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