Risk and Controls

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CPA Business Environment and Concepts (BEC) › Risk and Controls

Questions 1 - 6
1

An enterprise resource planning system is designed to:

Integrate data from all aspects of an organization's activities

Present executives with the information needed to make strategic plans

Allow nonexperts to make decisions about a particular problem

Help with the decision making process

Explanation

ERP systems work to integrate data from all aspects of an organization's activities.

2

Which of the following factors has the greatest impact on the design of an effective management reporting system?

Types of decisions to be made

Number of regulatory agencies to be satisfied

Number of authorized users

Number of transactions to be processed

Explanation

The types of decisions to be made have the greatest impact on the design of an effective management reporting system.

3

Which of the following terms best describes a Decision Support System (DSS)?

Management reporting system

Formalized system

Interactive system

Structured system

Explanation

A DSS is an interactive system in order to facilitate with the decision-making process.

4

Which of the following types of control plans is particular to a specific process or subsystem rather than related to the timing of its occurrence?

Application

Corrective

Detective

Preventive

Explanation

Application controls are written into the application and are specific to the particular process or subsystem.

5

A digital signature is used primarily to determine that a message is:

Not intercepted in route

From an authentic sender

Received by the intended recipient

Sent to the correct address

Explanation

A digital signature is a means of ensuring that the sender of a message is authentic.

6

A(n) _______ requires a full backup of all available data, regardless of whether or not it was saved before.

Incremental backup

Full backup

Partial backup

Negative backup

Explanation

An incremental backup saves time by not having to duplicate data. A full backup would duplicate all saved data. The other terms are distractors.

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