Question 1

Both e-business and ASPs can provide benefits for organizations.Which of the following best pairs a potential benefit of e-business with a potential benefit of using an ASP?
A)Quicker service delivery, increased flexibility
B)Geographic market expansion, role in disaster recovery plans
C)Quicker service delivery, role in disaster recovery plans
D)Geographic market expansion, reduced consequences for technology breakdowns

Accepted Answer

Quicker service delivery is a potential benefit of e-business, and role in disaster recovery plans is a potential benefit of using an ASP.

Question 2

Well-known enterprise resource planning systems include: (i) Oracle's PeopleSoft, (ii) SAP, (iii) Microsoft Excel.
A)I and II only
B)I and III only
C)II and III only
D)I, II and III

Accepted Answer

The well-known enterprise resource planning systems are Oracle's PeopleSoft and SAP, which are commonly used in large organizations. Microsoft Excel, while it is a widely used software for data analysis and management, is not considered an ERP system in the same category as PeopleSoft and SAP. Therefore, the correct choice is A) I and II only.

Question 3

With respect to an ASP, service interruptions and compromised data would be most effectively addressed with:
A)An enterprise risk management plan.
B)A systems flowchart.
C)The steps in the accounting cycle.
D)The capability maturity model.

Accepted Answer

An enterprise risk management plan is the best choice for addressing service interruptions and compromised data in an ASP. This plan outlines the identification, assessment, and management of risks that could affect an organization's IT systems, including the ASP's services and data security. It ensures that appropriate controls and countermeasures are in place to minimize the likelihood and impact of disruptions and breaches. A systems flowchart and the steps in the accounting cycle are not directly relevant to addressing these issues, while the capability maturity model is suitable for assessing and improving an organization's software development processes, but not specifically for managing service interruptions and data security in an ASP context.

Question 4

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.The cash payments table is most likely to be part of which ERP module?
A)CRM
B)HRM
C)SCM
D)Financial management

Accepted Answer

The answer of STC Corporation's enterprise resource planning system contains...

Question 5

SSAE 16 includes three broad types of SOC Reports.SOC 1 reports on:
A)ERP systems.
B)the COSO framework.
C)controls over security, availability, processing integrity, confidentiality or privacy.
D)controls relevant to user entities internal control over financial reporting.

Accepted Answer

SOC 1 reports are specifically designed to evaluate and report on controls relevant to user entities' internal control over financial reporting. This report is commonly used for financial audits, including those related to compliance with the Sarbanes-Oxley Act (SOX). SOC 1 reports are not designed to provide assurance on security, availability, processing integrity, confidentiality, or privacy controls.

Question 6

An ASP specializes in software applications for government agencies.It is best described as which type of ASP?
A)Enterprise
B)Vertical market
C)Volume business
D)Application

Accepted Answer

A vertical market ASP specializes in designing and providing software solutions for specific industry sectors, such as government agencies, healthcare, finance, etc. This type of ASP tailors its applications to meet the unique requirements and regulations of a particular industry. Therefore, a government agency ASP that focuses on software applications for government clients is best described as a vertical market ASP.

Question 7

Consider the following short case as you respond to the question: Scott and Logan are the CEO and CFO of MLN Corporation.The firm has lately been losing customers to MLN's competitors; Scott and Logan believe an ERP system could help MLN obtain more timely information that will enable them to retain old customers and acquire new ones.They formed a six-person team with representatives from three of MLN's ten departments and instructed them to use the steps in the systems development life cycle to choose and implement an ERP system.A year later, the team had completed its work and implemented the system by transferring data from MLN's general ledger software to the ERP system.Umble and Umble suggested six necessary conditions for a successful ERP implementation.Which of the following is most closely related to communicating strategic goals clearly?
A)The firm has lately been losing customers to MLN's competitors.
B)They formed a six-person team.
C)A year later, the team had completed its work.
D)Use the steps in the systems development life cycle.

Accepted Answer

The fact that MLN has been losing customers to competitors indicates a strategic goal of retaining or acquiring customers. Communicating this goal clearly to the ERP implementation team is necessary to ensure that the chosen system and implementation plan align with this goal.

Question 8

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.The three tables are linked via which of the following fields?
A)Cash
B)Account number
C)Currency
D)Some other field

Accepted Answer

The cash payments table, cash receipts table, and cash table are likely linked via the account number field. This would allow the system to track cash flows for specific accounts and ensure accurate record-keeping. The other options are less likely to be used for linking these tables.

Question 9

As a form of internal control, an SSAE 16 audit is least likely to address which of the following risks associated with ASPs?
A)Compromised data
B)Inability to pay monthly fees
C)Financial costs associated with setting up a computer network
D)Cost of purchasing software

Accepted Answer

An SSAE 16 audit focuses on the controls at a service organization, particularly those related to data security and processing integrity, rather than a client's financial capacity to pay monthly fees.

Question 10

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.The cash table is most likely to be part of which ERP module?
A)CRM
B)HRM
C)SCM
D)Financial management

Accepted Answer

The cash table is related to financial management, which includes modules such as accounting, budgeting, and financial reporting. The cash payments and receipts tables also indicate the company's financial transactions, further supporting the idea that this module is financial management.

Question 11

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.The cash receipts table is most likely to be part of which ERP module?
A)CRM
B)HRM
C)SCM
D)Financial management

Accepted Answer

The answer of STC Corporation's enterprise resource planning system contains...

Question 12

Consider the following short case as you respond to the question: Scott and Logan are the CEO and CFO of MLN Corporation.The firm has lately been losing customers to MLN's competitors; Scott and Logan believe an ERP system could help MLN obtain more timely information that will enable them to retain old customers and acquire new ones.They formed a six-person team with representatives from three of MLN's ten departments and instructed them to use the steps in the systems development life cycle to choose and implement an ERP system.A year later, the team had completed its work and implemented the system by transferring data from MLN's general ledger software to the ERP system.Umble and Umble suggested six necessary conditions for a successful ERP implementation.Which of the following pieces of advice is most applicable to MLN?
A)Form a smaller implementation team.
B)Ensure that the implementation team has wider representation.
C)Both form a smaller implementation team and ensure that the implementation team has wider representation.
D)Neither form a smaller implementation team nor ensure that the implementation team has wider representation.

Accepted Answer

Umble and Umble emphasize the importance of having a diverse and representative implementation team for a successful ERP system implementation. In the case of MLN, the team was formed with representatives from only three of the company's ten departments, which suggests a lack of wide representation. Therefore, ensuring the implementation team has wider representation from more departments would likely contribute to a more successful ERP implementation.

Question 13

Within the context of ERP systems, a module is:
A)a part of the program aligned with a specific function of the organization.
B)another name for a database table.
C)Both a part of the program aligned with a specific function of the organization and another name for a database table.
D)Neither a part of the program aligned with a specific function of the organization nor another name for a database table.

Accepted Answer

ERP modules are designed to focus on specific areas of a business process, such as finance, HR, or supply chain management, allowing for specialized functionality within the broader ERP system. They are not synonymous with database tables, which are structures within a database designed to hold data.

Question 14

Both e-business and ASPs create risks and costs for organizations.Which of the following best pairs a potential cost of e-business with a potential risk of using an ASP?
A)Potential for customer distrust, inability to pay monthly fees
B)Financial costs associated with setting up networks, reduced flexibility
C)Potential for customer distrust, psychological & behavioral factors
D)Financial costs associated with setting up networks, psychological & behavioral factors

Accepted Answer

The answer of Both e-business and ASPs create risks and...

Question 15

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.Foreign keys in the cash payments table would include: (i) vendor ID, (ii) account number, (iii) cash payment date.
A)I and II only
B)I and III only
C)II and III only
D)I, II and III

Accepted Answer

Foreign keys are used to link tables together in a database. In the context of a cash payments table, the vendor ID and account number would serve as foreign keys linking the payments table to the vendors and accounts tables, respectively. The cash payment date would not be a foreign key but rather a regular attribute of the cash payments table, as it does not link to another table but simply records the date of the transaction.

Question 16

An organization that provides a contractual service to deploy, host and manage applications for customers remotely from a centralized location is called an:
A)Enterprise resource planning consultant
B)Application service provider
C)Enterprise service provider
D)Application service planning consultant

Accepted Answer

An application service provider (ASP) is an organization that provides a contractual service to deploy, host and manage applications for customers remotely from a centralized location. The other options, such as enterprise resource planning consultant and application service planning consultant, do not accurately describe this type of service provider. The option of enterprise service provider is also incorrect as it is a broad term that can refer to any company that offers services to large organizations.

Question 17

A corporation hired an ERP consultant to recommend an ASP for its payroll processing.In a systems flowchart of the payroll process, which of the following is most likely to be outside the system boundary?
A)ERP consultant
B)ASP
C)Both ERP consultant and ASP
D)Neither ERP consultant nor ASP

Accepted Answer

The ERP consultant is outside the system boundary because they are an external advisor or consultant hired by the corporation to recommend an ASP. The ASP, on the other hand, is within the system boundary because it is the external service provider for the payroll processing system.

Question 18

SSAE 16 is a form of ___ with respect to an ASP.
A)internal control
B)information technology
C)Both internal control and information technology
D)Neither internal control nor information technology

Accepted Answer

SSAE 16 (Statement on Standards for Attestation Engagements No. 16) is related to internal control as it provides a framework for auditors to assess the controls of service organizations, such as an ASP (Application Service Provider).

Question 19

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.Foreign keys in the cash receipts table would include: (i) customer ID, (ii) account number, (iii) cash receipt date.
A)I and II only
B)I and III only
C)II and III only
D)I, II and III

Accepted Answer

Foreign keys in the cash receipts table would typically include customer ID and account number to link to the customer and account details, respectively. The cash receipt date is not a foreign key as it does not link to another table.

Question 20

Virtually all ERP systems are organized in:
A)database queries.
B)spreadsheets.
C)modules.
D)application service providers.

Accepted Answer

ERP systems are generally organized in modules, that represent different functional areas of an organization such as finance, human resources, production, and supply chain management. Each module has its own set of features, functions, and databases with its own user interface, dashboards, and workflows. This modular approach allows businesses to customize and integrate their ERP system to their specific needs, goals, and preferences. Therefore, choices A, B, and D are not accurate as they do not reflect the typical architecture or structure of an ERP system.

Quiz 9: E-Business and Enterprise Resource Planning Systems

Both e-business and ASPs can provide benefits for organizations.Which of the following best pairs a potential benefit of e-business with a potential benefit of using an ASP?

Well-known enterprise resource planning systems include: (i) Oracle's PeopleSoft, (ii) SAP, (iii) Microsoft Excel.

With respect to an ASP, service interruptions and compromised data would be most effectively addressed with:

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.The cash payments table is most likely to be part of which ERP module?

SSAE 16 includes three broad types of SOC Reports.SOC 1 reports on:

An ASP specializes in software applications for government agencies.It is best described as which type of ASP?

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.The three tables are linked via which of the following fields?

As a form of internal control, an SSAE 16 audit is least likely to address which of the following risks associated with ASPs?

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.The cash table is most likely to be part of which ERP module?

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.The cash receipts table is most likely to be part of which ERP module?

Within the context of ERP systems, a module is:

Both e-business and ASPs create risks and costs for organizations.Which of the following best pairs a potential cost of e-business with a potential risk of using an ASP?

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.Foreign keys in the cash payments table would include: (i) vendor ID, (ii) account number, (iii) cash payment date.

An organization that provides a contractual service to deploy, host and manage applications for customers remotely from a centralized location is called an:

A corporation hired an ERP consultant to recommend an ASP for its payroll processing.In a systems flowchart of the payroll process, which of the following is most likely to be outside the system boundary?

SSAE 16 is a form of ___ with respect to an ASP.

STC Corporation's enterprise resource planning system contains a cash payments table, a cash receipts table and a cash table.Foreign keys in the cash receipts table would include: (i) customer ID, (ii) account number, (iii) cash receipt date.

Virtually all ERP systems are organized in: