85. Transaction authorization occurs in a traditional manufacturing environment in all of the following ways except

production planning and control initiates production with a work order

the materials requisition authorizes the storekeeper to release materials to the work centers

the sales department modifies work orders to match changes in demand

movement of the work through the production process follows the move ticket

86. Extracting data for a data warehouse

requires that the files be out of service

should only involve active files

all of the above

cannot be done from flat files

87. Control risk is

associated with the unique characteristics of the business or industry of the client

the probability that the auditor will render an unqualified opinion on financial statements that are materially misstated

the likelihood that the control structure is flawed because controls are either absent or inadequate to prevent or detect errors in the accounts

the risk that errors not detected or prevented by the control structure will also not be detected by the auditor

89. When planning the audit, information is gathered by all of the following methods except

interviewing management

completing questionnaires

confirming accounts receivable

observing activities

90. Auditors of ERP systems

need not be concerned about segregation of duties because these systems possess strong computer controls

focus on output controls such as independent verification to reconcile batch totals

are concerned that managers fail to exercise adequate care in assigning permissions

need not review access levels granted to users because these are determined when the system is configured and never change

91. A data mart is

a data warehouse created for a single function or department

an enterprise resource planning system

a database that provides data to an organizations customers

another name for a data warehouse

93. In an electronic data interchange (EDI) environment, when the auditor compares the terms of the trading partner agreement against the access privileges stated in the database authority table, the auditor is testing which audit objective?

unauthorized trading partners cannot gain access to database records

a complete audit trail is maintained

all EDI transactions are authorized

authorized trading partners have access only to approved data

97. The fundamental difference between internal and external auditing is that

internal auditors perform IT audits and external auditors perform financial statement audits

external auditors assist internal auditors but internal auditors cannot assist external auditors

internal auditors focus on financial statement audits and external auditors focus on operational audits and financial statement audits

internal auditors represent the interests of the organization and external auditors represent outsiders

100. Network protocols fulfill all of the following objectives except

provide a basis for error checking and measuring network performance

promote compatibility among network device

creation of inflexible standards

facilitate physical connection between network devices