ACCOUNTING INFORMATION SYSTEM

Midterm and Final Exam

Group 3

Submitted to:
Mr. Rhamir C. Dalioan

Submitted by:
Sellon, Lea Grace A.
Soriano, Kristine Andrea M
Nucasa Ma. Isabel M.
Saragosa, Chastine
Impas, Key S.
Masire, Mofidah
TABLE OF CONTENTS

PAG
E(s)
PART I. Multiple Choice Theories
General controls and application Controls…………………………………………….5-6
By Key S. Impas

Revenue Accounting System…………………………………………………………..7-8

By Mofidah Masire

Disbursement Accounting System…………………………………………………….9-10

By Mofidah Masire

Auditing Around the Computer………………………………………………………..11-13

By Chastine Saragosa

Auditing Through the Computer………………………………………………………14-15

By Chastine Saragosa

Test Data Approach……………………………………………………………………16-17

By Kristine Andrea M. Soriano
Isabel Nucasa

Parallel Simulation……………………………………………………………………..18-19
By Kristine Andrea M. Soriano
Isabel Nucasa

Integrated Test Facility Approach…………………………………………………….20-21

By Kristine Andrea M. Soriano
Isabel Nucasa

Batch Processing Method……………………………………………………………...22-23

By Lea Grace A. Sellon

On-line Real time Processing………………………………………………………….24-26

By Lea Grace A. Sellon

Bus Topology
By Chastine Saragosa…………………………………………………………….27-28

Star Topology
By Chastine Saragosa…………………………………………………………….29-30

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Ring Topology
By Lea Grace A. Sellon…………………………………………………………….31-32

Tree Topology
By Ma.Isabel Nucasa… …………………………………………………………….33-34

Mesh Topology
By Kristine Andrea M. Soriano…………………………………………………….35-36

PART II. Suggested answers and explanation

General Controls and Aplication Controls………………………………………….. . 37
By Key S. Impas

Revenue Accounting System…………………………………………………………. 38

By Mofidah Masire

Disbursement Accounting System…………………………………………………….39

By Mofidah Masire

Auditing Around the Computer…………………………………………………………40

By Chastine Saragosa

Auditing Through the Computer………………………………………………………..41

By Chastine Saragosa

Test Data Approach……………………………………………………………………...42

By Kristine Andrea M. Soriano
Isabel Nucasa

Parallel Simulation……………………………………………………………………….43-44
By Kristine Andrea M. Soriano
Isabel Nucasa

Integrated Test Facility Approach………………………………………………………45

By Kristine Andrea M. Soriano
Isabel Nucasa

Batch Processing Method………………………………………………………………..46

By Lea Grace A. Sellon

On-line Real time Processing…………………………………………………………….47

By Lea Grace A. Sellon

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Bus Topology
By Chastine Saragosa…………………………………………………………….48

Star Topology
By Chastine Saragosa…………………………………………………………….49

Ring Topology
By Lea Grace A. Sellon…………………………………………………………….50

Tree Topology
By Ma.Isabel Nucasa… …………………………………………………………….51

Mesh Topology
By Kristine Andrea M. Soriano…………………………………………………….52

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 PART I
Multiple Choice Questions
General controls and application controls
1. Regarding accounting systems, what is the auditor most likely to understand and
evaluate?

A That evidence will not exist in a computerized system.

B That evidence in a computerized system is always hardcopy based.
C The availability of evidence and risks associated with a computerized system.
D The hardware and operating system capabilities of a computerized system.

2. Which is considered an operating system?

A A program that generates text in a presentable form such as a letter or memo.

B A program that commands and controls other programs and the hardware.
C A program that performs mathematical calculations in cells and produces charts.
D A system of transmitters and silicon wired together sufficient to carry out
commands and mathematic functions.

3. Which one of the following is NOT a relevant factor in assessing the control risk of a
computerized environment?

A Rapid change in computerized environments requires management to institute

effective methods to control those systems.
B Effective controls over computer systems are necessary to compete effectively
in a global marketplace.
C An auditor's objective for assessing control risk is the same in a computerized
system as it is in a manual system.
D An auditor's method of testing the effectiveness of the system controls is the
same in a computerized system as in a manual system.

4. Which of the following strengthens segregation of duties in the electronic

environment.

A The computer operator should not have access to programs or data except for
authorized purposes.
B Programmers test new developments on live data.
C Database administrators are allowed to maintain the data.
D Internal auditors are not allowed to test changes to software.

5. General controls address all of the following except

A planning and controlling the information technology department.

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 B input of data into the payroll application.
C controlling access to accounting programs.
D maintaining application servers.

6. The control structure over program changes should include control procedures that
are sufficient to ensure that:

A changes to applications are not approved in advance.

B changes are made by the users to computer applications.
C the latest version of the application is sent to production.
D changes are tested and documented after implementation.

7. Which one of the following is not a fundamental control concept in evaluating the
organization of data processing?

A The authorization for all transactions should originate outside the information
technology department.
B There should be a fundamental segregation of duties between users and
information technology departments.
C The programming department should not have access the code under
development.
D Access to data should be provided only to users authorized by the data's owner.

8. What is the primary purpose of hash totals?

A batch integrity.
B transmission confidentiality.
C data validation.
D communication repudiation.

9. Which of the following is considered a batch control?

A Counting the total number of records input and comparing them to the system.
B An identifier added to the field of the record that is unique to the transaction.
C Audit logging capabilities to determine which accounting personnel performed a
transaction.
D A mathematical algorithm used to verify the validity of data.

10. The control totals used to ensure the completeness of processing in a batch
processing environment include

A record count.
B control totals.
C hash totals.

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 D all of the above.
REVENUE ACCOUNTING SYSTEM

1. The maximum allowable account balance for a given customer is called the
a. Credit checkpoint
b. Credit limit
c. Reorder point
d. Backorder point

2. What is the normal procedure for new customers or customers making a purchase
that causes their credit limit to be exceeded?
a. Routine approval is granted without authorization
b. Specific approval must be granted by the credit manager
c. Reject the sale in either case without question
d. Check the credit bureau for a credit rating on the customer

3. Which batch totals are manually calculated for each batch in a typical sales order
entry system?
a. The record count and hash total of the quantities ordered
b. The financial total of the amounts billed to the customer and hash total of the
quantities ordered
c. The line count and record count
d. The record count and hash total of the sales order numbers
4. Most companies recognize sales when
a. Customer order is received
b. The merchandise is shipped
c. The merchandise is received by the customer
d. Cash is received on account

5. Where are amounts owed by customers for credit purchases found?

a. Accounts receivable journal
b. Accounts receivable subsidiary ledger
c. Sales journal
d. General ledger

6. Which of the following transactions is not recorded in the cash receipts journal?
a. Expensing prepaid rent
b. Receipt of customer payments
c. Borrowing money from a bank
d. Sale of equipment for cash

7. For a retail store such as Wal-Mart, the relationship between sales and inventory
items is most likely to be represented as being which of the following
a. One-to-one

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 b. One-to-many
c. Many-to-one
d. Many-to-many

8. For good internal control, who should approve credit memos?

a. Credit manager
b. Sales manager
c. Billing manager
d. Controller

9. For good internal control over customer remittances, the mailroom clerk should
separate the checks from the remittance advices and send them to whom?
a. Billing
b. Accounts receivable
c. Cashier
d. Controller

10. What is the primary objective of the revenue cycle?

a. To maximize revenue and minimize expense.
b. To reduce outstanding accounts receivable balances through increased cash
sales.
c. To provide the right product in the right place at the right time at the right
price.
d. To sell as much product as possible and/or to maximize service billings.

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DISBURSEMENT ACCOUNTING SYSTEM

1. A major cost in the purchasing function is the number of purchase orders

processed. One technique that may reduce purchasing-related expenses is to have
suppliers compete with each other to meet demand at the lowest price. The name
of this technique is?
a. An EDI auction
b. A trading exchange
c. A reverse auction
d. A supplier consortium
2. What is not an advantage to using disbursement vouchers?
a. Disbursement vouchers reduce the number of checks written.
b. Disbursement vouchers can be renumbered which simplifies the tracking of
all payables.
c. Disbursement vouchers facilitate separating the time of invoice approval from
the time of invoice payment.
d. There are no disadvantages to using disbursement vouchers.
3. What is the final activity in the expenditure cycle?
a. Ordering goods
b. Receipt and storage of goods
c. Approving vendor invoices for payment
d. The payment of approved invoices

4. When goods are being ordered from a vendor, which electronic files are either read
or updated?
a. Inventory, vendors, and accounts payable
b. Vendors and accounts payable
c. Open purchase orders and accounts payable
d. Inventory, vendors, and open purchase orders
5. What aspect below best characterizes a JIT inventory system?
a. Frequent deliveries of smaller quantities of items to the work centers.
b. Frequent deliveries of large quantities to be held at the work centers.
c. Less frequent deliveries of large quantities of goods to central receiving.
d. Infrequent bulk deliveries of items directly to work centers.

6. A key decision in ordering is selecting a suitable vendor. Which of the following

would not be a major criterion in vendor selection?
a. Prices of goods
b. Quality of goods
c. Credit rating of vendor
d. Ability to deliver on time.
7. A purchase order is ?

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 a. A document formally requesting a vendor to sell a certain product at a certain
price.
b. A request for delivery of certain items and quantities.
c. A contract between the buyer and vendor once accepted by the vendor.
d. All of the above are true.

8. In a paper-based purchasing system, copies of the purchase order are typically

sent to the vendor and the?
a. Receiving department.
b. User department.
c. Receiving and accounts payable departments.
d. User and accounts payable departments.

9. The receiving and storage of goods is the responsibility of the receiving department,
which usually reports to the ________ function in the company.
a. Inventory control
b. Stores
c. Production
d. Purchasing

10. All of the following technologies could be useful aids in the receiving process except
?
a. Bar coding
b. Radio frequency identification tags
c. EFT
d. Satellite technology

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 AUDTING AROUND COMPUTER

1. When the client uses a computer but the auditor chooses to use only the
non-IT segment of internal control to assess control risk, it is referred to
as auditing around the computer. Which one of the following conditions
need not be present to audit around the computer?
a. Computer programs must be available in English.
b. The source documents must be available in a non-machine
language.
c. The documents must be filed in a manner that makes it possible to
locate them.
d. The output must be listed in sufficient detail to enable the auditor to
trace individual transactions.

2. General controls include all of the following except:

a. systems development.
b. online security.
c. processing controls.
d. hardware controls.

3. An auditor’s flowchart of a client’s system is a graphical representation

that depicts the auditor’s:
a. program for tests of controls.
b. understanding of the system.
c. understanding of the types of errors that are probable given the
present system.
d. documentation of the study and evaluation of the system.

4. Typical controls developed for manual systems which are still important
in IT systems include:
a. proper authorization of transactions.
b. competent and honest personnel.
c. careful and complete preparation of source documents.
d. all of the above.

5. Which of the following is not associated with converting from a manual

to an IT system?
a. It usually centralizes data.
b. It permits higher quality and more consistent controls over
operations.
c. It may eliminate the control provided by division of duties of
independent persons who perform related functions and compare
results.
d. It may take the recordkeeping function and the document
preparation function away from those who have custody of assets and
put those functions into the IT center.

6. Auditors should evaluate the ________ before evaluating application

controls because of the potential for pervasive effects.
a. input controls
b. control environment
c. processing controls
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 d. general controls

7. Which of the following is least likely to be used in obtaining an

understanding of client general controls?
a. Examination of system documentation
b. Inquiry of client personnel (e.g., key users)
c. Observation of transaction processing
d. Reviews of questionnaires completed by client IT personnel

8. When auditors consider only non-IT controls in assessing control risk, it

is known as:
a. the single-stage audit.
b. the test deck approach.
c. auditing around the computer.
d. generalized audit software (GAS).

9. Which of the following is not a general control?

a. The plan of organization and operation of IT activity.
b. Procedures for documenting, reviewing, and approving systems and
programs.
c. Processing controls.
d. Hardware controls.

10. The most important output control is:

a. distribution control, which assures that only authorized personnel
receive the reports generated by the system.
b. review of data for reasonableness by someone who knows what the
output should look like.
c. control totals, which are used to verify that the computer’s results
are correct.
d. logic tests, which verify that no mistakes were made in processing.

AUDITING THROUGH COMPUTER

1. Which of the following is not one of the three categories of testing

strategies when auditing through the computer?
a. Pilot simulation.
b. Test data approach.
c. Parallel simulation.
d. Embedded audit module.

2. The audit procedure which is least useful in gathering evidence on

significant computer processes is:
a. documentation.
b. observation.
c. test decks.
d. generalized audit software.

3. Which of the following is not a benefit of using IT-based controls?

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 a. Ability to process large volumes of transactions.
b. Ability to replace manual controls with computer-based controls.
c. Reduction in misstatements due to consistent processing of
transactions.
d. Over-reliance on computer-generated reports.

4. Which of the following is not a characteristic of an online processing

system?
a. Output of the data files is available on request.
b. Master files are updated at the time the entry is made.
c. Display terminals are used for both input and output purposes.
d. Programming is not allowed online and must be done separately.

5. Which of the following is not a risk specific to IT environments?

a. Reliance on the functioning capabilities of hardware and software.
b. Increased human involvement.
c. Loss of data due to insufficient backup.
d. Reduced segregation of duties.

6. Which of the following is not an enhancement to internal control that will

occur as a consequence of increased reliance on IT?
a. Computer controls replace manual controls.
b. Higher quality information is available.
c. Computer-based controls provide opportunities to enhance
separation of duties.
d. Manual controls replace automated controls.

7. Which of the following is not a risk to IT systems?

a. Need for IT experienced staff
b. Separation of IT duties from accounting functions
c. Improved audit trail
d. Hardware and data vulnerability

8. Which of the following is not a category of an application control?

a. Processing controls.
b. Output controls.
c. Hardware controls.
d. Input controls.

9. Which of the following is a category of general controls?

a. Processing controls.
b. Output controls.
c. Physical and online security.
d. Input controls.

10. Which of the following statements related to application controls is

correct?
a. Application controls relate to various aspects of the IT function
including software acquisition and the processing of transactions.
b. Application controls relate to various aspects of the IT function
including physical security and the processing of transactions in various
cycles.
c. Application controls relate to all aspects of the IT function.
d. Application controls relate to the processing of individual
transactions.

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TEST DATA APPROACH

1. What is the first step in test data approach?

a. Transaction test data
b. Manually processed results
c. Prepare transaction and results
d. Computer application system

2. What are the types of test data approach?

a. BCSE (Base Case System Evaluation) and Tracing
b. Tracing and Processing
c. Computer and Processing
d. BCSE (Base Case System Evaluation) and Processing
A. BCSE (Base Case System Evaluation) and Tracing are types of Test Data
Approach
3. The following are disadvantages of test data except:
a. Confined to test of control only.
b. It only confirms the operation of the program at the time that it is tested.
c. No visible evidence of audit work performed: need to record in the working
paper of work done
d. Requires limited technical knowledge.
4. The following are advantages of test data except:
a. Requires limited technical knowledge.
b. Usually fairly simple to operate.
c. Helps the auditor learn how the system operates.
d. Cost for constructing test data, pre determine the result manually and
ascertaining which controls to be tested.
5. What are the four qualities of Test data that must possess?
a. Realistic, Recover, Practically Valid
b. Realistic, Practically Valid , Versatile and Cover Scenarios And Exceptional
Data
c. Versatile, Practically Valid, Realistic, Practically Valid
d. Practically Valid, Versatile, Recover, and Undercover.
6. What is the only ways to prepare Test data?
a. Insert New Data and Test Data

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 b. Insert New Data, And Choose sample subset from actual Database Data
c. Test Data and Actual Database
d. Database and New Data
7. To define test data approach has one of the _____ box techniques used by auditors
in a computer assisted auditing techniques.
a. Black
b. White
c. Gray
d. Blue
8. Which of the following best describes the test data approach?
a. Auditors process their own test data using their own computers that simulate the
client’s computer system.
b. Auditors process their own test data using the client’s computer system and
application program.
c. Auditors use client-controlled software to do the same operations that the
client’s software does, using auditor created data files.
d. Auditors use client-controlled software to do the same operations that the
client’s software does, using the same data files.
9. In auditing through a computer, the test data method is used by auditors to test
the?
a. Accuracy of input data
b. Validity of the output
c. Normalcy of distribution of test data
d. Procedures contained within the program

10. The test data method is used by auditors to test the?

e. Accuracy of input data
f. Validity of the output
g. Normalcy of distribution of test data
h. Procedures contained within the program

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PARALLEL SIMULATION

1. Involves the auditor writing a computer program that replicates some part of a
client’s application system, processes actual client data through an auditor’s
generalized audit software program and compares the output obtained with output
obtained from the client.
a. Parallel simulation
b. Analytical audit techniques
c. Distributed simulation
d. Running massive parallel simulation

2. An off-the-shelf package that can provide a means to gain access to end

interrogate data maintained on computer storage media.
a. Generalized auditor hardware (GAH)
b. General software(GS)
c. Generalized audit software(GAS)
d. General audit hardware software(GAHS)

3. The parallel simulation procedure are the following except:

a. Auditor writes or obtains a copy of the program that simulate key features or
processes to be reviewed/tested
b. Auditor gains a thorough understanding of the application under review.
c. Auditors identifies those processes and controls critical to the application
d. Auditor loss and declined a thorough understanding of the application under
review

4. Which of the following is not consider as disadvantages of parallel simulation?

a. Time consuming
b. Compatibility between auditor and client software
c. Tracing differences between the two sets of outputs to differences in the
programs may be difficult.
d. Significant cost of audit programming if written uniquely for one client.

5. Which of the following are the functions of parallel simulation?

a. To facilitate the substantive testing of client account balances

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 b. To provide evidences on the controls used in the client’s application programs.
c. Parallel simulation is the best technique for verification of calculations
d. All of the above

6. How is a financial audit different from an information systems audit?

a. A financial audit examines the reliability and integrity of financial transactions,
accounting records and financial statement; an information systems audit
reviews the controls of an AIS to assess its compliance with internal control
policies and procedures and its effectiveness in safeguarding assets.
b. A financial audit examines the reliability and integrity of financial transactions,
accounting records and financial statement; an information systems audit
reviews the controls of an AIS to assess its compliance with internal control
policies and procedures and its effectiveness in safeguarding liabilities.
c. A financial audit control the reliability and integrity of financial transactions,
accounting records and financial statement; an information systems audit
reviews the controls of an AIS to assess its compliance with internal control
policies and procedures and its effectiveness in safeguarding assets.
d. A financial audit examines the reliability and integrity of financial transactions,
accounting records and financial statement; an information systems audit
reviews the controls of an AIS to assess its compliance with external control
policies and procedures and its effectiveness in safeguarding liabilities.

7. The main types of audits are?

a. Financial, operational and compliance
b. Financial, operational, compliance and completeness
c. Financial and operational
d. None of the above

8. The Primary types of auditors include?

a. Dependent, internal and external (private)
b. Independent, internal and external (Government)
c. Internal and external only
d. Dependent and independent

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INTEGRATED TEST FACILITY (ITF)

1. What is the Purpose of Integrated Test Facility (ITF)?

a. To control an AIS in an Operational Media
b. To audit an AIS in an operational setting
c. To facilitate an AIS to Operation
d. To control an Operational Setting of AIS

2. To examine results of transaction processing to find out how well the AIS does the
tasks required of it is the role of?
a. Accountant
b. Consultant
c. Controller
d. Auditor

3. What are the advantages in Integrated Test Facility (ITF)

a. Supports continuous monitoring of controls.
b. Testing can be unscheduled and unknown to other staff.
c. It provides prima facie evidence of correct program functions.
d. All of the above

4. What is the disadvantages of Integrated Test Facility (ITF)

a. The potential of corrupting data files with test data that may end up in the
Financial Reporting Process.
b. The potential of corrupting data files with test data that may end up in the
Ledger.
c. The data files with test data that may end up in the Financial Reporting Process
and Ledger.
d. The skills of corrupting data files with test data processing that may end up in
the Process.

5. An Integrated Test Facility is considered a useful audit tool because it:

a. Is approach to auditing application controls
b. Enables the financial and IS auditors to integrate their audit test

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 c. It uses the same programs to compare processing using independently
calculated data. This involves setting up dummy entities on an application
system and processing test or production data against the entity as a means of
verifying processing accuracy.
d. Provides the IS auditor with a tool analyze a large range of information.

6. An IS auditor when reviewing a network used for Internet communications will

FIRST examine the:
a. Validity of passwords change occurrences.
b. Architecture of the client-server application
c. Network architect and design
d. Firewall protection and proxy serves.

7. The PRIMARY purpose of audit trails is to:

a. Improve response time for users
b. Establish accountability and responsibility for processed transactions
c. Provide useful information to auditors who may wish to track transactions.
d. Improve the operational efficiency of the system

8. Which of the following provisions in a contract for external information systems

services would an IS auditor consider to be the LEAST significant?
a. Continued service of outsourcer in the event of a disaster
b. Statement of due care and confidentiality
c. Detailed description of computer hardware used by the vendor
d. Ownership of program and files

9. After a full operational contingency test, the IS auditor performs a review of the
recovery steps and concludes that the elapsed time until the technological
environment and systems were actually functioning exceeded the required critical
recovery time. Which of the following should be auditors recommend?
a. Broaden the processing capacity to gain recovery time.
b. Make improvements in the facility’s circulation structure.
c. Perform an Integral review of the recovery tasks.
d. Increase the amount of human resources involved in the recovery.

10. Which of the following is a benefit of an Integrated Test Facility (ITF)

a. Periodic testing does not require separate test process
b. It uses actual master files or dummies and the IS auditor does not need to
assess the source of the transaction
c. The requirement to prepare test data is eliminated.
d. It affirms application systems and test the ongoing operation of the system

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BATCH PROCESSING

1. Which of the following is not a characteristic of a batch processing system?

a. The collection of like transactions which are sorted and processed
sequentially against a master file
b. Keypunching of transactions, followed by a machine processing
c. The production of numerous printouts
d. The posting of a transaction, as it occurs, to several files, without
intermediate printouts

2. Which of the following applies batch processing?

a. Accumulation of data by batch
b. As transaction occurs, it is subject to validation
c. Needs to be updated immediately
d. Expensive to buy

3. What method is needed when there is a large number of a transaction?

a.Direct processing
b.Transaction processing
c. Online real-time processing
d.Batch processing

4. Payroll system is best suited in:

a. Transaction processing
b. Batch processing
c. Online real-time processing
d. Direct processing

5. What method shall be used when there is a controlled resubmission of rejected

transactions or review of exception report (wages exception)?
a. Batch processing
b. Online real-time processing
c. Revenue system
d. Disbursement system

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6. Consider the following about Batch Processing:
I. It demands fewer organizational resources
II. Masterfile are not updated immediately
III. Processing takes place when the economic event occurs.

Which of the above statements is (are) true?

a. I only
b. II only
c. I and II only
d. I, II and III only

7. Which Statement is not correct?

a. Each program in a batch system is called a run.
b. Batch processing is well suited to systems that process lower transaction
volumes and those that do not share common records
c. Batch systems assemble transactions into groups for processing
d. Payroll processing is an example of a typical batch system

8. First statement: Batch processing permits the efficient management of a large

volume of transactions.
Second statement: Under Batch System Lag exists between time when the economic
event occurs and when it is recorded.
a. First statement is true
b. Second statement is true
c. Both statements are true
d. Both statements are false

9. Which of the following is the disadvantage of Batch Processing

a. There’s a time delay in processing data
b. Masterfile are not updated immediately
c. Requires less resources
d. Very expensive to buy

10. Which of these statement is false regarding batch system

a. When a batch is small, error identification is much easier
b. Process transactions individually at the moment the event occurs.
c. Organizations improve efficiency by grouping together large numbers of
transactions into batches rather than processing each event separately.
d. Batch processing provides control over the transaction process

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ON-LINE REAL TIME PROCESSING
1. Compared to batch processing, real-time has which of the following advantages?
a. Ease of implementation
b. Ease of auditing
c. Timelines of information
d. Efficiency of processing
2. Online real-time system typically requires three basic sub processes to be completed
before an event is converted into information that can be used by decision makers.
a. Business event occurs; record business event data
b. Update master data
c. Generate reports and support queries
d. All of the above
3. Consider the following statements:
Statement A: Real-time processing is ideal for processing large volume of data
transaction; it can be done or processed independently during less-busy time or at a
desired designated time.
Statement B: Real-time processing allows businesses or organizations to function
more effectively in terms of giving the organization the ability to take immediate action and
adjustments when responding to errors.
a. Statement A is false, Statement B is false
b. Statement A is false, Statement B is true
c. Statement A is true, Statement B is true
d. Statement A is true, Statement B is false

4. Immediate mode is?

a. the data processing mode in which there is a significant delay between any two
data processing steps
b. the data processing mode in which there is little or no delay between any two data
processing steps
c. Is similar to periodic mode
d. Both A and C
5. Time data processing involves:
a. Continual input,
b. Process

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 c. Output of data.
d. All of the above
6. On-line real time is
a. Time consuming
b. Expensive to buy
c. Both A and B
d. None of the above

7. Which of the following is NOT a step in the data processing cycle?

a. Data input
b. Data collection
c. Data processing
d. Data storage

8. What is NOT considered as a benefit of online real-time accounting?

a. Saving Time
b. Minimizing development costs
c. Provides financial reporting
d. Cash flow and other financial information will be applied in months

9. All statements are true about Online Real-Time processing method except:
a. Used by Point of Sale (POS) Systems to update inventory, provide inventory
history, and sales of a particular item.
b. Is an efficient way of processing high volumes of data is where a group of
transactions is collected over a period of time.
c. Systems gather business event data at the time of occurrence, update the master
data almost instantaneously, and provide the results arising from the business event within
a very short time
d. Assembly lines use real time processing to reduce time, cost and errors.

10. Airline reservations system is an example of?

a. Online real time Processing
b. Direct Processing
c. Batch Processing
d. Transaction Processing

23
 BUS TOPOLOGY

1. Which of the following topology is a network set up in which each computer is

connected to a computer and network devices are connected to a single cable or
backbone?
a. Bus topology
b. Tree topology
c. Ring topology
d. Mesh topology

2. Which of the following is not an advantage of bus topology?

a. It works well when you have a small network
b. Easiest network topology for connecting computers or peripherals in a linear
fashion
c. Requires less cable length than a star network.
d. If the main cable is damaged, the network fails or splits into two.

3. This is required for both ends of the main cable.

a. Terminators
b. LAN
c. Nodes
d. Segment

4. Statement 1: it is difficult to identify the problems if the whole network goes down.
Statement 2: it can be hard to troubleshoot individual device issues.
Which of the following statement is care true?
a. Both 1 and 2.
b. 2 only
24
 c. 1only
d. None of the above

5. Also known as line topology.

a. Ring topology
b. Mesh topology
c. Bus topology
d. Star topology

6. Which of the following is not the disadvantage of Bus Topology

First statement: It is difficult to identify the problems if the whole network goes
down.
Second Statement: If a main cable is damage, the network fails or split into two.
a. First statement
b. Second statement
c. None of the above
d. All of the above

7. Which of the following is true?

a. Requires less cable length than a star topology.
b. A fault is diagnosed easily
c. Good in security and privacy
d. It is relatively power efficient.

8. Computer and network device is connected to a single cable or?

a. Bus
b. Hub
c. Node
d. Segment

9. Which of the following described the BUS Topology?

a. Easy to add another computer to the network.
b. Centralized management of the network, through the use of the central
computer, hub or switch.
c. An expensive network lay out to install because of the amount of cable
network.
d. None of the above

10. I. Not great for large network

II. It works well when you have small network. Which of the following is the
advantage of the Bus topology?
a. Both I and II
b. None of the above
c. I only

25
 d. II only

STAR TOPOLOGY

1. In this topology, all the components of network are connected to the central device
called “hub”.
a. Bus topology
b. Ring topology
c. Star topology
d. Tree topology

2. A topology which can be said that every computer is indirectly connected to every
other node by the help of the “hub”.
a. Bus topology
b. Ring topology
c. Star topology
d. Tree topology

3. Consider the following statements:

Statement A: All the data on the star topology passes through the central device before
reaching the intended destination.
Statement B: Hub acts as a junction to connect different nodes present in Bus network.
a. Only statement A is correct
b. Only statement B is correct
c. Both statements are correct
d. Both statements are false

26
4. Unshielded Twisted Pair (UTP) Ethernet cable is suited well in:
a. Mesh topology
b. Tree topology
c. Star topology
d. Ring topology

5. What is a characteristic of a star topology?

a. Nodes are directly connected to a common linear
b. Each node connects to exactly two other nodes
c. Nodes are individually connected to a central point
d. Each node relays data for the network

6. Statement A: A star topology takes more cable than a bus topology

Statement B: In star topology, every host is connected to a central hub
a. Only statement A is correct
b. Only statement B is correct
c. Both statements are correct
d. Both statements are false

7. Which of the following is an advantage of a star topology?

a. Easy to connect new nodes or devices
b. Star topology costs very less
c. Mostly used in small network
d. Good for LAN

8. Which of the following is an example of a star topology?

a. Hub with unshielded twisted pair
b. Military market
c. Linear fashion
d. Computer network diagram

9. Which of the following is considered disadvantage of star topology?

a. Proper termination is required to dump signals
b. Security is very low
c. It is difficult to detect fault at individual station
d. Too much dependency on central device

10. Star topology is best suited in

a. Centralized management
b. Small networks
c. Flooding or routing technique
d. Ethernet protocol

27
 RING TOPOLOGY

1. Which of the following topologies is the most reliable?

a. ring
b. star
c. bus
d. none of the above

2. Which of the following is the characteristic of ring topology?

a. it is a network topology in which each node connects to exactly two other
nodes, performing a single continuous pathway for signals through each
nodes.
b. it is a specific kind of network topology in which all of the various devices in
the network are connected to a single cable or line.
c. it is a combine characteristics of linear bus and star topologies.
d. none of the above

3. IEEE 802.5 is _______

a. token bus
b. Ethernet
c. token ring
d. voice data transmissions

4. The following are disadvantages of ring topology except?

a. each computer has equal access to resources.
b. if one workstation or port goes down, the entire network gets affected.
c. network is highly dependent on the wire which connects different
components.
28
 d. MAU's and network cards are expensive as compared to Ethernet cards and
hub.

5. in a network with 25 computer, which one of the following topologies would require
the least cabling
a. mesh topology
b. star topology
c. bus topology
d. ring topology

6. operating speed of token ring is _______

a. 12 Mbps
b. 16 Mbps
c. 100 Mbps
d. 10 Mbps

7. which of the following is advantages of ring topology?

a. there is no need for network server to control the connectivity between
workstations.
b. additional components do not affect the performance of network.
c. each computer has equal access to resources.
d. all of the above

8. FDDI is a _________.
a. ring network
b. star network
c. mesh network
d. bus based network

9. CSMA/CD is used in _______.

a. bus topology
b. ring topology
c. star network
d. all of the above

10. what IEEE specification is passing scheme is used in place of CSMA/CD?

a. 802.5
b. 802.3
c. 802.4
d. 802.6

29
 TREE TOPOLOGY

1. Combines characteristics of linear bus and star topologies. It consists of groups of

star-configured workstations connected to a linear bus backbone cable and allow
for the expansion of an existing network, and enable schools to configure a network
to meet their needs.
a. Ring topology
b. Tree topology
c. Mesh topology
d. Hybrid topology

2. Which of the following are the advantage(s) of a Tree topology

a. Point-to-point wiring for individual segments
b. Supported by several hardware and software venders.
c. If the backbone line breaks, the entire segment goes down.
d. Both a and b

3. Consider the following:

I. Overall length of each segment is limited by the type of cabling used
II. If the backbone line breaks, the entire segment goes down
III. More difficult to configure and wire than other topologies
Which of the following are the disadvantages of a Tree topology?
a. I only
b. I and II
c. II and III
d. I,II and III

30
4. A topology that is supported by several hardware and software vendors?
a. Bus Topology
b. Ring topology
c. Mesh topology
d. Tree topology

5. A topology that the computers have access to a larger and their immediate
networks
a. Bus topology
b. Ring topology
c. Tree topology
d. Mesh topology

6. It integrates the characteristics of Star and Bus topology.

a. Mesh topology
b. Tree topology
c. Ring topology
d. Star topology

7. It is also called expanded star topology.

a. Bus topology
b. Ring topology
c. Star topology
d. Tree topology

8. Ethernet protocol is commonly used in this type of topology

a. Tree topology
b. Star topology
c. Ring topology
d. Bus topology

9. Statement A. Tree topology is an extension of bus and star topology.

Statement B. Tree topology nodes are connected to a central cable
a. Only statement A is correct
b. Only statement B is correct
c. Both statements are correct
d. Both statements are false

10. Which of the following is an advantage of tree topology?

a. Error detection and correction is easy
b. Relies heavily on the main bus cable
c. Scalability of the network depends on the type of cable used
d. As more nodes are added, the maintenance becomes difficult

31
 MESH TOPOLOGY

1. All of the following belongs to the advantages of Mesh Topology, except

a. Scalability
b. Robustness
c. Complexity
d. None

2. A type of networking where all of your nodes cooperatively distribute data

a. Tree Topology
b. Mesh Topology
c. Tree Topology
d. Star Topology

3. All of the following belongs to the disadvantages of Mesh Topology, except

a. Robustness
b. Latency
c. Complexity
d. Network Planning

4. They are expected to play an important part in the Internet of Things (IoT).
a. Tree Topology
b. Star Topology
c. Bus Topology
d. Mesh Topology

32
5. Mesh topology is divided into two. What are they?
a. Full Mesh Topology
b. Partial Mesh Topology
c. Quarter Mesh Topology
d. Triple Mesh Topology

6. This type of mesh topology requires each node to be interconnected with each
other.
a. Full Mesh Topology
b. Partial Mesh Topology
c. Quarter Mesh Topology
d. Triple Mesh Topology

7. Which of the following is the Characteristic/function of a Full Mesh Topology?

a. Allowed to connect with more than one node present in the network through the
uses of a point-to-point link.
b. Used to connect devices without the need to broadcast or switch.
c. Uses a point-to-point link.
d. There is no complexity required for the node in the network.

8. The flow of information in Mesh Topology is

a. Linear
b. Circular
c. Random
d. Branch

9. ________ is one of the most used network connection in the world that uses mesh
topology.
a. LAN
b. Office
c. Company
d. Internet

10. Which of the following disadvantages concerning mesh topology is correct?

a. As more and more nodes and segments are added, the maintenance becomes
difficult.
b. Network is highly dependent on the wire which connects different components.
c. performance and as well number of nodes which can be added in such topology
is depended on capacity of central device.
d. None of the above

33
PART II. Suggested answers and explanation

1. C. Access control
Access control would only cover access approval, authentication and access control
are often combined into a single operation, authentication methods and tokens
include passwords, personal identification numbers and etc.
2. A. System analyst
System analyst set up new computer systems, both the hardware and software add
new software applications to increase computer productivity.
3. B. Password
Access controls is a way of limiting access to a system or to physical or virtual
resources to ensure that users have proper authorization to perform a task.
4. D. A and B
Hardware controls or Equipment controls are computer controls built into physical
equipment by the manufacturer to detect and control errors arising from the use of
equipment.

5. D. A and D
Data and other procedural controls also known as “back-up files” assures the continuity
of the operation in the event of any physical disaster.
6. C. Check digit
Single digit placed consistently in any position. Number added to a code to derive a
further number as a means of verifying the accuracy or validity of the code as it is
printed or transmitted.
7. D. Output control
The output controls describes the immediate results of the process. Compare output
results with expected results by checking the output against the input.
8. A. Hash total
The sum of unrelated numbers. The hash total does not provide useful data, but is
used as a check to ensure inputs were entered correctly.
9. B. Hardware controls
Financial total is normally used in batch processing method. Financial data consists of
pieces or sets of information related to the financial health of the business.
10. D. Check digit

34
 Number added to a code to derive a further number as a means of verifying the
accuracy or validity of the code as it is printed or transmitted. Single digit placed
consistently in any position.

REVENUE ACCOUNTING SYSTEM

1. Answer: B
- A credit limit is refers to the maximum amount of loan that the seller accepts to
grants to its customer.
2. Answer: B
-Credit manager is the one manage and make decisions concerning credit limits.
3. Answer: A
-The record count and hash total of the quantities ordered is the manually
calculated for each batch in a typical sales order entry system.
4. Answer: B
- We consider revenue when the goods is shipped
5. Answer: B
- Amounts owed to the business by its customers for merchandise purchased on account
are accounts receivables of the business. Details of customer’s accounts receivables
are maintained in the accounts receivable subsidiary ledger.
6. Answer: A
- The cash receipts journal is used to record all cash received by the business. Of the
items listed, only “expensing of prepaid rent” does not involve the receipt of cash.
7. Answer: D
- Wal-Mart is big retail store so the relationship between the sales and inventory items
represented as "many to many".
8. Answer: A
- The credit manager’s function is to approve credit memos.
9. Answer: C
- This is the cashiers’ job. The cashier function has custody of cash accounts.
10. Answer: C
- The revenue cycles primary objective is to provide the right product in the right place at
the right time for the right place.

35
DISBURSEMENT ACCOUNTING SYSTEM
1. Answer C.
Reverse auction is a type of auction in which the roles of buyer and seller are reversed.
It is one technique that may reduce purchasing.
2. Answer D
Disbursement voucher is a form used to have a check made to pay an individual or an
organization for merchandise sold or service rendered. There are no disadvantages
to using disbursement voucher.
3. Answer D.
The final activity in the expenditure cycle is the payment of approved invoices.
4. Answer D
Inventory vendors and open purchase orders are electronic files that you can read
when goods are being ordered from a vendor.
5. Answer A.
JIT is frequent deliveries of smaller quantities of items to the work centers.
6. Answer C.
Credit rating of vendor would not be a major certain in vendor selection.
7. Answer D.
Purchase order is a document formally requesting a vendor to sell a certain product at
a certain price. A request for delivery of certain items and quantities.A contract
between the buyer and vendor once accepted by the vendor.
8. Answer C
Copies of the purchase order are typically sent to the vendor and to the receiving and
accounts payable departments.
9. Answer C.
The receiving and storage of goods is the responsibility of the receiving department,
which usually reports to the production.
10. Answer C.
EFT is a form of counseling intervention that draws on various theories of alternative
medicine
it is not useful aid in the receiving process.

36
AUDITING AROUND

1.A.
Computer programs must be available in English.
2. C
. processing controls.
3.B
. understanding of the system.
4.D
. all of the above.
5 D.
It may take the recordkeeping function and the document preparation function
away from those who have custody of assets and put those functions into the IT
center
6. D.
general controls
7. C
. Observation of transaction processing
8. C
. auditing around the computer.
9. C
. Processing controls.
10. B
. review of data for reasonableness by someone who knows what the output should
look like.

37
 AUDITING THROUGH

1. A. Pilot simulation.
2. B. observation.
3. D. Over-reliance on computer-generated reports.
4. D. Programming is not allowed online and must be done separately.
5. B. Increased human involvement.
6. D. Manual controls replace automated controls.
7. C. Improved audit trail
8. C. Hardware controls.
9. C. Physical and online security.
D. Application controls relate to the processing of individual transactions

38
TEST DATA APPROACH- Answers
1. C- Prepare transaction and results is the first step in test data approach.
2. B-Test transaction should be Logical process
3. D- Requires limited technical knowledge is not a disadvantage of test data
approach
4. D - Cost for constructing test data, pre determine the result manually and
ascertaining which controls to be tested.
5. B – are the four qualities of test data that must possess Realistic, Practically Valid,
Versatile and Cover Scenarios’ and Exceptional Data.
6. B- is the only way to prepare Test Data
7. C - Test data involves auditor preparation of a series of Fictitious transactions
8. B- To define test data approach has one of the White box techniques used by auditors
in a computer assisted auditing techniques
9. B- Auditors process their own test data using the client’s computer system and
application program is the best describes the test data approach
10. D - In auditing through a computer, the test data method is used by auditors to test
the Procedures contained within the program

39
PARALLEL SIMULATION- Answers

1. A- Parallel simulation Involves the auditor writing a computer program that replicates
some part of a client’s application system, processes actual client data through an
auditor’s generalized audit software program and compares the output obtained with
output obtained from the client

2. C - Generalized audit software (GAS) An off-the-shelf package that can provide a

means to gain access to end interrogate data maintained on computer storage media.

3. D- Requires limited technical knowledge is not parallel simulation procedure

4. C- Auditor runs the simulated program using selected data and files

5. C - The auditor can verify the transactions and Enables the valuation of effects of
nonexistent control procedures are the advantages of parallel simulation.

6. B - Compatibility between auditor and client software is not consider as disadvantages

of parallel simulation

7. D - To facilitate the substantive testing of client account balances, To provide evidences

on the controls used in the client’s application programs and Parallel simulation is the best
technique for verification of calculations are the functions of parallel simulation

8. A - A financial audit examines the reliability and integrity of financial transactions,

accounting records and financial statement; an information systems audit reviews the
controls of an AIS to assess its compliance with internal control policies and procedures
and its effectiveness in safeguarding assets is a financial audit different from an
information systems audit.

9. A- Financial, operational and compliance are the 3 main types of audits.

10. B - Independent, internal and external (Government) are the Primary types of auditors.

40
INTEGRATED TEST FACILITY (ITF)- Answers

1. B -To audit an AIS in an operational setting is the purpose integrated test facility.
2. D- To examine results of transaction processing to find out how well the AIS does the
tasks required of it is the role of Auditor.
3. D- Supports continuous monitoring of controls, testing can be unscheduled and
unknown to other staff and It provides prima facie evidence of correct program functions
are the advantages in Integrated Test Facility (ITF).
4. A - The potential of corrupting data files with test data that may end up in the Financial
Reporting Process is the disadvantages of Integrated Test Facility (ITF).
5. C -It uses the same programs to compare processing using independently calculated
data. This involves setting up dummy entities on an application system and processing
test or production data against the entity as a means of verifying processing accuracy.
6. C- The first step in auditing a network is to understand the network architecture and
design. This would provide an overall picture of the network of the enterprises and its
connectivity. This will be starting point for identifying the various layers of information and
the access architecture across the various layers, such as proxy servers, firewalls and
client/server application. Reviewing validity of password changes would be performed as
part of substantive testing.
7. B- "Enabling audit trails helps in establishing the accountability and responsibility of
processed transactions by tracing transactions through the system. The objective enabling
software to provide audit trails is not to improve system efficiency, since it often involves
additional processing which may in fact reduce response time for users.
Enabling audit trails does involve storage and thus occupies
disk space. Choice C is also a valid reason however, it is not the primary reason"
8. C.-The least significant would be the description of computer hardware. The
organization would need to have compatible and sufficient hardware to be considered a
viable service provider before contract provisions are reviewed.
9. C.-Performing an exhaustive review of the recovery tasks would be appropriate to
identify the way these tasks were performed, the time allocated to each of the steps
required to accomplish recovery, and determine where adjustments can
be made. Choices A, B, and D could be actions after the
described review has been completed.

41
10. A-An ITF creates fictitious entity in the database to process test transaction
simultaneously with live input. Its advantage is that periodic testing does not require
separate test process. However, careful planning is necessary, and test data must be
isolated from production data.

BATCH PROCESSING METHOD

1. Answer D.
- Because simultaneous posting to several files is most frequently related to an online
real-time processing
2. Answer A.
- In batch processing, there is accumulation of data by bath (record/financial total) prior
to processing.
3. Answer D.
- Batch processing is designed and effective for large volume of similar transactions.
4. Answer B.
- One of the examples of batch processing is the Payroll system wherein there is an
accumulation of data by batch (track of hours, calculating wages, withholding taxes
and reduction).
5. Answer A.
- Batch processing matches input to output and is therefore also a control over
processing and output.
6. Answer C.
- Batch processing method demands fewer organizational resources than on-line-real-
time processing and Masterfile are not immediately updated as transaction occurs,
that is why time delay between transactions exists.
7. Answer B.
- Batch processing method can process large volume of similar transactions
8. Answer C.
- Both statements are characteristic of batch processing method.
9. Answer D.
- Batch system generally requires fewer resources.
10. Answer B.
- Process transactions individually at the moment the event occurs is a
characteristic of an On- line-real time method.

42
ONLINE REALTIME
1. Answer A.
- A turnaround document is a source document generated by the computer system as
output and then later used as input for subsequent processing. Turnaround
documents are least likely to be found in an online, real-time processing system
because it normally does not use source documents.
2. Answer D.
- Computers are designed to include hardware diagnostic routines that allow
identification of hardware problems such as parity check to determine if the integrity
of the bit structure of each character has been destroyed during the internal
transmission of data within the system.
3. Answer A.
- Real time system processes the entire transactions as it occurs with less interaction.
4. Answer C.
- One of the examples of real time processing is the ATM which is expensive to buy.
5. Answer D.
- In online real time processing, as transaction occurs, it is subject for validation with no
time delay.
6. Answer A.
- Online real time processing is expensive to buy. One of the examples is Bank ATM,
radar systems and customer services. Etc.
7. Answer B.
- Is correct because on-line real-time systems are those for which processing is
performed as data are input and the results are available immediately
8. Answer A.
- All of the statements are true with regards to Online real time processing.
9. Answer C.
- Airline reservations system is an example of Online Real time Processing, which
processes requests for services from one traveler at a time while he or she waits.
10. Answer D.
- All of the following are characteristic of Online Real time Processing.

43
 BUS TOPOLOGY
SUGGESTED ANSWERS AND EXPLANATION
1. Answer: B
Bus Topology is set up in a linear fashion which is connected to a single network.
2. Answer: D
Since it was connected to a single cable, the network will fail or split in to two if the
main cable is damage
3. Answer: A
Terminators is required for both the ends of the main cable
4. Answer: A
Both 1 and 2 contain disadvantage of using Bus Topology.
5. Answer :C
Called as line topology because of its linear fashion
6. Answer: C
All of the above is said to be disadvantage of BUS Topology.
7. Answer: A
Since it is work well in a small network, it will only require less cable length.
8. Answer: A
Bus is the main single cable is that connects the computer and network in a linear
fashion.
9. Answer: D
All of the following are advantage and disadvantages of using Star Topology.
10. Answer: D
It works well in a small network.

44
 STAR TOPOLOGY
SUGGESTED ANSWERS AND EXPLANATION
1. Answer C.
In star topology, all the components of the network are connected to a device called
“hub” which may be a hub, router or a switch.
2. Answer C.
Star topology workstations are connected to central device with a point to point
connection.
3. Answer A.
Statement B is false because Hub is present in star topology
4. Answer C.
UTP is used to connect workstations to central node which is present in a star
topology
5. Answer C.
Star topology workstations are connected to a hub which is the central device with a
point connection.
6. Answer C.
Both statements refer to a star topology
7. Answer A.
In star topology, new nodes can be easily added without affecting the rest of the
network.
8. Answer A.
Hub with UTP Ethernet cable is applicable to a star topology with a central node.
9. Answer D.
Star topology has a central device called the hub. One of its disadvantage is that
star topology depends on a central device which can fail the whole network
10. Answer A.
Answer b, c and d is applicable to bus, mesh and tree topology respectively

45
 RING TOPOLOGY
SUGGESTED ANSWERS AND EXPLANATION
1. Answer A
the ring topology is the most reliable topologies.
2. Answer A
ring topology is a network topology in which each node connects to exactly two
other nodes, performing a single continuous pathway for signals through each
nodes.
3. Answer C
IEEE 802.5, the token passing scheme is used in place of carrier sense multiple
access with collision detection (CSMA/CD) on a ring topology, local area network
(LAN). a token is circulated around network.
4. Answer A
the "each computer has equal access to resources" is one of the advantages of
ring topology.
5. Answer D
ring topology is a network topology in which each node connects to exactly two
other nodes, performing a single continuous pathway for signals through each
nodes. it is only require a least cabling.
6. Answer B
the operating speed of token ring is 16Mbps.
7. Answer B
There is no need for network server to control the connectivity between
workstations. Additional components do not affect the performance of network.
Each computer has equal access to resources. they are all advantages of ring
topology.
8. Answer A
FDDI logical topology is a ring-based token network.
9. Answer B
the CSMA/CD is used in ring topology. the token passing scheme is used in place
of carrier sense multiple access with collision detection (CSMA/CD) on a ring
topology, local area network (LAN).

46
10. Answer A
IEEE 802.5, the token passing scheme is used in place of carrier sense multiple
access with collision detection (CSMA/CD) on a ring topology.

TREE TOPOLOGY
SUGGESTED ANSWERS AND EXPLANATION
1. Answer B.
Definition of tree topology
2. Answer D.
Both a and b are the advantages of a tree topology while c is a disadvantages
3. Answer D.
I,II and III are all disadvantages of tree topology
4. Answer D.
tree topology
5. Answer C.
tree topology
6. Answer B.
Tree topology is a mixture of the characteristics of bus and star topology.
7. Answer D.
Tree topology is also called expanded star topology because cables are like a main
stem of a tree and other star networks as the branches.
8. Answer A.
Ethernet protocol is best suited in a star topology
9. Answer A.
Statement B refers to a bus topology
10. Answer A.
Letters b, c and d are disadvantages of a tree topology.

47
 MESH TOPOLOGY
SUGGESTED ANSWERS AND EXPLANATION

1. C. Each node needs to both send messages as well as act as a router, which
causes the complexity of each node to go up pretty significantly.

2. B. Each node acts as a router and a sender of data.

3. A. if one of the nodes goes down, it doesn’t necessarily bring the entire network
down.

4. D. network nodes can "talk" directly to each other without requiring the assistance
of an Internet connection.

5. A & B. Full Mesh where all is interconnected & Partial Mesh where nodes are
allowed to other nodes.

6. A. Every node is interconnected.

7. B. Every node can act as a router.

8. C. All of the nodes are interconnected with each other.

9. D. Because of its broadness and easy access

10. A. Because every node sends data.

48