35. Which of the following is one of the advantages of maintaining a legacy syst

Question

35. Which of the following is one of the advantages of maintaining a legacy system?

A. The system often supports unique business processes not inherent in generic accounting software.

B. The system is complicated and takes time to learn and understand

C. The system focuses on source documents, journals, and ledgers.

D. The system is cheap to maintain.

42. A process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives related to the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations is:

A. COSO’s definition of internal control

B. AICPA’s definition of stewardship

C. ACFE’s definition of confidentiality

D. IMA’s definition of competency

45. All of the following are reasons why it is not possible to eliminate all fraud risks, except

A. Human Error

B. Human Behavior

C. Opportunity

D. May not be cost effective

47. What is the main difference between e-business and e-commerce?

A. E-business is the intercompany, computer-to-computer transfer of business documents, whereas e-commerce is the non-intercompany, computer-to-computer transfer of business documents

B. An e-business is an online storefront, whereas e-commerce consists of the transactions that occur through the online storefront

C. E-business refers to all forms of electronic business transactions and processing, whereas e-commerce is a type of e-business specific to online buying and selling

D. There is no difference between the two terms and they are used interchangeably

Explanation / Answer

35) A. The system often supports unique business processes not inherent in generic accounting software.

Generic accounting systems don't have customization. Legacy systems are designed and customized to meet the needs of a firm.

42) A. COSO' s definition of internal control.

As per the COSO model internal control is a process, effected by an entity's management and others which is designed to provide reasonable assurance of achievement of certain objectives related to the compliance of applicable laws, efficiency and reliability of reporting and operations of the firm.

45) C. Opportunity

Opportunity here means when there arises any situation where the person feels that it is easy to commit fraud without getting caught. This is the only area where fraud occurance can be controlled by not giving rise to such situations and having strict internal controls.

47) C. E-business refers to all forms of electronic business transactions and processing, whereas e-commerce is a type of e-business specific to online buying and selling.

Mostly these two terms are used interchangeably. But E-commerce refers to online buying and selling whereas E-business includes all types of business activities that are done online.

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