CPA Business Environment and Concepts (BEC) : Risk and Controls
Study concepts, example questions & explanations for CPA Business Environment and Concepts (BEC)
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Example Questions
Example Question #2 : Information Technology
An enterprise resource planning system is designed to:
Allow nonexperts to make decisions about a particular problem
Integrate data from all aspects of an organization's activities
Present executives with the information needed to make strategic plans
Help with the decision making process
Integrate data from all aspects of an organization's activities
ERP systems work to integrate data from all aspects of an organization's activities.
Example Question #2 : Risk And Controls
Which of the following factors has the greatest impact on the design of an effective management reporting system?
Number of authorized users
Types of decisions to be made
Number of transactions to be processed
Number of regulatory agencies to be satisfied
Types of decisions to be made
The types of decisions to be made have the greatest impact on the design of an effective management reporting system.
Example Question #3 : Risk And Controls
Which of the following terms best describes a Decision Support System (DSS)?
Management reporting system
Interactive system
Formalized system
Structured system
Interactive system
A DSS is an interactive system in order to facilitate with the decision-making process.
Example Question #4 : Risk And Controls
Which of the following types of control plans is particular to a specific process or subsystem rather than related to the timing of its occurrence?
Corrective
Application
Preventive
Detective
Application
Application controls are written into the application and are specific to the particular process or subsystem.
Example Question #5 : Risk And Controls
A digital signature is used primarily to determine that a message is:
Received by the intended recipient
From an authentic sender
Not intercepted in route
Sent to the correct address
From an authentic sender
A digital signature is a means of ensuring that the sender of a message is authentic.
Example Question #6 : Risk And Controls
A(n) _______ requires a full backup of all available data, regardless of whether or not it was saved before.
Full backup
Partial backup
Negative backup
Incremental backup
Full backup
An incremental backup saves time by not having to duplicate data. A full backup would duplicate all saved data. The other terms are distractors.
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