Free IIA-CIA-PART3-3P Exam Braindumps
Certified Internal Auditor - Part 3, Business Analysis and Information Technology Questions 646–650 (page: 131)

Updated On: 10-Feb-2026

An enterprise-wide resource planning ERP) system integrates the organization's computerized subsystems and may also provide links to external parties. An advantage of ERP is that:

  1. The reengineering needed for its implementation should improve business processes.
  2. Customizing the software to suit the unique needs of the organization will facilitate upgrades.
  3. It can be installed by organizations of all sizes.
  4. The comprehensiveness of the system reduces resistance to change.

Answer(s): A

Explanation:

The benefits of ERP may significantly derive from the business process reengineering that is needed for its implementation. Using ERP software that reflects the best practices forces the linked subunits in the organization not only to redesign and improve their processes but also to conform to one standard.



A manufacturing resource planning MRP II) system:

  1. Performs the same back-office functions for a manufacturer as an ERP system.
  2. Uses a master production schedule.
  3. Lacks the forecasting and budgeting capabilities typical of an ERP system.
  4. Performs the same front-office functions for a manufacturer as an ERP system.

Answer(s): B

Explanation:

Manufacturing resource planning MRP II) continued the evolution begun with MRP. It is a closed- loop manufacturing system that integrates all facets of manufacturing, including production, sales, inventories, schedules, and cash flows. The same system is used for accounting and finance functions, which use the same transactions and numbers. MRP II uses an MPS master production schedule), a statement of the anticipated manufacturing schedule for selected items for selected periods. MRP also uses the MPS.
Thus, MRP is a component of an MRP II system.



In a traditional ERP system, the receipt of a customer order may result in:

I). Customer tracking of the order's progress
II). Automatic replenishment of inventory by a supplier
III). Hiring or reassigning of employees
IV). Automatic adjustment of output schedules

  1. I, II, and IV only.
  2. I and Ill only.
  3. Ill and IV only.
  4. I, II, III, and IV.

Answer(s): C

Explanation:

The traditional ERP system is one in which subsystems share data and coordinate their activities. Thus, if marketing receives an order, it can quickly verify that inventory is sufficient to notify shipping to process the order. Otherwise, production is notified to manufacture more of the product, with a consequent automatic adjustment of output schedules. If materials are inadequate for this purpose, the system will issue a purchase order. If more labor is needed, human resources will be instructed to reassign or hire employees. However, the subsystems in a traditional ERP system are internal to the organization. Hence, they are, often called back-office functions. The information produced is principally but not exclusively) intended for internal use by the organization's managers. The current generation of ERP software ERP II) has added front-office functions. Consequently, ERP II). but not traditional ERP, is capable of customer tracking of the order's progress and automatic replenishment of inventor/ by a supplier.



What are the possible characteristics of a client-server configuration in a current ERP system?

I). Thin clients, local area network, single server
II). Fat clients, wide area network, multiple servers
III). Fat clients, connection via Internet, and single server

  1. I, II, and III.
  2. II and Ill only.
  3. II only.
  4. I only.

Answer(s): A

Explanation:

Current ERP systems have a client-server configuration with possibly scores or hundreds of client user) computers. Clients may be thin or fat. So-called thin clients have little processing ability, but fat clients may have substantial processing power. The system may have multiple servers to run applications and contain databases. The network architecture may be in the form of a local area network LAN) or wide area network WAN), or users may connect with the sewer(s) via the Internet. An EPP system may use almost any of the available operating systems and database management systems.



A principal advantage of an ERP system is:

  1. Program-data dependence.
  2. Data redundancy.
  3. Separate data updating for different functions.
  4. Centralization of data.

Answer(s): D

Explanation:

An advantage of an ERP system is the elimination of data redundancy through the use of a central database. In principle, information about an item of data is stored once, and all functions have access to it. Thus, when the item such as a price) is updated, the change is effectively made for all functions. The result is reliability data integrity).



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