CFC ERP Systems & Financial Technology 5

Question 1

A company implements blockchain technology for its intercompany transactions. What is the PRIMARY financial control benefit?

Accepted Answer

An immutable, shared ledger that provides both parties a real-time, tamper-evident record of transactions

Answer

Blockchain creates a shared, cryptographically secured ledger that both parties can trust, reducing intercompany reconciliation disputes and providing a clear audit trail.

Question 2

What is the role of an ERP 'subledger' in financial accounting?

Accepted Answer

A detailed subsidiary record that supports and reconciles to a control account in the general ledger

Answer

Subledgers (e.g., AR, AP, fixed assets) maintain transaction-level detail that rolls up and reconciles to the corresponding control account in the general ledger.

Question 3

When evaluating ERP total cost of ownership (TCO), which cost category is MOST often underestimated by organizations?

Accepted Answer

Ongoing maintenance, training, support, and business process change management costs

Answer

Organizations routinely underestimate the post-go-live costs of user adoption, ongoing training, system maintenance, and continuous improvement that extend for years.

Question 4

A financial controller is assessing the use of AI-driven anomaly detection in the ERP. Which control objective does this PRIMARILY support?

Accepted Answer

Detecting unusual transactions that may indicate errors or fraud in real time

Answer

AI anomaly detection continuously monitors transaction patterns and flags statistical outliers for human review, strengthening fraud detection and error prevention controls.

Question 5

In an ERP context, what is the purpose of a 'user acceptance testing' (UAT) phase?

Accepted Answer

Confirming that the configured system meets business requirements and processes work correctly from the end-user perspective

Answer

UAT has business users execute real-world scenarios in the configured system to validate it meets requirements before the organization commits to go-live.

(CFC) Certified Financial Controller Practice Test

(CFC) Certified Financial Controller Practice Test

CFC ERP Systems & Financial Technology 5