Practice MCQs – Set 2
CA Exam –
Chartered Accountant Study - CA Inter – Practice Questions – Enterprise
Information System (EIS) - Multiple Choice Questions - MCQs
Practice MCQs
– Set 2
(1)During an audit
of financial transactions in an enterprise XYZ, it was found that
simple errors of data
entry were occurring when two digits that
were either individual or part of larger sequence of numbers were reversed
when posting a transaction. Which type of error is this?
(a)Addition Error
(b)Truncation Error
(c)Substitution Error
(d)Transposition Error
Answer: Transposition Error
(2)While Auditing
the Input Controls
in an enterprise ABC, which
of the following controls will not fall under the purview of Input Controls?
(a)Source
Document Controls
(b)Data
Coding Controls
(c)Boundary Controls
(d)Batch Controls
Answer: (c)Boundary Controls
(3)Which are the controls that are responsible for maintaining a chronology of the events
from the time a sender dispatches a message to the time
a receiver obtains
the message?
(a)Boundary Controls
(b)Communication Controls
(c)Input Controls
(d)Database Controls
Answer: (b)Communication Controls
(4)In ABC,
financial institution, the
authorized officials identified existence of numerous accounts numbers of inactive accounts in their usage
data of active
customers. Complaint was reported to their
IT team. Which
type of controls
can be exercised by the
IT Team in the given
case?
(a)Corrective Controls
(b)Detective Controls
(c)Preventive Controls
(d)Compensatory Controls
Answer: (b)Detective Controls
(5)Mr. X entered into a contract with Mr. Y for purchase
of house hold
products via online
stores on Cash on Delivery
(CoD). As per the terms,
it was to be delivered within 3 days
of the order placed. Due to delivery on the fourth day,
Mr. X denied for the performance of the contract. This can be said to be
a .
(a)Risk associated with
controls
(b)Risk associated with security
(c)Risk
associated with transaction
(d)Risk
associated with e-Commerce
Answer: (d)Risk associated with e-Commerce
(6)XBL bank gave an undertaking to the third
party for the supply of goods /services to pay amount
of Rs. 2 crore on behalf of the Mr. X, a business man, provided the
terms and conditions of the undertaking are complied
with. This service
of banks is known as -
(a)Issuing
letter of Guarantee
(b)Issuing
letter of Comfort
(c)Issuing
letter of Credit
(d)Issuing
letter of Understanding
Answer:
(c)Issuing letter of Credit
(7))Under Data
Resource Management Controls, controls are designed to prevent unauthorized individual from viewing, retrieving, computing or destroying the entity's data in any organization.
(a)Access
(b)Backup
(c)Concurrency
(d)Quality
Answer: (a)Access
(8)Name the Module in ERP - Business Process
Modules that includes
the software designed specifically for production planning
and management.
(a)Production Planning
(b)Material Management
(c)Sales
and Distribution Module
(d)Supply
Chain Module
Answer: (a)Production Planning
(9)Which of the following does not form
part of Human
Resource (HR) Management?
(a)Training
and Development
(b)Career Development
(c)Leadership Management
(d)Invoicing
Answer: (d)Invoicing
(10)
For recording physical receipts of goods
purchased from a vendor, which
Voucher type shall
be used?
(a)Delivery Note
(b)Receipt Note
(c)Debit Note
(d)Credit Note
Answer: (b)Receipt Note
(11) Voucher
Type "Contra" of the
Accounting System does not include:
(a)Cash
deposit in bank
(b)Cash
withdrawal from bank
(c)Cash transfer
from one location
to another
(d)Credit
Sales
Answer: (d)Credit Sales
(12)
Which layer is responsible for receiving the inputs from users and perform
certain validations? (a)Application Layer
(b)Database Layer
(c)Operating
System Layer
(d)Network Layer
Answer: (a)Application Layer
(13)An aspiring
CA in his interview CA was asked
to provide correct
sequence of the
following sub- processes that represent Accounting Process Flow.
The sub processes are - (1) Source Document, (2) Financial Statement, (3) Adjustments (4) Ledger, (5) Adjusted Trail Balance, (6) Closing Entries,
(7) Journal and (8) Trial Balance.
What should be the answer?
What should be the answer?
(a) (1)-(2)-(3)-(4)-(5)-(6)-(7)-(8)
(b) (4)-(3)-(7)-(6)-(1)-(2)-(8)-(5)
(c) (1)-(7)-(4)-(8)-(3)-(5)-(6)-(2)
(d) (8)-(5)-(3)-(1)-(2)-(4)-(6)-(7)
Answer: (c) (1)-(7)-(4)-(8)-(3)-(5)-(6)-(2)
(14) Feature of Operating
Systems that allocate resources is
known as:
(a)User Interface
(b)Memory Management
(c)File Management
(d)Task Management
Answer: (d)Task Management
(15)
Firewall Installation is a:
(a)Managerial
control
(b)Application
control
(c)Preventive
control
(d)Corrective
control
Answer: (c)Preventive control
(16)Feature
of operating system that controls how
memory is accessed and also maximize the
memory availability and storage:
(a)User Interface
(b)Memory Management
(c)File Management
(d)Task Management
Answer: (b)Memory Management
(17)
Which of the following involves spying on information being transmitted over
communication network?
(a)Wire-tapping
(b)tailgating
(c)Subversive
attacks
(d)Piggybacking
Answer: (a)Wire-tapping
(18)Provide the correct
sequence of phases
of Program Development Life Cycle. (1) Operations and Maintenance, (2) Coding,
(3) Control, (4) Design, (5) Testing and (6) Planning
(a) (4)-(6)-(2)-(3)-(1)-(5)
(b) (6)-(3)-(4)-(2)-(5)-(1)
(c) (1)-(6)-(3)-(5)-(4)-(2)
(d) (3)-(5)-(2)-(1)-(6)-(4)
Answer: (b) (6)-(3)-(4)-(2)-(5)-(1)
(19) In ABC, financial institution, the authorized
officials identified existence of numerous accounts numbers of inactive accounts in their usage
data of active
customers. Complaint was reported to their
IT team.
Which type of controls can be exercised by the IT Team in the given
case?
Corrective Controls
Preventive Controls
Detective Controls
Compensatory Controls
Answer: Detective Controls
(20)
Mr. Yagnik ordered material
for manufacturing of products and delivery was fixed “within
10 days from the date of
order”. State the subsequent stage of order to cash cycle-
(a)Collections
(b)Invoicing
(c)Delivery Note
(d)Order Fulfillment
Answer: (c)Delivery Note
(21) Payment
of the salaries
to its employees by transferring of funds to their saving
accounts is:
(a)Remittances
(b)ECS Credit
(c)ECS Debit
(d)Deposits
Answer: (c)ECS Debit
(22)
Offence of chatting on the internet under the name of some other person is:
(a)Punishable for offence related
to web defacement
(b)Punishable for phishing and email scam
(c)Theft
of confidential information
(d)Harassment via fake public profile
on social networking site
Answer: (d)Harassment via fake public profile on social networking site
(23)
Mr. Yagnik hacks the data of valuable customers of a company and then sold the
same to its competitor. This act is known as:
(a)Source
code theft
(b)Theft
of confidential information
(c)Phishing
(d)Hacking
Answer: (d)Hacking
(24) Rule for voucher numbering does not include:
(a)Unique
number for each voucher.
(b)A voucher
number may either
have prefix or suffix or both.
(c)Voucher numbers
may be numbered randomly.
(d)Every voucher
type shall have a separate numbering series.
Answer: (c)Voucher numbers may be numbered randomly.
(25) Which of the following is not a feature of Internal Control
System:
(a)Facilitates the effectiveness and efficiency of operations.
(b)Helps safeguarding the assets of the entity.
(c)Assists compliance with applicable laws and regulations.
(d)Helps ensure the reliability of only Internal Financial Reporting and not External Financial Reporting.
Answer: (d)Helps ensure the reliability of only Internal Financial Reporting and not External Financial Reporting.
(26)Which of the following
is not an advantage of Flowchart?
(a)Easy modification
(b)Process can be broken
down into detailed parts of a study.
(d)helps as a guide during
the system analysis
and program preparation phase.
(d)hepls in communicating the facts of a business
problem to arrive at the solution.
Answer: (a)Easy modification
(27)Arrange sequentially the following steps
involved in General
Ledger Process?
(i)
Posting of transactions.
(ii) Reviewing Transactions.
(iii) Generating
Financial Reports
(iv) Entering Financial transactions into the system.
(v) Approving transactions. (a) (iv), (i), (ii), (v), (iii)
(b) (i), (ii), (iii), (iv), (v) (c) (iv), (ii), (v), (i), (iii) (d) (v),(iv),(i),
(iii), (ii)
Answer: (c) (iv), (ii), (v), (i), (iii)
(28)Arrange sequentially the activities involved
in Sales and Distribution Module?
(i)
Inventory Sourcing
(ii)
Payments
(iii)
Billing
(iv)
Pre-Sales Activities
(v)
Sales Order Processing
(vi)
Delivery
(a) (i),
(ii), (vi), (iv), (v), (iii)
(b) (iv),
(v), (i), (vi), (iii),(ii)
(c)
(iv),(v),(i), (ii), (vi), (iii)
(d) (i),
(vi), (ii), (v), (iii), (iv)
Answer: (b) (iv), (v), (i), (vi), (iii),(ii)
(29) Technique of Cryptography does not involve:
(a)Transposition
(b)Substitution
(c)Product Cipher
(d)Transcription
Answer:(d)Transcription
(30) Which of the following is not true about integration of Modules with Financial
and
Accounting System?
(a)Availability
of same master data for all modules.
(b)Sharing
of common transaction data
with other modules
wherever required.
(c)Use of Common Voucher types for each module.
(d)Use
of Separate
Voucher types for each module for easy identification of department recording it.
Answer: (c)Use of Common Voucher types for each module.
(31)
Which one in not a correct statement?
(a)In Relational Database model, the
named columns of the relation are called Domain.
(b)In Relational Database
model, a Relation is a table
with rows and
columns
(c)In Relational Database model, the named
columns of the relation are called Attributes.
(d)In Relational Database
model, the Domain
is the set of the
values an attribute can take.
Answer: (a)In Relational Database model, the named columns of the relation are called Domain.
(32) Which one is a correct statement?
(a)all packets
pass through a common path.
(b)all packets
arrive at the destination out of order.
(c)the receiving device restores the packets in the same
order it receives
them.
(d)all packets
arrive at the destination in order.
Answer: (a)all packets pass through a common path.
(33) Which of the following is not a type of Data Resource
Management Controls under Managerial
Controls?
(a)Existence Control
(b)Concurrency Controls
(c)Production Controls
(d)Quality Controls
Answer: (b)Concurrency Controls
(34)Which of the following does
not fit into
best practices while
dealing with passwords in order to avoid system failures?
(a)Periodic
change of passwords
(b)Unlimited number
of entry attempts
(C)Minimum
password length
(d)Hashing
of passwords
Answer: (C)Minimum password length
(35)Which risk refers to the data
lost from stolen or lost devices
in case of BYOD?
(a)Financial
Risk
(b)Application
Risk
(c)Device
Risk
(d)Integration
Risk
Answer: (c)Device Risk
(36)Which instance of Software as a Service
(SaaS) allows users to explore functionality of Web services
such as Google
Maps, Payroll Processing, and credit card processing services.
(a)API as a Service (APIaaS)
(b)Backup as a Service (BaaS)
(c)Email as a Service (EaaS)
(d)Data as a Service (DaaS)
Answer: (a)API as a Service (APIaaS)
(37) Which control is not verified during audit
of Environmental Controls?
(a)Power
Backup
(b)Water Detection
(c)Fire
detection and Suppression
(d)Guards
and Dogs
Answer: (d)Guards and Dogs
(38)Which
control is not verified during audit of logical access control?
(a)Access
Controls
(b)Intrusion
Detection and Prevention
(c)Backup Power
(d)password
management
Answer: (c)Backup Power
(39)Which of the
following layer is responsible to validate if the user is authorized to request the transaction or not?
(a)Application Layer
(b)Presentation Layer
(c)Database Layer
(d)Session Layer
Answer: (a)Application Layer
(40)
In case of a single system and database, which of following is required to
protect business?
(a)Single system can be controlled and monitored by having proper
and updated backup
of data as well
as alternate
hardware/internet arrangements.
(b)Single can be controlled by removing redundant data, using techniques like data warehousing and updating
hardware on a continuous basis.
(c)Proper access rights to be implanted.
(d) Proper staff training system should be given.
Answer: (a)Single system can be controlled and monitored by having proper and updated backup of data as well as alternate hardware/internet arrangements.
(41)In
case of a large database speed of operations is reduced.Which of following is
required to protect business?
(a)This can be controlled and monitored by having proper
and updated backup
of data as well
as alternate
hardware/internet arrangements.
(b)This can be controlled by removing redundant data, using techniques like data warehousing and updating
hardware on a continuous basis.
(c)Proper access rights to be implanted.
(d) Proper staff training system should be given.
Answer: (a)This can be controlled and monitored by having proper and updated backup of data as well as alternate hardware/internet arrangements.
(42)In an Accounting Business Process Cycle, arrange
the sub - processes in order.
(i) Journal (ii) Ledger (iii)
Financial Statement
(iv) Closing Entries (v) Source
Document (vi) Trial Balance
(vii)
Adjusted Trial Balance (viii) Adjustments
(a) (v), (i),
(vii), (iii), (ii), (iv), (vi), (viii)
(b) (i),
(ii), (iii), (viii), (vii), (vi),(v), (iv)
(c) (v), (i), (ii),
(vi), (viii), (vii),
(iv), (iii)
(d) (ii), (i), (v),
(viii), (iv), (iii),
(vi), (vii)
Answer: (c) (v), (i), (ii), (vi), (viii), (vii), (iv), (iii)
(43) Which of the following device helps in regenerating the signal
over the same network before
the signal becomes
too weak or corrupted?
(a)Modem
(b)Router
(c)Hub
(d)Repeater
Answer: (d)Repeater
(44)In
which of the transmission mode, the data flows
in one direction, but not both
at the same time.
(a)Half-Simplex
(b)Half-Duplex
(c)Duplex
(d)
Simplex
Answer: (b)Half-Duplex
(45)A Business Continuity Plan (BCP) is which
type of control:
(a)Deterrent
Control
(b)Application
Control
(c)Preventive
Control
(d)Corrective
Control
Answer: (d)Corrective Control
(46)Which
of the is the act of following an
authorized person through a secured door:
(a)shoulder surfing
(b)Piggybacking
(c)Subversive attacks
(d)man
in the middle
Answer: (b)Piggybacking
(47)Which of
following is not a threat:
(a)malware
(b)virus
(c)Worm
(d)Firewall
Answer: (d)Firewall
(48) Which of the following risk is not applicable
when it adopts
Bring Your Own
Device (BYOD)?
(a)Availability Risk
(b)Confidentiality Risk
(c)Integrity
Risk
(d)Implementation Risk
Answer: (a)Availability Risk
(49)Which of the following is allowed in Database Management Systems (DBMS)?
(a)Deleting
the file
(b)Modifying existing
files
(c)Retrieving or deleting data from existing
files
(d)Duplicating Files
Answer: (d)Duplicating Files
(50)Sharing
of personal data without consent is violation of which rule of Sensitive Information and Personal
Data Rules, 2011.
(a)Rule 6
(b)Rule 7
(c)Rule 8
(d)Rule 9
Answer: (a)Rule 6
Solution
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