COLEGIO DE DAGUPAN SEMIFINALS EXAMINATION INFOTECH 4- ACCOUNTING INFORMATION SYSTEM

Instructions: Turn off your cellphone/s. Use of CP is not allowed during exam Write ALL YOUR ANSWERS legibly on your TEST BOOKLET Use blue or black pen only. Strictly: NO ERASURES. READ and FOLLOW the DIRECTIONS carefully! SET A

Name:____________________________________ Course, Year and Block:______________________ Subject Code and Description:_________________ Date:_____________________________________

Guys, nd q alm qng i2 nga tlga ibbgay nla bka palitan pa kc, pero kaya niu naman na i2 kpg i2 nga bngay, nd naman alien eh, wag niu gayahin ung isa na 20 mins lng tax na 100 items, d2 ok na ang 30 mins XD at wag dn kau magpahalata maxado qng nd madadali aq, aq lng dn ang naglagay ng Set A jan -Do0mas5t3r
I. 1. MULTIPLE CHOICES. Write the letter of the correct answer. Internal Control is a process designed to provide: a. Absolute assurance b. No assurance c. Positive assurance d. Reasonable assurance Software robots that invade computer which make them act automatically in response to the crackers inputs? a. Ad-Hoc b. Bots c. Anti-virus d. Macro The following a. b. c. d. are components of internal control, except Control activities The entitys risk assessment procedure Control environment Business risk

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This internal control component is the foundation for all other components. It sets the tone of the organization, provides discipline and structure, and influences the control consciousness of employees. a. Control activities b. Monitoring of controls c. Control environment d. The entitys risk assessment procedure Which of the following elements are included in an entitys control environment? Integrity and Ethical Values Assignment of Authority and Responsibility a. Yes Yes b. Yes No c. No Yes d. No No Which of the following components of an entitys internal control includes development and use of training policies that communicate prospective roles and responsibilities to employees? a. Monitoring of controls b. Control activities c. Control environment d. Information and communication Which of the following internal control components relates to an entitys process for identifying and responding to business risks? a. Control activities b. Information and communication

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c. d. 8.

Risk assessment Monitoring controls

A committee that represents the organizations shareholders whose interests generally are considered paramount a. Shareholders b. Board of directors c. Creditors d. Lenders The control environment includes the following, except a. Human resource policies and practices b. Organizational structure c. Integrity and ethical values d. Control Activities A standing subcommittee of independent board members whose main objectives are to protect against management wrongdoing and to increase public confidence? a. Audit committee b. Management c. Board of directors d. Experts The primary responsibility for establishing and maintaining an internal control rests with a. The external auditors b. The internal auditors c. Management and those charged with governance d. The controller or the treasurer

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12. The fundamental purpose of internal control is to a. Safeguard the resources of the organization. b. Provide reasonable assurance that the objectives of the organization are achieved. c. Encourage compliance with organization objectives. d. Ensure the accuracy, reliability and timeliness of information. 13. Internal control can only provide reasonable assurance of achieving entitys control objectives. One factor limiting the likelihood of achieving those objectives is that a. The auditors primary responsibility is the detection of fraud b. The board of directors is active and independent c. The cost of internal control should not exceed its benefits d. Management monitors internal control 14. The internal control cannot be designed to provide reasonable assurance that a. Transactions are executed in accordance with managements authorization b. Fraud will be eliminated c. Access to assets is permitted only in accordance with managements authorization d. The recorded accountability for assets is compared with the existing assets at reasonable intervals. 15. Which of the following statements about internal control correct? a. Properly maintained internal control reasonably ensures that collusions among employees cannot occur b. The establishment and maintenance of internal control are important responsibilities of the internal auditor c. Exceptionally strong internal control is enough for the auditor to eliminate substantive tests on a significant account balance d. The cost-benefit relationship is a primary criterion that should be considered in designing internal control 16. The overall attitude and awareness of an entitys board of directors concerning the importance of the internal control usually is reflected in its a. Computer-based controls b. System of segregation of duties c. Control environment d. Safeguards over access to assets 17. Which of the following best describes the interrelated components of internal control? a. Organizational structure, management, philosophy, and planning b. Control environment, risk assessment, control activities, information and communication systems and monitoring c. Risk assessment, backup facilities, responsibility accounting and natural laws d. Internal audit and managements philosophy and operating style 18. Which of the following components if an entitys internal control structure includes the development of employee promotion and training policies?

a. b. c. d.

Control activities Control environment Information and communication Quality control system

19. Malware that appears to be performing normal functions but is in fact illicitly accessing host machine to save their files on the users computer or to watch or control the users computer. a. Worm b. Trojan horse c. Rootkit d. Backdoor 20. Remotely accessing a computer without having to authenticate and while remaining undetected a. Worm b. Trojan horse c. Rootkit d. Backdoor 21. The collection a. b. c. d. of zombie computers running the bot software Internet Arpanet Botnet Interconnected bots

22. The creation of false Web traffic without the users knowledge a. Macro Recorder b. Spam c. Click fraud d. Embezzlement 23. The sending of unsolicited bulk information a. Macro Recorder b. Spam c. Click fraud d. Embezzlement 24. The systematic identification and analysis of risks that can undermine the achievement of management objective. a. Control environment b. Control activities c. Risk assessment d. Information and communication 25. A set of executable computer instructions that copies itself into a larger program, modifying the program. a. Computer virus b. Firewall c. USB d. Operating System 26. Which of the following is not an objective of the revenue process? a. Received goods are counted and inspected for quality b. Custody over assets resulting from revenue process is properly maintained c. Transactions related to the revenue process are properly authorized, executed and recorded d. Approved sales order are shipped on a timely basis and in accordance with customer specifications 27. The following a. b. c. d. are directly involved in the revenue process, except Treasurer and controller Receiving department clerk Billing clerk Sales manager and the credit manager

28. A sale in which the customer pays cash and services are immediately provided or goods are given to the customer. a. Credit card sales b. Trade credit sales c. Cash-and-carry sales d. Customer invoicing 29. Sales orders that cannot be filled because the inventory is depleted a. Backorders b. Blank memo c. Sales invoice d. Bill of lading

30. A letter officially agreeing to employ public accounting firms and stating the conditions: a. Engagement letter b. Inducement letter c. Confirmation letter d. Letter header 31. A discount to a. b. c. d. a customer for prompt payment Cash discount Senior discount Military discount Payable discount

32. A purchase order from a customer to a supplier specifying a series of dates and quantities for shipment of goods until notified by the customer to stop. a. Sitting order b. Stale order c. Standing order d. Vendors invoice 33. Terms of sale a. b. c. d. 34. Terms of sale a. b. c. d. 35. A reduction of a. b. c. d. 36. An analysis by a. b. c. d. under which title of goods passes to the buyer at the point of shipment. FOB destination FOB shipping point Freight collect Freight prepaid under which title of goods in transit are still in the ownership of the seller. FOB destination FOB shipping point Freight collect Freight prepaid sales revenue by the full amount of the sale because the customers gives back the goods to the seller Sales allowance Sales return Purchase allowance Purchase return customer of sales revenue minus cost of goods sold. Financial statement analysis Gross profit analysis Net income analysis Working capital analysis

37. An aging report that presents information about amounts owed by customers as a whole. a. Detailed Aging Report b. Summary Aging Report c. Comprehensive Aging Report d. Financial Aging Report 38. An aging report that presents information about amounts owed by customers and includes only one line for each customer, with all invoices for a single customer combined. a. Detailed Aging Report b. Summary Aging Report c. Comprehensive Aging Report d. Financial Aging Report 39. The amount retained by the seller when a customer returns goods for a refund a. Backup fund b. Restocking charge c. Emergency cash d. Plan B fund 40. Delinquency notice sent to a past due customer a. Debit memo b. Dun c. Warrant d. Credit memo 41. A classification of customers by creditworthiness a. Credit payments

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Credit ranking Credit rating Credit limit

42. A list that identifies the products and quantities ordered and gives the warehouse location a. Finding list b. FAQ list c. Picking list d. Final inventory schedule 43. A method for recording open item receipts where total cash remittances are entered with no remittance advice data, and the AIS includes a software program that matches the remittances with specific open items a. Automatic invoice identification b. Post-identification c. Pre-identification d. Manual invoice identification 44. Statement 1: Internal control need not be monitored to determine whether it is adequate and effective. Statement 2: Credit cards permit retail customers to purchase goods or services and pay for them later. a. True; True b. True; False c. False; True d. False; False 45. Statement 1: Enterprise Risk Management is a comprehensive and integrated framework for managing credit risk, market risk, operational risk, economic capital and risk transfer in order to maximize firm value. Statement 2: Fraudulent financial reporting is a type of management fraud. a. True; True b. True; False c. False; True d. False; False 46. Statement 1: Sales tax is payable by manufacturer in most states on certain goods and services. Statement 2: Goods may not be returned to the seller in any circumstances. a. True; True b. True; False c. False; True d. False; False 47. Statement 1: A formal organization structure provides the framework within which the organizations activities for achieving its objectives are planned, executed, monitored and controlled. Statement 2: Denial of service is caused by botnets. a. True; True b. True; False c. False; True d. False; False 48. Statement 1: Credit hold is a dollar ceiling up to which credit will automatically be extended without the need for further credit screening Statement 2: Credit limit is a restriction of additional credit to a customer who has a delinquent balance. a. True; True b. True; False c. False; True d. False; False 49. Statement 1: In a cash discount term 2/10, n/30, the discount period is 30 days. Statement 2: In a cash discount term 1/10, n/60, the entire balance is due within 60 days. a. True; True b. True; False c. False; True d. False; False 50. Statement 1: FOB point is the location which title to the goods changes from the shipper to the customer. Statement 2: Customer statement lists the invoices issued during the month just ended and any payments received during the statement period a. True; True b. True; False c. False; True d. False; False