The chapter discussed four macro-level and four micro-level factors that should be
considered when evaluating information technology for use in the accounting
information system. It also discussed Sylla and Wen’s three-stage process for evaluating
information technology investments. Which of the following best pairs a micro-level
factor with a level from the Sylla and Wen framework?
A. Strategic fit, intangible benefits evaluation
B. Cost, tangible benefits evaluation
C. Both strategic fit, intangible benefits evaluation and cost, tangible benefits
evaluation
D. Neither strategic fit, intangible benefits evaluation nor cost, tangible benefits
evaluation
CGI Corporation requires new employees to establish their payroll withholding
information for its human resources process; CGI reports year-end information for tax
purposes electronically to its employees. Which of the following pieces of information
is both an input for the former and an output of the latter?
A. Employee identification data
B. Employer identification data
C. Hours worked
D. Total amount paid
Which of the following statements about systems flowcharts and data flow diagrams is
most true?
A. If a systems flowchart has three columns, the leveled set of data flow diagrams
should have at least four levels.
B. If one column of a systems flowchart has three process symbols, the leveled set of
data flow diagrams should have a maximum of six process symbols.
C. Both if a systems flowchart has three columns, the leveled set of data flow diagrams
should have at least four levels and if one column of a systems flowchart has three
process symbols, the leveled set of data flow diagrams should have a maximum of six
process symbols are true.
D. Neither if a systems flowchart has three columns, the leveled set of data flow
diagrams should have at least four levels nor if one column of a systems flowchart has
three process symbols, the leveled set of data flow diagrams should have a maximum of
six process symbols is true.
Consider the following flowchart symbols as you respond to the question:
BLG Corporation uses systems flowcharts to teach its new employees about company
procedures. If BLG adopts XBRL, those system flowcharts will likely incorporate
fewer of ___ because ___.
A. Symbol C; databases are unnecessary when using XBRL
B. Symbol A; no manual processes are permitted when using XBRL
C. Symbol A; XBRL automates many tasks that may have been completed manually
D. None of these; the use of XBRL will not affect symbols used in systems flowcharts.
Please consider these independent cases as you respond to the question:
-Austin is the managing partner of a small CPA firm. In an effort to standardize certain
internal business processes, Austin formed a team that developed a set of guidelines for
tasks such as expense reimbursements and information technology purchases. After
developing the guidelines, the team devised ways to determine if the processes are
performing as expected.
-Julie is the chief financial officer of PSC Corporation. She recently worked with a
team to develop a broad set of principles that should characterize PSC’s business
processes. The team has applied those principles to some tasks in the accounting
department; their next task is to teach other PSC employees about the principles.
-Rob is an accountant at CTR Company. The owners of CTR, Lynn and Mark, don’t
know much about accounting, so Rob completes accounting tasks in whatever way
seems best to him.
For Rob to move his company’s business processes forward one level in the capability
maturity model, he should:
A. Ask Lynn and Mark to get some accounting training.
B. Repeat each process at least five times.
C. List the major processes and establish a timeline with goals for each one.
D. All of these.
Consider the following diagram as you answer the questions:
Which of the following junction tables would be included in a relational database of the
model?
A. employee/interview finalists
B. employee/hire applicant
C. Both employee/interview finalists and employee/hire applicant
D. Neither employee/interview finalists nor employee/hire applicant
Consider the table below as you answer the questions:
In the table, “B” would most appropriately be replaced with:
A. Namespace prefix
B. Data type
C. Balance type
D. Some other label
The table is a replica of the one in the chapter’s “AIS in the Business World.”
Which of the following statements about information overload and accounting
information systems is most true?
A. Even with a properly designed AIS, decision makers can experience information
overload.
B. A well designed AIS can help decision makers manage information overload.
C. Both even with a properly designed AIS, decision makers can experience
information overload and a well designed AIS can help decision makers manage
information overload are true.
D. Neither even with a properly designed AIS, decision makers can experience
information overload nor a well designed AIS can help decision makers manage
information overload is true.
The generalized set of processes people use to gather, organize and retain information is
often called:
A. Bounded rationality.
B. Knowledge management.
C. Enterprise risk management.
D. Enterprise resource planning.
According to Arthur, big data is:
A. a collection of data.
B. a way to refer to quantities of data processed.
C. a synonym for accounting data.
D. always quantifiable.
Ethan is an information technology security consultant. He has been asked to speak to a
local professional organization about ways to strengthen internal controls against
computer crime, and wants to relate his comments to the COBIT framework. Prepare a
short summary of the key points Ethan should make in his presentation; ensure that
each one has a clear relationship to the COBIT framework.
Suppose a leveled set of data flow diagrams incorporates the levels indicated below.
Specify how processes would be numbered at each level.
The chapter discussed the four elements of Carter’s taxonomy of computer crime and
eleven business risks/threats to information systems. Classify each item below using
each of them.
List the elements of Carter’s taxonomy of computer crime.
Bumble Beasley was recently hired as a marketing manager at ATI Corporation. When
approached by the accounting manager regarding the development of an internal control
plan for the marketing department, Bumble said: “Internal control? I’m not even really
sure I know what that is. And even if I did, I had the impression that it was all the
responsibility of you accounting types.” In the role of the accounting manager, explain
to Bumble in your own words what internal control is. Also explain, in your own words,
the basic purposes of internal control.
Eric and Gloria were recently hired as entry-level accountants for RSP Corporation.
They had the following conversation about their duties and responsibilities.
Eric: I’m really excited to have this job; I’ve wanted to work in this industry for a couple
years now. Gloria: I completed an internship with RSP last year, and I can tell you it’s a
terrific place to work. Eric: I wonder what kinds of things we’ll be doing in our first few
months. Gloria: Well, I can tell you some of the things I did during my internship. I
helped input data for the corporate tax return in TaxEasy; I also developed initial
estimates of bad debts based on an analysis of credit sales. And, I downloaded cost and
budget information from the AIS so I could calculate cost variances. Eric: That’s quite a
diverse group of tasks for an intern! I was hoping to be able to work with RSP’s internal
audit department at some point; I hear they are the ones in charge of investigating
potential fraud in the company. Gloria: Really? How do they know where fraud might
exist? Eric: Well, the company has a dedicated phone line employees can call when they
suspect fraud may be occurring; the internal auditors listen to those calls, then
determine which cases they should investigate. Also, internal auditors analyze spending
patterns throughout the company; if they see a sharp increase in spending, they
investigate it further.
Required: Analyze Eric and Gloria’s conversation for tasks that require human judgment
and/or information technology. List five examples of such tasks in the space provided
below. For each task, indicate whether it involves human judgment, information
technology or both.
AIS is an important area of study for future accountants because a well-designed AIS
can respond to many elements of the FASB Conceptual Framework. List the parts of the
FASB Conceptual Framework. (You do not need to list the items in each part.)