Paper 7A: Enterprise Information Systems (New Course)

1 During an audit of financial transactions in an enterprise XYZ, it was found that simple
errors of data entry were occurring when two digits that were either individual or part of
larger sequence of numbers were reversed when posting a transaction. Which type of error
is this?
(a) Addition Error
(b) Truncation Error
(c) Substitution Error
(d) Transposition Error

2 While Auditing the Input Controls in an enterprise ABC, which of the following controls will
not fall under the purview of Input Controls?
(a) Source Document Controls
(b) Data Coding Controls
(c) Boundary Controls
(d) Batch Controls

3 Which are the controls that are responsible for maintaining a chronology of the events
from the time a sender dispatches a message to the time a receiver obtains the message?
(a) Boundary Controls
(b) Communication Controls
(c) Input Controls
(d) Database Controls

4 In ABC, financial institution, the authorised officials identified existence of numerous

accounts numbers of inactive accounts in their usage data of active customers. Complaint
was reported to their IT team. Which type of controls can be exercised by the IT Team in the
given case?

(a) Corrective Controls

(b) Detective Controls
(c) Preventive Controls
(d) Compensatory Controls

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5 Mr. X entered into a contract with Mr. Y for purchase of house hold products via online
stores on Cash on Delivery (CoD). As per the terms, it was to be delivered within 3 days of
the order placed. Due to delivery on the fourth day, Mr. X denied for the performance of the
contract. This can be said to be a ____________.

(a) Risk associated with controls

(b) Risk associated with security
(c) Risk associated with transaction
(d) Risk associated with e-Commerce

6. XBL bank gave an undertaking to the third party for the supply of goods /services to pay
amount of Rs. 2 crore on behalf of the Mr. X, a business man, provided the terms and
conditions of the undertaking are complied with. This service of banks is known as -
(a) Issuing letter of Guarantee
(b) Issuing letter of Comfort
(c) Issuing letter of Credit
(d) Issuing letter of Understanding

7. Under Data Resource Management Controls, __________ controls are designed to

prevent unauthorized individual from viewing, retrieving, computing or destroying the entity's
data in any organization.
(a) Access
(b) Backup
(c) Concurrency
(d) Quality

8. Name the Module in ERP - Business Process Modules that includes the software deigned
specifically for production planning and management.
(a) Production Planning
(b) Material Management
(c) Sales and Distribution Module
(d) Supply Chain Module

9. Which of the following does not form part of Human Resource (HR) Management?
(a) Training and Development
(b) Career Development
(c) Leadership Management

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 (d) Invoicing
10. In his work place, an employee Mr. X wants to maintain a record of physical receipts of
goods purchased from a vendor Mr. G in his Accounting System. Which Voucher type shall
he use?
(a) Delivery Note
(b) Receipt Note
(c) Sales
(d) Purchase

11. Which of the following transactions are not recorded in the Voucher Type "Contra" of
the Accounting System?
(a) Cash deposit in bank
(b) Cash withdrawal from bank
(c) Cash transfer from one location to another
(d) Recording of all types of trading sales by any mode

12 In a 3-Tier Architecture, name the layer that is responsible of receiving the inputs fro the
users and perform certain validations.
(a) Application Layer
(b) Database Layer
(c) Operating System Layer
(d) Network Layer

13. An aspiring CA in his interview CA was asked to provide correct sequence of the
following sub-processes that represent Accounting Process Flow. The sub processes are -
(1) Source Document, (2) Financial Statement, (3) Adjustments (4) Ledger, (5) Adjusted Trail
Balance, (6) Closing Entries, (7) Journal and (8) Trial Balance. What should be the answer?
(a) (1)-(2)-(3)-(4)-(5)-(6)-(7)-(8)
(b) (4)-(3)-(7)-(6)-(1)-(2)-(8)-(5)
(c) (1)-(7)-(4)-(8)-(3)-(5)-(6)-(2)
(d) (8)-(5)-(3)-(1)-(2)-(4)-(6)-(7)

14. Which feature of Operating Systems helps in allocating resources to make optimum
utilization of resources?
(a) User Interface
(b) Memory Management
(c) File Management

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 (d) Task Management

15. "Installation of Firewalls" in a telecommunication network is a classic example of

____________ controls under Information Systems' Controls.

(a) Managerial
(b) Application
(c) Preventive
(d) Corrective

16. Which feature of Operating Systems controls how memory is accessed and also
maximizes the memory availability and storage?
(a) User Interface
(b) Memory Management
(c) File Management
(d) Task Management

17. Under Asynchronous attacks in a telecommunication network systems, ___________

involves spying on information being transmitted over communication network.
(a) Wire-tapping
(b) Data Leakage
(c) Subversive attacks
(d) Piggybacking

18 Provide the correct sequence of phases of Program Development Life Cycle. (1)
Operations and Maintenance, (2) Coding, (3) Control, (4) Design, (5) Testing and (6)
Planning
(a) (4)-(6)-(2)-(3)-(1)-(5)
(b) (6)-(3)-(4)-(2)-(5)-(1)
(c) (1)-(6)-(3)-(5)-(4)-(2)
(d) (3)-(5)-(2)-(1)-(6)-(4)

19. In ABC, financial institution, the authorised officials identified existence of numerous
accounts numbers of inactive accounts in their usage data of active customers. Complaint
was reported to their IT team. Which type of controls can be exercised by the IT Team in the
given case?
(a) Corrective Controls

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 (b) Preventive Controls
(c) Detective Controls
(d) Compensatory Controls

20. Mr. Hope of Delhi ordered raw material for manufacturing of products for domestic use
from supplier in Kolkata. Service to deliver the raw material was fixed “within 10 days from
the date of order”. State the subsequent stage of order to cash cycle-
(a) Collections
(b) Invoicing
(c) Delivery Note
(d) Order Fulfillment

 
21. An organisation ABC used to make payment of the salaries to its employees by transferring of 
funds to their saving accounts. This mode of transfer made by  an ABC is ___________. 
(a) Remittances 
(b) ECS Credit 
(c) ECS Debit 
(d) Deposits 
 
22. Mr. Mysterious used to chat on Internet under the name of Ms. Ritu. He also gave her landline 
telephone number for further chatting. Ms. Ritu was a senior executive of the credit rating 
information sources of India Ltd. Mr. Mysterious was employed as financial analyst but had been 
forced to terminate the job earlier. Ritu started receiving mischievous calls.  In the light of the given 
facts, state the liability of Mr. Mysterious within the purview of the Information Technology Act, 
2000.   
(a) Punishable for offence related to web defacement 
(b) Punishable for phishing and email scam 
(c) Theft of confidential information 
(d) Harassment via fake public profile on social networking site. 
 
23. X through his computer steals the data saved in Y’s computer of valuable customers of ABC Ltd. X 
sold this data to the competitor of ABC Ltd. This act of X is _________. 
(a) Source code theft 
(b) Theft of confidential information 
(c) Email Account hacking 
(d) Hacking 
 
24. Which of the following is not a rule to be followed while Voucher Numbering? 
(a) Voucher number must be unique. 
(b) A voucher number may either have prefix or suffix or both. 
(c) Voucher numbers may be numbered randomly. 
(d) Every voucher type shall have a separate numbering series. 
 
25. Which of the following statement is not true for Internal Control System? 
(a) Facilitates the effectiveness and efficiency of operations. 
(b) Helps safeguarding the assets of the entity. 

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 (c) Assists compliance with applicable laws and regulations. 
(d) Helps ensure the reliability of only Internal Financial Reporting and not External Financial 
Reporting. 
 
26. Which of the following is not an advantage of Flowchart? 
(a) If any modification is required in a flowchart, it can be easily done. 
(b) Its a blueprint of a system that can be broken down into detailed parts of a study. 
(c) Acts as a guide during the system analysis and program preparation phase. 
(d) Aid in communicating the facts of a business problem to those whose skills are needed for 
arriving at the solution. 
 
27. Arrange sequentially the following steps involved in  General Ledger Process?                                                                 
(i)    Posting of transactions.                                                                                                                               
(ii)   Reviewing Transactions.                                                                                                                                                                
(iii)  Generating Financial Reports                                                                                                                                                       
(iv)  Entering Financial transactions into the system.                                                                        
(v)   Approving transactions. 
(a) (iv), (i), (ii), (v), (iii) 
(b) (i), (ii), (iii), (iv), (v) 
(c) (iv), (ii), (v), (i), (iii) 
(d) (v),(iv),(i), (iii), (ii) 
 
28. Arrange sequentially the activities involved in Sales and Distribution Module?                  
(i)      Inventory Sourcing                                                                                                                                 
(ii)     Payments                                                                                                                                                                     
(iii)    Billing                                                                                                                                                             
(iv)     Pre‐Sales Activities                                                                                                                                     
(v)      Sales Order Processing                                                                                                                                 
(vi)     Delivery 
(a) (i), (ii), (vi), (iv), (v), (iii) 
(b) (iv), (v), (i), (vi), (iii),(ii) 
(c) (iv),(v),(i), (ii), (vi), (iii) 
(d) (i), (vi), (ii), (v), (iii), (iv) 
 
29. Which of the following is not a technique of Cryptography? 
(a) Transposition 
(b) Substitution 
(c) Product Cipher 
(d) Transcription 
 
30. In an ERP System, which of the following is not true about integration of Modules with Financial 
and Accounting System?                                                                                                                                                                       
(a) Master data across all the modules must be same.       
(b) Common transaction data must be shared with other modules wherever required. 
(c) Common Voucher types to be used for each module for easy integration of department 
recording it. 
(d) Separate Voucher types to be used for each module for easy identification of department 
recording it. 
 
31.  Tick the incorrect statement. 
(a) In Relational Database model, the named columns of the relation are called Domain. 

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 (b) In Relational Database model, a Relation is a table with rows and columns 
(c) In Relational Database model, the named columns of the relation are called Attributes. 
(d) In Relational Database model, the Domain is the set of the values an attribute can take. 
 
32. In computer network packet switching, ________________ 
(a) all packets pass through a common path. 
(b) all packets arrive at the destination out of order. 
(c) the receiving device restores the packets in the same order it receives them. 
(d) all packets arrive at the destination in order. 
 
33. Which of the following is not a type of Data Resource Management Controls under Managerial 
Controls? 
(a) Existence Controls 
(b) Concurrency Controls 
(c) Production Controls 
(d) Quality Controls 
 
34. Which of the following does not fit into best practices while dealing with passwords in order to 
avoid system failures?  
(a) Periodic change of passwords 
(b) Unlimited number of entry attempts 
(c) Minimum password length 
(d) Hashing of passwords 
 
35. Under emerging BYOD (Bring your Own Device) Threats, _______________ risk refers to the data 
lost from stolen or lost devices. 
(a) Network 
(b) Application 
(c) Device 
(d) Implementation 
 
36. In Cloud Computing, which of the following instance of Software as a Service (SaaS) allows users 
to explore functionality of Web services such as Google Maps, Payroll Processing, and credit card 
processing services. 
(a) API as a Service (APIaaS) 
(b) Testing as a Service (TaaS) 
(c) Email as a Service (EaaS) 
(d) Data as a Service (DaaS) 
 
37. Which activity is not incorporated during audit of Environmental Controls? 
(a) Backup Power 
(b) Water Detection 
(c) Fire detection and Suppression 
(d) Guards and Dogs 
 
38. As an Information Systems Auditor, mention the activity that does not form part of audit of 
Logical Access Controls? 
(a) Access Violations 
(b) Intrusion Detection and Prevention 
(c) Backup Power 
(d) Shared Accounts 

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39. In a three‐tier architecture, which layer is responsible for performing certain validations like, if 
the user is authorised to request the transaction or not? 
(a) Application Layer 
(b) Presentation Layer 
(c) Database Layer 
(d) Session Layer 
 
40.  Suggest the control required to address the concerns raised with the following risk ‐ "As 
everybody is connected to a single system and central database, in case of failure of system, the 
whole business may come to stand still and may get affected badly." 
(a) This can be controlled and monitored by having proper and updated backup of data as well 
as alternate hardware/internet arrangements. 
(b) This can be controlled by removing redundant data, using techniques like data warehousing 
and updating hardware on a continuous basis. 
(c) Access rights need to be defined carefully and to be given on "Need to know" and "Need to 
do" basis only. 
(d) This can be controlled and minimized with the help of proper staff training system, having 
help manuals, having backup plans for staff turnover etc. 
 
41. Suggest the control required to address the concerns raised with the following risk ‐ "As data is 
maintained centrally, gradually the data size becomes more and more and it may reduce the speed 
of operation." 
(a) This can be controlled and monitored by having proper and updated backup of data as well 
as alternate hardware/internet arrangements. 
(b) This can be controlled by removing redundant data, using techniques like data warehousing 
and updating hardware on a continuous basis. 
(c) Access rights need to be defined carefully and to be given on "Need to know" and "Need to 
do" basis only. 
(d) This can be controlled and minimized with the help of proper staff training system, having 
help manuals, having backup plans for staff turnover etc. 
 
42.  
In an Accounting Business Process Cycle, arrange the sub ‐ processes in order.                                                                   
(i) Journal                                       (ii) Ledger                                     (iii) Financial Statement                     
 (iv) Closing Entries                      (v) Source Document                (vi) Trial Balance                               
 (vii) Adjusted Trial Balance   (viii) Adjustments           
                                    
(a) (v), (i), (vii), (iii), (ii), (iv), (vi), (viii) 
(b) (i), (ii), (iii), (viii), (vii), (vi),(v), (iv) 
(c) (v), (i), (ii), (vi), (viii), (vii), (iv), (iii)  
(d) (ii), (i), (v), (viii), (iv), (iii), (vi), (vii) 
 
43. As a telecommunication network operator, which internetworking device will you suggest for 
regenerating the signal over the same network before the signal becomes too weak or corrupted? 
(a) Bridge 
(b) Router 
(c) Hub 
(d) Repeater 
 
 
 

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44. In this transmission mode, the data flows in one direction, but not both at the same time. Which 
transmission mode are we referring to? 
(a) Simplex 
(b) Half‐Duplex 
(c) Duplex 
(d) Packet Switching 
 
45.  A Business Continuity Plan (BCP) is an example of ______________. 
(a) Managerial  
(b) Application 
(c) Preventive  
(d) Corrective 
 
46.  In telecommunication network, ________  is the act of following an authorized person through a 
secured  door or electronically attaching to an authorized telecommunication link that intercepts 
and alters transmissions. This involves intercepting communication between the operating system 
and the user and modifying them or substituting new messages. 
(a) Wire tapping 
(b) Piggybacking 
(c) Subversive attacks 
(d) Data Leakage 
 
47. One amongst the list is a not a threat. 
(a) Virus 
(b) Trojan 
(c) Worm 
(d) Firewall 
 
48. Which type of risk a company becomes vulnerable to when it adopts Bring Your Own 
Device (BYOD)? 
(a) Confidentiality Risk 
(b) Device Risk 
(c) Application Risk                     
(d) Implementation Risk 
 
49.  Database Management Systems (DBMS) helps the organisation to do various operations 
on the files 
(a) Adding or deleting files from database 
(b) Inserting or modifying existing files 
(c) Retrieving or deleting data from existing files 
(d) Duplicating Files 
 
50. A bank shares financial data of borrower with third party without consent of borrower. 
The bank has violated ________ of Sensitive Information and Personal Data Rules, 2011. 
(a) Rule 3 
(b) Rule 4 
(c) Rule 5 
(d) Rule 6 

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 Solution
1 (d)  11 (d)  21 (c) 31 (a)  41 (b) 

2 (c)   12 (a)  22 (d)  32 (b)  42 (c) 

3 (b)  13 (c)   23 (d)  33 (c)   43 (d) 

4 (b)  14 (d)  24 (c)   34 (b)  44 (b) 

5 (d)  15 (c)   25 (d)  35 (c)  45 (d)  

6 (c)   16 (b)  26 (a)  36 (a)  46 (b) 

7 (a)  17 (a)  27 (c)   37 (d)  47 (d) 

8 (a)  18 (b)  28 (b)  38 (c)  48 (a) 

9 (d)  19 (c)   29 (d)  39 (a)  49 (d) 

10 (b)  20 (c)   30 (c)   40 (a)  50 (c) 

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