BEC Flashcards
(196 cards)
1
Q
Define Internal Failure Costs. Examples of Internal Failure Costs?
A
Expenses addressing quality failures that were detected after production but before they were shipped to customers
- Disposing of scrap resulting from wasted materials
- Reworking units to correct defects
- Re-inspecting and retesting after rework
2
Q
Define External Failure Costs. Examples of External Failure Costs?
A
Expenses addressing defective products that reached customers
- Warranty Costs
- Expenses addressing customer complaints
- Product liability costs
- Cost of product returns
- Marketing to help maintain and/r improve the firm’s image
- Losses of future sales
3
Q
Define Appraisal (detection costs). Examples of Appraisal Costs?
A
Expenses on detecting quality failures
- Inspecting samples of materials, in process, and finished goods
- Obtaining information from customers
4
Q
Define Prevention Costs. Examples of Prevention Costs?
A
Seeking to prevent quality failures
- Using high quality materials
- Inspecting the production process
- Focusing engineering and design to improve quality
- Providing training to employees that focuses on improving quality
- Quality circles
- Maintenance of Equipment
5
Q
Define Monopolistic Competition
A
Many firms sell slightly different versions of similar products; prices are higher and quantity lower than under perfect competition; there are many firms and prices are lower and quantity higher than under a pure monopoly
6
Q
Define Strategic Planning
A
Strategic Planning is when an organization identifies its long term goals and determines the best approach to achieve these goals.
-Process is used to establish the general direction of the organization
7
Q
Which process is used to establish the general direction of an organization?
A
Strategic Planning
8
Q
What does a high price elasticity of demand imply?
A
-Implies a large change in quantity demanded after a small change in price
9
Q
As the relative price of an item decreases what happens to the demand?
A
It increases
10
Q
What happens if actual GDP exceeds potential GDP?
A
Economic Growth is not sustainable and eventually prices and wages will rice, resulting in inflation
11
Q
What is Okun’s Law?
A
It provides a general rule of thumb, linking changes in economic growth and unemployment
-It DOES NOT have precise predictive power NOR does the law focus on interest rates or inflation
12
Q
What is Transfer Pricing?
A
Transfer Pricing is the process for setting prices that are charged for the transfer of goods or services between related parties such as departments of a large entity
13
Q
Transfer Pricing in International Trade
A
It refers to the price charged by one entity to a related entity as goods or services are transferred across international borders
14
Q
Where is SWOT Analysis used?
A
SWOT Analysis is used in Industry Analysis
15
Q
Matching local revenues with local costs mitigates what risk?
A
The risk of fluctuations in the currency’s exchange rates
16
Q
These barriers to trade have not experienced drastic reductions in recent decades?
A
Non-tariff barriers to trade
17
Q
What has preceded most recessions during the second half of the 20th century?
A
Most recessions followed efforts by the Federal Reserve to forestall current or expected increases in inflation rates through higher interest rates
18
Q
What does NAIRU stand for?
A
Non-accelerating Inflation Rate of Unemployment
19
Q
What is it called when Unemployment is far above the NAIRU and there is high inflation (double digits)?
A
It is called Stagflation
20
Q
What is a preventive measure for a period of deflation?
A
Increasing the money supply
21
Q
What are 3 common measures of Price Inflation?
A
- Consumer Price Index
- Producer Price Index
- GDP Deflator
22
Q
What does the Consumer Price Index measure (CPI)?
A
- It measures the price of a fixed basket of goods/services that a typical consumer might purchase
- Compares the price of goods in a given year to a base year
- The Rate of inflation
23
Q
How does the Federal Government measure inflation?
A
With the Consumer Price Index
24
Q
What is Quantitative Easing
A
- The Federal Government buys various securities, thus decreasing the monetary base
- Short term interest rates are already close to zero
25
What is Predatory Pricing?
- Involves companies attempting to eliminate competition by charging prices that are lower than competitor's production costs
- Consumers benefit from lower prices in the short term, may suffer from higher prices in the long term.
- Afforded only by oligopolistic firms, not monopolistic competitive firms
26
How does Predatory Pricing affect consumers?
Consumers benefit from lower prices in the short term, may suffer from higher prices in the long term
27
Perfectly Competitive Markets - Characteristics
- Inability of individual buyers and sellers to influence the market place
- For any single trader, prices are perfectly elastic and any attempt to sell a good or service at a price above the market price will result in no buyers
28
How does technological advances affect companies and their production and prices?
They will increase production and lower prices
29
Which price inflation measurement compares the price of goods in a given year to a base year?
The Consumer Price Index (CPI)
30
What does Gross National Product (GNP) measure?
It measures the total market value of products and services by the entire economy
31
What does the demand curve for a product reflect?
The impact that price has on the total amount of a product purchased
32
What does the supply curve reflect? What does the movement along the supply curve reflect?
- The supply curve reflects the impact of price of the amount of product offered
- The willingness of producers to offer different quantities of a product at different prices reflects the movement along the supply curve
33
What does the cross elasticity of Demand reflect?
It reflects the impact that price has on the quantity demanded for 2 related producers
34
How does Diversification reduce the risk of labor strikes? What about Recessions?
- Because labor strikes typically affect a single industry or line of business rather than an entire economy
- Offers less protection against recessions because recessions pose systematic risks that affect all segments of the economy
35
How does opening markets to foreign investments affect economy?
- An increase in investment growth rates
- An increase in direct foreign investment increases the inter-connectivity of local and world markets, thus changing the volatility of emerging stock market returns
- Local firm's cost of capital tends to decrease because of the greater supply of providers of capital
36
What is the Full Employment Unemployment Rate?
The lowest rate tat can be sustained without having repercussions on the overall economy and is NOT affected by changes in the composition of employment opportunities
37
What is Frictional Unemployment Rate?
Results from new workers entering into the work force, displacing existing workers, as well as the normal turnover
38
What is Structural Unemployment?
- Occurs when workers lose their jobs as a result in a change in the demand for goods/services
- Includes a change in the composition of employment opportunities as opportunities will be created in some sectors but works will lose jobs in other sectors
39
What is a return to scale increase/decrease?
Occurs when an increase in volume results in cost savings, but when an increase in volume results in a higher relative in costs, it represents a return to scale decrease
40
What is a Country Risk?
Is a risk specific to conducting business in a particular foreign location
41
These components are not specific to conducting business in a particular foreign country.
-Principal, interest rate and commodity price
42
What is Hyperinflation?
Extremely sharp increases in price levels over a period of time
43
How is Deflation characterized?
It is characterized by declining price levels
44
What is a recession?
Refers to an overall contraction in economic production and DOES NOT refer specifically to price levels
45
How does an effective price floor effect quantity demanded and supplied?
Quantity supplied would exceed quantity demanded
46
How do Economists define goods as "inferior" and "Superior"?
Economists define goods as "inferior" if their sales fall when income rises; and vice versa
- Not based on their quality, but on the consumer's responses to changes in income
- Not based on the consumer's response to changes in the price of other goods
47
What are the International Bodies that deal with International Economic Issues?
- The European Union (EU)
- The World Trade Organization (WTO)
- The G2O
- NOT NATO
48
What is the North Atlantic Treaty Organization (NATO)?
Deals with international defense and security issues, only some economic matters
49
What kind of goods does the CPI include and can it be used to forecast future price levels?
Consumer Goods only, doesn't include nonconsumer goods purchased by firms and industries. It also tracks prices for the past months and cannot be used to predict future price levels.
50
What is the Goal of Product Differentiation Strategies?
Seek to make the demand for a firm's products more inelastic
51
What is Dual Pricing?
Occurs when a seller sells identical products in different markets
52
What is Collusive Pricing?
Occurs when two or more sellers of a product form an agreement to charge customers a price higher than what it would be in a truly competitive market
53
What is the Game Theory Model?
Used to understand Oligopoly behavior, focuses on payoffs of multiple courses of actions among a small group of competitors
54
What is the Herfindahl Index?
Is a measure of the size of firms within an industry
55
What are some examples in how Currency would appreciate?
- Lower Inflation leads currencies to appreciate
- Higher real interest rates lead currencies to appreciate
- Trade surpluses lead currencies to appreciate
56
What is the Laffer Curve?
Shows that reductions in very high tax rates may result in higher tax revenue
57
If you are in the Business Cycle Peak, how would you dampen the economy and prevent inflation?
-Reduce government spending, increase taxes, reduce money supply, increase interest rates
58
If the economy is growing, but still below the previous peak in Real GDP, the economy is experiencing...?
A recovery, a recession involves economic growth below 0%
59
At what level is economic growth in a recession?
Below 0% growth rate
60
By reducing the discount rate the Federal reserve hopes to...
Increase the money supply
61
What does full employment imply? (what kind of unemployment exists?)
That there is still frictional and structural unemployment, but not cyclical unemployment
62
How long are most expansions? Recessions?
Most expansions are several years long; most recessions are several months long (few exceeding 2 years)
63
When the dollar depreciates how does this effect imports and exports?
When the dollar depreciates, import prices will increase and export price will decrease
64
What is the primary purpose of the Consumer Price Index (CPI)?
Compare relative price changes overtime
65
What is Stagflation?
A combination of stagnation (high unemployment) and inflation
66
New Keynesians
Favor a more active role for the government in both monetary and fiscal policy
67
Monetarists
Advocate stable growth in the money supply
68
How do American Option differ from European Options?
American options may be exercised at any point until their experation date
69
What are "Options"?
"Options" only bind one of the two parties (one has the option to exercise or not)
70
Characteristics of Globalization?
- "Savers" having more internationally diversified portfolios
- Ongoing for many decades
- More firms operate internationally and much international trade occurs within companies rather than across companies
71
Credit Default Swaps (CDS)
- Similar to insurance protection against possibility that bond issuers will fail to make coupon and face value payment
- Not very liquid
- Protect from Bond (credit) Defaults
- Protect lenders against default by its borrowers but does not assure the availability of debt in the future
72
What happens when the Federal Reserve lowers the discount rate it charges banks?
It enables banks to lend to consumers and businesses at a lower rate
73
What are some examples in how the Fed would address inflation?
- Sell more treasury bills
- Sell more treasury and agency bonds
- Increase the target for the federal funds rate
74
What kind of unemployment does technological advances result in? why?
Structural unemployment, it eliminates the need for specific skills workers possess
75
Characteristics of Monetary Aggregates?
- The links between changes in monetary aggregates, outputs, and inflation are weak
- Include the monetary base, M1 and M2
- Changes in financial markets often result in changes in how consumers and firms store their wealth
76
Companies competing with one another exclusively though prices?
Is a characteristic of Oligopolistic Competition
77
What does Gross Domestic Product (GDP) represent?
It represents the monetary value of all final goods and services produced within the economy over a period of time; usually 1 year
78
What is an Opportunity Cost?
It is the value of the best alternative that is forgone. If a benefit is not sacrificed, it is not an opportunity cost.
79
Characteristics of The International Monetary Fund (IMF)?
- Does not have a blanket recommendation for types of exchange rate systems
- The IMF charges relatively low interest rates
80
Lines of credit - Assets? Credit Risk?
- Does not reduce credit risk
| - Reduces the chances of having to sell liquid long terms assets to generate cash in the short term
81
Commonly Reported measures for Inflation?
- CPI
- PPI
- GDP Deflator
- PCE Index
82
Repatriation Restrictions
Restrictions on bringing money into the U.S. and would be a consideration in a company's cash flow analysis in reviewing its cash flows from foreign subsidiaries
83
What must the "Codes of Conduct" contain and address?
- Must be comprehensive, addressing conflicts of interest, illegal or other improper payments, anti-competitive guidelines, and insider trading
- Must be periodically acknowledged by all employees
- Must communicate what constitutes both proper and improper behavior
- Must provide courses of action in the event of improper behavior
- DOES NOT have to be displayed in public areas
84
The Proper Sequence of Activities in the Maintaining of Internal Control (4)
1. Establish a control baseline
2. Identify the need to make changes
3. Manage the changes
4. Re-validate or update the baseline
85
The Strategic Planning Process (4)
1. Create a mission statement
2. Objectives are translated into specific goals
3. Actions necessary to achieve these goals
4. Development of a means of measuring the effectiveness of performance toward achieving goals
86
Revised Model Business Corporation Act - Liquidation Requirements?
Requires a recommendation from the Board of Directors and subsequent approval of a majority of voting shareholders to voluntarily dissolve a corportation
87
What is Delegation? Who is responsible?
Transfers to another party (the delegatee) the responsibility of carrying out the terms of a contract. If the delegatee fails to perform adequately. The original party to the contract may be held liable for breach of contract
88
What is Assignment? Who is responsible?
One party transfers the benefits and obligations of a contract to another party. The original party (assignor) may be liable to the counter party for the performance of the substituted party
89
What is Novation?
Process by which a creditor agrees to release the promoter from contractual obligations established prior to the corporation's incorporation and substitute another party in the promoter's place
90
Enterprise Risk Management: Integrated Framework - What is it designed to do? Is it part of COSO?
- Is a risk based approach designed to help management evaluate the interrelated impacts of decisions and deal with multiple risks
- It is separate from and additional to the COSO Framework and is a process effected by an entity's Board of Directors, Management and other personnel
91
The 3 Principles of Control Activities
1. Selection and Development of control activities contribute to reducing risks to the achievement of the entity's objectives
2. General controls over technology are developed to support the achievement of the entity's objectives
3. Policies identify expectations and procedures convert policies into actions
92
What is a deficiency in data integrity?
When data is not properly protected or when it is not carefully reviewed when input or processed
93
What is Change Control?
The controls designed to prevent unauthorized changes to the system
94
How does a deficiency in Computer Operations occur?
Occurs when operators are applying the incorrect programs, using inappropriate equipment, or using equipment inappropriately
95
The 8 Interrelated Components of COSO's Enterprise Risk Management (ERM) Framework
1. Internal Environment
2. Objective Setting
3. Event Identification
4. Risk Assessment
5. Risk Repsponse
6. Control Activities
7. Information and Communication
8. Monitoring
96
How is a contract between a Corporation and a member of the Board of Directors handled?
Directors must disclose the contract to independent members of the Board of Directors and refrain from voting on the approval of the contract
97
SOX - A CEO or CFO who misrepresents Financial Information may be imprisoned and fined. What are the ramifications?
$1 million and 10 years to $5 million and 20 years
98
What is the relationship of the Board of Director's to a Corporation?
Fiduciary - They must act in the best interests of the corporation in all business dealings and not a Director's self interest
99
When the corporation is insolvent who must repay an illegal distribution?
A shareholder is liable for the repayment of an illegal distribution
100
What are Bylaws?
Establish a corporations internal rules and procedures for corporate governance. Bylaws take effect after the corporation is created (through Articles of Incorporation) and generally have a larger impact on day-to-day operations
101
What is a Certificate of Authority?
Generally used to authorize an Insurance firm to operate in a state
102
What is the Enterprise Risk Management Framework used for? The level of assurance it provides?
- Provides a framework for managing organizational risk and assessing opportunities related to the achievement of organizational objectives
- Provides only reasonable assurance with respect to the objective categories, NOT Absolute Assurance
103
What are the 4 COSO Framework responses to Risk?
- Avoidance
- Sharing
- Acceptance
- Reduction
104
What is Monitoring used for in a corporation?
Help an organization asses the quality and effectiveness of its systems of internal control
105
What are compliance objectives? (What are they compling to?)
Relates to the adherence to laws and regulations
106
Relevance and the importance to management? Why is it important?
Has the greatest impact on management's ability to make effective decisions
-Implies information is accurate, timely and useful for decision making purposes
107
How does a Balanced Scorecard assess an Organizations performance?
- Analyzing Financial Information
- Customer Satisfaction
- Internal Processes
- Innovation
108
Why is activity based costing used? **The cost of what?
Used to determine the accurate cost of a product or process
109
SOX - What should an Audit Committee Financial Expert understand?
- GAAP
- Financial Statements
- Have experience with internal accounting controls
110
What is the Business Judgment Rule?
Establishes that managers or directors will not be held liable for business decisions made in good faith, with due care and with loyalty
111
New Technology vs. Current Technology (risk)
New technology is always riskier than current technology
112
What should the Articles of Incorporation contain? Who Requires this?
The Revised Model Business Corporation Act requires articles of incorporation to contain a corporation's name and the nature and the purpose of a corporation's business
113
What does SOX require of every issuer regarding the Financial Expert of an audit committee?
SOX requires every issuer to have a financial expert on the audit committee. If there is no financial expert on the audit committee that fact and the reasons why are required to be disclosed
114
The 4 categories of entity objectives in the Enterprise Risk Management Framework
- Strategic
- Operations
- Reporting
- Compliance
115
What is Economic Value Added?
It is a financial measure of the value being created in a company in excess of its required return on capital
116
Describe Weighted Average Cost of Capital (WACC)
Weighing each rate based on the amount of debt or equity that it applies to
117
What is a Payback Period?
It is the length of time it takes for the initial cash outflow to be recovered in cash . Ignores the Time Value of Money.
118
What reduces risk (regarding assets an liabilities)?
Matching the maturities of assets and liabilities
119
Discount Payback Method
Present Value of Cash Flows for each year until cost is regained. Disregard Salvage Value.
120
Which one takes in account the the Salvage Value: Internal Rate of Return or Accounting Rate of Return
Both
121
The Internal Rate of Return - Characteristics
- Based on Cash flows
| - Uses Present Value technique and takes in account TVM
122
How is depreciation used when estimating cash flow for Capital Budgeting?
Depreciation is used in determining the tax costs or benefit
123
Present Value calculations are based on...
Cash Flows
124
What is an advantage of the NPV?
It accounts for compounding of returns when cash flows are reinvested at the discount rate (known as the hurdle rate of return)
125
Payback Method - Characteristics
- Does not consider Cash flows occurring after the investment has been recovered
- Does not consider TVM
- Easy to apply and understand
126
Common Shares - Characteristics
- Represent an ownership interest in the company
- Permanent in nature without a fixed monetary rate
- Lowest priority upon liquidation of the company
127
Variable Costing Method - How are fixed costs dealt with?
-All fixed costs, both fixed manufacturing and fixed selling and admin costs, are recognized as an expense when incurred
128
Variable Manufacturing Costs include?
- Direct material
- Direct labor
- Variable Manufacturing Overhead
129
Which Costing Method results in the lowest value for Inventory? Why?
- Variable Costing, Inventory is valued at the total of variable costs, including DL, DM, and VO.
- Absorption, Hybrid and process costing all involve some amount of fixed overhead to inventory resulting in a higher inventory cost
130
When is a costing Method useful for external reporting purposes? Which methods are acceptable?
It must conform to GAAP. GAAP requires the use of the absorption costing method, but does not permit the use of the variable costing method
131
What are Product Costs?
They are manufacturing costs matched to the product and not expensed until the product is sold
132
What are Period Costs?
Costs not associated with manufacturing; selling and general and admin expenses. They are expensed in the period incurred
133
What kind of cost is Fixed Manufacturing Overhead?
It is a Period Cost
134
What are Rule Based Expert Systems
- It is programmed to simply carry out programming commands which are predetermined by the programmers
- Not designed to "learn" from experience
135
What are some forms of AI that can learn from experience?
- Intelligent Agents
- Case based Reasoning Systems
- Neural Netoworks
- NOT Rules Based Expert Systems
136
Who oversees the day-to-day operations of the business's netwroks?
A Network Admin
137
What are the Controls in IT?
- Preventive
- Detective
- Corrective
138
Define Preventive Controls
Controls designed to prevent errors or irregularities
139
What does a Three-Tiered Architecture client/server application consist of ?
- A desktop client
- An application
- A Database
140
What is a Limit Check?
A limit check is used to determine that data entered falls within acceptable limits, indicating a potential error when it does not
141
What is a Validity Check?
Compares certain data to acceptable values, indicating a potential error when there is not a match
142
Data File in a System (Hierarchy)
- File
- Record
- Field
- Character
143
Is a Firewall electronic or Physical?
Both.
- Electronic = Computer Program
- Physical = Physical Device
144
The Systems Development Life Cycle Approach (SDLC) Steps (7)
1. Planning Phase
2. Analysis Phase
3. Design Phase
4. Development Phase
5. Testing Phase
6. Implementation Phase
7. Maintenance Phase
145
What is a Stakeholder? (In the IT field)
Anyone in the organization who creates or uses documents, data, or networks in the Business Information System
-NOT limited to management, IT personnel, or users
146
What is Continuity Planning?
Focuses on how a company can restore and continue business operations following a disaster
147
Every site connected to a _____ has a unique address.
TCP/IP Network
148
Who has the responsibility of modifying and adapting operating system software?
A systems Analyst NOT a programmer
149
What is an Enterprise Resource Planning (ERP) System
-A software that integrates all the business processes of an organization. Interconnected and shared data, increasing responsiveness and flexibility
150
What are Programmed Edit Checks?
They are designed to check recorded data to make certain that is is in proper form. Inappropriate data is rejected and a report indicating exceptions is usually generated
151
What are Edit Checks NOT used for?
They are not used to update records, identify accounts with particular characteristics or print out master files
152
What is a major disadvantage of using a Private Key to encrypt data?
Both the sender and the receiver must have the private key before the encryption method will work
153
What is a Distributed Processing Environment?
Is one in which various processes are performed separately by the individuals responsible for them in their locations are integrated into a central system
154
When is a Distributed Processing Environment most beneficial?
When large volumes of data are generated at many location and fast access is required
155
Define Electronic Commerce
Products sold on central web servers that can be accessed by users at any time
156
What is Electronic Data Interchange (EDI)?
- Is the electronic exchange of information for business transactions between 2 or more businesses' computer networks
- EDI uses strict communication standards, encryption, and access controls to ensure orders are placed and processed as expected
157
What is a Value Added Network (VAN)
Routes data transactions between trading partners. A VAN is used to link different company computer files together, helping to facilitate transactions between trading partners
158
What kind of control is a Security Awareness Manual?
A preventive control that suggests the organization educate its employees of procedures to prevent errors or fraud
159
What is the primary objective of data security controls?
Protect data, which would include making certain that the data is stored properly and is protected for unauthorized change or destruction
160
What jobs does a System Analyst fulfill?
- Examine business problems and recommend and coordinate the development of solutions
- Designing systems, preparing specifications for programmers, and serves an an intermediary between users and programmers
161
What are the Incompatible IT duties that need to be segregated?
- Authorization
- Recording
- Custody
162
In which phase should training take place?
The implementation phase. Training before this would be ineffective because there would be no complete system
163
What is Batch Processing?
- A form of data processing in which a number of input jobs are grouped for processing during the same machine run
- Data is not updated until after the batch is processed and the stored data is current only immediately after the update process, unlike in an online real time processing system in which the data is always current and up to date
164
What is a Warm Site
A Disaster Recovery Site. A compromise between a hot and cold site, a warm site will have infrastructure and hardware installed though not to the capacity of the original site
165
What is a Hot Site?
A Disaster Recovery Site. Is a duplicate of the original site, including computer systems and all equipment necessary for immediate operations if necessary
166
What is a Cold Site?
A Disaster Recovery Site. Usually remotely located that has the infrastructure needed for data processing by does not have any equipment
167
What is the primary advantage for using a VAN?
A private network that provides increased security for data transmissions
168
Define Data Mining
Data Mining searches for patterns and trends in a data set to obtain useful information. The recognition of patterns is central to data mining and is a critical success factor for a data mining operation
169
What is Management Information Systems (MIS)?
Support day to day management decision making through predefined reports, and not non-routine strategic level decision making
170
What is an Executive Support Systems?
Provide senior executives with access to internal and relevant external information to assist with making non-routine decisions involving competitors, acquisitions and business cycles
171
What is a Hash Total?
Total of Values in a not meaningful financial amount but it can be used to verify that all items in that field of a batch have been entered correctly
172
What is Risk Assessment (IT related)?
Is used to identify whether the company has information that the unauthorized individuals want, how these individuals could obtain the information, the value of the information, and the probability of the unauthorized access occurring
173
What is a Parity Check?
It is not an input control, it is a hardware control that makes certain that each piece of data, or data byte, has the appropriate odd or even number of data components or data bits
174
What are some Input Controls (IT)?
- Validity Check
- Field Check
- Check Digit
175
What system is more efficient in the use of HR for producing Financial Statements?
A computer based transaction processing system NOT a manual system
176
What kind of encryption is most secure for securing messages for an EDI system
Physical Hardware devices is more secure than an encryption software
177
What is an essential element of an Audit Trail in an EDI system?
Encrypted Hash Totals that Authenticate Messages
178
What is an Advantage of E-Cash?
It allows a customer to pay for goods or services from a website while maintaining financial privacy
179
What is a Master File?
Is a permanent Document that is used as an ongoing reference tool and is periodically updated to reflect changes
180
What is the first step management would take to compensate for the lack of a disaster recovery plan?
Identify the responsibilities for tasks to be included in the plan
181
In an EDI system what kind of controls are more important: Preventive, Detective or Corrective?
Preventive
182
What is a Current Update Control (Concurrent Update)?
Is one that updates on a real time basis and is particularly useful when multiple users have access to limited resources
183
What is a Librarian responsible for?
The safeguarding and maintenance of all programs and data files.
-Collection, preservation and maintenance of an entity's data
184
What is a Database Admin responsible for?
Responsible for the security and classification of shared data stored in a database system
185
What is a Data Control Clerk responsible for?
Schedules jobs for computers and manages the distribution of reports and other output
186
What is a Mirrored Web Server?
Is a complete duplicated of a computer system that can be put into service immediately if the primary system fails
187
What is the greatest risk using EDI?
Improper Distribution of EDI transmissions
188
When is a Transaction Processing System used?
For performing routine functions, such as recording payroll
189
What is an advantage of Cloud computing?
Usually has lower upfront costs for equipment and maintenance
190
Define a File
Is a group of logically related records which may include a collection of data for all vendors in a relational database
191
What is a primary advantage of using generalized Audit Software?
It allows an auditor to perform audit tests on a client's computer files while having only a limited understanding of the client's IT environment
192
What is a VPN?
it establishes an encrypted point to point connection between sites and provides secure access to remote users
193
What is a Systems Specification Document?
It details what the program will do and how it will operate. These specifications include the data elements needed for the program to operate properly
194
What is a Trojan Horse?
A computer program that appears to be legitimate but performs an illicit activity when run
195
What is the primary function of a Database Management System (DBMS)?
Is its ability to access, summarize, create and modify information contained in an electronic database
196
What is Job Control Language?
Is the computers operating system performing scheduling, resource allocation, and data retrieval functions based on a set of instructions
