MCQs Flashcards
EFT
x
Total Utility Curve
x
closed loop verification
assists in the detection of data entry errors in online real-time applications
parity check
designed to detect errors in data transmission
A poor quality connection caused extensive line noise, resulting in faulty data transmission.
Which of the following controls is most likely to detect this condition?
Parity check
Data conversion occurs at this stage
a planning and feasibility
b analysis
c design and development
d implementation
Ans. D Implementation
The process of moving from the old to the new system occurs at this stage
Which of the following is true regarding public/private key encryption?
A. Both the public and private keys can be used to encrypt and decrypt messages. B. Messages encrypted using public/private key encryption are more difficult to crack (or break) than messages encrypted using private key encryption. C. Messages are generally encrypted with the sender's private key so that no one else can decipher the message during transmission. D. In public/private key encryption, to gain access to the key used to decrypt the message, the recipient must know of the key to use from the sender.
Ans. A
Both the public and private keys can be used to encrypt and decrypt messages, although the public key can only decrypt messages encrypted using the private key and vice versa.
Although public/private key technology is more secure than private key technology, there is no difference in the strength of the encryption algorithm: messages encrypted using single key encryption are no easier to crack than messages encrypted using public/private key encryption.
The Performance Standards focus on seven primary themes around which the remaining Performance Standards are organized. Each of the following key words or phrases is associated with these seven primary themes except
A. Purpose, authority, and responsibility. B. Managing the internal audit activity. C. Nature of Work. D. Engagement Planning.
Ans. A.
Purpose, authority, and responsibility.
“Purpose, Authority, and Responsibility” is associated with the Attribute Standards, specifically Standard 1000.
Nature of work is is one of the seven primary Performance Standards: (1) Managing the Internal Audit Activity; (2) Nature of Work; (3) Engagement Planning; (4) Performing the Engagement; (5) Communicating Results; (6) Monitoring Progress; and (7) Communicating the Acceptance of Risks.
Seven Primary Performance Standards
(1) Managing the Internal Audit Activity; (2) Nature of Work; (3) Engagement Planning; (4) Performing the Engagement; (5) Communicating Results; (6) Monitoring Progress; and (7) Communicating the Acceptance of Risks.
In which of the following market structures are firms most likely to avoid price competition for fear of creating a “price war”?
A. Perfect competition. B. Monopolistic competition. C. Oligopoly. D. Monopoly.
Ans. C Oligopoly
In an oligopoly, there are few sellers and the actions of each firm are known by and affect the other firms in the industry. Therefore, if one firm lowers its price in an effort to increase market share, other firms are likely to lower their prices.
This could create a “chain reaction,” whereby the few firms are continuously lowering their prices, constituting a “price war.”
In perfect competition, there are a large number of sellers, each of whom is a price taker. Each firm must accept the price set by the market and can sell as much or as little as it wants at that price.
Which of the following is not considered to be an electronic funds transfer (EFT) transaction?
A. Direct deposit of payroll payments into the employee's bank account. B. Cash cards. C. Automated teller machine (ATM) transactions. D. Credit card payment initiated from a POS terminal.
Ans. B Cash Cards
Cash cards do not involve bank clearing processes and are not considered to be EFT transactions.
Which one of the following statements regarding periods of analysis is correct?
A. Short-run analysis assumes that all inputs can be varied. B. Long-run analysis assumes that all inputs can be varied. C. Short-run analysis assumes that all inputs are fixed. D. Long-run analysis assumes that all inputs are fixed.
Ans. B
Long-run analysis assumes that all inputs can be varied.
In the long run, it is assumed that all inputs to the production process can be varied, including the number and size of production facilities.
In the short run, it is assumed that one or more inputs to the production process are fixed, i.e., cannot be varied. In the short run, many inputs to the production process can be varied, including labor and raw materials, but at least one factor is assumed to be fixed.
Typically, the number and size of production facilities are assumed to be fixed.
Total Utility Curve
Total Utility Increases as quantity increases. Curve looks like half an upside down U
