Information Technology Auditing 4e James A Hall – Test Bank

Chapter 11—Enterprise Resource Planning Systems

 

TRUE/FALSE

 

1. The primary goal of installing an ERP system is reducing system maintenance costs.

 

ANS:  F                    PTS:   1

 

2. The recommended data architecture for an ERP includes separate operational and data warehouse databases.

 

ANS:  T                    PTS:   1

 

3. A closed database architecture shares data easily.

 

ANS:  F                    PTS:   1

 

4. ERP systems support a smooth and seamless flow of information across organizations.

 

ANS:  T                    PTS:   1

 

5. OLAP stands for on-line application processing.

 

ANS:  F                    PTS:   1

 

6. Almost all ERP implementations involve an outside consultant.

 

ANS:  T                    PTS:   1

 

7. Day-to-day transactions are stored in the operational database.

 

ANS:  T                    PTS:   1

 

8. Data mining typically focuses on the operational databases.

 

ANS:  F                    PTS:   1

 

9. Companies are more likely to modify an ERP to accommodate the company than to modify company processes to accommodate the ERP.

 

ANS:  F                    PTS:   1

 

10. If a chosen ERP cannot handle a specific company process bolt-on software may be available.

 

ANS:  T                    PTS:   1

 

11. Core applications are also called OLAP.

 

ANS:  F                    PTS:   1