Business Processes

Question 1

Automation requires

Answer 1

Repetition and recurring processes.

Question 2

In processing sales orders, what document authorizes the warehouse to send goods to the shipping department.

Answer 2

A pick (or picking ticket)

Question 3

A pick ticket is found in which business process?

Answer 3

The revenue process.

Question 4

What is a pick ticket?

Answer 4

A list provided to the warehouse or inventory detailing the items and quantities that should be picked and packaged and sent to the shipping dept for an order.

Question 5

Within the expenditure process, what documents are part of a 3 way match?

Hint: These are the “vouchers”.

Answer 5

• Purchase Order
• Receiving Report
• Supplier invoice

Note: NOT a sales order

Question 6

What document accompanies a shipment that provides a contract concerning the allocation of responsibilities between the seller, carrier and customer?

Answer 6

Bill of lading

NOTE: Not included in the “voucher”

Question 7

What of these is a common document found in the revenue process?

A. Bank Statement
B. Packing slip
C. Bill of Materials
D. Voucher

Answer 7

B. Packing Slip

Question 8

What process is a bank statement part of?

Answer 8

Finance and reporting process

Question 9

What process is the bill of materials part of?

Answer 9

Manufacturing process

Question 10

What process is the voucher part of?

Answer 10

The Expenditure Process

Question 11

What are the 5 steps of the manufacturing process?

Answer 11

1. Product Design and Engineering
2. Product Development
3. Manufacturing Forecasting and Scheduling
4. Manufacturing Operations
5. Manufacturing and fixed asset accounting and reporting

Question 12

What process is a production schedule part of?

Answer 12

The Manufacturing Process

Question 13

What process is a receipt part of?

Answer 13

Revenue Process

Question 14

What is a document that accompanies the paycheck detailing earnings and deductions for the current pay period and the year-to-date totals?

What process is this a part of?

Answer 14

Earnings Statement

Part of the Human Resources and Payroll Process

Question 15

What is a detailed document that specifies all of the components and quantities required to manufacture a product?

Answer 15

Bill of Materials

Question 16

For a control perspective, which of these processes does NOT need to be segregated from the others:

A. Custody of assets
B. Record Keeping
C. Marketing
D. Authorization

Answer 16

C. Marketing

Question 17

What kind of control is “reconciliation of changes to the data”?

Answer 17

Detective

Note: Detective controls ONLY reviews changes.

Question 18

What kind of control is “Access and Authorization”, “Change Control”, and “Read-only Rights”?

Answer 18

Preventive controls

Question 19

What creates a framework so values in data entered into a foreign key field must first be entered into a corresponding table with a primary key?

Answer 19

A Validity Check

Ex/ prevents retailers from getting orders for products that are not available.

Question 20

What does a reasonableness check do?

Answer 20

Validates the logic of input values where fields are dependent or relevant to each other.

Question 21

What verifies that all required data has been input?

Answer 21

Completeness Check

Question 22

What retrieves and displays info related to the input to verify accuracy?

Answer 22

Closed-loop verification

Question 23

What limits the number of character inputs into a field?

Answer 23

A size check

Question 24

What establishes upper and lower limits for input data?

Answer 24

A limit check

Question 25

What is the process of testing the sum of a column of row totals to the sum of a row of column totals to verify results?

Answer 25

Cross-footing

Question 26

What matches multiple items such as purchase orders, receiving reports, and vendor invoices prior to executing processes?

Answer 26

Data matching

Question 27

What works on ensuring batch processing is done in a complete and accurate manner utilizing record counts and batch totals?

Answer 27

Input Validation

Question 28

What is a process of having prenumbered documents and verifying that no documents or transactions are missing?

Answer 28

A sequence check

Question 29

What kind of monitoring control s a hiring guideline?

Answer 29

Preventive supervisory and monitoring control.

Question 30

Performance reviews, mandatory vacations, and audits are __________________ supervisory and monitoring controls.

Answer 30

Detective

Question 31

Which of the following is a detective supervisory and monitoring control: A. Input validation B. Regular backups of data C. Clear organizational hierarchy charts D. Expense budgets

Answer 31

ANSWER: D Expense Budgets are supervisory Input Validation, Regular backups, and Org charts are all Preventive supervisory and monitoring controls.

Question 32

What are written depictions?

Answer 32

Narratives

Question 33

What depicts the logical flow of data, but does not detail the physical aspects of the process?

Answer 33

Data flow diagrams

Question 34

What focuses on the interfacing of clients and systems and do NOT depict the physical flow of information?

Answer 34

System interface diagrams

Question 35

What visualizes not only the logical flow of data through a process but also the physical aspects of the that flow? Hint: This method includes the form in which the info flows through the process and whether actions taken on the document are done manually or automated.

Answer 35

Flowchart

Question 36

What focuses on interfacing clients and systems and does NOT depict the logical flow of information?

Answer 36

System interface diagrams