Accounting Information Systems 14th Edition

________ 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)