CBS Accounting Information Systems 3

Question 1

Which AIS control technique uses check digits appended to account numbers to detect data entry errors?

Accepted Answer

Self-checking digit

Answer

Self-checking digits (e.g., Luhn algorithm) are calculated from the account number and used to verify that the number was entered correctly.

Question 2

The accounts payable module in an AIS typically interfaces with which other module to trigger payment?

Accepted Answer

Cash disbursements module

Answer

After an invoice is approved in accounts payable, it triggers a payment transaction processed through the cash disbursements module.

Question 3

What is the purpose of a 'three-way match' in the expenditure cycle?

Accepted Answer

Comparing purchase order, receiving report, and vendor invoice before payment

Answer

Three-way matching verifies that the PO, receiving report, and vendor invoice agree in quantity and price before authorizing payment.

Question 4

Which type of AIS fraud involves an employee submitting fictitious vendor invoices to divert funds?

Accepted Answer

Billing scheme

Answer

A billing scheme involves creating shell companies or submitting false invoices to trick the organization into making fraudulent payments.

Question 5

In government budgeting AIS, which accounting basis recognizes revenues when measurable and available, and expenditures when the liability is incurred?

Accepted Answer

Modified accrual basis

Answer

Modified accrual accounting is used by governmental funds, recognizing revenues when available and measurable, and expenditures when incurred.

(CBS) Certified Budget Specialist Practice Test

(CBS) Certified Budget Specialist Practice Test

CBS Accounting Information Systems 3