerability testing
D)Integrity testing

Accepted Answer

Vulnerability testing is the examination of the system to determine the adequacy of security measures and to identify security deficiencies.

Question 6

Intentionally attempting to circumvent IT system access controls to determine whether there are weaknesses in any controls is called:
A)Penetration testing
B)Intrusion detection
C)Integrity testing
D)Vulnerability testing

Accepted Answer

This is the definition of penetration testing, which is a common method for identifying vulnerabilities in IT systems. Intrusion detection is the process of monitoring IT systems for unauthorized access, while integrity testing and vulnerability testing are other types of security assessments that may be used in conjunction with penetration testing.

Question 7

In order to help safeguard the availability in an electronic business environment, a company should implement controls such as business continuity planning, backup data and systems, in order to reduce the risk of:
A)Unauthorized access
B)System failures
C)Repudiation of purchase transactions
D)Invalid data entry

Accepted Answer

Business continuity planning and backup data and systems are control measures that help reduce the risk of system failures, which can result in the unavailability of electronic business systems. Unauthorized access, repudiation of purchase transactions, and invalid data entry are risks related to the confidentiality, integrity, and accuracy of data, respectively. While these risks can also impact the availability of electronic business systems, they are not directly addressed by the controls mentioned in the question.

Question 8

This type of software alerts the organization to hacking or other unauthorized use of the system or network.
A)Penetration testing
B)Intrusion detection
C)Integrity testing
D)Vulnerability testing

Accepted Answer

Intrusion detection software is designed to detect unauthorized access to a system or network, and can alert an organization to potential hacking attempts or other security breaches. Penetration testing, integrity testing, and vulnerability testing are all related to assessing and strengthening security measures, but do not necessarily provide real-time alerts in the same way that intrusion detection software does.

Question 9

In order to help safeguard the processing integrity in an electronic business environment, a company should implement input controls such as field check, validity check, limit check, reasonableness check, and computer logs in order to reduce the risk of:
A)Worm attacks
B)Hackers
C)Unauthorized access
D)Invalid data entry

Accepted Answer

The input controls such as field check, validity check, limit check, and reasonableness check help to ensure the accuracy and completeness of data entered into the system. Computer logs can also help to identify any invalid data entry. While these input controls may also help to prevent certain types of cybersecurity attacks, such as those involving malware or unauthorized access, their primary purpose is to prevent errors and inaccuracies in the data entered into the system.

Question 10

Which of the following groups has an ethical obligation to establish the proper tone at the top, strong internal controls, and high ethical standards?
A)Stockholders
B)Board of Directors and Management
C)Employees
D)Audit Committee

Accepted Answer

The Board of Directors and Management have the primary responsibility to establish the proper tone at the top, strong internal controls, and high ethical standards. They are entrusted with the governance and management of the organization and are accountable for the ethical conduct of the organization. Stockholders, employees, and audit committees also have important roles in promoting ethical behavior, but they do not have the same level of responsibility as the Board of Directors and Management.

Question 11

In order to help safeguard the security and confidentiality in an electronic business environment, a company should implement controls such as user ID, password, log-in procedures, access levels, and authority tables in order to reduce the risk of:
A)Unauthorized access
B)Incomplete audit trail
C)Virus and worm attacks
D)Repudiation of purchase transactions

Accepted Answer

User ID, password, log-in procedures, access levels, and authority tables are all measures that can help prevent unauthorized access to sensitive information and data. While virus and worm attacks and incomplete audit trails can also be risks in an electronic business environment, implementing these controls can specifically address the issue of unauthorized access. Repudiation of purchase transactions may also be a concern, but this is not directly addressed by these controls.

Question 12

The security and confidentiality risks of computer-based matching would include:
A)Unauthorized access to the system's ordering and matching functions would allow the insertion of fictitious vendors and / or invoices.
B)Errors in system logic can cause systematic and repetitive errors in matching.
C)The criteria used to identify duplicate payments may be too tightly defined and will overlook duplicate payments.
D)System breakdowns or interruptions can stop or slow the processing of invoices and payments.

Accepted Answer

The answer of The security and confidentiality risks of computer-based...

Quiz 9: Expenditures Processes and Controlspurchases

Credit cards given to employees by the organization in order for the employees to make designated purchases are called:

This type of system matching takes place without invoices.The receipt of goods is carefully evaluated and, if it matches the purchase order, settlement of the obligation occurs through the system.

There are four primary functions of corporate governance.Which of the following is NOT one of those functions?

One of the newest technologies related to payables is one where invoices are exchanged and payments are made via the internet.The name given to this process is:

The examination of the system to determine the adequacy of security measures and to identify security deficiencies is called:

Intentionally attempting to circumvent IT system access controls to determine whether there are weaknesses in any controls is called:

In order to help safeguard the availability in an electronic business environment, a company should implement controls such as business continuity planning, backup data and systems, in order to reduce the risk of:

This type of software alerts the organization to hacking or other unauthorized use of the system or network.

In order to help safeguard the processing integrity in an electronic business environment, a company should implement input controls such as field check, validity check, limit check, reasonableness check, and computer logs in order to reduce the risk of:

Which of the following groups has an ethical obligation to establish the proper tone at the top, strong internal controls, and high ethical standards?

In order to help safeguard the security and confidentiality in an electronic business environment, a company should implement controls such as user ID, password, log-in procedures, access levels, and authority tables in order to reduce the risk of:

The security and confidentiality risks of computer-based matching would include: