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Final Exam Questions and Answers
Chapter 9
1. Which of the following is the best definition of the term big data?
A. Databases measured in terms of zettabytes.
B. Datasets that are too large and complex for businesses’ existing systems utilizing
traditional
capabilities.
C. Databases for businesses that generate more than one million electronic transactions per
month.
D. Datasets generated by social media applications such as Facebook, Twitter, Tencent QQ,
and Instagram.
2. The three Vs are considered a defining feature of big data. Which of the following is the best
definition of the term big data?
A. Volition, veracity, & velocity.
B. Variety, visibility, & valuation.
C. Volume, velocity, & variety.
D. Volume, variability, & veracity.
3. As described in the text, which of the following best defines the term data analytics?
A. The ability to analyze data and draw conclusions.
B. The science of reducing extremely large datasets down to more manageable databases
that
can be processed using traditional tools.
C. The process of creating meaningful visualizations from extremely large datasets.
D. The science of examining raw data, removing excess noise, and organizing it in order to
draw conclusions for decision making.
4. At its core, data analytics fits into the information value chain in which of the following ways?
A. The process of data analytics aims at transforming raw data into valuable information.
B. Data analytics aims to make an organization’s conversion process more efficient.
C. Data analytics requires organizations to share synced data with upstream and
downstream
business partners.
D. The process of data analytics is geared toward providing additional insight into customer
activities and preferences.
5. Which of the following best summarizes the two key limiting factors for business systems
when dealing with Big Data?
A. Data storage capacity and processing power.
B. Data availability and software tools.
C. Database organization and transaction volume.
D. Analytic skills and software tools.
6. The insight provided through data analytics can help companies in all of the following ways
except:
A. Dictate the policies of external business partners.
B. Create more directed marketing campaigns.
C. Identify future opportunities and risks.

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D. Affect internal business processes in order to improve productivity, utilization and
growth.
7. Which of the following best describes how external auditors’ interactions with their clients is
likely to change due to the use of data analytics in the audit process?
A. External auditors will spend less time on audits and will not need to spend time with
clients outside the audit.
B. External auditors will spend more time on detailed audit tasks, resulting in longer audit
engagements.
C. External auditors will only interact with their clients virtually.
D. External auditors will stay engaged with clients beyond the audit.
8. Which of the following would not by itself be considered personally identifying information?
A. Date of birth.
B. Social Security Number.
C. Passport number.
D. Driver’s Licence ID.
9. Which of the following best describes what is meant by a breach of security?
A. Breaking into a locked room.
B. An unencrypted data transmission.
C. The unauthorized access to or acquisition of data in an electronic format that contains
personal information.
D. Access of personal information on a corporate server.
10. Which of the following is not one of the Excel tools described as useful for data analytics?
A. Calculated Field.
B. Tableau.
C. Slicers.
D. Power Pivot.
Chapter 10
11. Data mining is considered a technique of
A. Data Warehousing
B. Project Management
C. Data Martian
D. Business Intelligence
12. A data warehouse may include:
a. An XBRL style sheet
b. General Economic Information
c. A digital Dashboard
d. An iPad Mini

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13. A collection of information gathered from an assortment of external and operational (i.e.,
internal) databases to facilitate reporting for decision making and business analysis is called:
a. Business intelligence
b. Data Warehouse
c. Digital Dashboard
d. XBRL
14. Digital Dashboards track which of the following in a user-friendly way:
a. Airplane speed
b. Critical business failures
c. Critical business processes
d. Critical business projects
15. XBRL stands for
a. eXtensible Business Reporting Language
b. eXtensible Behavioral Reporting Language
c. eXtensible Book Reporting Language
d. eXtensible Basic Reporting Language
16. The process of using sophisticated statistical techniques to extract and analyze data from large
databases to discern patterns and trends that were not previously known is called:
a. Data Mart
b. Data Mining
c. Data Warehouse
d. Business Intelligence
17. Before data from multiple sources can be loaded into the data warehouse, which of the
following activities must be performed?
A. The company must obtain explicit permission from all public and private data sources
before their data can be used in the data warehouse.
B. Operational system reports must be run, as the extraction process that loads the data
warehouse
usually deletes the data from the operational system.
C. Data inconsistencies must be removed so that the warehouse has homogeneous data for
analysis and reporting purposes.
D. The operational system must create and file the appropriate XBRL instance document
with the SEC.
18. Data Mining uses which of the following approaches to analyze data and find new patterns
and trends?
A. Data normalization.

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B. Data scrubbing.
C. Decision Support Systems.
D. Sophisticated statistical techniques.
19. Which of the following metrics would be least likely to show up on a Digital Dashboard?
A. Accumulated depreciation for the previous year.
B. Month-to-date sales.
C. Budget variances.
D. Number of accident-free days.
20. Which of the following best describes the use of XBRL style sheets?
A. Style sheets determine which elements may be used when companies submit their XBRL
filing.
B. Style sheets are another name for XBRL instance documents.
C. Style sheets allow for presentation of selected data from XBRL documents in a way that
humans can read.
D. Style sheets determine the formatting of numbers and text in the XBRL taxonomy.
Chapter 11
21. Which of the following statement is correct regarding internal control?
A. A well-designed internal control environment ensures the achievement of an entity’s
control objectives.
B. An inherent limitation to internal control is the fact that controls can be circumvented by
management override.
C. A well-designed and operated internal control environment should detect collusion
perpetrated by two people.
D. Internal control in a necessary business function and should be designed and operated to
detect errors and fraud.
22. Controls in the information technology area are classified into preventive, detective,
and corrective categories. Which of the following is preventive control?
A. Contingency planning.
B. Hash total.
C. Echo check.
D. Access control software.
23. When considering internal control, an auditor should be aware of reasonable assurance,
which recognizes that

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A. Internal control may be ineffective due to mistakes in judgment and personal
carelessness.
B. Adequate safeguards over access to assets and records should permit an entity to
maintain proper accountability.
C. Establishing and maintaining internal control is an important responsibility of
management.
D. The cost of an entity’s internal control should not exceed the benefits expected to be
derived.
24. According to AS 5, control risk should be assessed in terms of
A. Specific controls.
B. Types of potential fraud.
C. Financial statement assertions.
D. Control environment factors.
25. An auditor assesses control risk because it
A. is relevant to the auditor’s understanding of the control environment.
B. provides assurance that the auditor’s materiality levels are appropriate.
C. indicates to the auditor where inherent risk may be the greatest.
D. affects the level of detection risk that the auditor may accept.
26. Reconciliation of cash accounts may be referred to as what type of control?
A. Detective.
B. Preventive.
C. Adjustive.
D. Non-routine.
27. Sound internal control dictates that immediately upon receiving checks from
customers by mail, a responsible employee should
A. Add the checks to the daily cash summary.
B. Verify that each check is supported by a pre-numbered sales invoice.
C. Prepare a summary listing of checks received.
D. Record the checks in the cash receipts journal.
28. Tracing shipping documents to pre-numbered sales invoices provides evidence that
A. No duplicate shipments or billings occurred.
B. Shipments to customers were properly invoiced.
C. All goods ordered by customers were shipped.
D. All pre-numbered sales invoices were accounted for.
29. A customer intended to order 100 units of a product A, but incorrectly ordered nonexistent
product B. Which of the following controls most likely would detect this error?
A. Validity check
B. Record count
C. Hash total
D. Parity check
30. Which of the following best describes what is meant by corporate governance?
A. The organizational structure and responsibilities of the executive team and board of
directors of a corporation.

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B. Regulatory bodies, such as the SEC and PCAOB, that govern the behavior of corporations.
C. The ability of a corporation’s management team to meet earnings forecasts over an
extended period of time..
D. Management’s processes, policies, and ethical approach to safeguarding stakeholder
interests.
Chapter 12
31. Which of the following statements is incorrect about digital signatures?
A. A digital signature can ensure data integrity.
B. A digital signature also authenticates the document creator.
C. A digital signature is an encrypted message digest.
D. A digital signature is a message digest encrypted using the document creator’s public key.
32. When client’s accounts payable computer system was relocated, the administrator provided
support through a dial-up connection to server. Subsequently, the administrator left the
company. No changes were made to the accounts payable system at that time. Which of the
following situations represents the greatest security risk?
A. User passwords are not required to the in alpha-numeric format.
B. Management procedures for user accounts are not documented.
C. User accounts are not removed upon termination of employees.
D. Security logs are not periodically reviewed for violations.
33. Bacchus, Inc. is a large multinational corporation with various business units around the
world. After a fire destroyed the corporation headquarters and largest manufacturing site,
plans for which of the following would help Bacchus ensure a timely recovery?
A. Daily backup.
B. Network security.
C. Business continuity.
D. Backup power.
34. Which of the following statements about asymmetric-key encryption is correct?
A. When using asymmetric-key encryption method, a total of two keys are necessary in
electronic communication between two parties.
B. Employees in the same company share the same public key.
C. Most companies would like to manage the private keys for their employees.
D. Most companies would like to use a Certificate Authority to manage the public keys of
their employees.
E. Two of the above are correct.
35. Why do Certificate Authority (CA) play an important role in a company’s information security
management?
A. Using a CA is required by SOX in managing information security.
B. Most companies use CA to manage their employees’ public keys.
C. CA creates and maintains both the public and private keys for a company’s employees.
D. None of the above is correct.

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36. Why would companies want to use digital signatures when conducting e-business?
A. They are cheap.
B. They are always the same so it can be verified easily.
C. They are more convenient than requiring a real signature.
D. They can authenticate the document sender and maintain data integrity.
37. Asymmetric-key encryption uses which of the following techniques to allow
users to communicate securely?
A. A message digest.
B. A 16-bit encryption key.
C. A public key and a private key.
D. A digital signature.
38. A Public Key Infrastructure (PKI) provides the ability to do which of the
following?
A. Encrypt messages using a private key.
B. Enable debit and credit card transactions.
C. Read plaintext.
D. Issue, maintain, and revoke digital certificates.
39. Which of the following groups is responsible for conducting fraud risk
assessment for an organization?
A. The External Auditor.
B. The Audit Committee.
C. The Internal Audit group.
D. Management.
40. Which of the following statements is most accurate with regard to business
continuity management (BCM) and disaster recovery planning (DRP)?
A. DRP is an important component of BCM.
B. BCM and DRP should be considered independently of each other.
C. BCM is an important component of DRP.
D. DRP should be considered as optional, while BCM should be considered
as necessary.