Risk and Controls
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CPA Auditing and Attestation (AUD) › Risk and Controls
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.
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.
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.
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.
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.
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.