Accounting Information Systems 14th Edition

CHAPTER 1 ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 1.1 The value of information is the difference between the benefits realized from using that information and the costs of producing it. Would you, or any organization, ever produce information if its expected costs exceeded its benefits? If so, provide some

11.3 The use of IT at USAA a. Why should USAA collect data on which auto parts are fixed most frequently? What could it do with this data? Companies should gather and store data if the benefits received from the data are greater than the cost of collecting it. The data

CHAPTER 10 PROCESSING INTEGRITY AND AVAILABILITY CONTROLS SPECIAL INTRODUCTION TO EXCEL This chapter includes a number of problems that use Excels built-in Data Validation tool to help students better understand processing integrity controls by programming them in a spreadsheet. Some students will already be familiar with this tool, others will not. Therefore, this brief introductory tutorial

10.2 What is the difference between using check digit verification and a validity check to test the accuracy of an account number entered on a transaction record? Check digit verification is designed to detect typographical errors such as transposing two digits or entering the wrong digit (e.g., typing an 8 instead of

Using the data validation tool, a limit check to ensure that hours worked must be less than or equal to 40 can be designed as follows: Alternatively, the following IF statement would enforce the same limit check: =IF(A4<=40,,Error: hours worked cannot exceed 40)The IF test checks whether the value in cell A4

Check that only a single character is used. (field check) Alternatively, the following IF statement also checks this: =IF(LEN(S4)=1,"","Plane character must contain only one character")The LEN function returns the length of a text string. In this case, it checks the cell containing the plane code to verify that it is only

10.7 Which control(s) would best mitigate the following threats? a. The hours worked field in a payroll transaction record contained the value 400 instead of 40. As a result, the employee received a paycheck for $6,257.24 instead of $654.32. A limit check on hours worked. The limit would have to be higher

10. 10 The ABC Company runs two shifts, from 8:00 AM to Midnight. Backups and system maintenance are performed between midnight and 8:00 AM. For each of the following scenarios, determine whether the companys current backup procedures enable it to meet its recovery objectives and explain why: a. Scenario 1: Recovery point objective

CHAPTER 11 AUDITING COMPUTER-BASED INFORMATION SYSTEMS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 11.1 Auditing an AIS effectively requires that an auditor have some knowledge of computers and their accounting applications. However, it may not be feasible for every auditor to be a computer expert. Discuss the extent to which auditors should possess computer expertise

Ch. 12: The Revenue Cycle: Sales to Cash Collections CHAPTER 12 THE REVENUE CYCLE: SALES TO CASH COLLECTIONS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 12.1 Customer relationship management systems hold great promise, but their usefulness is determined by the amount of personal data customers are willing to divulge. How can companies encourage customers to share

Ch. 12: The Revenue Cycle: Sales to Cash Collections 12.4 EXCEL PROJECT. (Hint: For help on steps b and c, see the article Dial a Forecast, by James A. Weisel, in the December 2006 issue of the Journal of Accountancy. The Journal of Accountancy is available in print or online at

12.7 OBrien Corporation is a midsize, privately owned, industrial instrument manufacturer supplying precision equipment to manufacturers in the Midwest. The corporation is 10 years old and uses an integrated ERP system. The administrative offices are located in a downtown building and the production, shipping, and receiving departments are housed in

Ch. 12: The Revenue Cycle: Sales to Cash Collections 12.10 The Family Support Center is a small charitable organization. It has only four full-time employees: two staff, an accountant, and an office manager. The majority of its funding comes from two campaign drives, one in the spring and one in the

CHAPTER 13 THE EXPENDITURE CYCLE: PURCHASING TO CASH DISBURSEMENTS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 13.1 In this chapter and in Chapter 12 the controller of AOE played a major role in evaluating and recommending ways to use IT to improve efficiency and effectiveness. Should the companys chief information officer make these decisions instead?

Accounting Information Systems 13.4 Match threats in the first column to appropriate control procedures in the second column. More than one control may be applicable. Threat Control Procedure 1. _d,e__ Failing to take available purchase discounts for prompt payment. a. Only accept deliveries for which an approved purchase order exists. 2. _f__ Recording and posting

Ch 13: The Expenditure Cycle 13.10 Last year the Diamond Manufacturing Company purchased over $10 million worth of office equipment under its special ordering system, with individual orders ranging from $5,000 to $30,000. Special orders are for low-volume items that have been included in a department managers budget. The budget,

CHAPTER 14 THE PRODUCTION CYCLE SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 14.1. When activity-based cost reports indicate that excess capacity exists, management should either find alternative revenue-enhancing uses for that capacity or eliminate it through downsizing. What factors influence managements decision? What are the likely behavioral side effects of each choice? What implications

14.5 The Joseph Brant Manufacturing Company makes athletic footwear. Processing of production orders is as follows: At the end of each week, the production planning department prepares a master production schedule (MPS) that lists which shoe styles and quantities are to be produced during the next week. A production order

Then, to use Solver:.. 1. Move to the Data tab and then click on ?/arrow symbol in the Solver 1. Move to the Data tab and then click on ?/arrow symbol in the Solver 1. Move to the Data tab and then click on ?/arrow symbol in the Solver . 2. Then enter the values

Double market share limitations for all three products plus the following constraint: sauce case sales cannot exceed 50% of the sum of soup and casserole case sales 14.9 EXCEL PROBLEM Download the spreadsheet for problem 14.9 from the website for this textbook. Write formulas to calculate the total depreciation expense and

CHAPTER 15 THE HUMAN RESOURCES MANAGEMENT/PAYROLL CYCLE SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 15.1 Should CPA firms continue to use time sheets for their employees? Why or why not? This should prompt discussion about how to account for employees efforts. CPAs are considered knowledge workers. A large part of the value they provide comes

b. Suggest ways to improve the Kowal Manufacturing Companys internal controls over hiring and payroll processing. (CPA Examination, adapted) 1. A system of advice forms should be installed so that new hires, terminations, rate changes, etc., are reported to the payroll department in writing. Such forms shouldbe submitted by the employee

f. Follow the instructions to run the trace precedents audit tool. Print screen shots that show the results, and save your work. How useful is this tool? What are its limitations, if any? The Trace Precedents tool is found on the formulas tab. It may help visually identify problems, but it

b. Print out a report that shows sales by month for each salesperson. Step1: select the salesperson, order date, and order amount fields in the window in the upper right corner that says Choose Fields to add to Report. Step1: select the salesperson, order date, and order amount fields in the

g. Payment upfront for a single sale similar to the way DELL sells computers; i.e., no installment payments are allowed, the customer must pay in full in advance (prior to shipment). Payment upfront for a single sale similar to the way DELL sells computers; i.e., no installment payments are allowed, the

CHAPTER 18 IMPLEMENTING AN REA MODEL IN A RELATIONAL DATABASE SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 18.1 How would the process of generating a cash disbursements journal from the REA data model presented in Figure 18-4 and Table 18-1 differ from the process for creating a sales journal? The steps required to create a cash

18.9 Refer to Figure 18.4 and Table 18-1 to write the query logic needed to answer the following questions. (Optional: If requested by your instructor, write your queries in SQL or a Query-By-Example graphical interface.) Some answers may require more than one querytry to write the most efficient queries possible. a. Accounts

CHAPTER 19 SPECIAL TOPICS IN REA MODELING SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 19.1 Often it takes several sales calls to obtain the first order from a new customer. Why then does Figure 19-1 depict the relationship between the Call on Customer and Take Customer Order events as being 1:1? When a sales person visits

REQUIRED a. Draw an REA diagram for the library system. Remember to include cardinalities. a. REA diagram solution. 19-12018 Pearson Education, Inc. a. REA diagram solution. 19-12018 Pearson Education, Inc. a. REA diagram solution. 19-1 2018 Pearson Education, Inc. Accounting Information Systems Explanation of cardinalities: 1. One key to the problem is understanding that the Loan Book event

19.7 At Big Time University (BTU) students are allowed to purchase two basketball tickets for each home game. Each ticket contains the date of the game, and the seat information, such as section, row, and individual seat number. Students pay for each game individually; that is, student sporting event passes

CHAPTER 2 OVERVIEW OF TRANSACTION PROCESSING AND ENTERPRISE RESOURCE PLANNING SYSTEMS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 2.1 Table 2-1 lists some of the documents used in the revenue, expenditure, and human resources cycle. What kinds of input or output documents or forms would you find in the production (also referred to as the conversion

2.4 Your nursery sells various types and sizes of trees, bedding plants, vegetable plants, and shrubs. It also sells fertilizer and potting soil. Design a coding scheme for your nursery. Grading depends upon the instructors judgment about the quality of the coding scheme. The coding scheme should be either a group

CHAPTER 20 INTRODUCTION TO SYSTEMS DEVELOPMENT; SYSTEMS ANALYSIS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 20.1 The approach to long-range AIS planning described in this chapter is important for large organizations with extensive investments in computer facilities. Should small organizations with far fewer information systems employees attempt to implement planning programs? Why or why not?

20.4 The controller of Tims Travel (TT) is deciding between upgrading the companys existing computer system or replacing it with a new one. Upgrading the four-year-old system will cost $97,500 and extend its useful life for another seven years. The book value is $19,500, although it would sell for $24,000.

20.8 Recent years have brought an explosive growth in electronic communication. Laptops, netbooks, e-readers, personal digital assistants, sophisticated cell phones, fax machines, e-mail, teleconferencing, office productivity software, and sophisticated management information systems have changed the way information is received, processed, and transmitted. With the decreasing costs of computer equipment and

20.13 Managers at some companies face an ongoing systems development crisis: IS departments develop systems that businesses cannot or will not use. At the heart of the problem is a great divide that separates the world of business and the world of IS. Few departments seem able or ready to

CHAPTER 21 AIS DEVELOPMENT STRATEGIES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 21.1 What is the accountants role in the computer acquisition process? Should the accountant play an active role, or should all the work be left to computer experts? In what aspects of computer acquisition might an accountant provide a useful contribution? The accountant is

b. Susan Shelton did not agree with Marks weightings and suggested the following changes: Flexibility 60 Reputation and reliability 50 Quality of support utilities 10 Graphics capability 10 When the changes are made, which vendor should Mark recommend? Based on Susans changes, Mark should now select project #3. Project #1 scored 6285 points, project #2 scored

d. Suppose the company decides the prototype system is not practical, abandons it, and takes some other approach to solving its information problem. Does that mean prototyping is not a valid systems development approach? Explain your answer. Just because the prototype system is not used does not mean prototyping is not

CHAPTER 22 SYSTEMS DESIGN, IMPLEMENTATION, AND OPERATION SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 22.1 Prism Glass is converting to a new information system. To expedite and speed up implementation, the CEO asked your consulting team to postpone establishing standards and controls until after the system is fully operational. How should you respond to the

b. Identify and describe three ways Mickie violated internal control principles during the AIS implementation. Most of the control features of the "old" system were retained in the "new" system; however, the procedures for maintaining controls were substantially changed. The procedures and controls were not coordinated. More importantly, controls appropriate forthe

CHAPTER 3 SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 3.1 Identify the DFD elements in the following narrative: A customer purchases a few items from a local grocery store. Jill, a salesclerk, enters the transaction in the cash register and takes the customers money. At closing, Jill gives both

3.4 Prepare a BPD that documents Beccans business processes. Employee Activities Performed Retail Store Weekly & rush orders Quarterly Shipping ClerkWarehouse Inventory Control ClerkReceivegoodsinventory,place orderreconcile to corporatedatabaseFill orders,authorize delivery,ship goodsSystem generates purchase requisitionAdjust & approvepurchaserequisitionMaintain & updateperpetual inventorysystem Shipping ClerkWarehouse Inventory Control ClerkReceivegoodsinventory,place orderreconcile to corporatedatabaseFill orders,authorize delivery,ship goodsSystem generates purchase requisitionAdjust

3.7 b. Prepare a document flowchart to document the cash receipts system at S&S. 3.7 c. Prepare a business process diagram for the cash receipts system at S&S Employee Activities Performed Treasurer From customer ClerkAccounts Receivable WeeklyManagement:Scott & SusanCredit and CollectionsReceive cash and remittanceadvices, endorse checks, andprepare deposit slipDepositcash inbankReceive remittanceadvice,

3.10 (continued) c. A customer places an online order to purchase merchandise. The order is approved, filled, and sent to the customer with an invoice. ContextLevel 0CustomerMerchandise ContextLevel 0CustomerMerchandise Context Level 0 Customer Merchandise 3.10 (continued) d. An inventory request is received by the purchasing department. The purchasing department prepares and sends a purchase order to the appropriate vendor. Context Level

CHAPTER 4 RELATIONAL DATABASES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 4.1 Contrast the logical and the physical views of data and discuss why separate views are necessary in database applications. Describe which perspective is most useful for each of the following employees: a programmer, a manager, and an internal auditor. How will understanding logical

Query . . . Query Result e. Which salesperson made the largest sale? Make Table Query Query Result Query Result Query Result Accounting Information Systems QueryQuery Result QueryQuery Result Query Query Result .. f. How many units of each product were sold? Query 4-2 2018 Pearson Education, Inc. Accounting Information Systems Query Result . Which product was sold most frequently? Query 4-3 2018 Pearson Education, Inc. Accounting Information Systems .. Accounting Information Systems .. Accounting Information Systems

Query Query Result Query Query Result Query Query Result NOTE: The above query only includes customers that have actually purchased items. There are customers in the database who have not purchased items and consequently were not included in the query results. How much of each item was sold? (Include the description of each item

Query Result c. List all of the property appraisers. Query Query Result List all of the lenders. Query Query Result Query d. List the lenders that lent more than $100,000. . NOTE: In order to get a list of lenders without duplicates the property sheet of the query needs to be modified by setting the value of the Unique Values

CHAPTER 5 FRAUD SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 5.1 Do you agree that the most effective way to obtain adequate system security is to rely on the integrity of company employees? Why or why not? Does this seem ironic? What should a company do to ensure the integrity of its employees? The statement is

5.4 Environmental, institutional, or individual pressures and opportune situations, which are present to some degree in all companies, motivate individuals and companies to engage in fraudulent financial reporting. Fraud prevention and detection require that pressures and opportunities be identified and evaluated in terms of the risks they pose to a company.

5.1 1. How does Miller fit the profile of the average fraud perpetrator? Like many fraud perpetrators, David Miller was not much different than the general public in terms of education, values, religion, marriage, and psychological makeup. Like Miller, many white-collar criminals are regarded as ideal employees until they are caught.

CHAPTER 6 COMPUTER FRAUD AND ABUSE TECHNIQUES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 6.1 When U.S. Leasing (USL) computers began acting sluggishly, computer operators were relieved when a software troubleshooter from IBM called. When he offered to correct the problem they were having, he was given a log-on ID and password. The next morning,

CHAPTER 7 CONTROL AND ACCOUNTING INFORMATION SYSTEMS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 7.1 Answer the following questions about the audit of Springers Lumber & Supply a. What deficiencies existed in the internal environment at Springers? The fiinternal environment refers to the tone or culture of a company and helps determine how risk consciousness employees

7.10 Discuss several ways that ERM processes can be continuously monitored and modified so that deficiencies are reported to management. 1Have a special team or internal auditing perform a formal or a self-assessment ERM evaluation. evaluation. evaluation. 2Supervise effectively, including training and assisting employees, correcting errors, and overseeing employees who have

7.3 The following description represents the policies and procedures for agent expense reimbursements at Excel Insurance Company. Agents submit a completed expense reimbursement form to their branch manager at the end of each week. The branch manager reviews the expense report to determine whether the claimed expenses are reimbursable based on

7.8 Tralor Corporation manufactures and sells several different lines of small electric components. Its internal audit department completed an audit of its expenditure processes. Part of the audit involved a review of the internal accounting controls for payables, including the controls over the authorization of transactions, accounting for transactions, and

a Control strengths in Spring Waters sales/cash receipts b Type of control activity c Problems avoided/Risks mitigated by the controls 1 All 15 stores use the same electronic, barcode-based system for recording and controlling sales transactions.Proper authorization of transactions and activities. -Difficulty in managing and auditing all stores andin making system

CHAPTER 8 CONTROLS FOR INFORMATION SECURITY SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 8.1 Explain why an organization would want to use all of the following information security controls: firewalls, intrusion prevention systems, intrusion detection systems, and a CIRT. Using this combination of controls provides defense-in-depth. Firewalls and intrusion prevention systems are preventive controls. Intrusion detection

Solution: Part a: Best case for P (25 minutes): Average case for P (20 minutes) Worst case for P (15 minutes) D=5 D=8 D=10 D=5 D=8 D=10 D=5 D=8 D=10 R=6 Good Good Good R=6 Good Good Good R=6 Good Good Bad R=14 Good Good Good R=14 Good Bad Bad R=14 Bad Bad

CHAPTER 9 CONFIDENTIALITY AND PRIVACY CONTROLS SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 9.1 From the viewpoint of the customer, what are the advantages and disadvantages to the opt-in versus the opt-out approaches to collecting personal information? From the viewpoint of the organization desiring to collect such information? For the consumer, opt-out represents many disadvantages because

Then uncheck the box next to Locked as shown below, because these are going to be the only cells we do not protect in the next step. Now, under the Format drop-down menu, select Protect Sheet and then a) enter a password, and b) uncheck the box Select locked cells. This will

Ch. 9: Confidentiality and Privacy Controls 9.10 Certificate authorities are an important part of a public key infrastructure (PKI). Research at least two certificate authorities and write a report that explains the different types of digital certificates that they offer. Solutions will vary depending upon the specific certificate authorities the student investigates.

________ is a plan that specifies how to resume not only IT operations but all business processes in the event of a major calamity. A) Disaster recovery plan B) Business continuity plan C) Real-time monitoring plan D) Business contingency plan B B B A ________ determines the correctness of the logical relationship between two data

A REA diagram can be used to verify whether job functions are properly segregated. TRUE TRUE TRUE The EOQ approach to managing inventory has been gaining popularity in recent years. FALSE FALSE FALSE A credit sale should always be denied if it exceeds the customer's credit limit. FALSE FALSE FALSE End-user computing can

Identify the item below that would be classified as an event by the REA data model. A) An IOU from a customer. B) The customer. C) A customer sale. D) A loan from a vendor. C C C Grizzly Delivery calculates the cost per delivery by identifying variables as cost drivers, and allocating overhead accordingly. What

Tools called ________ can be used to identify unused and, therefore, unnecessary programs that represent potential security threats. A) router scanners B) vulnerabilities scanners C) deep inspection scanners D) TCP scanners B B B What role does the information systems steering committee play in the systems development process? A) It guides project development. B) It is an

Use the chart below to answer the following questions regarding flow chart symbols. Which symbol would be used in a flowchart to represent a computer process? A) #1 B) #2 C) #5 D) #3 C C C Perimeter defense is an example of which of the following preventive controls that are necessary to provide adequate security? A)

Perhaps the most striking fact about natural disasters in relation to AIS controls is that A) many companies in one location can be seriously affected at one time by a disaster. B) losses are absolutely unpreventable. C) there are a large number of major disasters every year. D) disaster planning has largely been ignored

A ________ control ensures that the correct and most current files are being updated. A) cross-footing balance test B) data matching C) file labels D) write-protect mechanism C C C Who is responsible for ensuring that the new system will meet the needs of users? A) Accountants. B) System programmers. C) The project development team. D) System analysts. D D

If recent trends in end-user computing (EUC) persist, EUC will represent ________ of all information processing by the end of 2020. A) 15% - 24% B) 20% - 49% C) 50% - 74% D) 75% or more D D D The transaction cycle that includes product design is known as the A) revenue cycle. B) expenditure cycle. C)

Identify the first step in protecting the confidentiality of intellectual property below. A) Identifying who has access to the intellectual property. B) Identifying the means necessary to protect the intellectual property. C) Identifying the weaknesses surrounding the creation of the intellectual property. D) Identifying what controls should be placed around the intellectual property. A A

Which of the following is not one way CAATS could be used? A) To merge files. B) To test files for specific risks. C) To process electronic transactions. D) To query data files to retrieve records meeting specified criteria. C C C Which statement is true regarding canned software and the systems development life cycle

The expenses associated with disposal of defective products are ________ costs. A) prevention B) inspection C) internal failure D) external failure C C C Identify the statement below which is true. A) Cloud computing is a control technique for system availability. B) Cloud computing eliminates the need for backup of applications and data. C) Cloud computing eliminates the

________ are incurred to ensure that products are created without defects the first time. A) External failure costs B) Inspection costs C) Internal failure costs D) Prevention costs D D D Combining REA diagrams for individual transaction cycles into a single, enterprise-wide model adds three more rules to the three basic principles for drawing REA

Data about all of the following facets of a business activity are most likely to be recorded in a master file except the A) business activity. B) resources affected by the business activity. C) people who participate in the business activity. D) place the business activity occurs. A A A Ghassan in Marketing received an

E-R diagrams can be used to represent the contents of any kind of database. TRUE TRUE TRUE SOX suggested the fraud hotline as a mechanism for employees to report fraud and abuse. FALSE FALSE FALSE An accounting information system requires at least one computer. FALSE FALSE FALSE The SEC requires U.S. companies to

A clerk at a grocery store scanned the bar code for a low cost bag of frozen chicken wings then gave his friend an expensive brand-name bag of frozen chicken wings. Which of the following controls would best prevent the clerk from getting away with doing this? A) Physical inventory count. B)

Each event in an REA model will in most cases have at least one ________ agent and one ________ agent involved with the event. A) internal; resource B) external; entity C) internal; employee D) internal; external D D D Which of the following is an independent check on performance? A) The Purchasing Agent physically reviews the

Identify the party below that is not external to the firm. A) customer B) vendor C) government agencies D) CEO D D D The relationship between the Acquire Services and Disburse Cash events is modeled as ________ to reflect the common situation in which the organization obtains the use of a specific service for a particular

4 ) Understand and create an REA diagram for the HR/payroll cycle. Ans: not provided 2 ) Extend REA diagrams to include information about employee roles, M:N agentevent relationships, locations, and relationships between resources and agents. Ans: not provided 2 ) Extend REA diagrams to include information about employee roles, M:N agentevent relationships,

According to the ERM model, ________ help the company address all applicable laws and regulations. A) compliance objectives B) operations objectives C) reporting objectives D) strategic objectives A A A The Trust Services Framework reliability principle that states that users must be able to enter, update, and retrieve data during agreed-upon times is known as A)

The best example of an effective payroll transaction file record count would most likely be A) sum of net pay. B) total number of employees. C) sum of FICA. D) total of employees' social security numbers. B B B Lebanese looping is A) verifying credit card validity; buying and selling stolen credit cards. B) inserting a sleeve into

A company uses the method for tracking accounts receivable where customers pay according to individual sales invoices. This describes the ________ method. A) monthly statement B) open-invoice C) balance forward D) cycle billing B B B Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers. Helge purchases inventory from distributors at trade

Lauren wants to open a floral shop in a downtown business district. She doesn't have funds enough to purchase inventory and pay six months' rent up front. Lauren approaches a good friend, Jamie, to discuss the possibility of Jamie investing funds and becoming a 25% partner in the business. After

How many tables are needed to implement an REA data model that has three distinct entities, two M:N relationships and two 1:N relationships in a relational database? A) 5 B) 7 C) 8 D) 10 A A A Which table is most likely to have a concatenated key? A) Inventory. B) Sales. C) Sales-inventory. D) Accounts receivable. C C C

The steps that criminals take to trick an unsuspecting employee into granting them access is called A) scanning and mapping the target. B) social engineering. C) research. D) reconnaissance. B B B What control should be put in place that assigns responsibility for EFT payments made to vendors? A) Encrypt all EFT transmissions. B) Time stamp all

Product code WSH500D08 is an example of A) sequence codes. B) block codes. C) group codes. D) mnemonic codes. D D D Identify the system below that is likely to be most appropriate for end-user development. A) An accounts receivable system. B) A general ledger system. C) An inventory system. D) A loan amortization spreadsheet program. D D D In

An accounts receivable aging report is useful for doing everything except A) estimating bad debts. B) estimating future sales. C) projecting the timing of future cash flows. D) deciding whether to increase a specific customer's credit limit. B B B Which symbol would be used in a flowchart to note that every sales order

A back door into a system that bypasses normal system controls is called a A) virus. B) logic bomb. C) trap door. D) data diddle. C C C Use the chart below to answer the following questions regarding flow chart symbols. Which symbol would be used in a flowchart to represent the display of a report

Which of the following is not an example of how an AIS adds value to an organization? A) Patient information at a hospital are encrypted and made only available on the hospital's network to the patient with an access code. B) Patient billing information at a hospital are encrypted and made only

Regularly reviewing an accounts receivable aging report can help management do what? A) identify customers who have not purchased anything lately B) determine whether changes are needed in the firm's credit policies C) improve the speed which customers make payments D) determine whether the firm's pricing policy is effective B B B Ashley Baker has

What control would best mitigate the threat of paying an invoice twice? A) never authorizing payment of a photocopy of an invoice B) double-checking mathematical accuracy of invoices C) approval of purchase orders D) maintaining adequate perpetual inventory records A A A In 2015, Singh Manufacturing implemented a Web-based information system that allows all employees

A(n) ________ system posts an approved invoice to the vendor account and stores it in an open invoice file until payment is made by check. A) nonvoucher B) voucher C) cycle D) evaluated receipt settlement A A A Which of the following is not true about program flowcharts? A) Program flowcharts are a high-level overview of

Identify the type of information below that is least likely to be considered confidential by an organization. A) Audited financial statements. B) Legal documents. C) Top executives' salaries. D) New product development plans. A A A Moneka Jones is the CIO for Noela Incorporated. Moneka wants to replace the firm's existing system, but wants to

The project committee for ALDI corporation is attempting to evaluate design alternatives proposed for a new, organization-wide accounting information system. However, there is a great deal of debate regarding whether the system should be standardized on using tapes, disks, hard drives, or paper. Which design consideration is most appropriately associated

Merlin Frodo has been doing custom piercings and tattoos for over thirty years. His home and place of business is a garage in the harbor district of Seattle, Washington. He keeps meticulous records of every job he has ever completed. These have been entered into a computerized accounting information system

The principle of selecting and developing controls that might help mitigate risks to an acceptable level belongs to which of the COSO's Internal Control Model's component? A) Control environment. B) Risk assessment. C) Control activities. D) Information and communication. C C C How many tables are needed to implement an REA data model that has

Which of the statements below is false with regards to the tables for M:N relationships? A) Non-key attributes may be included. B) Multiple attribute primary keys are used. C) Single attribute primary keys may be used. D) Concatenated keys are used. C C C Identify the role below that accountants can play in the production

Information that does not omit important aspects of the underlying events or activities that it measures is A) complete. B) accessible. C) relevant. D) timely. A A A Data masking is also referred to as A) encryption. B) tokenization. C) captcha. D) cookies. B B B The unauthorized disclosure of sensitive information is an example of what risk associated with

Sam Jones has been the controller of Downtown Tires for 25 years. Ownership of the firm recently changed hands and the new owners are conducting an audit of the financial records. The audit has been unable to reproduce financial reports that were prepared by Sam. While there is no evidence

Probably the most important change management control is A) monitoring user rights and privileges during the change process. B) testing all changes thoroughly prior to implementation on a stand-alone computer. C) updating all documentation to reflect changes made to the system. D) management's careful monitoring and review. D D D The project development committee for

All of the following controls for online entry of a sales order would be useful except A) check digit verification on the dollar amount of the order. B) validity check on the inventory item numbers. C) field check on the customer ID and dollar amount of the order. D) concurrent update control. A A

The primary objective of accounting is to A) implement strong internal controls. B) provide useful information to decision makers. C) prepare financial statements. D) ensure the profitability of an organization. B B B A workforce inventory report A) is filed each quarter to reconcile monthly tax payments with total tax liability for the quarter. B) is used

A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n) A) preventive control. B) detective control. C) corrective control. D) authorization control. A A A ________ in a well-structured relational database. A) Every table must be related to

Loreen Tina is the chief lawyer for Tamara Incorporated. The CEO of Tamara Incorporated asks Loreen whether the company should periodically delete all company e-mail. If Loreen is well-versed in AIS best practices, she would mostly likely respond, A) Yes, if we are ever sued, the other attorney will not be

In a data flow diagram of the customer payment process, "Customer payment" will appear above or in A) a square. B) a circle. C) two horizontal lines. D) an arrow. D D D Multi-factor authentication A) involves the use of two or more basic authentication methods. B) is a table specifying which portions of the systems users

Using the database depicted above, in the Sales table, "Customer #" is best described as A) an attribute. B) a primary key. C) a foreign key. D) A, B, and C A A A Identify one way "rainbow tables" are often used. A) To discover plaintext passwords associated with a hash. B) To integrate different tables into

A query that extracts, for a given time period, the total amount of all sales events for which there is no corresponding receive cash event will yield A) a cash account ledger. B) a credit sales journal. C) an accounts receivable ledger. D) an accounts payable journal. C C C If an organization asks you

The audit committee of the board of directors A) is usually chaired by the CFO. B) conducts testing of controls on behalf of the external auditors. C) provides a check and balance on management. D) does all of the above. C C C Because information about temporal imbalances between two ________, such as accounts receivable

Budgets used for internal planning purposes and performance evaluation should be developed on the basis of A) responsibility accounting. B) generally accepted accounting principles. C) financial accounting standards. D) managerial accounting standards. A A A Which of the following is not a factor of internal environment according to the COSO Enterprise Risk Management Framework? A) Analyzing

An integrated REA diagram merges multiple copies of some entities in order to A) minimize the repetition of agent entities. B) maximize the legibility of the diagram by avoiding the need to have relationship lines cross one another. C) keep the diagram less complex. D) maintain a clear representation of the activities that are

A special purpose hardware device or software running on a general purpose computer, which filters information that is allowed to enter and leave the organization's information system, is known as a(n) A) demilitarized zone. B) intrusion detection system. C) intrusion prevention system. D) firewall. D D D In a relational database, which of the following

________ are associated with testing to ensure that products meet quality standards. A) External failure costs B) Inspection costs C) Internal failure costs D) Prevention costs B B B Labor productivity is measured by the quantity produced divided by the labor time required to produce it. All other things held constant, an increase in labor

When canned software is used for systems acquisition, the physical design phase of the systems development life cycle (SDLC) A) does not involve designing and coding, although modifications may still need to be made. B) is combined with the conceptual design phase. C) involves designing and coding, although modifications may still need to

In which entity would an item's actual cost information most likely be maintained? A) Inventory entity. B) Order_Inventory entity. C) Inventory-Order_Inventory entity. D) Cost entity. C C C Firms should consider preparing a software prototype if the application A) will be used for a critical function like inventory management. B) automates a structured task. C) can be produced

Which of the following diagrams represents a situation where items rented by a customer must be returned intact, and several rented items could be returned at the same time? A) B) C) D) B B B Which of the following control design considerations is concerned with whether data processing is complete, accurate, timely, and authorized? A) Integrity. B)

The project development committee for Photomat Incorporated is discussing output design alternatives for a new, organization-wide accounting information system. There is a heated debate among the team regarding which departments should be given the quarterly sales report. Mark prefers that only management and accounting receive the report, while Jan prefers

When printed on paper, data output is referred to as A) reports. B) hard copy. C) soft copy. D) financials. B B B For replacement of inventories and assets destroyed by fire or other disasters, an organization needs A) stand-by facilities. B) adequate insurance coverage. C) source data automation. D) All of the above are correct. B B B What

Employees and Training entities is ________ , because a given employee will, over time, attend numerous training courses and, conversely, several employees may attend the same specific training class. A) 1:1 B) 1:N C) M:N D) 1:M C C C Picking ticket number is most likely to be a primary key in which entity of

Falk Noam is the internal auditor for Matan Incorporated. Before investigating the HRM / payroll cycle at Matan, Falk decided to read up on the proper segregation of duties regarding payroll disbursement processes. For strongest segregation of duties, the ________ should periodically observe the paycheck distribution process. A) accounts payable department B) cashier C)