Accounting Information Systems 9th Edition

CHAPTER 1 THE INFORMATION SYSTEM: AN ACCOUNTANTS PERSPECTIVE REVIEW QUESTIONS 1. Operational, operations management, middle management, and top management. Horizontal flows support operation-level tasks. The information is highly detailed about the day-to-day operations. Vertical flows distribute summarized information to managers at all levels, and this information flows upward. Instructions, quotas, and budgets also

DISCUSSION QUESTIONS 1. The reporting requirements of external users such as lending institutions, the IRS, the SEC, and stockholders are subject to stringent reporting standards. Thus, firms have historically placed a very high emphasis on the accuracy of the AIS and the reports they produce for external agencies since failure to

PROBLEMS 1. USERS OF INFORMATION a. S b. Ic. Sd. Te. Sf. Sg. Sh. I b. Ic. Sd. Te. Sf. Sg. Sh. I b. I c. S d. T e. S f. S g. S h. I i. T j. S j. S j. S 2. GENERAL MODEL FOR AIS Redraw the diagram presented for Problem 2. Label each element in the diagram and briefly

8. COMMUNICATIONS Because businesspeople were not able to adequately express their needs and much of what they did express was not fully understood by the systems analysts, many new systems projects produced ineffective systems. Most business students now study the development process of information systems so they will be better able to communicate

CHAPTER 10 THE REA APPROACH TO DATABASE MODELING REVIEW QUESTIONS 1. A user view is the set of data that a particular user needs to achieve his or her assigned tasks. 1. A user view is the set of data that a particular user needs to achieve his or her assigned

PROBLEMS 1. REA DIAGRAMS The three differences between REA diagrams and ER diagrams: 1) Entities on REA diagrams are divided into three classes (Resources, Events, and Agents) and organized into constellations by class on the diagram. Entities in ER diagrams are of one class and their proximity to otherentities is determined by

CHAPTER 11 ENTERPRISE RESOURCE PLANNING SYSTEMS 1. REVIEW QUESTIONS Chapter 1 Page 2 1. ERP systems are multiple module software packages that evolved primarily from traditional manufacturing resource planning (MRP) systems. The purpose of an ERP is to support the information needs of the entire organizationthrough a common database. of an ERP is to support the information

1. MULTIPLE CHOICE 1. B 2. E 3. D 4. E5. E6. C7. C8. D9. C10. B 4. E5. E6. C7. C8. D9. C10. B 4. E 5. E 6. C 7. C 8. D 9. C 10. B 2. Chapter 1 Page 2 3. problems 1. DATA WAREHOUSE ACCESS CONTROL Merit: The primary reason for a data warehousing is to optimize the business. Many organizations management

7. Who is to blame for ERP failure? By Barry Calogero. Barry Calogero is executive vice president for Robbins-Gioia, Inc. He has had extensive experience in program control, financial management and cost management. Enterprise Resource Planning (ERP) tools, or enterprise-wide client/server applications for managing accounting, manufacturing, distribution and human resources have become the de facto

CHAPTER 12 ELECTRONIC COMMERCE SYSTEMS 1. REVIEW QUESTIONS Chapter 1 Page 2 1. Packet switching refers to a communication technology whereby messages are first divided into small packets for transmission. These packets are then capable of beingsent through several different network switches to achieve optimal utilization oflong-distance lines.2. A VPN (virtual private network) is a

Chapter 1 Page 2 1. MULTIPLE CHOICE 2. 1. B 2. B 3. C4. D5. E6. A7. B8. D9. C10. E 3. C4. D5. E6. A7. B8. D9. C10. E 3. C 4. D 5. E 6. A 7. B 8. D 9. C 10. E Chapter 1 Page 3 3. PROBLEMS 1. ENCRYPTION Key = +3 Decoded message: LETS DO JULIUS ON MONDAY MARCH 15DRESS: TOGA CASUAL (Bring

CHAPTER 13 MANAGING THE SYSTEMS DEVELOPMENT LIFE CYCLE 1. REVIEW QUESTIONS 1. Systems Strategy. The first step in the SDLC is to develop a systems strategy, which requires an understanding the strategic business needs of the organization. This may be derived from the organizations mission statement, an analysis ofcompetitive pressures on the firm, and the

1. DISCUSSION QUESTIONS Chapter 1 Page 2 1. Oral communication skills are very important. The users of the system need to be able to accurately and effectively articulate their needs to the systems analysts. Also, the systems analysts need to effectively interview the users so that the users are prompted to think about the appropriate

6. SYSTEMS SELECTION Information about escapable costs may be found in a review of contracts. It may be that some costs included include clauses to alter the contract. It may also be thatroutine costs (like future orders and leases) are not escapable and have not beenincluded in the computations. that some costs

CHAPTER 14 CONSTRUCT, DELIVER, AND MAINTAIN SYSTEMS PROJECTS 1. REVIEW QUESTIONS Chapter 1 Page 2 1. Prototypes are typically limited to user input screens and output reports. Actual processing procedures are not included. The prototype may be discarded in those situations where the prototype is used for developing structured applications. Theend user plays an important role in

1. DISCUSSION QUESTIONS Chapter 1 Page 2 1. When DFDs are said to be exploded from one level to the next, this means that a specific process is shown in greater detail at the next level. Example: A process at one level has three documents as input to the process and two documents as output.

9. PERT CHART a. See drawing on the following page. The critical path is A-B-E-F-D-I-J-K-L.b. The project will be completed one week late.c. Assuming that workers are not distracted from other tasks, then the project shouldstill be finished on time.d. Systems personnel should conduct the post-implementation review. The end-usersshould be

CHAPTER 15 AUDITING IT CONTROLS PART I: SARBANES-OXLEY AND IT GOVERNANCE 1. REVIEW QUESTIONS 2. Chapter 1 Page 2 1. The chapter concentrates on internal control and audit responsibilities pursuantto Sections 302 and 404. 1. The chapter concentrates on internal control and audit responsibilities pursuantto Sections 302 and 404. 1. The chapter concentrates on internal control

1. DISCUSSION QUESTIONS 1. Section 302 requires that corporate management (including the CEO) certify quarterly and annually their organizations internal controls over financial reporting. The certifying officers are required to: a. have designed internal controls.b. disclose any material changes in the companys internal controls that haveoccurred during the most recent fiscal quarter. a. have

1. MULTIPLE CHOICE 1. D 2. D 3. B4. E5. C6. C7. A8. C9. A10. C 3. B4. E5. C6. C7. A8. C9. A10. C 3. B 4. E 5. C 6. C 7. A 8. C 9. A 10. C 2. problems 1. SERVICE PROVIDER AUDIT -- The Harvey Manufacturing Company Explain how the Harvey Manufacturing auditors will assess the relevant internal controls

9. DISASTER RECOVERY PLAN - Hexagon a. The internal control weaknesses at Hexagon include: The building is constructed with fire prone exterior wooden shingles with exposed interior wooden beams. In the event of a fire the building and data center wouldbe a great risk of being destroyed.Inadequate backup procedures. Backup tapes and disks

CHAPTER 16 IT CONTROLS PART II: SECURITY AND ACCESS 1. REVIEW QUESTIONS 1. a. The operating system must protect itself from users. b. The operating system must protect users from each other.c. The operating system must protect users from themselves.d. The operating system must be protected from itself.e. The operating system must be protected

1. Multiple Choice 1. E 2. C 3. A 4. E5. A6. C7. D8. D9. B10. E 4. E5. A6. C7. D8. D9. B10. E 4. E 5. A 6. C 7. D 8. D 9. B 10. E PROBLEMS 1. NETWORK CONTROL The controls needed to mitigate the risks of unauthorized remote access to the system include the following: a. Application level firewall with

9. SECURITY AND CONROL ASSESSMENT The potential risks in BBC new computer-based information system are as follows: Security BBC should hold a training seminar since most employees will be using the computer system. The purpose of the seminar is to educate users on thepolicies and procedures of the system and to inform

CHAPTER 17 IT CONTROLS PART III: SYSTEMS DEVELOPMENT, PROGRAM CHANGES, AND APPLICATION CONTROLS 1. REVIEW QUESTIONS 1. Systems development controls: a. systems authorization activities b. user specification activities c. technical design activitiesd. internal audit participatione. program testingf. user test and acceptance proceduresSystems maintenance controls:a. technical specifications, authorization, testing, and documentationb. source program library controls c. technical design activitiesd.

Chapter 17 page 1. MULTIPLE CHOICE 1. A 2. A 3. D 4. C5. A6. C7. B8. C9. E10. E 4. C5. A6. C7. B8. C9. E10. E 4. C 5. A 6. C 7. B 8. C 9. E 10. E 2. PROBLEMS Chapter 17 page 1. DESIGN TESTS OF APPLICATION CONTROLS The auditor will create the following test data and perform the

4. AUDIT PLAN One area to examine is whether Golden Gate has purchased and received a material amount of inventory and/or machinery in the last month and not yet received or paid the invoice. One plan would be to trace all (or a sample) of receiving reports during the last month and make

11. AUDIT OF SYSTEMS DEVELOPMENT a. Systems Authorization Activities All systems should be properly authorized to ensure their economic justification and feasibility. This requires a formal environment in which userssubmit requests to systems professionals in written form. justification and feasibility. This requires a formal environment in which userssubmit requests to systems professionals in

CHAPTER 2 INTRODUCTION TO TRANSACTION PROCESSING REVIEW QUESTIONS 1. The expenditure cycle, conversion cycle, and revenue cycle.2. Purchases/accounts payable system, cash disbursements system, fixed assets system, and payroll system. 1. The expenditure cycle, conversion cycle, and revenue cycle.2. Purchases/accounts payable system, cash disbursements system, fixed assets system, and payroll system. 1. The expenditure cycle,

DISCUSSION QUESTIONS 1. Cash flows into the firm from sales made to customers. The sales order processing subsystem of the revenue cycle captures the intent of customers to exchange cash for services or goods manufactured. Typically sales are made on credit. The cash receipts subsystem of the revenue cycle captures the actual

PROBLEMS 1. TRANSACTION CYCLE IDENTIFICATION a. Expenditure cycle-payroll subsystem. b. Conversion cycle-production system subsystem. c. Revenue cycle-cash receipts subsystem..d. Revenue cycle-sales order processing subsystem.e. Expenditure cycle-purchases subsystem.f. Conversion cycle-production subsystem. c. Revenue cycle-cash receipts subsystem..d. Revenue cycle-sales order processing subsystem.e. Expenditure cycle-purchases subsystem.f. Conversion cycle-production subsystem. c. Revenue cycle-cash receipts subsystem.. d. Revenue cycle-sales order processing subsystem. e.

12. SYSTEM DOCUMENTATION EXPENDITURE CYCLE See the drawings on this and the following page. Chapter 2 Page 37 Chapter 2 Page 38 13. SYSTEM DOCUMENTATION CASH RECEIPTS Chapter 2 Page 39 14. SYSTEM DOCUMENTATION PAYROLL See drawings on the following pages. Chapter 2 Page 40 Chapter 2 Page 41 Chapter 2 Page 42 15. SYSTEMS DOCUMENTATION PAYROLL See the data

17. SYSTEM DOCUMENTATION EXPENDITURE CYCLE Chapter 2 Page 37 Chapter 2 Page 38 18. Soluon to Problem 2-18 Cash Receipts Centralized DP System Chapter 2 Page 39 19. Solution to Problem 2-19 Purchases System Centralized Data Processing Chapter 2 Page 40 20. SYSTEM DOCUMENTATION CASH DISBURSEMENT Chapter 2 Page 41 21. CODING SCHEME 101.0 Cash 102.0 Accounts Receivable 103.0 Office Supplies Inventory 104.0 Prepaid

CHAPTER 3 ETHICS, FRAUD, AND INTERNAL CONTROL REVIEW QUESTIONS Chapter 1 Page 2 1. Ethics pertain to the principles of conduct that individuals use in making choices and guidingtheir behavior in situations that involve the concepts of right and wrong. 1. Ethics pertain to the principles of conduct that individuals use in making choices and

DISCUSSION QUESTIONS 1. Some acts may not be against the law, but they may be considered unethical. For example, it may not be illegal to simultaneously accept two job offers verbally while trying to decide between the two companies; however, ethically, this type of behavior is considered to

MULTIPLE CHOICE 1. D 2. C 3. A 4. B 5. B6. C7. C8. A9. D10. B11. A12. B13. C14. B15. D16. C17. C18. C19. B 5. B6. C7. C8. A9. D10. B11. A12. B13. C14. B15. D16. C17. C18. C19. B 5. B 6. C 7. C 8. A 9. D 10. B 11. A 12. B 13. C 14. B 15. D 16. C 17. C 18. C 19.

12. Evaluation of Internal Controls: The Never Sink Canoe (NSC) Company Segregations of Duties Issues Control Weakness 1: Transaction authorization should be separated from transaction processing. The sales person both authorizes the sale by approving the credit worthiness of thecustomer and processes it. Fraud Potential: Sales person can approve sales to

17. EVALUATION OF CONTROLS a) Mary Janes dedication to her job from which she has not taken a vacation in many years is a red flag that she may be engaged in something illegal. This concern is reinforced by her job description, which combines several incompatible tasks: Segregation of Duties: Mary

CHAPTER 4 THE REVENUE CYCLE REVIEW QUESTIONS 1. A customer order usually in the form of a purchase order initiates the sales process. 1. A customer order usually in the form of a purchase order initiates the sales process. 1. A customer order usually in the form of a purchase order initiates the sales process. 2.

PROBLEMS 1. System Description and Internal Controls a. Prepare a flowchart of the cash receipts procedures described Chapter 3 Page 83 b. Describe the risks, if any,that are inherent in the current system configuration. 1) Risk of Cash misappropriation in mailroom fraud (skimming) 2) Risk of cash misappropriation by skimming, lapping, or other forms

9. INTERNAL CONTROL Iris needs to consider whether she wishes to purchase one microcomputer system or three. Assuming that she only wishes to purchase one microcomputer for the central shop, she should definitely consider an accounting software package that has an accounts payable and general ledger module. The purchase of a

2. Solution to Tight Lines Fishing and Camping a, b, and d, see pages that follow c) Internal Control Weaknesses. The following tie to the numbered circles on the flowchart. 1) The sales clerk performs the credit check this is a segregation of duties and transaction authorization problem. Risk: Clerk may grant credit

4. SOLUTION TO DISCOUNT TOOLS a), b), d) See diagrams on the following pages. c) Internal Control Weaknesses 1) Transaction is recorded in Sales Journal before goods are shipped. 2) Warehouse and Shipping functions are combined. This removes control over picking and shipping the wrong products.3) Mail room clerk should

Chapter 4 page 130 8. SOLUTION TO PERFORMANCE WATER PUMPS a), b) See diagrams on the following pages. c) Internal Control Weaknesses 1) The sales clerk who processes the orders also performed the credit check. This creates internal control problems as sales sta pay is somemes linked to sales levels. 2) The shipping

7. SOLUTION TO CUSTOM FABRICATIONS a), b) and e) See diagrams on the following pages. c) Internal Control Weaknesses 1. The customer should not be billed until the goods are shipped. The billing process, however, is triggered in this system by the sales order, rather than the shipping notice. Risk: Billing before

CHAPTER 5 THE EXPENDITURE CYCLE Part I: Purchases and Cash Disbursements Procedures REVIEW QUESTIONS 1. A purchase requisition is completed by the inventory control department when a need for inventory items is detected. Purchase requisitions for office supplies and other materials may also be completed by staff departments such as marketing, finance, accounting, and personnel.

Chapter 4 page 130 PROBLEMS 1. UNRECORDED LIABILITIES Term FOB shipping point: a. Yesb. The best evidence is provided by the Purchase Order and Bill of LadingPurchase Orderis evidence that the item was ordered, but does notindicate when it was shipped.Bill of Ladingreviewed post-period; will indicate when the goods wereshipped Receiving Reportprepared post-period; establishes

Chapter 4 page 130 8. PHYSICAL CONTROLS Transaction Authorization. Purchases are not authorized by inventory control. Transaction Authorization. Purchases are not authorized by inventory control. Transaction Authorization. Purchases are not authorized by inventory control. Accounting Records. Inventory records are updated based on the purchase order rather than the Receiving Report or Invoice. order

Chapter 4 page 130 3. SOLUTION TO TVR CLASSICS a), b), See diagrams on the following pages. c) Internal Control Weaknesses Purchases Procedures 1) The inventory clerk in the warehouse department has asset custody and transaction authorization to order inventory. custody and transaction authorization to order inventory. custody and transaction authorization to order inventory. 2) The receiving

Chapter 4 page 130 6. SOLUTION TO GREEN PRODUCTS GARDEN SUPPLY a), b) see the following pages c) Internal Control Weaknesses 1) Purchasing approves and executes purchases. The company needs an inventory control function.2) Purchasing updates inventory records for transactions that it previously approved and executed.3) Receiving clerk prepares receiving report from the packing

Chapter 5 page 205 8. SOLUTION TO PERFOMANCE WATER PUMPS a), b), see the diagrams on the following pages. c) Internal Control Weaknesses: 1. The receiving clerk uses the purchase order to reconcile with the goods received. Does not use the blind copy of the purchase order to verify the goods

CHAPTER 6 THE EXPENDITURE CYCLE PART II: PAYROLL PROCESSING AND FIXED ASSETS PROCEDURES Chapter 1 Page 2 REVIEW QUESTIONS 1. Job tickets capture the time spent on each job during the day and are used to allocate the labor charges to the WIP account.2. The personnel department, through the personnel action form authorizeschanges to employee pay rates. used

1. PROBLEMS 1. PAYROLL FRAUD a. An employee action report from the personnel department should list all current employees. Time cards for terminated or non-existentemployees should be identified when reconciled with the personnelreport. all current employees. Time cards for terminated or non-existentemployees should be identified when reconciled with the personnelreport. all current employees. Time cards

1. Internal Control Cases 1) Solution to Holly Company Payroll System Part a) Payroll DFD Part b) Payroll System Flowchart Chapter 1 Page 2 Part C. Uncontrolled Risks: 1) Timekeeping process is unsupervised allowing for fraudulent time andattendance records. 1) Timekeeping process is unsupervised allowing for fraudulent time andattendance records. 1) Timekeeping process is unsupervised allowing for

3. TRV CLASSICS. (MANUAL AND STAND-ALONE COMPUTER PROCESSING) a, b, see following pages. c, Uncontrolled Risks Payroll 1. Payroll Fraud is possible because employees prepare me cards manually without a mestamp from a mekeeping clock. 2. Absence of personnel acon forms allows invalid me cards to be submied.3. Financial assets are at risk because

5. TURNER PATIO FURNITURE (MANUAL AND STAND-ALONE PC SYSTEM) a), b) see diagrams on the following pages. c) Uncontrolled Risks. Payroll 1. Payroll Fraud is possible because supervisor approve me cards and distributes paychecks 2. Absence of personnel acon forms allows invalid me cards to be submied.3. GL records may be inaccurately

CHAPTER 7 THE CONVERSION CYCLE REVIEW QUESTIONS 1. A companys conversion cycle transforms (converts) input resources, such as raw materials, labor, and overhead, into finished products or services for sale. materials, labor, and overhead, into finished products or services for sale. materials, labor, and overhead, into finished products or services for sale. 2. The batch processing

MULTIPLE CHOICE 1. B 2. D 3. B4. D5. E. Safety Stock is represented by the line segment from point E down to the zero value point on the vertical axis.6. B7. E8. A9. C10. B 3. B4. D5. E. Safety Stock is represented by the line segment from point E down to the

INTERNAL CONTROL CASES 1. PERFOMANCE WATER PUMPS (CENTRALIZED SYSTEM WITH DISTRIBUTED TERMINALS) Part A and B see following pages Chapter 1 Page 2 Chapter 1 Page 3 Part C. Risks in Current System 1. Material usage is not properly controlled.2. Job time accounting may be inaccurately recorded3. Potential for theft of raw materials.4 and 5.

Chapter 7 page 62 5. VOLTEC WELDING MACHINES, INC. Part A and B, See diagrams on the pages that follow. Chapter 7 page 63 Chapter 7 page 64 Part C. Risks in Current System 1. Material usage is not properly controlled.2. Job time accounting may be inaccurately recorded3. Potential for theft

CHAPTER 8 FINANCIAL REPORTING AND MANAGEMENT REPORTING SYSTEMS 1. REVIEW QUESTIONS Chapter 1 Page 2 1. A journal voucher is used to make entries into the general ledger accounts. The information may be a summary of many transactions or a single, uniquetransaction. information may be a summary of many transactions or a single, uniquetransaction. information may

1. DISCUSSION QUESTIONS Chapter 1 Page 2 1. Since general ledger clerks have access to the general ledger, they should not have access to the journal vouchers in the source departments. If these journal vouchers are acquired by the general ledger clerks, or anyone else with authorization to enter the general ledger, these vouchers may

1. 2. 1. general ledger system overview Chapter 1 Page 2 2. FINANCIAL REPORTING PROCESS 1 Capture the transaction TPS 2 Record transaction in special journal TPS 3 Post to the subsidiary ledger TPS 4 Post to the general ledger GLS5 Prepare the unadjusted trial balance FRS6 Make adjusting entries FRS7 Journal and post adjusting

11. ORGANIZATION STRUCTURE AND SPAN OF CONTROL a. 1. Organization structure A. Advantages include: A hierarchy and unity of command. A limited span of control providing greater centralized decision making. More available opportunities for promotions to supervision or management. A hierarchy and unity of command. A limited span of control providing greater centralized decision

CHAPTER 9 DATABASE MANAGEMENT SYSTEMS 1. REVIEW QUESTIONS 1. Database planning, design, implementation, operation and maintenance, andchange and growth.2. The users, the database management system, the database administrator, andthe physical database structures. 1. Database planning, design, implementation, operation and maintenance, andchange and growth.2. The users, the database management system, the database administrator, andthe physical

1. MULTIPLE CHOICE 1. B 2. A 3. C4. D5. A6. C7. C8. E9. C10. E11. D12. B13. B14. B15. E16. A17. C18. A 3. C4. D5. A6. C7. C8. E9. C10. E11. D12. B13. B14. B15. E16. A17. C18. A 3. C 4. D 5. A 6. C 7. C 8. E 9. C 10. E 11. D 12. B 13. B 14. B 15. E 16.

6. DATABASE DESIGN Response: Below are the database table needed for the PGP system. Student responses will vary based upon assumptions made. Sales Invoice Cash Receipt Customer Supplier SI Number (PK) CR Number (PK) Customer Number (PK) Supplier Number (PK)Order Date Customer Number (FK) Last Name Company Name Invoice

17. ENTITY RELATIONSHIP DIAGRAM Business Rules Represented by Problem 17 ERD. Specific inventory items are ordered from predetermined suppliers. Each inventory class (type) is purchased from one and only onesupplier, but that supplier may supply many different classes of items.Each inventory class has been purchased many times, and each Purchase Order may

The PCAOBs standard No. 5 specifically requires auditors to understand transaction flows in designing their test of controls. What steps does this entail? Answer: This involves:1. Selecting the financial accounts that have material implications for financial reporting. 2. Identify the application controls related to those accounts. 3. Identify the general that

The big bang approach a. is more ambitious and risky than the phased in approach. b. is a popular alternative to the phase-in approach. c. reduces the change of system failure. d. all of the above. e. none of the above. Answer: A Answer: A Answer: A Supervision is often called a(n) ------------ control. a. access b. verification c. compensating d. input Answer: C Answer:

A company's board of directors should, at a minimum, adopt the provisions of SOX. Discuss three of the six established best practices that a board should also follow. Answer: The roles of CEO and board chairman should be separate to facilitate discussions without management being present.The board should establish a code

Define fault tolerance. Answer: Fault tolerance is the ability of the system to continue operation when part of the system fails. Implementing redundant system components such as redundant disks and powers supplies are two examples. Answer: Fault tolerance is the ability of the system to continue operation when part of the system

Many financial reports produced by organizations are nondiscretionary - publicly traded firms have no choice but to prepare income statements, tax returns, etc. Management reporting is often called discretionary reporting because it is not mandated, as is financial reporting. Is this a valid statement? Why or why not? Answer: It can be

Explain how Take Order can be either an economic or a support event. Answer: Taking an order typically involves only a commitment for the seller to sell goods to the customer. It may involve adjusting inventory available for sale to prevent it from being sold to another customer. The commitment is

List specific jobs that should be segregated to prevent misappropriation of cash and inventory. Answer: cash disbursements, general ledger, AP function, warehouse, inventory records Answer: cash disbursements, general ledger, AP function, warehouse, inventory records Answer: cash disbursements, general ledger, AP function, warehouse, inventory records How is a database deadlock usually resolved? What are factors

The normalization process involves identifying and removing structural dependencies from the tables being modeled. Answer: T Answer: T Answer: T Lead time times daily demand is a. the economic order quantity b. safety stock c. the reorder point d. total inventory Answer: C Answer: C Answer: C Which symbol represents a document? a. b. c. d. Answer: B Answer: B Answer: B Which of the following

An internal audit departments independence is compromised when the department reports to: a. the company controller b. the audit committee of the board of directors c. Both a. and b. d. Neither a. nor b. Answer: A Answer: A Answer: A XRLB reporting: a. must be used by banks to file required quarterly "Call Reports" b. is used substantially both

Explain industry and competency analysis. Answer: Industry analysis provides management with an analysis of the driving forces that affect itsindustry and its organization's performance. Such analysis offers a fact-based perspective on the industry's important trends, significant risks, and potential opportunities that may impact the business's performance.Competency analysis provides a complete picture

Discuss a PERT chart and its principal features. Answer: The project evaluation and review technique (PERT) is a tool for showing relationships among key activities that constitute the construct and delivery process. The principal features of the diagram are:1> Activities or tasks to be completed during the project are labeled in

When should inventory be purchased? Answer: Answer: Answer: Discuss three specific physical controls to mitigate the risk of inaccurate record keeping. Answer: transaction authorization - AP authorizes cash disbursements to make paymentaccounting records - audit trail documents, journals, accounts and filesindependent verification - inventory control, AP, cash disbursements, and GL Answer: transaction authorization

What are some of the risks of placing the decision of what, when and where to buy solely at the discretion of the purchasing agent? Answer: The result can be excessive inventory for some items, which ties up cash reserves, and stock-outs for other items which leads to lost sales and

Use the internal control procedures listed below to complete the statements. A clerk reorders 250 items when the inventory falls below 25 items. This is an example of --------------------------. Answer: general authorization Answer: general authorization Answer: general authorization Use the internal control procedures listed below to complete the statements. Sequentially numbering all sales invoices is an

Use the internal control procedures listed below to complete the statements. Using cameras to monitor the activities of cashiers is an example of --------------------------. Answer: supervision Answer: supervision Answer: supervision What are the benefits and risks of making Internet sales? Answer: Internet sales opens an organization's doors to thousands of potential business partners with whom it