Core Concepts of Accounting Information Systems 13th Edition

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 1.1 Chapter 1 ACCOUNTING INFORMATION SYSTEMS AND THE ACCOUNTANT Discussion Questions 1-1. The answer to this question will vary with each universitys location. However, it is likely most students

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 1.8 d. Several advantages can accrue to computerizing club finances. Among them are (1) greater accuracy in data recording and data processing, (2) the ability to output financial information in

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 10.1 Chapter 10 ACCOUNTING INFORMATION SYSTEMS AND BUSINESS PROCESSES: PART I Discussion Questions 10-1. Answers to this question will vary depending on the type of firm the student intends to

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 10.7 processing: (1) new vendor authorization forms, (2) new product authorization forms, and (3) processing: (1) new vendor authorization forms, (2) new product authorization forms, and (3) processing: (1) new vendor authorization forms, (2)

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 11.1 Chapter 11 ACCOUNTING INFORMATION SYSTEMS AND BUSINESS PROCESSES: PART II Discussion Questions 11-1. Four data items that both payroll and personnel would use are: employee number (or SSN), employee name,

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 12-1 Chapter 12 INTEGRATED ACCOUNTING AND ENTERPRISE SOFTWARE Discussion Questions 12-1. Figure 12-1 of the text contains a list of the features provided by most integrated accounting packages. Of these,

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 12-9 SM 12-9 SM 12-9 Item Indicator Case example 1 Late payment of vendor invoices Current system did not provide a way to add or reduce vendor managed inventory based on

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 13.1 Chapter 13 INTRODUCTION TO INTERNAL CONTROL SYSTEMS Discussion Questions 13-1. The primary provisions for the 1992 COSO Report and the 2013 Report are outlined in Figure 13-1; additional information on the

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 13.7 SM 13.7 SM 13.7 13-15. Weaknesses Recommended Improvements 1. Raw materials may be removed from the storeroom upon oral authorization from one of the production foremen. 1. Raw materials should be removed from

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 14.1 Chapter 14 COMPUTER CONTROLS FOR ORGANIZATIONS AND ACCOUNTING INFORMATION SYSTEMS Discussion Questions 14-1. A security policy is a comprehensive plan that helps protect the organization from internal and external threats. More

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 14.8 14-16. a. An edit test for a reasonable number of hours worked would guard against this problem. Requiring a supervisor to verify hours worked would also be useful. b. A control should

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 15.1 Chapter 15 INFORMATION TECHNOLOGY AUDITING Discussion Questions 15-1. As noted in the text, an internal auditor is an individual working for the company being audited while the external auditor

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 2.1 Chapter 2 ACCOUNTING ON THE INTERNET Discussion Questions 2-1. An intranet is an internal network created by an organization for the benefit of its employees. Most intranets are local area

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 2.8 a. History of XBRL. In April 1998, Charles Hoffman, a CPA in Tacoma, WA, investigated XML as a medium for the electronic reporting of financial information. He developed prototypes of financial statements and

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 3.1 Chapter 3 COMPUTER CRIME, ETHICS, AND PRIVACY Discussion Questions 3-1. Most experts agree with the claim that the known cases of cybercrime are just the tip of the iceberg, and most

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 3.7 processing system to handle accounts, (2) the number of complaints from customers about account-balance errors, and (3) the ability of Mr. Allen to rectify these errors manually without additional approval or supervision suggest that

SM 4.1 Chapter 4 INFORMATION TECHNOLOGY AND AISs Discussion Questions 4-1. An AIS is best viewed as a set of interacting components that must all work together to accomplish data gathering, storage, processing, and output tasks. For example, computer hardware runs software, and each would be "lost"

SM 4.9 Case Analyses 4-29. Pucinelli Supermarkets Example: Computations (Column B) UPC Code: 64200115896 Length Test: OK Check Digit is: 6 Sum of odd digits: 19 Sum of even digits: 17 Add digits x 3: 57 Sum: 74 Last digit: 4 Computed check digit: 6 Conclusion: valid

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 5.1 Chapter 5 DOCUMENTING ACCOUNTING INFORMATION SYSTEMS Discussion Questions 5-1. The chapter provides ten reasons why documenting AISs is important: (1) depicting how the system works, (2) training users, (3) designing new systems,

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 5.11 5-17. Winston Beauchamp Company Data Flow Diagram: System Flowchart: Manual customer order

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 5.20 5-25. Classic Photography Inc. (System Flowcharts) Phone Call if Necessary Check Merchandise vs PO Prepare open invoices for payment Check Supplier Invoices Enter Order Merchandise Arrives Supplier Purchase Order Supplier Fax to Supplier Purchase Orders Create Purchase Orders Enter Order Employee Requests Purchase Requisition Open PO PO Invoice Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 5.21 The systems flowchart is valuable because

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 6.1 Chapter 6 DEVELOPING AND IMPLEMENTING EFFECTIVE ACCOUNTING INFORMATION SYSTEMS Discussion Questions 6-1. Although some tasks in systems studies overlap, there are major differences between the planning,

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 6.10 d) Having cashiers load the program when the computer fails e) Having the computer retrieve PC- controlled sales when the computer returns to operation 6-18. AAZ Consulting Here are areas

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 7.1 Chapter 7 DATA MODELING Discussion Questions 7-1. Almost every AIS must organize and store data in permanent files. This leads to the need for databases that help

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 7.7 2. 3. Database tables are: cash, sales orders, shipped goods, cash collections, customers, and employees. There should also be a table for the order/inventory and ship goods/inventory relationships as these

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 8.1 Chapter 8 ORGANIZING AND MANIPULATING DATA IN DATABASES Discussion Questions 8-1. There are several other database management systems available to users, including MySQL, Oracle, FoxPro, Microsoft SA SQL, Filemaker

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 8.7 8-18 BSN Bicycles II (Creating Queries in Access) 8-18 BSN Bicycles II (Creating Queries in Access) 8-18 BSN Bicycles II (Creating Queries in Access) 1 and 2. Create a database of records.

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 9.1 Chapter 9 DATABASE FORMS AND REPORTS Discussion Questions 9-1. Some of the advantages and disadvantages of database forms are as follows: Advantages Data entry is less

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman SM 9.7 9-18. This problem requires students to create a report similar to the one in Figure 9-8. The resultant report should look like this: The directions also require students

What is a PERT chart and why is it helpful in planning a project? Answer: PERT charts allow project leaders to achieve the following: (1) outline the full set of activities that must be completed in a project, (2) identify precedence relationships, (3) estimate the completion time of an entire project,

A "default value" for an Access data field is: a) The value of last resort b) A value that Access will assume if the user does not enter one c) A value that Access will take from the last record entered into the system d) none of these Answer: B B B Which of these is not an

Which of the following is not a part of a form? a) A heading section b) A detail section c) A design section d) A navigation bar Answer: C C C Which type of company is most likely to use MICR? a) Grocery store b) Bank c) Phone company d) Web site seller Answer: B B B Within a database context, the relationship between "president" and "vice

Data flow diagrams use more symbols than system flowcharts. Answer: F F F An example of a financial report that would be prepared by a managerial accountant (instead of a financial accountant) is a budget report. Answer: T T T The acronym ERP stands for "electronic or radio patron." Answer: F F F Social networks do not pose privacy concerns. Answer: F F F Integrated accounting software programs process accounting

For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once there are four terms that are not used. 1) ______ scalable 2) ______ mashups 3) ______ hosted solution 4) ______ supply chain management (SCM)

Which of these secondary storage media is likely to hold the most data? a) Hard disk b) Blue-ray disc c) CD-ROM d) Flash drive Answer: A A A Which of the following is not typically checked by an auditor in a review of a responsibility system of computer program development and maintenance? a) Documentation of all program changes on proper

All of the following are examples of parameters that might be used to set passwords except: a) A minimum password length of six digits b) Restriction of passwords to numeric characters only c) Required use of words that can be found in a dictionary d) A requirement for a minimum interval (such as

A Social Security number is a good example of a useful primary record key. Answer: T T T What is the difference between mainframe/host computing and microcomputer client/server computing? Answer: In centralized computing systems, the mainframe/host computer or minicomputer/host performs most, if not all, of the processing and database tasks. In client/computing, processing may be performed

A paradoxical matter in the TRW Case was that the prosecution had trouble acquiring testimonies because the buyers as well as the sellers of the credit information were in technical violation of the law. Answer: T T T Both external and internal file labels are useful in avoiding the use of the wrong input tape. Answer: T T T Today's

All of these are common selection criteria for choosing a final software package from a vendor except: a) Evaluate the performance capabilities of each proposed system b) Weigh the costs and benefits of each proposed system c) Evaluate the maintainability of each proposed system d) all of these are common selection criteria for

A computer virus is: a) A disease that computer programmers are very susceptible to b) A small processing routine that the user accidentally introduces into the system c) A misnomer, since unlike biological viruses, computer viruses cannot reproduce themselves d) Harmless Answer: B B B The data item which uniquely identifies a computer record in an AIS database table

Historically, financial data used in one application was not easily transferable to other applications. However, the problem was fixed with which one of the following? a) XMP b) ERP c) XBRL d) XMLP Answer: C C C A rule of thumb in industry is that the cost to correct an error in a database is approximately how many times

Business process reengineering: a) Is an incremental approach to redesigning business processes b) Involves redesigning business processes from scratch c) Is rarely successful in cutting an organization's costs d) Is always welcomed by an organization's employees Answer: B B B AIS documentation is useful for accomplishing all of the following except: a) Standardizing communications with others b) Auditing AISs c) Helping

The word "integrated" in the term "integrated accounting software" means: a) The software is color blind b) The software can interface with non-accounting software such as spreadsheets. c) The software combines several accounting functions in one package. d) all of these are terms of integrated accounting software Answer: C C C Which of the following is not an objective

A completeness test is an internal equipment control to test whether or not all transactions have been processed. Answer: F F F NFC is an example of cloud computing. Answer: F F F PRM stands for Personnel Relationship Management. Answer: F F F Using Microsoft Access to create a select query with multiple criteria (all of which you want satisfied at the same time), you

Output controls for the computerized accounting information system focus primarily on the security and distribution of print media prepared by the computer center. Answer: T T T An internal label may be used only with magnetic tape systems. Answer: F F F The information needs of operating managers are normally easier to determine than those of top managers because their decision

Within a database context, the relationship between "assigned parking space" and "car" would most likely be: a) One-to-one b) One-to-many c) Many-to-one d) Many-to-many Answer: A A A Controls that require a database to either execute a transaction completely, or not at all, are examples of: a) Data integrity controls b) Transaction controls c) Concurrency controls d) Privacy controls Answer: B B B Components of an

"Analysis paralysis" means "analyzing a system to death" at the expense of reaching a conclusion. Answer: T T T An important advantage of cloud accounting include the availability of backup services, multi-user access, but not upgrades to newer versions of the software. Answer: F F F The correct order of elements, from smallest to largest, in the data hierarchy is database, data

A good audit trail is an important element within a company's internal control system. Answer: T T T In the "AIS at Work" case, Mar-Bal installed an integrated accounting package rather than an ERP system. Answer: F F F Process maps are a special kind of flowchart. Answer: T T T A sale is an example of an event in the REA accounting framework.

Which of these is not a general systems goal? a) Relevant output b) Cost awareness c) Flexible structure d) Higher salaries Answer: D D D One form of access security is determining authentic users by "who they are." Which of the following is an example of such authentication? a) Verifying a password b) Biometric tests such as retina scans c) Requesting that the

A printer is an example of an input device. Answer: F F F As a result of computerized information processing systems in many organizations today, the need for accountants in these organizations has significantly declined. Answer: F F F "Schedule feasibility" refers to whether or not computer vendors can provide bids in a timely manner. Answer: F F F The absence of good statistics on

A flat file is a database with no records. Answer: F F F Certified Information Systems Auditors must have an accounting degree. Answer: F F F Groupware is the technology that enables knowledge sharing and knowledge management among employees. Answer: T T T A hash total is obtained by counting all documents or records to be processed. Answer: F F F Proxy servers can act as firewalls and can

Managerial accounting principally provides decision-making information to a company's internal managers. Answer: T T T What is the purpose of a Systems Steering Committee if an outside consultant is hired to perform the system study? Answer: The steering committee serves as an oversight committee that monitors the consultant's progress and critically reviews its systems analysis reports.

A PERT network diagram reflects the logical sequence of systems implementation activities. Answer: T T T Controls are rarely established during the implementation of a new computer systemthis must wait for the first audit of the system. Answer: F F F Project management software allows users to perform "what-if" analysis-for example, to determine how different work schedules might lower the time

Compared to top management's system information goals, obtaining the information needs of operating management is normally: a) Easier b) More difficult c) No different d) Not required Answer: A A A Which of the following is not an objective of a computerized database? a) Minimize data redundancy b) Make efficient use of storage media c) Distribute information to end users d) Eliminate the

The "S" in the acronym "AIS" stands for: a) Standard b) System c) Symbol d) none of these Answer: B B B Which of these is not an example of a cloud service provider? a) A company that performs backup services over the Internet b) A company that performs payroll processing over the Internet c) A company that provides janitorial services d) all

At present, we think that cybercrime is: a) Falling b) Random c) Rising d) Flat Answer: C C C Which of these is a business reporting language often used in recording or transmitting accounting data? a) XBRL b) XFile c) ABC d) Accounting Live Answer: A A A The advantages of around-the-computer auditing include: a) The emphasis which is placed on testing data processing exceptions b) Use of live data c)

A "flying-start site" for disaster recovery purposes is a location that includes: a) A computer system configured similarly to the system normally used b) A computer system configured similarly to the system normally used plus up-to-date backup data and software c) Power and environmentally controlled space to install equipment on short notice d) none

The processing power of a computer is often measured by the power of its CPU. Answer: T T T An accounting information system database is a collection of facts and figures that serves the accounting information needs of one or more organizational subsystems. Answer: T T T Biometric identification requires that a new observation (e.g., a fingerprint) must match its

Which of the following best describes documents initially prepared by a company, then sent to individuals, and returned to an organization for data processing? a) Mark-sense media b) Source documents c) Turnaround documents d) MICR documents Answer: C C C Which of these is the official website of the XBRL International Consortium? a) www.xbrl.com b) www.xbrl.org c) www.xbrl.gov d) www.xbrlic.com Answer: B B B All of these are

The principal cause for more timely performance reports in the typical modern organization is due to: a) Better educated management b) Adoption of progressive management philosophies which stress participative management (e.g., MBO) c) Information processing systems d) Need for less information Answer: C C C All of these are reasons why databases are important to AISs except: a) AIS databases

Program comparison tools can detect unauthorized changes to accounting systems. Answer: T T T The approach to purchasing accounting software is the same, regardless of software complexity or price range. Answer: F F F SAP R/3 is a good example of a middle-range AIS software program. Answer: F F F Integrated accounting software is mostly available to midsize and large-sized firmsnot small businesses. Answer: F F F What

Equipment that surrounds a computer and assists it with input and output tasks is called "peripheral equipment." Answer: T T T An alternative to developing its own AIS, an organization might consider outsourcing the processing to an external company. Answer: T T T In order to be useful, raw accounting data must be processed by a computer. Answer: F F F The term cloud

All of these are examples of typical benefits that a company might enjoy when switching to a new computer system except: a) Reduced clerical costs b) Enhanced sales c) Better customer service d) Lower hardware and software costs Answer: D D D The value that a database will use if the user does not provide an alternate value is

A set of XBRL tags identifies the data it contains as well as indicates how to display that data. Answer: T T T Enterprise-wide AISs: a) Almost never pay for themselves b) Do not include many more features than middle-range accounting software packages c) Are seldom used by multinational organizations d) Integrate an organization's financial functions with its other

Which of these are the five feasibility areas that a design team should examine? a) Technical, legal, social, economic, schedule b) Economic, software, legal, hardware, schedule c) Organizational, hardware, operational, legal, economic d) Schedule, economic, operational, technical, legal Answer: D D D Forecasting cash flows: a) Is an objective of transaction processing b) Is never considered an objective of transaction processing c)

A general rule that should be followed when developing control procedures for a company's assets is: a) The cost of the control procedure will likely exceed the procedure's benefit b) The procedure should not be designed and implemented unless an asset's cost exceeds $5,000 c) The more liquid an asset is, the greater

Programs such as Windows Vista and Unix are examples of application programs. Answer: F F F Biometric identifications are irrelevant to computer network systems. Answer: F F F The first stage in the systems development life cycle is planning the systems study itself. Answer: T T T The financing process concerns a company's acquisition and use of financial resources. Answer: T T T One component of an AIS system

Which of the following is true? a) An AIS must be computerized to be useful b) An AIS always produces useful information c) An AIS always produces financial information d) none of these Answer: D D D Within the context of accounting packages for small businesses, the term 'scalability" refers to: a) The weight of the package b) The ability of