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Accounting information systems have five basic elements. Which of the following is an output of the human resources process? A. A payroll check B. A written performance evaluation C. Both a payroll check and a written performance evaluation D. Neither […]

SSAE 16 is a form of ___ with respect to an ASP. A. internal control B. information technology C. Both internal control and information technology D. Neither internal control nor information technology Consider the following case as you respond to […]

Which of the following terms best explains the idea that anyone can add to XBRL? A. Extensible B. Specification C. Taxonomy D. Namespace Which of the following elements of the conceptual framework fit within the same category? A. Economic entity, […]

The purpose of the conversion process is to transform material, labor and overhead into a finished product. To accomplish that purpose, organizations can use one of three systems. Which of the following pairs includes examples of products that would use […]

Consider the following REA diagram as you respond to the question: Which of the following statements about the REA model is least true? A. A purchase of supplies can occur with no purchasing agent involvement. B. A purchasing agent may […]

In contrast with view-driven AIS, event-driven accounting information systems focus on: A. Business processes. B. Journal entries. C. Ledger accounts. D. All of these. George received an e-mail that threatened to release his personal financial data unless he paid a […]

Eppler and Mengis suggested five broad causes of information overload: (a) information characteristics, (b) information technology, (c) organizational design, (d) personal factors and (e) task and process parameters. Which of them is most closely associated with each of the following […]

Consider the following systems flowchart as you respond to the question: Which of the following statements about documents in the flowchart is most true? A. “Purchase order” and “approved purchase order” should not be shown separately since they refer to […]

The terms target, instrumentality, incidental and associated from Carter’s taxonomy are most closely associated with which form of risk from Brown’s taxonomy? A. Human error B. Liquidity C. Systems D. Market As a form of internal control, transaction limits are […]

In which stage of Steps for Better Thinking should a decision maker interpret and organize information? A. Identifying B. Exploring C. Prioritizing D. Envisioning SSAE 16 includes three broad types of SOC Reports. SOC 1 reports on: A. ERP systems. […]

NCD Corporation pays annual dividends to its shareholders. A REA model of that process is likely to include which of the following as internal agents? A. Shareholders B. Board of directors C. Both shareholders and board of directors D. Neither […]

Which of the following best pairs an element of bookkeeping with an example of the element? A. Identifying economic information, reading a balance sheet B. Identifying economic information, preparing a balance sheet C. Measuring economic information, reading a balance sheet […]

The chapter discussed four macro-level and four micro-level factors that should be considered when evaluating information technology for use in the accounting information system. It also discussed Sylla and Wen’s three-stage process for evaluating information technology investments. Which of the […]

Cloud computing involves: A. delivering hosted services over the Internet. B. only a few business processes in most organizations. C. no human intervention. D. fewer internal controls than traditional computing. One mark of a professional is adherence to a code […]

Consider the flowchart below as you respond to the question: Refer to the previously presented set of flowcharting symbols labeled Symbol A through Symbol J. Which of the following statements about the systems flowchart above is most true? A. Symbol […]

Consider the following independent situations as you answer the questions: a. Irene, a freshman accounting major, thought she would benefit from reading an intermediate accounting text while taking introductory financial accounting. b. Bradley developed a plan to study for all […]

COSO has published integrated frameworks for both internal control and for enterprise risk management. Which of the following statements about the frameworks is most true? A. The internal control framework is more useful than the enterprise risk management framework. B. […]

The acquisition/payment process helps an organization create value for its stakeholders, which can include: A. Vendors. B. Stockholders. C. Employees. D. All of these. Gelton was leading a team of three co-workers focused on improving their company’s process for hiring […]

Disclosure of confidential information is one risk associated with information technology. Which of the following would be considered confidential information? A. The stock price of Microsoft B. The book value of Disney Corporation’s fixed assets C. The social security numbers […]

An accounting information system comprises five generic parts. Which of the following gives an example of an internal control associated with the financing process? A. Maintaining a good credit rating to facilitate the issuance of bonds and other debt securities. […]

Consider the following short case as you respond to the next nine questions: ABC Consulting’s employees include management, consultants and office staff. The company accepts engagements related to internal control design and evaluation, as well as enterprise risk management plans. […]

Accounting information systems have five generic elements. Which of the following includes two examples of the same element? A. Form W-4, Form W-2 B. Form W-2, Form 1099 C. Form W-4, Form 1099 D. All of these Both Form W-2 […]

Which of the following balance sheet items is least likely to be associated with the acquisition/payment process? A. Cash B. Accounts payable C. Raw materials D. Treasury stock COSO has published integrated frameworks for both internal control and for enterprise […]

Consider the following short case as you respond to the question: Amanda is a partner in a CPA firm; she supervises a staff of ten professionals, some of whom are already licensed CPAs and some of whom are still working […]

Which of the following statements about systems flowcharts and data flow diagrams is most true? A. Lines are used in both, but they represent different things. B. Circles are used in both, but they represent different things. C. Both lines […]

Journal entries commonly processed as part of the acquisition/payment process can include: A. Debits to inventory. B. Credits to accounts payable. C. Credits to cash. D. All of these. According to COBIT’s principles, information technology governance and management should meet […]

According to Bell, a professional integrates knowledge from many disciplines. Accounting information systems integrates knowledge from: A. Accounting and finance. B. Management and computer information systems. C. Both accounting and finance and management and computer information systems. D. Neither accounting […]

An accounting information system comprises five generic parts. Which of the following gives an example of an internal control associated with the sales/collection process? A. Depositing cash in the bank daily B. Adequately supervising employees who handle inventory C. Both […]

Joe has completed all his accounting coursework and is ready to graduate. In his education, he has learned how to: analyze source documents, use Excel, make journal entries and prepare tax returns. Which generic element of the AIS is missing […]

A clear understanding of the steps in the accounting cycle is likely to be useful in: A. Financial audits. B. Investigative audits. C. Both financial audits and investigative audits. D. Neither financial audits nor investigative audits. Missouri Can Corporation (MCC) […]

What feature of XBRL is indicated by the highlighted phrase in each of the following items? (Do not limit yourself to the five key terms discussed in the text.) a. A bank would use a different set of XBRL tags […]

In accounting, ethics issues can arise in: A. Revenue recognition. B. Earnings smoothing. C. Both revenue recognition and earnings smoothing. D. Neither revenue recognition nor earnings smoothing. Consider the following short case as you respond to the question: Scott and […]

Consider the following REA model as you answer the question: How many junction tables will be required by the preceding REA model? A. Two B. Three C. Four D. Some other number Umble and Umble suggested six necessary conditions for […]

Consider the following short case as you respond to the question: ELM Corporation sells durable medical equipment, such as wheelchairs and hospital beds; each salesperson at ELM specializes in a specific type of medical equipment. When a prospective client comes […]

According to COSO, internal control is a: A. Process. B. Set of rules. C. Responsibility of employees only. D. Requirement only for publicly-traded firms. TCP Corporation issues a purchase order whenever it buys inventory. Internal controls associated with the purchase […]

With respect to an ASP, service interruptions and compromised data would be most effectively addressed with: A. An enterprise risk management plan. B. A systems flowchart. C. The steps in the accounting cycle. D. The capability maturity model. Consider the […]

Samantha and Josephine were preparing to start their own clothing business; they contacted their friend David, a recent graduate from Big State University’s accounting program, to learn about setting up their accounting information system. If David uses Steps for Better […]

Consider the following table as you respond to the questions: Which of the following is the best choice for Item F in the table? A. Risk response B. Internal environment C. Information and communication D. Monitoring SPL Corporation is an […]

Missouri Can Corporation (MCC) manufactures and sells a variety of can types, such as soft drink cans, oil cans and many others. MCC has adopted a functional organization structure that includes departments for accounting, marketing, manufacturing, human resources and information […]

SBL Corporation’s accounting records were destroyed in a fire. In reconstructing them: A. Human judgment will be important, but information technology will not. B. Information technology will be important, but human judgment will not. C. Both human judgment and information […]

An ERP system is a sophisticated form of relational database software; within each module, data are stored in tables. In which modules would you expect to find “employee ID” as a field in one or more tables: (i) customer relationship […]

Which level of the capability maturity model best describes each of the following business processes? a. After consulting the company procedures manual and her supervisor for guidance, Lindsay developed a more detailed description of the invoice payment process. b. After […]

The third generic step in a financial statement audit has the strongest relationship to one of the ___ standards in GAAS. A. General B. Field work C. Reporting D. Environmental Which of the following statements about database tables and REA […]

Consider the following partially completed risk/control matrix as you answer the questions: Assume the risk/control matrix is organized like the one presented in the chapter. The best entry for Item D is: A. Human error risk B. Liquidity risk C. […]

An accounting information system captures data that are eventually grouped by account, and then used to prepare general purpose financial statements. The system could be described as: A. A view-driven AIS. B. An event-driven AIS. C. Either a view-driven AIS […]

Consider the following partially completed flowchart as you respond to the questions: In the partial flowchart, the “list of finalists” would best be depicted with a ___ symbol. A. predefined process B. manual file C. decision D. document Which step […]

A line in a data flow diagram represents: A. A data flow B. An external entity C. A database D. A business process Fill in the blanks below based on the principles of REA modeling. a. ___ events focus on […]

In contrast with other areas of accounting, AIS more frequently involves problems with non-deterministic answers. Which questions in the list below have non-deterministic answers? a. How do you calculate depreciation using the straight-line method? b. How many accountants should ITI […]

DRH Corporation’s conversion process is highly automated; computers and other forms of information technology are used to prepare raw materials for production and to move partially completed units through the factory. Which of the following statements is most true? A. […]

The last generic step in a financial statement audit has the strongest relationship to one of the ___ standards in GAAS. A. General B. Field work C. Reporting D. Documentation Ray has worked in the mailroom at MNG Corporation for […]

Bumble Beasley said: “The acquisition/payment process, which often deals with the asset inventory, creates the greatest value of all business processes.” Which of the following terms, if eliminated from Bumble’s statement, would make it stronger? A. Asset B. Inventory C. […]

Carlos is the vice president of finance at PLP Corporation. When he joined the company five years ago, the finance division was organized in two departments: operating transactions and non-operating transactions. Each department had two employees and a manager. The […]

Accounting information systems have five generic parts. Outputs of the acquisition/payment process can include: A. Schedule of accounts payable. B. Checks. C. Both schedule of accounts payable and checks. D. Neither schedule of accounts payable nor checks. Consider the statements […]

Debra and Dexter are CPAs specializing in tax planning and preparation. Recently, Debra stated that, in her view, her highest responsibility is to do what’s right for herself. Which school of ethical thought does Debra follow? A. ethical egoism B. […]

As a requirement of his AIS course, Ahmed was preparing a short paper on why AIS is an important area of study for future accountants. In terms of the UMUC information literacy criteria, which of the following statements is most […]

The purpose of the conversion process is to transform material, labor and overhead into a finished product. To accomplish that purpose, organizations can use one of three systems. Which of the following pairs includes examples of products that would use […]

Which modules in an ERP system are likely to contain information about a company’s plant assets? A. Supply chain management B. Financial management C. Both supply chain management and financial management D. Neither supply chain management nor financial management Please […]

The chapter discussed four infamous ethics cases in accounting: (a) Charles Ponzi, (b) Adelphia Communications Corporation, (c) Enron/Arthur Andersen and (d) Bernie Madoff. Indicate which case is most closely associated with each of the following items. 1> Created from a […]

Bumble Beasley remarked: “The only way to be an accounting professional is to earn a CPA license.” Which of the following statements is most true? A. There are many ways to be an accounting professional. B. All accounting professionals have […]

The accounting cycle comprises ten steps. In which step is an XBRL taxonomy first likely to be used? A. Post from the journal to the ledger. B. Record the transactions in a journal. C. Prepare financial statements. D. Close the […]

The risk/control matrix illustrated in the chapter contains five columns. Which of the following is not one of them? A. Risk B. Risk category C. COSO category D. Internal control Consider the following partially completed flowchart as you respond to […]

RVW Corporation uses an enterprise resource planning system. An accountant wants to create a report of the last month’s purchases sorted by vendor that also includes the name of the purchasing agent who assisted with each transaction. Which modules of […]

Consider the following short case as you respond to the question: When the CEO of NTL Corporation resigned, the board of directors hired a recruitment firm to look for a replacement. The recruitment firm prepared several job announcements, then presented […]

Raul was leading a team charged with developing a new system for budgeting. He created Excel templates for the new budgeting process and presented them to the team during its first meeting. Which of the following statements is most true? […]

Consider the following short case as you respond to the next nine questions: ABC Consulting’s employees include management, consultants and office staff. The company accepts engagements related to internal control design and evaluation, as well as enterprise risk management plans. […]

Which of the following balance sheet items are commonly associated with the acquisition/payment process? A. Inventory and accounts payable B. Purchases and accounts receivable C. Cash paid to vendors D. Cash received from the sale of inventory The chapter discussed […]

The COSO enterprise risk management framework can be useful in: A. Systems audits. B. Investigative audits. C. Both systems audits and investigative audits. D. Neither systems audits nor investigative audits. As the term is used in the Audit Clarity Project, […]

The CEO and CFO of TNS Corporation wanted to expand into e-business, but the company’s board of directors was unwilling to approve their plan. Which of the following theories will best help the CEO and CFO persuade the board of […]

Consider the following systems flowchart as you respond to the question: Which of the following statements is most true? A. The company has adequate separation of duties. B. The company uses all documents commonly associated with the process depicted. C. […]

The risk of disclosure of confidential information is most closely related to which category in Carter’s taxonomy? A. Target B. Instrumentality C. Both target and instrumentality D. Neither target nor instrumentality Consider the following partially completed risk/control matrix as you […]

From an accountant’s perspective, one of the benefits of XBRL is the ability to obtain more rapid and reliable data and information on company financial performance. Such items would include: A. General purpose financial statements. B. Chart of accounts. C. […]

Courses intended for freshmen at a local university are numbered from 100 to 199, while courses intended for seniors at the same university are numbered from 400 to 499. Which coding system is the university using? A. Sequential B. Block […]

Consider the flowchart below as you respond to the question: Which of the following statements is most true based on the systems flowchart above? A. The credit approval process is completely automated. B. The type and nature of documents used […]

Consider the table below as you answer the questions: Which of the following is generally capable of interpreting the XBRL tags in the table? A. Excel B. Internet Explorer C. Both Excel and Internet Explorer D. Neither Excel nor Internet […]