CFC ERP Systems & Financial Technology 4

Question 1

Which technology enables ERP systems to communicate and share data with external applications such as banking portals or tax filing systems?

Accepted Answer

Application Programming Interface (API)

Answer

APIs define the protocols and data formats that allow ERP systems to securely exchange information with external third-party applications.

Question 2

A company using an ERP discovers that a user in Accounts Payable can both create vendors and approve payments to those vendors. This is BEST described as a:

Accepted Answer

Segregation of duties (SoD) conflict

Answer

Allowing one person to create vendors and approve payments is a classic SoD conflict that creates risk of fraudulent vendor creation and unauthorized payments.

Question 3

In ERP financial reporting, what is the key difference between a 'drill-down' report and a standard summary report?

Accepted Answer

Drill-down reports allow users to click from summary totals to the underlying transaction detail

Answer

Drill-down functionality lets users navigate from high-level aggregated balances directly to the individual journal entries or transactions that comprise them.

Question 4

What is the primary purpose of data migration 'cleansing' before an ERP implementation go-live?

Accepted Answer

Identifying and correcting duplicate, incomplete, or inaccurate records before they are loaded into the new ERP

Answer

Data cleansing ensures only accurate, complete, and deduplicated records are migrated, preventing legacy data quality issues from contaminating the new system.

Question 5

A controller wants to use predictive analytics within the ERP to forecast cash flow. Which data source MOST directly supports this capability?

Accepted Answer

Historical accounts receivable aging, accounts payable due dates, and sales order pipeline

Answer

Cash flow forecasting models draw primarily on AR aging (expected inflows), AP due dates (expected outflows), and the open sales order pipeline for near-term projections.

(CFC) Certified Financial Controller Practice Test

(CFC) Certified Financial Controller Practice Test

CFC ERP Systems & Financial Technology 4