Impact of Information Technology on Accounting

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What is the major objective of financial accounting information systems?

To provide relevant information to individuals and groups within an organization (correct)

To ensure the organization's business risks are not comprehensive

To focus solely on nonfinancial data for decision-making

To measure business performance only through traditional financial statements

Which aspect of accounting is overlooked if an AIS ignores nonmonetary information?

Risk assessment

Business performance measurement (correct)

Taxation

Auditing

What is the key role of information systems reliability in accounting?

To ensure all financial transactions are in monetary units

To provide assurance that business risks are manageable

To design reliable information systems for decision making (correct)

To focus on traditional performance measures in financial statements

Which area of accounting focuses on providing assurance that an organization's set of business risks is comprehensive and manageable?

Risk assessment Signup and view all the answers

How does the use of AIS impact nonfinancial data in accounting?

It overlooks nonmonetary information essential to users Signup and view all the answers

What is a potential drawback if a financial accounting system focuses only on monetary data?

Incomplete information for decision-making Signup and view all the answers

What is the main purpose of Electronic Commerce?

Ensuring the security and trustworthiness of online businesses Signup and view all the answers

In computer-based systems, where is data entered and stored?

Files and databases Signup and view all the answers

What is the primary purpose of bid rigging?

To make the bidding process appear competitive Signup and view all the answers

What is the purpose of capturing transaction data as part of the data input process?

Triggered by a business activity Signup and view all the answers

What is the significance of source documents in data processing?

Capturing data at its origin Signup and view all the answers

What is the main purpose of a cookie?

To store information about a user's activity on a website Signup and view all the answers

What is the primary function of the data processing cycle?

Generating relevant information Signup and view all the answers

Which of the following is NOT a key element of fraud?

Injury or loss suffered by the victim Signup and view all the answers

What is the primary purpose of a Ponzi scheme?

To make false statements about an investment opportunity Signup and view all the answers

Which step in the data input process ensures accuracy and completeness?

Capturing information from source documents Signup and view all the answers

Which of the following is an example of securities fraud?

Making false statements about an investment Signup and view all the answers

What is the primary purpose of sabotage?

To intentionally destroy a system or its components Signup and view all the answers

What is the term used to describe the theft of company assets by employees, which can include both physical and digital assets?

Misappropriation of Assets Signup and view all the answers

Which of the following best defines 'Fraudulent financial reporting' according to the text?

Intentional or reckless conduct resulting in misleading financial statements Signup and view all the answers

What technique involves using psychological tricks to gain access to a building, computer server, or network?

Social Engineering Signup and view all the answers

Which type of fraud involves using technology and can include unauthorized access, modification, copying, or destruction of data?

Computer Fraud Signup and view all the answers

In the context of computer fraud, what does 'cooking the books' refer to?

Falsifying financial records Signup and view all the answers

What is the classification given to any software that is used to cause harm in the context of computer fraud?

Malware Signup and view all the answers

Which type of malware secretly monitors and collects information about users without their permission?

Spyware Signup and view all the answers

Which type of malware causes banner ads to pop up on a monitor and collects information about the user's web-surfing and spending habits?

Adware Signup and view all the answers

Which type of malware records user activities such as keystrokes, emails, websites visited, and chat sessions?

Keylogger Signup and view all the answers

What is the term for the unauthorized or malicious computer instructions within an authorized and properly functioning program?

Trojan Horse Signup and view all the answers

Which type of malware is a self-replicating, executable code that attaches itself to a file or program requiring human action to replicate?

Virus Signup and view all the answers

What is the term for a malware program that copies itself automatically and actively transmits itself to other systems?

Worm Signup and view all the answers