BEC 6 - Process Management and Information Technology Flashcards
What are the characteristics of Total Quality Management (TQM)?
TQM focuses on:
- customer needs
- continuous improvement
- quality circles
Is JIT a push or pull system?
Pull
What is Kaizen?
continuous improvement, ongoing search for cost reductions
What network devices assigns an IP address?
router
What is a gateway?
acts as an intermediaries among networks, and they also convert one protocol into another so that network can communicate
What is a firewall?
the system of user identification and authentication that prevents unauthorized users from gaining access to network resources
What is a server?
A server is a computer in a network that operates as a librarian. It stores programs and data files for users of the LAN and manages access to them.
What is the difference between:
- Data flow diagrams
- Flowcharts
- System Interface diagrams
- data flow diagrams - document the LOGICAL flow of data through a process
- Flow charts - visual representations of how information flows through a process
- System interface diagrams - demonstrates how users and function interface with the organization’s systems
Letter of credit vs line of credit?
letter of credit - third party guarantee (ie bank); provides specific assurances to otherwise unsecured credits that payment is assured
line of credit - revolving line of ST borrowing
The materials manager of a warehouse is given a new product line to manage with new inventory control procedures. Which of the following sequences of the COSO internal control monitoring-for-change continuum is affected by the new product line?
A. Change management but not control baseline.
B. Control baseline but not change management.
C. Neither control baseline nor change management.
D. Both control baseline and change management.
D. Both control baseline and change management.
Answer (D) is correct.
The control baseline refers to a baseline understanding of the existing internal controls. Change management is the process of evaluating the design and implementation of the changes and establishing a new baseline. A new product line requires the manager to learn the new internal controls related to the product line. Additionally, the new design and implementation of the product line must be evaluated, and a new baseline must be established.
Sound internal control principles dictate that, immediately upon receiving checks from customers by mail, a responsible employee should
A. Prepare a duplicate listing of checks received.
B. Verify that each check is supported by a prenumbered sales invoice.
C. Add the checks to the daily cash summary.
D. Record the checks in the cash receipts journal.
A. Prepare a duplicate listing of checks received.
The mail room receives all customer receipts, opens the mail, separates the checks from the remittance advices, and prepares a daily listing of checks received. This daily remittance list ordinarily is prepared in duplicate.
Which of the following are not directly involved in the revenue cycle?
A. Sales manager and the credit manager.
B. Treasurer and controller.
C. Billing clerk.
D. Receiving department clerk.
The receiving department clerk is involved in the purchases-payables cycle. The clerk counts the goods and prepares receiving reports that provide partial authorization for invoice payment.
D. Receiving department clerk.
The receiving department clerk is involved in the purchases-payables cycle. The clerk counts the goods and prepares receiving reports that provide partial authorization for invoice payment.
Which of the following describes the most effective preventive control to ensure proper handling of cash receipt transactions?
A. The employee who receives customer mail receipts prepares the daily bank deposit, which is then deposited by another employee.
B. Use predetermined totals (hash totals) of cash receipts to control posting routines.
C. One employee issues a prenumbered receipt for all cash collections; another employee reconciles the daily total of prenumbered receipts to the bank deposits.
D. Have bank reconciliations prepared by an employee not involved with cash collections and then have them reviewed by a supervisor.
C. One employee issues a prenumbered receipt for all cash collections; another employee reconciles the daily total of prenumbered receipts to the bank deposits.
Sequentially numbered receipts should be issued to maintain accountability for cash collected. Such accountability should be established as soon as possible because cash has a high inherent risk. Daily cash receipts should be deposited intact so that receipts and bank deposits can be reconciled. The reconciliation should be performed by someone independent of the cash custody function.
According to the COSO ERM framework, which of following best describes the difference between strategy and business objectives?
A. Strategy is the organization’s core purpose, and business objectives are what the organization aspires to achieve over time.
B. Business objectives are broader in scope than strategy.
C. Strategy is the plan to achieve business objectives.
D. Business objectives are the steps to achieve strategy.
D. Business objectives are the steps to achieve strategy.
Strategy is the plan to achieve the entity’s mission and vision and apply its core values. Business objectives are the measurable steps taken to achieve the entity’s strategy.
If a company is customer-centered, its customers are defined as
A. Only people external to the company who have purchased something from the company.
B. Only people internal to the company who directly use its product.
C. Everybody external to the company who is currently doing, or may in the future do, business with the company.
D. Anyone external to the company and those internal who rely on its product to get their job done.
D. Anyone external to the company and those internal who rely on its product to get their job done.
One of the principles of TQM is customer orientation, whether the customer is internal or external. An internal customer is a member of the organization who relies on another member’s work to accomplish his or her task.
Under which category of data analysis should “anomaly detection” be classified?
A. Prescriptive analysis.
B. Predictive analysis.
C. Descriptive analysis.
D. Diagnostic analysis.
C. Descriptive analysis.
The purpose of anomaly detection is to identify unusual patterns or deviations from the norm or expected results. The focus of anomaly detection is on the reporting of historical information (i.e., descriptive analysis).
