Management Information Systems – Section 1


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1. Which of the following is(are) true of the EDP auditors?

A. they should have computer expertise
B. they will be replaced by traditional auditors in the near future
C. two of the above
D. currently, there is a very high demand for them, particularly from firms that use personal computers
E. None of the above

Correct Answer: A. they should have computer expertise
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2. Controls of data communication deal with

A. the communication channel
B. the computer
C. terminals
D. All of the above
E. None of the above

Correct Answer: D. All of the above
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3. A lockbox service is used for

A. depositing cash when bank is closed
B. paying bank customer bills automatically
C. storing papers in a bank vault
D. depositing payments to bank customers
E. None of the above

Correct Answer: D. depositing payments to bank customers
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4. Critical path of the PERT chart is:

A. path which takes the longest time to complete the project
B. the shortest path
C. both of the above
D. path which takes the shortest time to complete the project
E. None of the above

Correct Answer: A. path which takes the longest time to complete the project
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5. Inventory is also referred to as:

A. stock
B. warehouse capacity
C. materials
D. materials in hand
E. None of the above

Correct Answer: A. stock
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