Deck 7: Electronic Data Processing Systems

Question 1

Bar coding is an automatic identification technique used in a real-time system.

Answer 1

True

Question 2

A company will often analyze its customers' sales trends and predict future needs.

Answer 2

True

Question 3

There are two major EDI phases.

Answer 3

False

Question 4

Sending an electronic catalog has the same advantages as sending it in paper form.

Question 5

The absence of control procedures over data transmitted between user departments and the data processing department could represent a serious weakness in the system.

Question 6

An edit program performs a table lookup when it compares the actual value of a field to acceptable values found in a table.

Question 7

Data editing routines may be applied to each of the basic data structures.

Question 8

The use of input control documents is not necessary when forwarding data to the data entry group for input into the system.

Question 9

Program data editing is often used in place of verification.

Question 10

A company can use bar coding technology to achieve maximum benefit without code standardization.

Question 11

When key-verification software is used,the software automatically corrects any mismatches to ensure smooth and uninterrupted processing.

Question 12

Accounting data entered into an Accounting Information System must be in the form of debits and credits.

Question 13

A sales order is an example of a source document that may be prepared manually.

Question 14

Sophisticated information systems can capture system events and their attributes.

Question 15

The essential EDI phases include the physical receipt of the order,validation and authentication,and decryption and translation.

Question 16

Visual verification is another highly effective method used to detect data-entry errors.

Question 17

Bar coding is a manual identification technique used in a real-time system.

Question 18

The Internet has enhanced the real-time sales system by extending it to customers who are off-site.

Question 19

A check digit is a value found in an input field that is visually compared,or "checked."

Question 20

A batch control form should require the preparer's signature or name.

Question 21

When preparing the transaction file,occasional data editing of source documents prior to input is suggested.

Question 22

Line codes should never be stored within the general ledger file itself.

Question 23

A sequentially organized master file commonly resides on a direct-access storage device.

Question 24

Batch processing can only be performed using random-accessed (i.e.,direct or indexed)file updating.

Question 25

All electronic input systems are referred to as on-line input systems.

Question 26

Editing as a function may be placed between the input and process functions in a processing flow diagram.

Question 27

Matching a vendor code to a table file of valid vendor codes is an example of a valid code check.

Question 28

Using an electronic input system helps ensure the segregation of duties and provides a solid audit trail.

Question 29

A transmission acknowledgment reports in detail the items in the received message.

Question 30

A functional acknowledgment acknowledges receipt of the message and reports in detail the items in the received message.

Question 31

There are three major aspects to the operation of a computerized general ledger system.

Question 32

A common example of an automated identification system is an automated Point-of-Sale system used in most retail,grocery,and discount stores.

Question 33

Line coding is the process that links general ledger accounts and the reports in which they appear.

Question 34

All entries into the general ledger should be documented with journal vouchers.

Question 35

Few manual processing systems are batch oriented.

Question 36

Batch processing is economical when large numbers of transactions must be processed.

Question 37

All electronic input systems require no human intervention.

Question 38

Tagging occurs when additional,audit-oriented information is included with original transaction data.

Question 39

An output distribution register is maintained to control the disposition of reports.

Question 40

An input document control form documents real-time totals of input data transmitted between user departments and the data processing department.

Question 41

Sequential-access file updating is simpler than random-access file updating.

Question 42

________ ________ input sales data into the computer system for processing immediately at the time and point of sale.

Question 43

Because real-time sales systems pose certain internal control problems,good computer security and careful program data edit checks are essential.

Question 44

Using an OLRS,master files are always up-to-date because they are updated as soon as transaction data is input.

Question 45

Control of transaction process is far less involved in OLRS than it is in batch-oriented systems.

Question 46

The use of programmed edit checks to discriminate among acceptable data is called ________ ________ auditing.

Question 47

Using ________ ________ can compensate for the loss of manual internal controls.

Question 48

A significant degree of cooperation among trading partners is required to implement real-time sales systems.

Question 49

EDI documents typically contain three control numbers,two at the beginning of the message and one at the end.

Question 50

Using son-father-grandfather retention,if the old master file is the ________,the backup master file must be the ________.

Question 51

On-line,real-time electronic systems produce significant amounts of output.

Question 52

An accounts receivable control file is a summary of the accounts receivable by type of account,such as "installment" or "net 30 days."

Question 53

Batch-processing systems rely almost exclusively on wands and scanners for UPC bar code recognition.

Question 54

Computer processing of accounting data is typically a(n)________ procedure.

Question 55

Point-of-sale systems provide a variety of timely and detailed reports concerning operations,which is of great benefit to the management of a retail firm.

Question 56

Paid customer invoice records are retained on-line for a year and are available for inquiries.

Question 57

The use of ________ control over the entire data processing input-process-output sequence is fundamental to organizational independence.

Question 58

The last step in the cash remittance processing of customer payments by check is to restrictively endorse the checks.

Question 59

Many manual,batch-oriented systems use ________ file processing.

Question 60

Comparing the activity file and the bank summary file does not ensure that all cash has been deposited and has been applied and recorded on the activity file.

Question 61

Fundamental controls over data transfer between user departments and data processing include

A) batch control totals.
B) data transfer registers.
C) activity file totals.
D) Answers A and B are both correct.

Question 62

A data editing routine that compares numeric data input within a range is a(n)

A) table lookup.
B) hash total check.
C) limit test.
D) internal label test.

Question 63

Users interactively input data in ________ ________ systems.

Question 64

The technologies that make real-time sales systems feasible are the ________ system; bar coding for automatic identification,and the ________ ordering system.

Question 65

Errors in the keying operation can be detected using

A) a key verification control procedure.
B) a data transfer control register.
C) program data editing.
D) None of these is correct.

Question 66

The ________ has enhanced the real-time sales system by extending it to customers who are off-site.

Question 67

In a manual input system,batch controls are prepared initially by the

A) EDP department.
B) computer software.
C) user department.
D) general ledger department.

Question 68

Program data editing techniques may be applied to

A) fields.
B) records.
C) files.
D) All of these answers are correct.

Question 69

The summary of the current month's general ledger activity is the general ledger by ________.

Question 70

A software-based control procedure that checks for some errors as they are being input is called

A) input verification.
B) key verification.
C) input control testing.
D) transcription checking.

Question 71

Program data editing is a software technique that should

A) be used in addition to verification.
B) be used in place of verification.
C) be applied only to characters within input fields.
D) only be used after visual verification has detected errors in the input.

Question 72

Input data should be accompanied by the completion of a(n)

A) data transfer log.
B) input document control form.
C) data transfer register.
D) key verification control procedure.

Question 73

As a control procedure,key verification requires that

A) user departments key all of their own data.
B) input fields are visually verified.
C) key mismatches are electronically corrected.
D) each source document is key-transcribed a second time.

Question 74

A data editing routine that compares data with acceptable values is a

A) limit test.
B) table lookup.
C) financial total check.
D) valid code check.

Question 75

A group that is often part of the internal audit function that is charged with monitoring EDP operations is the ________ ________ group.

Question 76

In a real-time sales system,________ can be used to transmit retail sales data captured from the retail store to vendors.

Question 77

Key verification is often used

A) to verify only selected essential fields.
B) to verify essential and nonessential numeric fields.
C) to verify all input fields, both alpha and numeric.
D) when two or more people key input data in unison.

Question 78

Key verification control procedures

A) edit data.
B) do not use batch totals.
C) do not edit data.
D) electronically replace incorrect data with data from an existing database.

Question 79

Each month ________ ________ should be reconciled to reports prepared from the bank summary file.

Question 80

An extra digit added to a code number verified by applying mathematical calculations to the individual code number characters is a

A) control digit.
B) hash digit.
C) check digit.
D) verification digit.