Cost-Benefit Analysis – Accounting Information System Quiz

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Cost-Benefit Analysis - Accounting Information System Quiz
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Cost-Benefit Analysis, Data Loss, Control Risk, EFT Transactions, Payroll

The key terms in these Finance chapters include Cost-Benefit Analysis, Data Loss, Control Risk, EFT Transactions, Payroll, Segregation of Duties, Recovery Time, Form 941, Internal Control, Auditing Software.


The accounting department at Aglaya Telecom records an average of 8,000 transactions per hour. A cost-benefit analysis leads management to conclude that the maximum acceptable amount of data loss is 32,000 transactions. If the firm’s recovery time objective is 240 minutes, then the worst case recovery time objective is

16 hours.Correct

8 hours.

24 hours.

4 hours.


The maximum amount of time between backups is determined by a company’s

recovery time objective.

recovery point objective.Correct

recovery objective.

maximum time recovery objective.


Increasing the effectiveness of auditing software will

reduce detection risk.Correct

reduce control risk.

increase detection risk.

increase control risk.


What control should be put in place that assigns responsibility for EFT payments made to vendors?

Number all EFT transactions.

Encrypt all EFT transmissions.

Time stamp all EFT transactions.

Establish a control group to monitor EFT transactions for validity and accuracy.Correct


In the expenditure cycle, Financial Electronic Data Interchange (FEDI) increases efficiency by

eliminating the need for vendor invoices.

eliminating the need for purchase orders.

Removing the need for receiving reports.

eliminating the need to prepare and mail checks.Correct


Which of the following is not one of the basic actions that an organization must take to preserve the confidentiality of sensitive information?

Identification of information.

Controlling access to the information.

Training.

Backing up the information.Correct


The accounting department at Aglaya Telecom records an average of 8,000 transactions per hour. A cost-benefit analysis leads management to conclude that the maximum acceptable amount of data loss is 32,000 transactions. If the firm’s recovery time objective is 240 minutes, then the worst case recovery time objective is

16 hours.Correct

8 hours.

24 hours.

4 hours.


The maximum amount of time between backups is determined by a company’s

recovery time objective.

recovery point objective.Correct

recovery objective.

maximum time recovery objective.


Increasing the effectiveness of auditing software will

reduce detection risk.Correct

reduce control risk.

increase detection risk.

increase control risk.


Falk Noam is the internal auditor for Matan Incorporated. Before investigating the HRM / payroll cycle at Matan, Falk decided to read up on the proper segregation of duties regarding payroll disbursement processes. For strongest segregation of duties, the ________ should record payroll.

internal audit department

external auditor

cashier

accounts payable departmentCorrect


Form 941

is filed each quarter to reconcile monthly tax payments with total tax liability for the quarter.Correct

is used for employee information and annual payroll reports.

used to document compliance with applicable regulations.

used in preparing labor-related reports for government agencies.


Why is a separate payroll account used to clear payroll checks?

To separate payroll and expense checks.

All of the above are correct.

To make bank reconciliation easier.

For internal control purposes, to help limit any exposure to loss by the company.Correct


The accounting department at Aglaya Telecom records an average of 8,000 transactions per hour. A cost-benefit analysis leads management to conclude that the maximum acceptable amount of data loss is 32,000 transactions. If the firm’s recovery time objective is 240 minutes, then the worst case recovery time objective is

16 hours.Correct

8 hours.

24 hours.

4 hours.


The maximum amount of time between backups is determined by a company’s

recovery time objective.

recovery point objective.Correct

recovery objective.

maximum time recovery objective.


Increasing the effectiveness of auditing software will

reduce detection risk.Correct

reduce control risk.

increase detection risk.

increase control risk.


Falk Noam is the internal auditor for Matan Incorporated. Before investigating the HRM / payroll cycle at Matan, Falk decided to read up on the proper segregation of duties regarding payroll disbursement processes. For strongest segregation of duties, the ________ should record payroll.

internal audit department

external auditor

cashier

accounts payable departmentCorrect


Form 941

is filed each quarter to reconcile monthly tax payments with total tax liability for the quarter.Correct

used for employee information and annual payroll reports.

filed and used to document compliance with applicable regulations.

used in preparing labor-related reports for government agencies.


Why is a separate payroll account used to clear payroll checks?

To separate payroll and expense checks.

All of the above are correct.

To make bank reconciliation easier.

For internal control purposes, to help limit any exposure to loss by the company.Correct