Question 1

Data backups by themselves provide durability to protect data integrity in case of a system crash or other failure.

Accepted Answer

The answer of Data backups by themselves provide durability to...

Question 2

Tracking sales, inventory levels, orders, and customer support are examples of control activities.

Accepted Answer

Control activities involve monitoring and tracking various aspects of a business to ensure efficient operations and proper management of resources. Tracking sales, inventory levels, orders, and customer support are all examples of such activities.

Question 3

Oracle, Siemens, and POM vendors offer a demand-driven __________ system, whose objective is to remove waste of any kind from production and operations.

Accepted Answer

The answer of Oracle, Siemens, and POM vendors offer a...

Question 4

One of the most effective fraud prevention techniques is the perception of detection and punishment.

Accepted Answer

The perception of detection and punishment can deter fraudsters from attempting fraudulent activities because they believe there is a higher chance of being caught and punished. Therefore, it is an effective fraud prevention technique.

Question 5

A standard operating procedure, or SOP, is a loosely defined and suggested procedure for completing a process or function, such as a quality control process or function.

Accepted Answer

A standard operating procedure (SOP) is a set of step-by-step instructions compiled by an organization to help workers carry out complex routine operations. Its aim is to achieve efficiency, quality output, and uniformity of performance, while reducing miscommunication and failure to comply with industry regulations.

Question 6

At the __________ level, managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs.

Accepted Answer

The answer of At the __________ level, managers, supervisors, and...

Question 7

With XBRL, all of the company's financial data are collected, consolidated, published, and consumed without the need to use Excel spreadsheets.

Accepted Answer

With the use of XBRL, financial data can be easily shared between different systems, eliminating the need for manual data entry and spreadsheet manipulation.

Question 8

Cash flow projection is the process of identifying the financing of assets, including software, that need to be acquired or developed. It includes comparing alternatives or evaluating buy-versus-lease options.

Accepted Answer

Cash flow projection is the process of forecasting a company's cash inflows and outflows over a specific period, not specifically about financing assets or evaluating buy-versus-lease options.

Question 9

IT provides systems and apps that support the needs of ______________ area systems such as manufacturing and production, accounting, finance and HR.

Accepted Answer

The answer of IT provides systems and apps that support...

Question 10

HRM applications involve ethical issues, particularly in recruiting and selecting employees and in evaluating performance.

Accepted Answer

HRM applications involve ethical issues, particularly in recruiting and selecting employees and in evaluating performance. These issues include discrimination, bias, privacy, honesty, and fairness. Companies need to ensure that their HRM practices are in compliance with legal and ethical standards, treat all employees fairly, and avoid any actions that could result in legal or reputational risks.

Question 11

Inaccurate cash flow projection led to the demise of the investment bank Lehman Brothers in September 2008.

Accepted Answer

The answer of Inaccurate cash flow projection led to the...

Question 12

Data validation techniques, such as validating that the zip code is consistent with the address, are used to detect and correct data entry errors.

Accepted Answer

Data validation techniques are used to ensure the accuracy, completeness and consistency of data. Validating that the zip code is consistent with the address is a common data validation technique used to detect and correct data entry errors.

Question 13

__________ support advertising, market research, intelligence gathering, getting products and services to customers, and responding to customers' needs.

Accepted Answer

The answer of __________ support advertising, market research, intelligence gathering,...

Question 14

At the managerial or administrative level, middle-level managers make __________ decisions that focus on intermediate-term issues to fulfill the organization's mission, objectives, and strategy.

Accepted Answer

The answer of At the managerial or administrative level, middle-level...

Question 15

At the strategic level, managers, supervisors, and workers need detailed data, in real-time or near real-time, and the ability to respond to what they learn from functional ISs.

Accepted Answer

At the strategic level, managers need summarized, not detailed, data and trends over time rather than real-time data, which is more relevant for operational decisions.

Question 16

KIA Motors introduced an intelligent QC system to analyze customer complaints so they could more quickly investigate and make corrections.

Accepted Answer

KIA Motors did introduce an intelligent QC system to analyze customer complaints for quicker investigation and corrections.

Question 17

Reservation systems used by airlines and for concert tickets sales are online transaction processing OLTP) systems because data are processed as soon as transactions occur, in real time.

Accepted Answer

OLTP systems are designed to handle transactions in real time as they occur, making them the appropriate choice for reservation systems used by airlines and concert ticket sales. Therefore, the statement is true.

Question 18

The purpose of __________ is to identify deviations from objectives and plans as soon as possible in order to take corrective action.

Accepted Answer

The answer of The purpose of __________ is to identify...

Question 19

At the operational level, middle-level managers make tactical decisions that focus on intermediate-term issues to fulfill the organization's mission, objectives, and strategy.

Accepted Answer

The answer of At the operational level, middle-level managers make...

Question 20

Relying on informal processes of control is a factor that increases a company's exposure to fraud.

Accepted Answer

Informal processes of control lack structure and standardization, making it easier for fraudsters to find loopholes and exploit weaknesses in the system. This increases the risk of fraud for the company. Formal processes of control, such as policies, procedures, and internal audits, provide a more robust framework for preventing and detecting fraud.

Quiz 9: Functional Area and Compliance Systems