Accounting Information Systems Practice Test

Accounting Information Systems Practice Test

 

1. Which of the following is the main purpose of an accounting information system (AIS)?
   A) To prepare tax returns
   B) To capture, process, and report financial data
   C) To track inventory levels
   D) To calculate depreciation

 

2. What is the primary role of internal controls in an accounting information system?
   A) To ensure the system is used by authorized personnel only
   B) To maintain the system’s software and hardware
   C) To guarantee profits
   D) To help prepare financial statements

 

3. Which section of the Sarbanes-Oxley Act deals with the internal control requirements for public companies?
   A) Section 404
   B) Section 302
   C) Section 501
   D) Section 607

 

4. What is the purpose of Rule 404 of the Sarbanes-Oxley Act of 2002?
   A) To prevent insider trading
   B) To ensure companies have adequate internal controls over financial reporting
   C) To regulate the external audit process
   D) To mandate tax rate disclosures

 

5. Which of the following is a key feature of a computerized accounting information system (AIS)?
   A) Manual recording of transactions
   B) Real-time processing of financial data
   C) Physical filing of documents
   D) Paper-based ledger entries

 

6. A risk management process in an AIS typically involves all of the following EXCEPT:
   A) Identifying potential risks
   B) Designing controls to mitigate risks
   C) Ignoring insignificant risks
   D) Monitoring the effectiveness of controls

 

7. Which of the following is NOT a typical component of an accounting information system?
   A) Data collection
   B) Data processing
   C) Data storage
   D) Marketing strategies

 

8. What does “Segregation of Duties” refer to in internal control?
   A) Ensuring employees perform the same tasks every day
   B) Assigning different responsibilities to different employees to prevent fraud
   C) Offering bonuses for work completed correctly
   D) Requiring that all transactions be approved by management

 

9. In a manual accounting system, which of the following is used to record transactions?
   A) Journals and ledgers
   B) Computer software
   C) Spreadheets
   D) Financial statements

 

10. In a computerized AIS, who is primarily responsible for ensuring the accuracy of financial data input?
    A) The auditor
    B) The accounting clerk
    C) The system administrator
    D) The CFO

 

11. Which of the following is an example of a preventive control in an accounting information system?
    A) Regular reconciliation of accounts
    B) Restricting access to financial data
    C) Conducting surprise audits
    D) Employee training on fraud detection

 

12. What is a control risk in the context of an accounting information system?
    A) The risk that the financial statements will be misstated due to ineffective controls
    B) The risk of financial loss due to market fluctuations
    C) The risk of losing employee data
    D) The risk that the software will malfunction

 

13. What is the first step in the accounting cycle?
    A) Preparing financial statements
    B) Recording journal entries
    C) Posting transactions to the general ledger
    D) Identifying and analyzing transactions

 

14. Which of the following is an example of an output in an accounting information system?
    A) Journal entry
    B) Transaction data
    C) Financial statement
    D) Employee login

 

15. Which of the following best describes an auditor’s responsibility in relation to internal controls?
    A) To design the internal controls
    B) To evaluate the effectiveness of internal controls
    C) To operate internal controls
    D) To create financial reports

 

16. In a computerized AIS, which of the following is a common threat to system security?
    A) Encryption of data
    B) Unauthorized access
    C) Segregation of duties
    D) Data backup procedures

 

17. Which of the following is a key objective of internal controls in accounting?
    A) Maximizing company profits
    B) Ensuring reliable financial reporting
    C) Promoting sales and marketing efforts
    D) Reducing tax liabilities

 

18. What is the purpose of a data entry control in an accounting system?
    A) To ensure data is recorded in a timely manner
    B) To verify the accuracy of data entered into the system
    C) To prepare financial statements
    D) To back up system data

 

19. Which of the following is an example of a detective control in an accounting system?
    A) Authorization of transactions
    B) Segregation of duties
    C) Reconciliation of accounts
    D) Restricted access to financial data

 

20. In which of the following situations would an auditor be most concerned about a potential weakness in the accounting system?
    A) When there is no segregation of duties
    B) When the system generates accurate financial reports
    C) When employees receive training on fraud detection
    D) When the system has a backup procedure

 

21. What is a limitation of manual accounting systems compared to computerized systems?
    A) Easier to maintain and update
    B) Higher chance of human error
    C) Real-time processing capabilities
    D) Automatic generation of financial reports

 

22. Which of the following is a feature of a well-designed accounting information system?
    A) Clear communication of financial data to authorized users
    B) Duplication of tasks to ensure accuracy
    C) Complete reliance on manual processes
    D) High cost of operation

 

23. What is an example of a corrective control in an accounting system?
    A) Performing daily backups of system data
    B) Changing system passwords regularly
    C) Reviewing transaction logs after a fraud event
    D) Restricting access to confidential financial data

 

24. What does a general ledger do in an accounting information system?
    A) Stores customer account data
    B) Records all financial transactions in detail
    C) Summarizes all financial transactions by account
    D) Processes payroll

 

25. What is the purpose of Rule 302 of the Sarbanes-Oxley Act?
    A) It mandates the creation of audit committees
    B) It requires certification of financial reports by CEOs and CFOs
    C) It establishes the role of auditors in financial reporting
    D) It defines penalties for financial misconduct

 

26. Which of the following is the best example of a preventive control to protect an AIS from fraud?
    A) Regularly reviewing financial reports
    B) Requiring multiple approvals for high-value transactions
    C) Backing up system data
    D) Conducting surprise audits

 

27. What is the role of an audit trail in an accounting information system?
    A) To provide a record of all changes made to financial data
    B) To store raw transaction data
    C) To organize financial statements for external reporting
    D) To encrypt sensitive financial data

 

28. Which of the following is NOT a function of an accounting information system?
    A) Data entry
    B) Data analysis
    C) Financial reporting
    D) Tax auditing

 

29. Which of the following is an advantage of a computerized accounting information system?
    A) Greater accuracy and speed in processing transactions
    B) Increased reliance on manual data entry
    C) Higher vulnerability to human error
    D) Limited access to financial data

 

30. Which of the following best defines “reliability” in an accounting information system?
    A) The system’s ability to process transactions quickly
    B) The accuracy and consistency of financial data produced by the system
    C) The ability of the system to integrate with other business functions
    D) The ease of use of the system

 

 

31. Which of the following is a primary responsibility of an internal auditor in the context of accounting information systems?
    A) To operate the system’s hardware and software
    B) To evaluate the effectiveness of internal controls
    C) To write financial reports
    D) To prepare payroll records

 

32. Which of the following is an example of a management control in an accounting system?
    A) Setting up system backups
    B) Monitoring employee performance
    C) Reviewing reconciliations regularly
    D) Encrypting sensitive data

 

33. The ability of a system to continue functioning despite a hardware failure is referred to as:
    A) Scalability
    B) Reliability
    C) Integrity
    D) Availability

 

34. Which of the following is a significant advantage of using automated accounting software compared to manual systems?
    A) Higher labor costs
    B) Greater consistency and accuracy in processing data
    C) Less ability to handle large datasets
    D) Reduced control over the accuracy of data

 

35. The process of verifying the accuracy of financial data entered into an accounting system is called:
    A) Transaction testing
    B) Data validation
    C) Input control
    D) Data aggregation

 

36. In a well-designed AIS, who is responsible for implementing and maintaining internal controls?
    A) The CFO
    B) The auditor
    C) The system users
    D) The IT department

 

37. What is the main function of the General Journal in an accounting system?
    A) To track the company’s cash balances
    B) To provide a record of all company transactions
    C) To record unprocessed invoices
    D) To store payroll information

 

38. What does the term “auditability” refer to in an AIS?
    A) The system’s ability to back up data
    B) The system’s ability to be reviewed and tested for accuracy
    C) The speed at which transactions are processed
    D) The flexibility of the system in adapting to changes

 

39. In the context of AIS, what does the term “data redundancy” refer to?
    A) Ensuring that data is always backed up
    B) The duplication of data in multiple locations
    C) The lack of encryption on sensitive data
    D) The automatic processing of data without human intervention

 

40. What is an example of an access control in an AIS?
    A) A firewall that limits access to sensitive data
    B) A review of financial reports by management
    C) A regular backup of transaction data
    D) A manual ledger entry

 

41. What is the purpose of a “batch processing” method in an AIS?
    A) To process all transactions in real-time
    B) To process transactions in groups at specific intervals
    C) To automatically detect fraudulent activities
    D) To generate reports for external users

 

42. What is “data encryption” in the context of accounting information systems?
    A) The process of backing up data in a secure location
    B) The conversion of data into a code to prevent unauthorized access
    C) The organizing of data into categories for easy retrieval
    D) The process of deleting outdated financial records

 

43. Which of the following is a feature of a strong password control system in an AIS?
    A) Passwords that are easy to remember
    B) Passwords that are shared among employees for convenience
    C) Passwords that are regularly updated and difficult to guess
    D) Passwords that do not require special characters

 

44. What does the term “system integrity” refer to in an accounting information system?
    A) The ability of the system to process transactions quickly
    B) The accuracy and consistency of the system’s data
    C) The system’s ability to recover data after a crash
    D) The user-friendliness of the system interface

 

45. A company’s accounting software crashes, resulting in a loss of important data. Which of the following controls would help prevent this from happening again?
    A) Segregation of duties
    B) Regular data backups
    C) Periodic system upgrades
    D) Staff training on system use

 

46. Which of the following best defines “reliability” in an accounting information system?
    A) The system’s ability to run on multiple devices
    B) The system’s ability to produce accurate and consistent financial data
    C) The system’s ability to automatically reconcile accounts
    D) The system’s ability to calculate complex financial ratios

 

47. What is “dual control” in the context of an accounting information system?
    A) A system where two users are required to authorize certain transactions
    B) A backup system for storing data in multiple locations
    C) The requirement for multiple audit trails
    D) The use of two different systems to track the same data

 

48. In an accounting information system, the “transaction cycle” includes:
    A) Recording and processing accounting data only
    B) Identifying, recording, processing, and reporting financial data
    C) Identifying and reporting accounting errors
    D) Preparing annual budgets

 

49. What is a key feature of “real-time processing” in a computerized accounting system?
    A) The system updates financial data immediately after a transaction is entered
    B) The system stores data for later processing
    C) The system requires human oversight for every transaction
    D) The system only processes data during business hours

 

50. What is the role of an “input control” in an accounting information system?
    A) To ensure transactions are processed accurately
    B) To validate the data entered into the system
    C) To summarize financial data into reports
    D) To reconcile differences in data

 

51. What is the purpose of “user authentication” in an accounting information system?
    A) To back up user data to a separate location
    B) To ensure that only authorized individuals can access the system
    C) To ensure financial reports are accurate
    D) To allow system changes only with permission from the CFO

 

52. Which of the following describes the purpose of “segregation of duties” in internal controls?
    A) To prevent one individual from being able to complete all steps in a financial transaction
    B) To ensure that data backups are performed regularly
    C) To automatically reconcile discrepancies in accounts
    D) To encrypt sensitive financial data

 

53. The process of comparing the actual output of an AIS with the expected output is called:
    A) Data validation
    B) Performance monitoring
    C) Data entry verification
    D) Financial reconciliation

 

54. In an accounting information system, which of the following controls ensures that financial reports are not altered after approval?
    A) Data encryption
    B) Access controls
    C) Audit trails
    D) Backup systems

 

55. Which of the following is a key feature of a well-designed AIS regarding user access?
    A) Allowing all employees to access sensitive financial data
    B) Restricting access to financial data based on user roles and responsibilities
    C) Allowing employees to change their own passwords without oversight
    D) Permitting temporary access to sensitive data without monitoring

 

56. Which of the following is an example of an operational control in an AIS?
    A) Authorization of transactions before processing
    B) Periodic training of users on fraud prevention
    C) Segregation of duties for sensitive tasks
    D) Daily backups of transaction data

 

57. What is the purpose of “data validation” in an accounting information system?
    A) To verify that financial data is correct before processing
    B) To back up system data to a secure location
    C) To analyze the financial results of transactions
    D) To ensure that all system transactions are authorized

 

58. What role does the “audit committee” play in relation to an accounting information system?
    A) They design and operate the AIS
    B) They review and oversee the accuracy of financial reporting and internal controls
    C) They perform daily data entry into the system
    D) They install and configure the system hardware

 

59. The use of an integrated accounting system, which combines various functions like accounts payable, accounts receivable, and general ledger into one system, is an example of:
    A) Segregation of duties
    B) Consolidated reporting
    C) Data redundancy
    D) System integration

 

60. In an AIS, what is the primary purpose of conducting periodic audits?
    A) To prepare financial statements
    B) To evaluate the effectiveness of internal controls and the system’s reliability
    C) To ensure the system is compliant with tax laws
    D) To monitor employee performance

 

 

61. What is the purpose of “reconciliation” in an accounting information system?
    A) To compare and correct discrepancies in data
    B) To generate financial statements
    C) To prepare data for audit purposes
    D) To automate tax calculations

 

62. In an AIS, who is responsible for establishing policies related to data access and security?
    A) The IT department
    B) The internal auditor
    C) Management and senior executives
    D) The accounting clerk

 

63. Which of the following is an example of a detective control in an AIS?
    A) Restricting access to financial systems
    B) Conducting regular surprise audits
    C) Authorizing each transaction before processing
    D) Enforcing segregation of duties

 

64. What is meant by the term “integrity” in an AIS?
    A) Ensuring that the data is encrypted
    B) Ensuring that the system is operational at all times
    C) Ensuring that the financial data is accurate, complete, and reliable
    D) Ensuring that the system is user-friendly

 

65. What type of control is designed to prevent unauthorized access to a company’s financial data?
    A) Detective control
    B) Corrective control
    C) Preventive control
    D) Reconciliation control

 

66. In an AIS, which of the following is a key factor in preventing fraudulent activities?
    A) Maintaining a consistent accounting software
    B) Implementing adequate segregation of duties
    C) Allowing unrestricted access to financial data
    D) Generating financial reports on time

 

67. What is a primary advantage of using an automated accounting system over a manual one?
    A) It requires more manual labor
    B) It reduces the chance of human error in data processing
    C) It increases the complexity of system management
    D) It eliminates the need for internal controls

 

68. Which of the following is true regarding Sarbanes-Oxley (SOX) Section 404?
    A) It requires companies to provide certifications of their internal controls by top executives
    B) It establishes the role of auditors in managing accounting systems
    C) It mandates that companies use only computerized systems
    D) It focuses exclusively on tax compliance

 

69. Which of the following best defines “business continuity planning” (BCP) in an AIS context?
    A) A strategy to keep the system running smoothly under normal conditions
    B) A process to recover from disruptions such as system failures or natural disasters
    C) A framework for training staff on accounting software
    D) A way to track and reconcile customer transactions

 

70. A system with effective internal controls ensures that:
    A) Transactions are processed efficiently and accurately
    B) Only managers have access to the financial data
    C) Data is stored in multiple physical locations
    D) Reports are created without any delays

 

71. Which of the following controls would most effectively address the risk of unauthorized financial transactions in an AIS?
    A) Segregation of duties
    B) Reconciliation of accounts
    C) Backup procedures
    D) Employee training

 

72. What is the purpose of “data validation rules” in an accounting information system?
    A) To ensure that the system generates accurate financial reports
    B) To ensure that entered data meets certain criteria or format standards
    C) To back up all system data
    D) To prevent system crashes during data processing

 

73. Which of the following is an example of an input control in an AIS?
    A) Reviewing transaction logs
    B) Restricting access to the system
    C) Implementing double-entry bookkeeping
    D) Ensuring data entered is accurate and valid

 

74. In an AIS, the “audit trail” refers to:
    A) The record of all activities and changes made to financial data within the system
    B) The list of all accounts and their balances
    C) The method of backtracking financial reports
    D) The procedure for generating tax reports

 

75. What does “system scalability” mean in the context of an AIS?
    A) The ability of the system to handle growing amounts of work or data
    B) The system’s ability to recover from a power failure
    C) The system’s ability to integrate with other financial tools
    D) The ability to automate data entry

 

76. What is an example of a corrective control in an AIS?
    A) Regularly updating passwords
    B) Periodic internal audits
    C) Correcting discrepancies identified during reconciliation
    D) Preventing unauthorized access to data

 

77. Which of the following best describes a “cloud-based” accounting information system?
    A) An AIS that is hosted on physical servers within the company
    B) An AIS that is outsourced to third-party vendors
    C) An AIS that is accessible via the internet, typically hosted on external servers
    D) An AIS that requires on-site hardware management

 

78. In an AIS, what does “data integrity” primarily refer to?
    A) Ensuring that data can be easily accessed
    B) Ensuring the accuracy and consistency of data across the system
    C) Ensuring that financial data is encrypted
    D) Ensuring that the system runs efficiently without interruptions

 

79. What is the purpose of the “revenue cycle” in an AIS?
    A) To manage the recording of expenses and payments
    B) To manage the recording of sales transactions from order to receipt of payment
    C) To track inventory movement in and out of warehouses
    D) To generate reports for tax purposes

 

80. Which of the following would be an indication of a weak internal control in an AIS?
    A) Regular employee training on fraud detection
    B) A lack of segregation of duties for key financial processes
    C) Periodic reconciliation of all accounts
    D) Regular software updates and system audits

 

81. The integration of accounting information systems across different business units helps companies by:
    A) Increasing data duplication
    B) Reducing the reliability of the financial data
    C) Improving efficiency and data accuracy across the organization
    D) Increasing system complexity and costs

 

82. In an accounting system, which of the following is an example of an “output” of the system?
    A) Transaction data entered by employees
    B) Reports generated for management decision-making
    C) Journal entries processed by the system
    D) Data verification rules

 

83. Which of the following is a key feature of “role-based access control” (RBAC) in an AIS?
    A) Limiting user access to the system based on their job function and responsibilities
    B) Allowing all employees to view financial data
    C) Allowing only the CEO to make changes to the system configuration
    D) Ensuring that access to the system is not restricted

 

84. The process of automatically reconciling bank statements in an accounting system is an example of which type of control?
    A) Preventive control
    B) Detective control
    C) Corrective control
    D) Operational control

 

85. What is the purpose of a “back-up procedure” in an accounting information system?
    A) To ensure that financial data is recoverable in case of a system failure or disaster
    B) To speed up data processing
    C) To automate reconciliation of accounts
    D) To limit access to sensitive financial data

 

86. Which of the following would be an example of a “preventive” control in an AIS?
    A) Regular system updates to avoid vulnerabilities
    B) Conducting surprise audits of financial transactions
    C) Comparing actual performance against budgets
    D) Identifying and correcting data entry errors

 

87. Which of the following is true about the “dual control” principle in accounting systems?
    A) Two or more individuals must approve a transaction before it can be processed
    B) All system transactions can be processed by one person
    C) It is only applicable to manual accounting systems
    D) It eliminates the need for other forms of internal controls

 

88. A common threat to the security of an AIS is:
    A) Frequent software updates
    B) Unauthorized access to the system by hackers or malicious actors
    C) Regular employee training on data protection
    D) Automatic backup of system data

 

89. What does “user authentication” ensure in an accounting information system?
    A) The system runs at maximum speed
    B) Only authorized individuals can access and modify financial data
    C) Financial data is processed in real-time
    D) The system can recover from data loss

 

90. Which of the following is an example of a “corrective” control in an AIS?
    A) Adjusting financial records after identifying discrepancies
    B) Restricting access to sensitive financial data
    C) Conducting training sessions on fraud detection
    D) Using encryption to secure financial data

 

 

91. Which of the following is a key function of an Enterprise Resource Planning (ERP) system in the context of accounting information systems?
    A) To track employee performance
    B) To integrate data across various business functions, including accounting, HR, and supply chain
    C) To solely handle payroll processing
    D) To provide only manual accounting tools

 

92. What is the primary purpose of a “disaster recovery plan” in an AIS?
    A) To ensure financial data is stored securely
    B) To recover from a system failure and resume operations as quickly as possible
    C) To prevent unauthorized access to sensitive data
    D) To backup data daily

 

93. What does the “Segregation of Duties” principle aim to prevent in an AIS?
    A) Employees from becoming overworked
    B) Unauthorized transactions by a single individual
    C) The generation of financial statements
    D) The processing of manual entries

 

94. What is the role of the “data dictionary” in an accounting information system?
    A) To validate the accuracy of financial transactions
    B) To define and store metadata about the data elements in the system
    C) To generate the system’s security protocols
    D) To reconcile financial data after processing

 

95. What is a key advantage of using a “cloud-based” AIS over a traditional on-premise system?
    A) It requires more hardware and IT support
    B) It provides more direct control over data security
    C) It offers greater flexibility and scalability
    D) It does not require an internet connection for operation

 

96. What is the purpose of implementing “audit trails” in an AIS?
    A) To track and store the sequence of system changes and transactions
    B) To automatically back up data after each transaction
    C) To verify the accuracy of financial statements
    D) To compare actual data to budgeted data

 

97. Which of the following is an example of “user access control” in an AIS?
    A) Using firewalls to block unauthorized network traffic
    B) Limiting access to financial data based on the user’s job role
    C) Regularly updating passwords
    D) Performing data backups regularly

 

98. What is the main advantage of “real-time processing” in an accounting information system?
    A) Data is processed only at the end of the day
    B) Transactions are processed immediately when entered, providing up-to-date information
    C) The system is only operational during business hours
    D) Users do not have to input data manually

 

99. The “security principle” of an accounting information system ensures that:
    A) Financial reports are prepared accurately
    B) Only authorized users can access sensitive financial information
    C) Data is reconciled on a monthly basis
    D) Software updates are applied on time

 

100. Which of the following would be considered a “preventive control” in an AIS to avoid unauthorized transactions?
     A) Implementing strong password requirements and user authentication
     B) Regularly checking transaction logs for discrepancies
     C) Reviewing reconciled financial statements
     D) Conducting surprise audits on user activity

 

101. Which of the following is a feature of “batch processing” in an AIS?
     A) Data is processed as it is entered
     B) Transactions are processed in groups, usually at set intervals
     C) The system operates in real-time without human oversight
     D) Data is processed manually before being entered into the system

 

102. What does the term “input control” refer to in an AIS?
     A) A system that ensures only authorized users can access financial reports
     B) The methods used to ensure data entered into the system is accurate and valid
     C) The system’s ability to process large volumes of transactions quickly
     D) A feature that generates output reports for internal use

 

103. Which of the following is an example of a “corrective” control in an AIS?
     A) Reviewing the segregation of duties for all financial tasks
     B) Restoring data from a backup after a system failure
     C) Encrypting sensitive financial data
     D) Performing a periodic audit of system logs

 

104. What role does “data backup” play in an accounting information system?
     A) To ensure that the system can process financial transactions without errors
     B) To provide a recovery option in case of system failure or data loss
     C) To automatically validate entered data
     D) To limit access to sensitive financial information

 

105. What is the purpose of “segregating duties” in the internal control structure of an AIS?
     A) To reduce redundancy in data storage
     B) To ensure that no single individual has control over all aspects of a financial transaction
     C) To automate data entry
     D) To speed up the financial reporting process

 

106. Which of the following is an example of a “manual control” in an AIS?
     A) The automatic generation of reports
     B) Performing periodic reconciliations by an accountant
     C) Using encrypted passwords for system access
     D) Using two-factor authentication for all users

 

107. The “documentation” of an accounting information system is important because it:
     A) Reduces the need for data encryption
     B) Helps users and auditors understand system processes and controls
     C) Increases the speed of data entry
     D) Ensures that users cannot change system settings

 

108. A company is considering upgrading its accounting system to a more advanced version. What should be the primary focus when testing the new system before full implementation?
     A) Ensuring that system upgrades occur frequently
     B) Ensuring the system can process high volumes of data efficiently
     C) Ensuring the system complies with tax laws
     D) Ensuring the system provides access to all employees

 

109. Which of the following is an example of an “output control” in an AIS?
     A) Validating transaction data before processing
     B) Ensuring that only authorized users can log into the system
     C) Monitoring the accuracy and completeness of financial reports generated by the system
     D) Encrypting all data stored in the system

 

110. What is a key benefit of using “ERP” (Enterprise Resource Planning) systems in managing accounting information?
     A) Increased costs for training and support
     B) Streamlined communication and data flow across departments
     C) More reliance on manual data entry
     D) Limited access to real-time data

 

111. In an AIS, the “chart of accounts” is used to:
     A) Document all company transactions
     B) Record each transaction as it is processed
     C) Define and classify the financial accounts used by the system
     D) Monitor financial performance metrics

 

112. What does “data validation” ensure in an accounting information system?
     A) That system data is processed on time
     B) That all entered data conforms to the required format and rules
     C) That backup data is available at all times
     D) That users can access their accounts without delay

 

113. Which of the following is the primary function of “input validation” in an AIS?
     A) To ensure that entered data meets specific criteria, such as valid account numbers or dates
     B) To generate financial reports from processed data
     C) To monitor user activity within the system
     D) To restore data after a system crash

 

114. Which of the following is a key objective of an internal audit in an AIS?
     A) To ensure that system updates are applied correctly
     B) To test the effectiveness of the system’s internal controls and compliance with standards
     C) To train employees on system use
     D) To increase the speed of transaction processing

 

115. In an AIS, what is the role of “encryption”?
     A) To store financial data in secure backups
     B) To ensure that only authorized users can access financial data
     C) To validate transaction data before it is processed
     D) To reconcile data discrepancies during reporting

 

116. The concept of “availability” in an AIS refers to:
     A) The ability to process data quickly
     B) The ability to recover lost data
     C) The ability to provide continuous access to the system and data
     D) The ability to detect fraud

 

117. The principle of “confidentiality” in an AIS ensures that:
     A) Data is available to all employees at all times
     B) Sensitive financial data is protected and only accessible by authorized individuals
     C) Financial statements are presented to the public
     D) Transactions are processed without delay

 

118. In the context of AIS, what does “system performance monitoring” refer to?
     A) Ensuring that financial statements are accurate
     B) Tracking the system’s processing efficiency, error rates, and resource use
     C) Verifying that only authorized users can access the system
     D) Ensuring the integrity of data backups

 

119. Which of the following is an example of a “preventive” control for unauthorized financial transactions in an AIS?
     A) Restricting access to financial data based on user roles
     B) Performing periodic audits of financial transactions
     C) Reversing incorrect transactions after identification
     D) Analyzing historical data for patterns of fraud

 

120. The Sarbanes-Oxley Act of 2002 requires companies to:
     A) Use only computerized accounting systems
     B) Perform annual audits of their accounting systems
     C) Document and test internal controls over financial reporting
     D) Implement only cloud-based accounting systems

 

 

121. Which of the following is an essential feature of a “comprehensive accounting information system”?
     A) It only processes financial data
     B) It integrates all financial and operational data into a single system
     C) It requires manual reconciliation of accounts
     D) It is only used for payroll processing

 

122. In an AIS, the concept of “access control” is primarily designed to:
     A) Prevent unauthorized individuals from viewing or altering sensitive financial data
     B) Speed up the data entry process
     C) Automatically generate tax reports
     D) Facilitate real-time processing of transactions

 

123. Which of the following is an example of an “audit control” in an accounting information system?
     A) Limiting user access to financial data
     B) Logging and reviewing system activities for unusual or unauthorized actions
     C) Encrypting all financial data
     D) Training staff to use the system efficiently

 

124. The primary purpose of implementing a “general ledger” in an accounting system is to:
     A) Track cash flow from operations
     B) Provide a central location to record all financial transactions
     C) Automate payroll processing
     D) Store employee records

 

125. What does the term “transaction processing” refer to in an AIS?
     A) The act of storing financial data
     B) The capturing, processing, and recording of business transactions
     C) The analysis of financial reports
     D) The segregation of duties for financial operations

 

126. Which of the following is an example of a “preventive control” in the context of financial reporting?
     A) Conducting an audit of the system
     B) Setting strong password policies for system users
     C) Reviewing financial reports for accuracy
     D) Correcting discrepancies found in the data

 

127. In an accounting information system, “user authentication” helps to ensure that:
     A) Only authorized users can access the system and its data
     B) Transactions are processed correctly
     C) Backups are performed regularly
     D) Users can log in without delays

 

128. What is the role of “data reconciliation” in an AIS?
     A) To back up data after it is entered
     B) To compare and correct discrepancies in data records
     C) To encrypt sensitive data
     D) To speed up transaction processing

 

129. In the context of internal controls, “segregation of duties” refers to:
     A) Ensuring only authorized employees process financial transactions
     B) Dividing key financial tasks among different employees to reduce fraud risk
     C) Training employees on accounting software
     D) Automating the entire accounting process

 

130. What is the primary purpose of a “bank reconciliation” in an accounting information system?
     A) To monitor employee activity
     B) To compare internal financial records with bank statements and resolve discrepancies
     C) To ensure financial data is encrypted
     D) To prepare tax filings

 

131. The “security principle” in an accounting information system ensures that:
     A) System reports are generated on time
     B) Users cannot access the system without proper authorization
     C) Data entry is automated
     D) All users have access to financial reports

 

132. Which of the following is an example of an “output” in an accounting information system?
     A) Transaction records entered by employees
     B) Generated financial statements and reports
     C) Data entered during reconciliation
     D) Backups of financial data

 

133. What does the term “data integrity” refer to in an AIS?
     A) The process of validating data against predefined rules
     B) The accuracy, consistency, and reliability of data throughout its lifecycle
     C) The ability to process high volumes of data quickly
     D) The encryption of sensitive financial data

 

134. In an AIS, which of the following controls would prevent employees from inputting incorrect transaction data?
     A) Segregation of duties
     B) Data validation rules and input restrictions
     C) Audit trails
     D) Data backups

 

135. Which of the following is an example of a “corrective” control in an AIS?
     A) Conducting regular audits of financial data
     B) Identifying and fixing discrepancies after they have been detected
     C) Using multi-factor authentication to secure the system
     D) Encrypting financial data to prevent unauthorized access

 

136. The “audit trail” function in an accounting system is designed to:
     A) Encrypt sensitive data
     B) Track all changes and transactions within the system for audit purposes
     C) Reconcile discrepancies in data
     D) Automate financial reporting

 

137. A key principle of “data encryption” in an AIS is to:
     A) Protect sensitive data from unauthorized access
     B) Ensure data is processed in real-time
     C) Speed up data entry
     D) Automatically reconcile discrepancies

 

138. In an AIS, “redundancy” refers to:
     A) Storing multiple copies of critical data to ensure availability during system failure
     B) The process of eliminating excess data entries
     C) The automatic backup of financial transactions
     D) The use of multiple software systems to process transactions

 

139. Which of the following is an example of an “input control” in an accounting information system?
     A) Conducting internal audits on financial data
     B) Ensuring that entered data meets predefined criteria and formats
     C) Encrypting stored financial data
     D) Restricting access to sensitive financial reports

 

140. Which of the following statements is true about “ERP systems” in an AIS?
     A) ERP systems integrate financial and non-financial data across an organization into one unified system
     B) ERP systems are only used for managing payroll
     C) ERP systems are typically used only in large organizations
     D) ERP systems eliminate the need for internal controls

 

141. In an AIS, “segregation of duties” prevents a single employee from having control over all aspects of a transaction. This helps to reduce:
     A) Data entry speed
     B) The risk of fraud and errors
     C) The need for financial audits
     D) Employee training costs

 

142. A “data backup” in an accounting system is essential for:
     A) Ensuring that financial data is processed faster
     B) Providing a recovery mechanism in case of system failure or data corruption
     C) Increasing the efficiency of accounting software
     D) Limiting employee access to financial data

 

143. A key aspect of “data validation” in an accounting system is to ensure that:
     A) Data entered into the system complies with required formats and constraints
     B) Users can access financial reports without restriction
     C) Financial data is processed in real-time
     D) All reports are generated automatically

 

144. In an accounting information system, “data backup” is important because it helps to:
     A) Prevent unauthorized access to financial data
     B) Automate the generation of tax reports
     C) Ensure data is recoverable in case of system failure or disaster
     D) Speed up the reconciliation process

 

145. What does the term “compliance” in an AIS context primarily refer to?
     A) The ability of the system to integrate with external software
     B) The adherence to legal, regulatory, and organizational standards in processing and reporting financial data
     C) The processing speed of financial transactions
     D) The process of updating system software

 

146. What is the role of “security policies” in an accounting information system?
     A) To ensure that data processing is done in real-time
     B) To protect sensitive data from unauthorized access or modification
     C) To reconcile financial discrepancies
     D) To generate automated financial reports

 

147. In the context of an AIS, what is “role-based access control”?
     A) Allowing all employees to access financial records
     B) Limiting access to the system based on an individual’s job responsibilities and role within the company
     C) Allowing only one person to access the system at a time
     D) Giving system access to all users during the audit period

 

148. Which of the following is a potential disadvantage of using “cloud-based accounting systems”?
     A) Data is encrypted and stored securely
     B) There is a reliance on the internet for system access
     C) Real-time processing of financial transactions
     D) Users have greater control over system security

 

149. In the context of an accounting information system, “audit logs” are used to:
     A) Track user activities and changes to the system for audit and security purposes
     B) Automatically reconcile financial accounts
     C) Backup financial data periodically
     D) Monitor system performance and speed

 

150. What is the role of a “general ledger” in an accounting information system?
     A) To track employee payroll
     B) To serve as the central repository for all financial transactions
     C) To process tax filings
     D) To store customer transaction records

 

 

151. In an AIS, what is the purpose of “internal controls”?
     A) To ensure compliance with external financial reporting standards
     B) To maintain the confidentiality and accuracy of financial data
     C) To track user activity across the system
     D) To automatically generate tax reports

 

152. Which of the following is a primary benefit of using an “automated reconciliation” process in an AIS?
     A) It reduces the need for internal audits
     B) It eliminates the risk of fraud
     C) It saves time and improves accuracy by matching financial records with external sources automatically
     D) It speeds up data entry processes

 

153. The role of “data masking” in an accounting system is to:
     A) Encrypt all financial transactions
     B) Protect sensitive data by replacing it with fictitious or scrambled information for non-authorized users
     C) Store backups of financial records
     D) Prevent the system from being hacked

 

154. The concept of “access rights” in an AIS means:
     A) Ensuring that only authorized users can access and modify sensitive financial data
     B) Ensuring that data is processed quickly and efficiently
     C) Automatically auditing all financial transactions
     D) Storing encrypted backups of data

 

155. Which of the following best describes “batch processing” in an AIS?
     A) Transactions are processed in real-time as they occur
     B) Data is processed in groups or batches, usually at predefined intervals
     C) Data is processed manually before being entered into the system
     D) Reports are generated automatically at the end of each day

 

156. In an AIS, the “output stage” involves:
     A) The recording and entering of financial data
     B) The generation of reports, such as income statements and balance sheets
     C) The automatic backup of all financial data
     D) The validation of entered data

 

157. Which of the following is an example of a “preventive control” in an accounting system?
     A) Automatically flagging transactions for review after they have been processed
     B) Conducting surprise audits
     C) Restricting access to sensitive data based on user roles
     D) Reviewing backup files for completeness

 

158. A “disaster recovery plan” in an AIS should include:
     A) Procedures for restoring financial data in the event of a system failure
     B) Ways to prevent unauthorized access to financial reports
     C) Guidelines for data entry procedures
     D) Methods for performing routine data backups

 

159. The “two-factor authentication” security measure in an AIS requires:
     A) A user to enter a password and a second form of identity verification, such as a fingerprint or code sent to a phone
     B) A password and an encrypted key to access the system
     C) The user’s social security number and date of birth
     D) An automatic email verification

 

160. Which of the following is the primary goal of the Sarbanes-Oxley Act of 2002 in the context of AIS?
     A) To reduce taxes for public companies
     B) To protect investors by improving the accuracy and reliability of corporate financial reporting
     C) To standardize accounting systems across industries
     D) To eliminate the need for internal controls in publicly traded companies

 

161. In an AIS, “user training” is important because:
     A) It helps employees to comply with data security protocols
     B) It speeds up the data entry process
     C) It reduces the need for data backups
     D) It ensures that employees only have access to the financial data they need

 

162. The term “financial audit” in the context of AIS refers to:
     A) A review of all financial transactions to ensure they comply with the system’s reporting structure
     B) An internal review to assess employee performance
     C) A review of the system’s ability to generate tax filings automatically
     D) An external review of the system’s software

 

163. Which of the following is an example of a “data input” control in an AIS?
     A) Verifying that entered data follows the system’s format and validation rules
     B) Regularly reviewing financial reports for errors
     C) Restricting access to the system’s backup data
     D) Reviewing system logs for unusual activity

 

164. What is the role of “encryption” in an accounting information system?
     A) To ensure that only authorized users can access and read sensitive data
     B) To automatically reconcile discrepancies in financial data
     C) To track changes made to the system’s financial reports
     D) To generate real-time financial reports

 

165. Which of the following is an example of “output control” in an AIS?
     A) Ensuring that data is entered correctly during the input phase
     B) Generating reports that are only accessible to authorized users
     C) Encrypting all sensitive financial information stored in the system
     D) Monitoring the system for real-time data processing issues

 

166. Which of the following describes “real-time processing” in an accounting system?
     A) Transactions are processed in batches at predefined intervals
     B) Data is entered into the system but processed later
     C) Transactions are processed immediately as they are entered, allowing up-to-date information
     D) Data is processed manually after being reviewed

 

167. Which of the following is a characteristic of “cloud-based accounting systems”?
     A) Data is stored on local servers within the organization
     B) It provides real-time access to data from any location with internet access
     C) It requires a dedicated IT team to maintain and upgrade
     D) It is more secure than traditional on-premise systems

 

168. In an AIS, “segregation of duties” helps to prevent:
     A) The generation of fraudulent financial reports
     B) Errors in the system’s backup process
     C) Unauthorized access to financial data
     D) The redundancy of financial transactions

 

169. A “data dictionary” in an accounting information system contains:
     A) Detailed rules on how transactions are processed
     B) Definitions and descriptions of the system’s data elements
     C) The list of users who have access to the system
     D) Reports generated by the system

 

170. The role of “transaction logs” in an AIS is to:
     A) Record the processing speed of the system
     B) Track all system activities and changes for security and audit purposes
     C) Store backup copies of financial data
     D) Generate real-time financial reports

 

171. In the context of AIS, “data redundancy” refers to:
     A) Storing multiple copies of critical data to ensure system availability during failure
     B) Reducing the number of unnecessary transactions entered into the system
     C) Deleting old records to free up storage space
     D) Compressing data to improve system performance

 

172. What is an “accounting software system” designed to do?
     A) Process all business transactions, including payroll, taxes, and financial reporting
     B) Limit access to the company’s financial information
     C) Generate real-time reports based on historical data
     D) Validate external financial statements

 

173. Which of the following is the purpose of “automated controls” in an accounting system?
     A) To generate and review financial reports automatically
     B) To track employee performance
     C) To ensure the accuracy and completeness of financial data without manual intervention
     D) To allow employees to access financial data from anywhere

 

174. In an accounting information system, “user permissions” are used to:
     A) Automatically reconcile accounts
     B) Control what data and functionalities a user can access and modify
     C) Monitor system performance
     D) Encrypt sensitive financial data

 

175. A “performance review” in an AIS is important because:
     A) It helps identify system weaknesses or inefficiencies in transaction processing
     B) It reduces the risk of data breaches
     C) It speeds up the generation of financial reports
     D) It prevents unauthorized access to the system

 

176. What is a “vendor management module” in an ERP system used for?
     A) To process payroll for vendors
     B) To track and manage vendor relationships, contracts, and payments
     C) To manage the backup of vendor financial data
     D) To generate real-time financial reports for vendors

 

177. Which of the following is an example of a “compliance control” in an AIS?
     A) Encrypting sensitive financial data
     B) Ensuring that the system complies with applicable financial reporting standards and regulations
     C) Conducting periodic system performance reviews
     D) Generating real-time financial reports

 

178. The “data entry validation” process in an AIS helps to ensure that:
     A) Data is entered correctly and meets the required formats before processing
     B) All transactions are processed in real-time
     C) Financial statements are generated automatically
     D) Sensitive financial data is encrypted

 

179. What does the term “data encryption” refer to in the context of AIS?
     A) A method to compress data to save space
     B) Protecting data from unauthorized access by converting it into an unreadable format
     C) Storing sensitive financial data in a centralized server
     D) Generating financial reports automatically

 

 

180. What is the main goal of implementing “internal controls” in an AIS?
     A) To improve system processing speed
     B) To ensure the accuracy and reliability of financial data
     C) To automate financial reporting
     D) To reduce software costs

 

181. Which of the following is an example of a “preventive control” in an accounting information system?
     A) Performing a review of financial reports
     B) Monitoring user logins for unusual activity
     C) Requiring strong passwords and multi-factor authentication for system access
     D) Reviewing audit logs regularly

 

182. In an AIS, “data integrity” refers to:
     A) The ability to store large amounts of data
     B) The accuracy and consistency of data across the system
     C) The ability to automatically generate reports
     D) The encryption of sensitive data

 

183. What is a “journal entry” in the context of an accounting information system?
     A) A process that validates financial data entered into the system
     B) A record of all transactions within a company
     C) A report generated by the system to summarize financial performance
     D) A backup of financial data in case of system failure

 

184. Which of the following best describes “cloud computing” in an AIS?
     A) Storing data on local servers within the company
     B) Storing and accessing data over the internet via third-party services
     C) Automating the entire accounting process
     D) Restricting access to financial data to authorized users only

 

185. Which of the following is a function of “audit trails” in an AIS?
     A) Generating real-time financial reports
     B) Tracking changes made to financial data for review and security purposes
     C) Storing backup copies of all transactions
     D) Encrypting sensitive financial data

 

186. What does the term “business continuity plan” refer to in an AIS?
     A) A backup procedure for ensuring the availability of financial data during a system failure
     B) A list of roles and responsibilities for AIS users
     C) A method for processing data in real-time
     D) The automatic generation of financial reports

 

187. The role of “transaction logs” in an AIS is to:
     A) Track the flow of financial data within the system
     B) Prevent unauthorized access to sensitive data
     C) Provide real-time reports for business decisions
     D) Store backup copies of financial records

 

188. What is the function of “user authentication” in an accounting information system?
     A) To encrypt financial data
     B) To verify the identity of users before allowing system access
     C) To monitor user activity for fraud
     D) To automatically reconcile discrepancies in transactions

 

189. In the context of AIS, “data validation” helps to:
     A) Ensure that data entered into the system complies with predefined rules and formats
     B) Increase the speed of data processing
     C) Automatically generate financial reports
     D) Encrypt sensitive financial data

 

190. The purpose of “segregation of duties” in an AIS is to:
     A) Ensure that one individual has full control over all aspects of a financial transaction
     B) Separate responsibilities so that no one person can commit fraud or make errors alone
     C) Prevent unauthorized access to financial data
     D) Allow employees to access all system data

 

191. Which of the following is a key element of “role-based access control” in an AIS?
     A) Limiting system access based on an individual’s job responsibilities
     B) Allowing unrestricted access to all system users
     C) Encrypting financial data to prevent unauthorized access
     D) Generating financial reports automatically for management

 

192. In an accounting information system, “backup procedures” are used to:
     A) Store sensitive financial data in encrypted format
     B) Ensure that copies of critical financial data are available in case of a system failure or disaster
     C) Prevent unauthorized access to system data
     D) Automate tax filing and reporting processes

 

193. The “audit process” in an AIS typically includes:
     A) Analyzing system performance for efficiency
     B) Reviewing transactions and system activities for accuracy and compliance with regulations
     C) Generating real-time financial reports
     D) Encrypting sensitive data

 

194. Which of the following is an example of an “output control” in an AIS?
     A) Ensuring that input data follows required formats
     B) Limiting access to generated financial reports to authorized users only
     C) Ensuring transactions are processed in real-time
     D) Automatically backing up all data to external servers

 

195. What is “real-time processing” in an accounting information system?
     A) Data is processed in batches at specific intervals
     B) Financial data is entered into the system and processed immediately, providing up-to-date information
     C) The system only processes data after it is manually verified
     D) Data is stored and processed manually at the end of the day

 

196. In an AIS, “compliance” refers to:
     A) Ensuring that the system adheres to financial reporting standards and regulations
     B) Processing transactions quickly and accurately
     C) Allowing all users access to system data
     D) Encrypting financial reports

 

197. The “general ledger” in an AIS is used to:
     A) Track the activities of employees
     B) Serve as the central repository for all financial transactions and accounts
     C) Process payroll transactions
     D) Generate automated reports for tax filing

 

198. In an AIS, “data encryption” is important because it:
     A) Improves system performance
     B) Protects sensitive financial data from unauthorized access and theft
     C) Speeds up data entry processes
     D) Allows real-time data processing

 

199. What does the term “data redundancy” mean in an AIS?
     A) Storing multiple copies of critical data to ensure it is available in case of system failure
     B) Eliminating duplicate entries in the system
     C) Compressing data to save storage space
     D) Automatically processing transactions in batches

 

200. What is the purpose of the “data dictionary” in an AIS?
     A) To define the structure, types, and meanings of all data elements used in the system
     B) To store sensitive financial data securely
     C) To automatically back up data every 24 hours
     D) To generate financial reports

 

201. What role does “data reconciliation” play in an accounting information system?
     A) It compares data from different sources and ensures that discrepancies are identified and corrected
     B) It generates real-time financial reports
     C) It ensures that all financial data is encrypted
     D) It processes transactions automatically

 

202. In the context of an AIS, “user permissions” refer to:
     A) Allowing users unrestricted access to system data
     B) Restricting access to data and functionality based on the user’s role and responsibilities
     C) Encrypting all financial data
     D) Automatically generating reports for every user request

 

203. Which of the following best describes “data masking” in an AIS?
     A) Protecting sensitive data by replacing it with fake data that can be viewed by authorized users
     B) Storing financial data in an encrypted format
     C) Backing up financial records regularly
     D) Creating dummy accounts to test system functionality

 

204. The primary goal of “audit logs” in an AIS is to:
     A) Store sensitive financial data securely
     B) Track user activity and changes made to the system for auditing and security purposes
     C) Automatically reconcile discrepancies in financial data
     D) Encrypt financial data to prevent unauthorized access

 

205. In an AIS, “segregation of duties” helps to reduce the risk of:
     A) Data loss due to system failure
     B) Errors in data processing
     C) Fraud and unauthorized access to financial data
     D) Unauthorized system updates

 

206. A “cloud-based accounting system” is characterized by:
     A) Storing all financial data on the company’s internal servers
     B) Allowing employees to access data from anywhere with an internet connection
     C) Restricting access to system data to only a few authorized individuals
     D) Eliminating the need for system backups

 

 

207. The purpose of “audit trails” in an AIS is to:
     A) Monitor system performance and speed
     B) Track all changes made to the system’s data for review and auditing
     C) Automatically encrypt financial data
     D) Ensure real-time processing of all financial transactions

 

208. The role of “data encryption” in an AIS is to:
     A) Improve system processing speed
     B) Prevent unauthorized access by converting data into an unreadable format
     C) Automatically generate financial reports
     D) Back up all data at regular intervals

 

209. Which of the following is a “corrective control” in an AIS?
     A) Restricting access to financial data based on user roles
     B) Automatically reconciling discrepancies in data
     C) Conducting periodic system audits to identify and fix errors
     D) Reviewing transaction logs for suspicious activities

 

210. In the context of an AIS, “transaction processing” refers to:
     A) The backup of financial data in case of system failure
     B) The input, validation, and recording of financial transactions
     C) The generation of real-time financial reports
     D) The creation of user accounts and permissions

 

211. In an AIS, “data redundancy” is reduced by:
     A) Using centralized data storage
     B) Encrypting financial records
     C) Allowing all users to access all data
     D) Automatically backing up data every hour

 

212. What is the primary benefit of implementing “real-time processing” in an AIS?
     A) Data is processed in batches at regular intervals
     B) Transactions are processed immediately as they are entered, allowing up-to-date information
     C) It reduces the need for user authentication
     D) Financial reports are automatically generated

 

213. The purpose of “role-based access control” in an AIS is to:
     A) Allow unrestricted access to all users based on need
     B) Limit access to financial data and system features based on user roles and responsibilities
     C) Automatically generate audit logs
     D) Encrypt financial data to protect it from unauthorized access

 

214. Which of the following is an example of a “detective control” in an AIS?
     A) Encrypting financial data to prevent unauthorized access
     B) Using backup systems to prevent data loss
     C) Reviewing system logs for suspicious activities
     D) Restricting user access to system data based on job functions

 

215. In the context of an AIS, “system redundancy” is implemented to:
     A) Provide backup in case the primary system fails
     B) Encrypt sensitive financial data
     C) Ensure that only authorized users can access the system
     D) Allow the system to automatically reconcile discrepancies

 

216. Which of the following is a characteristic of an “ERP (Enterprise Resource Planning) system” in an AIS?
     A) It focuses solely on financial data processing
     B) It integrates various business functions, including finance, inventory, and HR, into one unified system
     C) It only processes transactions in real-time
     D) It allows external auditors to access the system directly

 

217. The role of “multi-factor authentication” in an AIS is to:
     A) Encrypt financial data before storage
     B) Provide an additional layer of security by requiring more than one form of identity verification
     C) Automatically back up data every 24 hours
     D) Monitor real-time financial transactions for fraud

 

218. In an AIS, the term “data masking” refers to:
     A) Encrypting all system data for security
     B) Replacing sensitive information with dummy data that can only be read by authorized users
     C) Generating backup copies of financial data
     D) Reducing the number of database entries

 

219. What is the primary purpose of “system backups” in an AIS?
     A) To store sensitive data in an encrypted format
     B) To protect data by creating copies in case of system failure or data loss
     C) To allow for immediate access to financial reports
     D) To track and manage user activity within the system

 

220. In an AIS, the “input stage” primarily involves:
     A) Recording financial transactions and ensuring they are accurate
     B) Generating financial reports based on recorded data
     C) Encrypting sensitive financial data
     D) Backing up financial data to external servers

 

221. Which of the following is the purpose of an “audit committee” in the context of an AIS?
     A) To generate real-time financial reports
     B) To oversee the audit process, ensuring that the system’s financial data is accurate and compliant with regulations
     C) To process payroll transactions
     D) To provide system maintenance and upgrades

 

222. What does “data validation” ensure in an accounting information system?
     A) That only authorized users can access financial data
     B) That financial data entered into the system is accurate and follows specified formats
     C) That data is backed up regularly
     D) That reports are generated automatically

 

223. In an AIS, “data consistency” ensures that:
     A) Financial data is stored in multiple locations for backup
     B) Transactions and records are consistent across the system, preventing discrepancies
     C) Reports are generated at predefined intervals
     D) All users have equal access to system data

 

224. Which of the following is an example of a “security control” in an AIS?
     A) Performing an annual review of financial reports
     B) Using strong encryption methods to protect sensitive financial data
     C) Generating real-time financial reports
     D) Automating the reconciliation of discrepancies

 

225. In an AIS, “user activity monitoring” helps to:
     A) Automatically generate financial statements
     B) Track and record user actions to detect unauthorized access or fraudulent behavior
     C) Encrypt sensitive data
     D) Automate the process of data validation

 

226. What is the role of a “firewall” in an AIS?
     A) To prevent unauthorized users from accessing the system by monitoring incoming and outgoing traffic
     B) To encrypt financial data stored in the system
     C) To store backup copies of financial records
     D) To automatically reconcile discrepancies in data

 

227. The “output stage” in an AIS typically involves:
     A) Storing financial data securely
     B) Generating and distributing financial reports such as income statements, balance sheets, and cash flow statements
     C) Validating user data during input
     D) Conducting regular audits of financial transactions

 

228. Which of the following best describes “batch processing” in an AIS?
     A) Data is processed as soon as it is entered into the system
     B) Financial transactions are grouped and processed at predetermined intervals, such as at the end of the day
     C) Transactions are processed manually before entering the system
     D) All transactions are processed immediately in real-time

 

229. Which of the following is a function of the “general ledger” in an AIS?
     A) It stores backup copies of financial data
     B) It serves as the central repository for recording and tracking all financial transactions
     C) It generates real-time financial reports
     D) It validates the input data entered into the system

 

230. The main purpose of implementing “Sarbanes-Oxley (SOX) compliance” in an AIS is to:
     A) Allow more access to financial data for external auditors
     B) Ensure the accuracy and reliability of financial reporting for public companies
     C) Reduce the need for internal controls
     D) Prevent employees from using accounting software

 

 

231. Which of the following is an example of “input control” in an AIS?
     A) Validating the accuracy and completeness of transaction data entered into the system
     B) Encrypting financial data before storage
     C) Generating real-time reports for decision-making
     D) Reviewing system audit logs for suspicious activity

 

232. What is the function of “data compression” in an AIS?
     A) Reduces the size of data files to save storage space while preserving the integrity of the data
     B) Encrypts sensitive financial data for security
     C) Automatically backs up financial data every 24 hours
     D) Generates real-time financial reports

 

233. The primary purpose of “change management” in an AIS is to:
     A) Ensure smooth implementation of new system updates or changes without disrupting operations
     B) Generate financial reports for management
     C) Encrypt sensitive data during system updates
     D) Automatically back up system data during upgrades

 

234. “Cloud-based accounting software” offers the advantage of:
     A) Storing all financial data on company-owned servers
     B) Offering remote access and scalability without the need for internal IT infrastructure
     C) Restricting access to only authorized employees in a centralized office
     D) Creating automatic backups only when a failure occurs

 

235. What is the primary focus of the “Security Operations Center (SOC)” in an AIS?
     A) Designing accounting software for financial transactions
     B) Ensuring the physical security of accounting information
     C) Monitoring, detecting, and responding to security incidents in the system
     D) Automating the reconciliation of discrepancies in financial data

 

236. In an AIS, “segregation of duties” helps to prevent:
     A) System downtimes during software updates
     B) Unauthorized access to financial data by limiting user roles
     C) Fraud or error by ensuring no one person controls the entire transaction process
     D) The need for manual entry of financial data

 

237. The role of a “data steward” in an AIS is to:
     A) Encrypt all sensitive financial data stored in the system
     B) Ensure that data entered into the system is accurate, consistent, and used properly
     C) Generate monthly financial reports for review
     D) Implement new software and system updates

 

238. Which of the following describes “risk management” in the context of an AIS?
     A) Identifying, assessing, and mitigating potential risks to the accuracy, confidentiality, and availability of financial data
     B) Reconciliation of discrepancies in financial data
     C) Generating periodic financial reports for management
     D) Automating the data entry process to improve efficiency

 

239. A “data warehouse” in an AIS is used for:
     A) Collecting and storing historical data from multiple sources for analysis and reporting
     B) Processing financial transactions in real-time
     C) Creating and storing backup copies of financial data
     D) Restricting access to certain users based on role

 

240. What is “data aggregation” in an AIS?
     A) Breaking down complex data into smaller, more manageable units
     B) Combining data from multiple sources or systems for analysis and reporting
     C) Encrypting sensitive financial data before storage
     D) Automatically reconciling discrepancies in financial data

 

241. What does “data masking” accomplish in an AIS?
     A) Encrypts sensitive financial data to prevent unauthorized access
     B) Replaces sensitive data with fictitious or scrambled data that can only be decoded by authorized users
     C) Compresses large data files to save storage space
     D) Monitors user activity to detect unauthorized access

 

242. The role of “data archiving” in an AIS is to:
     A) Store inactive financial data in a secure, long-term storage solution
     B) Automatically reconcile transactions and generate reports
     C) Provide real-time access to transaction data for analysis
     D) Encrypt sensitive data to protect it from unauthorized access

 

243. Which of the following is a “preventive control” used in an AIS?
     A) Performing audits to detect fraud or errors
     B) Requiring strong passwords and multi-factor authentication to prevent unauthorized system access
     C) Reviewing system logs for suspicious activity
     D) Monitoring user activity during business hours

 

244. What is “data reconciliation” in an AIS?
     A) The process of comparing data from different sources and ensuring discrepancies are identified and corrected
     B) The process of backing up data to an external server
     C) Automatically generating financial statements from recorded transactions
     D) Encrypting data before it is processed

 

245. What does the “data dictionary” in an AIS define?
     A) The structure, data types, and relationships of the data used in the system
     B) The backup procedures for financial data
     C) The format for generating financial reports
     D) The encryption methods for sensitive data

 

246. What is the purpose of “user authentication” in an AIS?
     A) To verify the identity of users and grant access to system resources based on their roles and responsibilities
     B) To create backup copies of financial data
     C) To automatically reconcile discrepancies in data
     D) To track user activity for auditing purposes

 

247. What is the role of “audit logs” in an AIS?
     A) To track and record system activity, including user actions, for security and compliance purposes
     B) To encrypt sensitive financial data
     C) To generate real-time financial reports
     D) To store backup copies of system data

 

248. Which of the following is an example of “output control” in an AIS?
     A) Encrypting sensitive financial data to prevent unauthorized access
     B) Generating and distributing financial reports to authorized users only
     C) Validating data input to ensure accuracy
     D) Preventing unauthorized system updates

 

249. What is the role of “disaster recovery” in an AIS?
     A) To ensure the system can quickly recover from data loss or system failure
     B) To process financial transactions in real-time
     C) To validate the accuracy and completeness of entered data
     D) To restrict access to sensitive data to authorized users only

 

250. Which of the following is a “security measure” in an AIS to protect financial data?
     A) Requiring multi-factor authentication for system access
     B) Generating financial reports based on system data
     C) Encrypting all sensitive financial records before storage
     D) Automatically reconciling discrepancies in financial data

 

251. What does “data loss prevention” (DLP) aim to achieve in an AIS?
     A) Prevent the loss or unauthorized access to sensitive financial data by using security mechanisms such as encryption
     B) Compress financial data to save space in storage
     C) Automatically back up financial data at regular intervals
     D) Provide external auditors with access to the system

 

252. Which of the following is an example of “system audit” in an AIS?
     A) Reviewing the system for potential security vulnerabilities or compliance issues
     B) Automatically generating financial statements for management
     C) Replacing old data with new entries
     D) Encrypting financial data for added protection

 

253. In an AIS, “real-time processing” means that:
     A) Data is processed in batches at the end of the day
     B) Financial transactions are processed immediately as they occur, ensuring up-to-date information
     C) Data is stored in a secure, offline server
     D) System backups are conducted on a weekly basis

 

254. The role of “input controls” in an AIS is to:
     A) Ensure that financial data entered into the system is accurate, complete, and consistent
     B) Track user activity within the system for auditing purposes
     C) Encrypt all sensitive data before storage
     D) Automatically generate real-time financial reports

 

255. The purpose of “system integration” in an AIS is to:
     A) Combine various business functions, such as accounting, inventory, and HR, into one unified system for more efficient data management
     B) Generate monthly reports for external auditors
     C) Encrypt all financial data
     D) Restrict access to sensitive financial data

 

256. “Access control” in an AIS ensures that:
     A) Data is encrypted before it is processed
     B) Only authorized users are allowed to access system resources and sensitive data
     C) Financial reports are generated automatically for management
     D) Backup data is stored at an offsite location

 

 

257. In an AIS, “data entry controls” are designed to:
     A) Encrypt sensitive data before it is processed
     B) Ensure that data entered into the system is valid, accurate, and complete
     C) Automatically generate financial statements
     D) Restrict access to the system based on user roles

 

258. The role of “change control procedures” in an AIS is to:
     A) Ensure that updates to the system are properly tested and documented before implementation
     B) Automatically back up system data during updates
     C) Track user activity within the system for auditing purposes
     D) Prevent unauthorized access to financial data

 

259. In an AIS, “backup procedures” are essential to:
     A) Ensure the security of financial data by encrypting it
     B) Prevent unauthorized changes to the system
     C) Provide a copy of critical data in case of system failure or disaster
     D) Generate regular audit logs

 

260. In an AIS, “segregation of duties” is designed to:
     A) Prevent fraud by ensuring that no one person is responsible for all stages of a financial transaction
     B) Encrypt all data stored in the system
     C) Automatically reconcile discrepancies in data
     D) Ensure that data is processed in real-time

 

261. What does “system auditing” in an AIS primarily focus on?
     A) Monitoring system performance for efficiency
     B) Ensuring that financial data is processed and reported accurately and in compliance with regulations
     C) Encrypting sensitive data to prevent unauthorized access
     D) Automating the creation of financial reports

 

262. Which of the following is an example of a “physical control” in an AIS?
     A) Using strong passwords for system access
     B) Ensuring that only authorized personnel can physically access the servers where financial data is stored
     C) Performing system backups regularly
     D) Encrypting sensitive financial data

 

263. In an AIS, “data normalization” is used to:
     A) Prevent data redundancy by organizing data into standardized formats
     B) Automatically generate financial reports
     C) Compress data files to save storage space
     D) Monitor system activity for suspicious behavior

 

264. What is the purpose of “user roles” in an AIS?
     A) To define which system features and data a user can access based on their job responsibilities
     B) To encrypt sensitive financial data
     C) To automate the reconciliation of financial discrepancies
     D) To track and record user activity in the system

 

265. “Security patches” in an AIS are used to:
     A) Enhance the speed of system processing
     B) Address known security vulnerabilities and ensure the system remains protected from cyber threats
     C) Automatically reconcile discrepancies in data
     D) Generate audit logs for all system activities

 

266. Which of the following is a benefit of using an “integrated accounting system” in an AIS?
     A) It allows for real-time updates of financial data across all business functions, such as sales, inventory, and payroll
     B) It prevents any discrepancies in financial transactions
     C) It generates reports for external auditors automatically
     D) It encrypts all system data

 

267. The primary function of a “data steward” in an AIS is to:
     A) Implement system updates and patches
     B) Ensure data quality by managing and maintaining accurate, complete, and consistent data throughout the system
     C) Track and monitor user activity
     D) Provide access control for system data

 

268. What does the “internal audit function” in an AIS help ensure?
     A) The system processes transactions in real-time
     B) Financial data is accurate, complete, and in compliance with internal policies and external regulations
     C) The system stores backup copies of all data
     D) Only authorized users can access the system

 

269. In an AIS, “risk assessment” is used to:
     A) Identify potential threats or vulnerabilities to the accuracy and security of financial data
     B) Encrypt sensitive data to prevent unauthorized access
     C) Generate real-time reports for management
     D) Monitor employee productivity within the system

 

270. The role of a “firewall” in an AIS is to:
     A) Encrypt all financial data in the system
     B) Prevent unauthorized access to the system by filtering network traffic
     C) Generate reports of system activity for auditing
     D) Automatically reconcile discrepancies in financial data

 

271. What is the function of “data compression” in an AIS?
     A) Encrypts sensitive data before storage
     B) Reduces the size of large files to optimize storage space without losing data integrity
     C) Creates backup copies of financial data
     D) Automatically processes transactions in real-time

 

272. Which of the following is an example of an “output control” in an AIS?
     A) Validating user credentials during login
     B) Restricting the generation of reports to authorized users
     C) Encrypting data during transmission
     D) Requiring multi-factor authentication for system access

 

273. The term “data consistency” in an AIS refers to:
     A) Ensuring that data entered into the system follows a consistent format across all modules
     B) Encrypting data to prevent unauthorized access
     C) Storing data in multiple locations to ensure availability
     D) Automatically generating reports for management

 

274. Which of the following would be an example of an “access control” in an AIS?
     A) Monitoring user activity for fraudulent behavior
     B) Ensuring that only authorized personnel have access to sensitive financial data
     C) Encrypting data before it is stored
     D) Generating audit logs for every transaction

 

275. In an AIS, “audit trails” are used to:
     A) Monitor system performance
     B) Track and record all user actions and data changes for security and audit purposes
     C) Automatically generate reports for financial analysis
     D) Prevent unauthorized system updates

 

276. What does “data encryption” accomplish in an AIS?
     A) It increases the processing speed of the system
     B) It converts sensitive data into an unreadable format to protect it from unauthorized access
     C) It generates backup copies of data at regular intervals
     D) It automatically reconciles discrepancies in financial records

 

277. In an AIS, “role-based access control” means:
     A) Granting all users unrestricted access to system data
     B) Limiting user access based on their roles and responsibilities within the organization
     C) Encrypting data to prevent unauthorized access
     D) Automatically backing up data every day

 

278. What is the role of “compliance monitoring” in an AIS?
     A) To track and ensure that the system adheres to relevant regulations, standards, and policies
     B) To automatically reconcile discrepancies in financial data
     C) To provide audit logs for all system activity
     D) To validate financial data before processing

 

279. “Data validation” in an AIS refers to:
     A) The process of ensuring that data entered into the system is accurate, complete, and follows defined formats
     B) Encrypting data before it is processed
     C) Generating periodic financial reports for stakeholders
     D) Automatically backing up all system data

 

280. Which of the following is an example of a “manual control” in an AIS?
     A) Monitoring user activity through automated tracking software
     B) Requiring management to manually approve significant financial transactions before processing
     C) Encrypting sensitive financial data stored in the system
     D) Using multi-factor authentication to restrict access to system data

 

 

281. Which of the following best describes the “System Development Life Cycle” (SDLC) in the context of AIS?
     A) A process for updating financial reports
     B) A method for developing and maintaining an AIS, from planning and design to implementation and evaluation
     C) A framework for managing user permissions
     D) A technique for encrypting financial data

 

282. What is the purpose of “automated reconciliation” in an AIS?
     A) To ensure that transactions are processed in real-time
     B) To identify and correct discrepancies between accounts or data entries automatically
     C) To generate audit logs of user activities
     D) To monitor system performance

 

283. In the context of an AIS, what does “data integrity” refer to?
     A) Ensuring that all data in the system is accurate, consistent, and reliable over its entire lifecycle
     B) Encrypting data to prevent unauthorized access
     C) Automatically generating financial reports
     D) The process of storing data in a secure backup system

 

284. What is the primary function of a “database management system” (DBMS) in an AIS?
     A) To manage and store all financial transactions securely
     B) To automatically reconcile discrepancies in financial data
     C) To provide real-time reporting features
     D) To ensure compliance with financial reporting standards

 

285. Which of the following is an example of “input validation” in an AIS?
     A) Restricting user access to the system based on role
     B) Ensuring that transaction data entered into the system follows defined formats and business rules
     C) Automatically backing up financial data every day
     D) Encrypting data before transmission

 

286. What does “real-time processing” in an AIS mean?
     A) Data is processed in batches at regular intervals
     B) Transactions are processed immediately as they occur, allowing up-to-date information
     C) Data is stored in an offline system for future processing
     D) Reports are generated after a set period of time

 

287. What is the primary purpose of “business continuity planning” (BCP) in an AIS?
     A) To optimize system performance during high-demand periods
     B) To ensure that critical business functions, including accounting, can continue in the event of a disaster or system failure
     C) To increase the speed of data entry
     D) To generate system reports for management

 

288. In an AIS, “workflow automation” is used to:
     A) Automatically generate financial reports
     B) Streamline and automate repetitive tasks and processes to improve efficiency
     C) Encrypt sensitive data during storage
     D) Reconcile financial discrepancies

 

289. What is the main benefit of “cloud computing” for an AIS?
     A) It allows for remote access to the system, scalable storage, and reduced need for internal IT infrastructure
     B) It increases the complexity of maintaining accounting records
     C) It stores backup data locally for increased security
     D) It ensures that no data is processed in real-time

 

290. In an AIS, “data extraction” refers to:
     A) Compressing large data files for storage
     B) Retrieving relevant data from the system for reporting and analysis
     C) Encrypting data before sending it over the network
     D) Generating backup copies of financial data

 

291. What is the role of “access control lists” (ACLs) in an AIS?
     A) To track and monitor user activity within the system
     B) To define who can access specific system resources and what actions they can perform
     C) To automatically generate audit logs
     D) To store backup copies of system data

 

292. Which of the following best describes the “input stage” in an AIS?
     A) The stage where financial data is validated and processed
     B) The stage where financial transactions are entered and validated for accuracy
     C) The stage where users access and modify system reports
     D) The stage where audit logs are created

 

293. In an AIS, the “output stage” involves:
     A) Entering data into the system
     B) Generating and presenting reports such as financial statements for decision-making
     C) Encrypting financial records for storage
     D) Storing data in a centralized database

 

294. What is the function of “data encryption” in an AIS?
     A) It stores data in a compressed format
     B) It converts sensitive data into an unreadable format to protect it from unauthorized access
     C) It automatically reconciles discrepancies in financial records
     D) It ensures that transactions are processed in real-time

 

295. Which of the following is an example of a “preventive control” in an AIS?
     A) Monitoring transactions for fraud
     B) Using passwords and multi-factor authentication to restrict system access
     C) Performing system backups regularly
     D) Automatically reconciling financial discrepancies

 

296. In an AIS, “data redundancy” refers to:
     A) The unnecessary duplication of data across multiple systems or databases
     B) The process of backing up data regularly
     C) The standardization of data formats for easy integration
     D) The automatic reconciliation of data

 

297. Which of the following is a key benefit of “system integration” in an AIS?
     A) Increased security by isolating different parts of the system
     B) Improved efficiency and accuracy by connecting and automating various business functions, such as inventory, sales, and accounting
     C) Generating financial reports automatically without human intervention
     D) Preventing unauthorized access to sensitive data

 

298. In an AIS, “audit trails” are primarily used to:
     A) Ensure that financial data is stored securely
     B) Track and record all user actions for security and compliance purposes
     C) Generate real-time financial reports
     D) Prevent unauthorized changes to system data

 

299. What does “data integrity” ensure in an AIS?
     A) That data entered into the system is accurate, consistent, and reliable
     B) That financial data is processed in real-time
     C) That users cannot access unauthorized data
     D) That backup copies of data are stored securely

 

300. The “authorization process” in an AIS typically involves:
     A) Encrypting financial data during storage
     B) Granting users permission to access and perform specific actions based on their roles
     C) Automatically generating audit logs of system activity
     D) Automatically reconciling financial transactions

 

301. What is the role of “internal controls” in an AIS?
     A) To ensure the accuracy, reliability, and security of financial data processed by the system
     B) To provide real-time financial reports
     C) To automate the data entry process
     D) To track and monitor user activity within the system

 

302. What is the benefit of using “business intelligence” (BI) tools in an AIS?
     A) To create automated backup copies of financial data
     B) To analyze and visualize financial data, helping management make informed decisions
     C) To prevent unauthorized access to sensitive data
     D) To process transactions in real-time

 

 

303. What is the role of “change management” in an AIS?
     A) To track user activities within the system
     B) To ensure smooth implementation of system updates and minimize disruptions to business operations
     C) To encrypt all sensitive financial data
     D) To generate audit logs for system updates

 

304. In an AIS, “audit evidence” refers to:
     A) The collected data that supports the system’s accuracy and compliance with accounting standards
     B) Reports generated for management review
     C) User activity logs
     D) Financial data stored in a backup server

 

305. The purpose of “data masking” in an AIS is to:
     A) Encrypt sensitive data before storing it
     B) Replace sensitive data with fictitious or scrambled data for testing or training without compromising privacy
     C) Track and monitor all user actions
     D) Reconcile discrepancies in financial data

 

306. Which of the following is a major goal of “financial statement fraud prevention” within an AIS?
     A) To ensure that all financial data is processed in real-time
     B) To detect and prevent the manipulation or misstatement of financial data
     C) To automatically reconcile discrepancies in financial records
     D) To provide access to financial data only for authorized users

 

307. What is the main objective of “data redundancy elimination” in an AIS?
     A) To store duplicate copies of data across multiple servers for increased availability
     B) To reduce the storage needs and improve data consistency by removing unnecessary duplicate data
     C) To encrypt data during transmission
     D) To automatically generate real-time financial reports

 

308. What is the function of “dual control” in an AIS?
     A) To ensure that two or more individuals must approve certain transactions or activities before they are executed
     B) To monitor user activity for suspicious behavior
     C) To encrypt sensitive data in the system
     D) To automatically back up system data every 24 hours

 

309. In an AIS, what is the purpose of “data normalization”?
     A) To combine data from different sources into a single, standard format
     B) To encrypt sensitive financial data
     C) To back up all system data automatically
     D) To monitor user activity for compliance with system rules

 

310. Which of the following best describes “data-driven decision making” in an AIS?
     A) Relying on personal intuition to make business decisions
     B) Using historical data and real-time information processed by the system to inform business decisions
     C) Preventing unauthorized access to system data
     D) Encrypting data for secure storage and transmission

 

311. The role of “encryption” in an AIS is to:
     A) Compress large data files to save storage space
     B) Convert sensitive financial data into an unreadable format to protect it from unauthorized access
     C) Ensure that financial data is processed in real-time
     D) Automatically reconcile discrepancies in financial records

 

312. What does the “integrated accounting system” allow organizations to do?
     A) Store data in separate silos for each business function
     B) Collect and process financial data from multiple business areas in one unified system, improving efficiency and accuracy
     C) Encrypt sensitive data automatically
     D) Restrict access to system reports based on user roles

 

313. In an AIS, “continuous auditing” refers to:
     A) Performing manual audits once a year
     B) Conducting audits in real-time as transactions are processed to detect errors or fraud immediately
     C) Encrypting all sensitive data after each transaction
     D) Storing audit logs in a secure offline location

 

314. Which of the following is an example of “computer-assisted audit techniques” (CAATs) in AIS?
     A) Encrypting all system data
     B) Using software to perform data analysis, validate transaction accuracy, and detect fraud during audits
     C) Manually reviewing each transaction for discrepancies
     D) Generating financial statements for management

 

315. What is the primary benefit of “data warehousing” in an AIS?
     A) To create backup copies of financial data
     B) To store large volumes of historical and transactional data for analysis and reporting
     C) To reduce the need for real-time processing
     D) To monitor user activities within the system

 

316. Which of the following is a key feature of “cloud-based AIS solutions”?
     A) Limited scalability and higher maintenance costs
     B) Data can be accessed remotely, and the infrastructure is managed by a third-party provider, offering flexibility and cost savings
     C) Data is stored only on local servers
     D) They do not require any backup processes

 

317. What does “data encryption” primarily protect in an AIS?
     A) The speed of data processing
     B) The privacy and security of sensitive data during storage or transmission
     C) The accuracy of data entries
     D) The generation of system reports

 

318. What is “access control” in an AIS designed to prevent?
     A) Unauthorized users from accessing sensitive financial data or modifying system settings
     B) The automatic generation of financial statements
     C) Reconciliation of financial discrepancies
     D) The storing of backup data in secure locations

 

319. In an AIS, the term “user authentication” refers to:
     A) Generating real-time reports of user activity
     B) Verifying the identity of a user before granting access to the system based on credentials like passwords or biometrics
     C) Encrypting data stored within the system
     D) Tracking changes to financial data

 

320. What is “Segregation of Duties” (SoD) in an AIS meant to prevent?
     A) Unauthorized access to financial data
     B) Fraud or errors by ensuring that no single individual has control over the entire financial transaction process
     C) The automatic creation of audit trails
     D) Unnecessary duplication of financial records

 

321. In the context of AIS, what does “data governance” refer to?
     A) Encrypting all sensitive financial data
     B) Establishing policies and procedures for managing the availability, usability, integrity, and security of data across an organization
     C) Generating real-time system reports for management
     D) Ensuring that data is stored in separate silos across departments

 

322. What does the “compliance framework” in an AIS focus on?
     A) Reconciliation of discrepancies in financial records
     B) Ensuring the system adheres to legal, regulatory, and organizational standards, such as Sarbanes-Oxley
     C) Automatically processing financial transactions
     D) Encrypting sensitive data for storage

 

323. What is the purpose of “backup systems” in an AIS?
     A) To improve the performance of the system by reducing load times
     B) To store copies of critical financial data to ensure its availability in case of system failure or disaster
     C) To monitor system security in real-time
     D) To restrict access to sensitive data

 

324. What is an example of an “end-user computing” (EUC) tool in an AIS?
     A) Custom financial reports generated by the system for management
     B) Software applications that allow business users to create and manipulate their own data analysis and reports without IT support
     C) System-generated audit logs
     D) Cloud-based backup solutions

 

325. What is “log management” in an AIS?
     A) Encrypting sensitive user data stored in system logs
     B) Monitoring and storing system log data, which records user activity and system events for security and auditing purposes
     C) Automatically reconciling data discrepancies
     D) Generating real-time reports for management

 

326. What is “data archiving” in an AIS?
     A) The process of storing active data on local servers
     B) The long-term storage of inactive or historical data in a way that preserves its integrity and makes it available for retrieval if needed
     C) Automatically generating real-time system reports
     D) Encrypting sensitive financial data

 

327. Which of the following is an example of a “security measure” for protecting data in an AIS?
     A) Restricting access to financial reports to authorized users
     B) Encrypting all communication channels within the system
     C) Requiring multi-factor authentication for system logins
     D) All of the above

 

328. What is the purpose of a “disaster recovery plan” in an AIS?
     A) To enhance system performance during regular operations
     B) To ensure that critical system functions, including accounting processes, can continue or be restored quickly after a disaster or system failure
     C) To monitor and audit user activity
     D) To restrict unauthorized access to system data

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