Accounting Information Systems, 11e (Bodnar/Hopwood)
Chapter 2 Systems Techniques and Documentation
1) Tools used in the analysis, design, and documentation of system and subsystem relationships
are known as system techniques.
2) The interim audit requires some type of substantive testing.
3) Substantive testing involves direct verification of financial statement figures.
4) When evaluating internal controls, auditors are usually not concerned with the flow of
processing and distribution of documents within an application system.
5) Auditors undertake compliance testing to determine the degree of reliance of existing internal
controls.
6) It is desirable for auditors to have a basic understanding of systems techniques.
7) The usual focus of an audit is to review an existing system rather than design a new system.
8) Analytic and system flowcharts are seldom found in the working papers of auditors.
9) A systems development project generally consists of three main phases.
10) Systems techniques assist the analyst in the collection and organization of facts.
11) Systems analysis involves formulating a blueprint for a completed system.
12) Auditors primarily use IPO and HIPO charts.
13) Section 404 of the Sarbanes-Oxley Act requires that annual filings of publicly traded
companies include a statement of management’s responsibility for establishing and maintaining
adequate internal control as well as an assessment of the effectiveness of that internal control.
14) Section 404 of the Sarbanes-Oxley Act requires that monthly filings of publicly traded
companies include a statement of management’s responsibility for establishing and maintaining
adequate internal control as well as an assessment of the effectiveness of that internal control.
16) In the United States, the AICPA is responsible for establishing standard flowchart symbols.
17) The four basic symbols corresponding to basic data processing functions are the input/output
symbol, the process symbol, the flowline symbol, and the annotation or comment symbol.
18) If no special symbol exists to depict a function, verbal descriptions are used in the flowchart.
19) The decision symbol represents a named procedure consisting of one or more operations or
program steps that are not specified within the set of flowcharts.
20) The decision symbol represents a decision or switching type of operation that determines
which of a number of alternative paths is to be followed.
21) The normal flow direction of a flowchart is from left to right and top to bottom.
22) The triangle is a specialized symbol representing a decision process.
23) When the flow is bidirectional, it can only be shown by double lines.
24) An IPO chart provides a narrative description of the inputs needed to generate desired system
outputs.
25) A HIPO chart contains two segments: a hierarchy chart and one or more IPO charts.
26) An IPO chart can provide much detail concerning the processing function.
27) HIPO structures a “bottom-up” strategy in structured systems analysis and design.
28) A program flowchart is also known as a block flowchart.
29) A systems flowchart is more detailed concerning individual processing functions than a
program flowchart.
30) The intent of using DFDs is to clearly separate the logical process of systems analysis from
the physical process of systems design.
31) A DFD may consist of either DFD or ANSI flowchart symbols.
32) A document flowchart is similar to a systems flowchart.
33) The forms distribution chart is closely related to the document flowchart.
34) The sandwich rule states that every process symbol should be placed between an input and
output symbol.
35) UML is a United States standard, not yet supported by the International Standards
Organization.
36) UML is a collection of modeling tools used to model the specifics of software development
including functional equivalents of data flow diagrams, document flowcharting, and analytical
flowcharting.
37) In UML, use case diagrams model the flow of activities involved in a single process.
38) The business process diagram focuses on the sequence of activities in a business process.
39) BPMN basic symbols include the task, sequence flow, gateway, and event symbols.
40) BPMN basic symbols include input/output, process, flowline, and annotation symbols.
41) All BPDs contain at least two pools.
42) Preparing flowcharts can be viewed as more ________ than ________.
43) ________ ________ are a fact-gathering technique where persons provide written answers to
general, rather than specific, questions.
44) ________ ________ is based on the premise that quantitative measurement is essential to the
design of efficient procedures.
45) The formula for capacity utilization can be expressed as Total time ________ / Total
________ time.
46) After operational characteristics of a system have been identified and selected through some
form of work measurement, a work ________ ________ must be undertaken to assign specific
tasks to employees.
47) The basic ________ symbol represents the making available of data for processing or the
recording of processed information.
48) A(n) ________ flowchart identifies the overall flow of operations in a system, and focuses
on storage media and processing functions.
49) ________ flowcharts are organized into columns or groups representing processing functions
performed by different entities.
50) When a flowchart covers more than one page, the continuation between pages is shown with
a(n) ________ symbol.
51) Terminator, process, data store, and data flow are the primary symbols used in the
construction of ________ ________ ________ ________.
52) The ________ is a specialized process symbol that represents a decision process in a
flowchart.
53) A branching table depicts a decision function by means of a statement of the ________ to be
made, a list of ________ that can occur, and the path to be followed for each condition.
54) “Work” or “spread” sheets used in accounting systems are common examples of the
________ method.
55) ________ ________ might be used in lieu of program flowcharts to analyze and document
the logic of an application system.
56) The ________ symbol is used when additional descriptions or explanations are needed to
clarify a point on the flowchart.
57) Section ________ of the Sarbanes-Oxley Act states management’s responsibility for
establishing and maintaining adequate internal control and procedures for financial reporting.
58) Unified ________ Language is an international standard supported by ISO that uses a variety
of graphical techniques to depict the different aspects and views of software development
projects at various levels of abstraction.
59) The most basic symbols of BPMN are ________, ________, ________, and ________
symbols.
60) The acronym for the organization responsible for standardizing flowchart symbols is
A) FASB.
B) ANSI.
C) AICPA.
D) CMA.
61) Audit tests that follow compliance tests and rely on the interim audit’s results are called
A) substantive tests.
B) follow-up tests.
C) internal control tests.
D) evaluation tests.
62) Which of the following is a procedure included in systems design?
A) Computer program documentation
B) Forms design
C) Training personnel
D) Document review
63) In an analytic flowchart, the symbol which could be used to indicate unclaimed payroll
checks is the
A) connector symbol.
B) terminal symbol.
C) document symbol.
D) process symbol.
64) Which of the following symbols should not be used to specify an input/output operation?
A) Decision symbol
B) Document symbol
C) Off-line storage symbol
D) Communication link
65) In an analytic flowchart, the symbol which could be used to indicate the computation of
gross pay is the
A) connector symbol.
B) terminal symbol.
C) input/output symbol.
D) process symbol.
66) In an analytic flowchart, the symbol which could be used to indicate unclaimed payroll
checks is the
A) connector symbol.
B) terminal symbol.
C) document symbol.
D) process symbol.
67) In an analytic flowchart, the symbol which could be used to indicate the payroll data is the
A) connector symbol.
B) magnetic disk symbol.
C) terminator symbol.
D) decision symbol.
68) The manual input symbol could be used to represent
A) the entering of data at an on-line keyboard.
B) the entering of data using switch settings.
C) the entering of data using touch screens.
D) All of these answers are correct.
69) The off-line storage symbol could be used to represent data stored
A) on a USB thumb drive.
B) on a magnetic tape or disk.
C) in paper form.
D) on all of these named media.
70) The “hierarchy” aspect of HIPO charts refers to the fact that this technique factors a task into
modules by
A) using the entity’s organization chart.
B) utilizing a horizontal approach.
C) going from the general to the specific.
D) None of these answers are correct.
71) The charting technique which emphasizes a logical rather than a physical description of a
system is a(n)
A) analytic flowchart.
B) forms distribution flowchart.
C) data flow diagram.
D) document flowchart.
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72) In the preparation of a logical data flow diagram for a payroll system, which of the following
symbols could be used to indicate the payroll data?
A) Magnetic disk symbol
B) Data store symbol
C) Terminator symbol
D) Input/output symbol
73) Instead of using the on-line storage symbol, a systems analyst wants to use an analytic
flowcharting symbol that represents the medium that is used for the file. Which of the following
would be the best symbol to use in place of the on-line analytic storage symbol?
A) The display symbol
B) The magnetic tape symbol
C) The document symbol
D) None of these answers are correct.
74) An internal auditor wants to flowchart a file of (hardcopy) purchase orders. Which of the
following would be the best symbol to use for the file?
A) The on-line storage symbol
B) The off-line storage symbol
C) The terminal symbol
D) The auxiliary operation symbol
75) Which of the following analytic flowcharting symbols is most appropriate to represent the
accounts receivable subsidiary records?
A) The basic input/output symbol
B) The basic manual operation symbol
C) The document symbol
D) None of these answers are correct.
76) In a HIPO chart of a payroll system, which of the following activities would appear higher in
the chart than the other activities?
A) Calculate gross pay
B) Accumulate hours worked
C) Find correct pay rate
D) Look up authorized deductions
77) Which of the following would not appear in a HIPO chart of a payroll system?
A) Data preparation
B) Calculate gross pay
C) Payroll master file
D) Look up authorized deductions
78) In an IPO chart of a payroll system, the payroll master file would
A) appear as an input.
B) appear as an output.
C) Answers A and B are correct.
D) not be represented in the chart
79) In a logical data flow diagram for a payroll system, the employees would best be represented
by which of the following symbols?
A) The process symbol
B) The terminator symbol
C) The data store symbol
D) The data flow symbol
80) In a logical data flow diagram for a payroll system, the employees’ time cards would best be
represented by which of the following symbols?
A) The terminator symbol
B) The process symbol
C) The data store symbol
D) The data flow symbol
81) Which of the following systems development activities may require the use of systems
techniques?
A) Systems analysis
B) Systems design
C) Systems implementation
D) All of these answers are correct.
82) Which of the following is not one of the basic symbols used in analytic flowcharting?
A) Input/output
B) Manual input
C) Flowline
D) Annotation
83) The symbol which is used to link other symbols and indicate the sequence of information and
operations is the
A) flowline symbol.
B) annotation symbol.
C) input/output symbol.
D) process symbol.
84) Which of the following is not a specialized input/output symbol that represents a particular
medium?
A) The magnetic tape symbol
B) The magnetic disk symbol
C) The connector symbol
D) The document symbol
85) Which of the following is not a specialized process symbol?
A) The connector symbol
B) The manual operation symbol
C) The decision symbol
D) The preparation symbol
86) Which of the following flow directions is(are) assumed in a flowchart?
A) From top to bottom
B) From left to right
C) Neither answer A nor B is correct.
D) Answers A and B are both correct.
87) The technique that is characterized by a series of charts that represent the system at
increasing levels of detail is called
A) analytic flowcharting.
B) HIPO.
C) IPO.
D) logical data flow diagram.
88) Which of the following is not a basic symbol used in logical data flow diagrams?
A) Terminator
B) Data store
C) Data flow
D) Manual input
89) Which of the following would not be appropriate to head a column in an analytic flowchart?
A) Remittance advice
B) Production department
C) Purchasing department
D) Cashier
90) Which of the following would generally not be appropriate in preparing a document
flowchart?
A) Columnar headings
B) Flowlines
C) Process symbols
D) Connector symbols
91) A type of resource utilization technique which is used to rationally assign work activities to
particular individuals, departments, or other entities is
A) work measurement.
B) work distribution analysis.
C) branching table.
D) decision table.
92) Which of the following is an example of narrative techniques?
A) In-depth interviews
B) Open-ended questionnaires
C) Document reviews
D) All of these answers are correct.
93) The decision analysis techniques that are similar because both are tabular representations of
decision-making processes are
A) work measurement and work distribution analysis.
B) work distribution and decision tables.
C) branching and decision tables.
D) None of these answers are correct.
94) Systems techniques may be used to
A) assist in designing computer programs.
B) give an overall picture of transaction processing in the organization.
C) assist a systems analyst in organizing facts about a system.
D) All of these answers are correct.
95) Which of the following is not true with respect to the use of systems techniques by auditors?
A) Systems techniques assist the auditor in evaluating a client’s internal control.
B) Systems techniques replace audit working papers.
C) Auditors rely on systems techniques to assist with compliance testing.
D) Auditors use systems techniques as part of their documentation for their audit working
papers.