Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
A line in a data flow diagram represents:
A. A data flow
B. An external entity
C. A database
D. A business process
Fill in the blanks below based on the principles of REA modeling.
a. ___ events focus on activities involved with providing goods and services to
customers.
b. ___ events deal with recording and maintaining data.
c. ___ events are concerned with human decision making.
d. The leftmost column in a REA model presents ___.
e. The middle column in a REA model presents ___.
f. The rightmost column in a REA model presents ___.
g. ___ tell an accounting professional about the relationships between elements of a
REA model.
Which of the following documents can be used to assess risk and recommend internal
controls?
A. Systems flowchart
B. Risk/control matrix
C. Both systems flowchart and risk/control matrix
D. Neither systems flowchart nor risk/control matrix
Consider the following independent situations as you answer the questions:
a. Irene, a freshman accounting major, thought she would benefit from reading an
intermediate accounting text while taking introductory financial accounting.
b. Bradley developed a plan to study for all four parts of the CPA exam during his last
semester at college, thus making himself ready to take the exam immediately after
graduation.
c. Jorge met weekly with a group of five students, all of whom were preparing their
resume for the very first time.
d. Every time Maria encountered a topic she did not understand in her accounting
information systems course, she did a Google search for it.
Which decision makers are experiencing different causes of information overload?A.
Irene and JorgeB. Jorge and MariaC. Both Irene and Jorge and Jorge and MariaD.
Neither Irene and Jorge nor Jorge and Maria Irene, information characteristics.
Carter suggested a four-part taxonomy for classifying computer crime. Which of the
following contains elements that would help an accounting professional prevent one or
more of the four types?
A. COBIT
B. AICPA Core Competencies framework
C. Both COBIT and AICPA Core Competencies framework
D. Neither COBIT nor AICPA Core Competencies framework
Consider the following short case as you respond to the question:
SPC Corporation sells computer security software. They maintain their AIS using
general ledger software; data files are backed up twice a day. Sales staff can access the
customer database, inventory files and general ledger, as well as sales-related
documents such as invoices and sales orders. Newly hired sales staff members at SPC
receive the company procedures manual which explains the process used to complete
the steps in the sales/collection process. To minimize costs, SPC designates up to five
sales staff members each month who can do credit checks for all new customers in
addition to processing sales. SPC bills its clients monthly and uses the balance forward
method of accounting for receivables; all cash receipts from clients are processed using
a lockbox procedure. The lockbox firm's fee is 3% of all collections. SPC's accounting
department estimates bad debts at the end of each fiscal year; they are normally about
1% of total sales.
Which of the following statements about SPC is most true?
A. Their sales/collection process demonstrates the strongest possible level of internal
control.
B. Their risk exposures include credit risk, systems risk and human error risk.
C. Both their sales/collection process demonstrates the strongest possible level of
internal control and their risk exposures include credit risk, systems risk and human
error risk are true.
D. Neither their sales/collection process demonstrates the strongest possible level of
internal control nor their risk exposures include credit risk, systems risk and human
error risk is true.
Which of the following upholds at least one generally accepted auditing field work
standard?
A. Using the COSO framework to evaluate internal controls.
B. Allowing members of an audit team to choose their supervisor independently.
C. Both using the COSO framework to evaluate internal controls and allowing members
of an audit team to choose their supervisor independently.
D. Neither using the COSO framework to evaluate internal controls nor allowing
members of an audit team to choose their supervisor independently.
The terms "adverse" and "disclaimer" are most closely associated with which generally
accepted auditing standard?
A. Reporting
B. Opinion
C. Disclosure
D. Some other standard
PLM Corporation was preparing to implement its first ERP system. Several actions
taken by the ERP project team to promote the project's success are listed below. Which
of Umble and Umble's six conditions for successful ERP implementation best describes
each one?
a. Asked internal auditors to review the work of employees who input data to the
system
b. Conducted focus groups with selected employee groups to address concerns
c. Ensured that PLM's wireless network adequately connected all of its offices
throughout the United States
d. Included employees from all departments on the ERP project team
e. Incorporated echo checks as a form of internal control to reduce employee mistakes
f. Interviewed company executives to determine if they truly supported the project
g. Published a monthly newsletter on the role of the ERP system in improving
competitiveness
h. Set up demonstrations to show employees how the ERP system would allow them to
get better information more quickly
i. Solicited suggestions from all employees about how to improve business processes
j. Visited similar companies to learn about their experiences with ERP software
The systems development life cycle would be most useful in the ___ step to create a
knowledge management system.
A. First
B. Sixth
C. Both the first and the sixth
D. Neither the first nor the sixth
Consider the following case as you respond to the questions:
HSO Corp. designs, manufactures and sells golf carts, scooters and similar vehicles.
When a prospective client contacts one of their seven corporate offices, the office
manager fills out an "intake questionnaire" to determine if HSO can meet the
prospective client's needs. The office manager assembles a team of employees with
expertise in design, production, marketing and accounting; the team reviews the intake
questionnaire and determines if HSO can take on the order. If so, the office manager
prepares a three-page written proposal for the prospective client; the proposal explains
the responsibilities of both HSO and the client, along with a timeline and a budget. The
proposal is forwarded to the prospective client electronically, and the client has ten
calendar days to accept it. If HSO cannot take on the order, the prospective client
receives an automatically generated form letter; if the prospective client does not accept
the proposal within ten calendar days, they receive a different form letter. The new
client remits half of the fee at the time the proposal is accepted, and HSO prepares
weekly progress reports as the project moves forward. The reports are filed in HSO's
database; a hard copy is sent to the client. On a monthly basis, HSO's office manager
prepares a comprehensive status report for all current engagements. One week before
each project is concluded, HSO bills the client for half of the remaining amount due;
after the client has paid all outstanding invoices, HSO completes the work and bills the
client for all remaining amounts. HSO delivers the finished product; the client must pay
the full amount due within 30 days of the final invoice date. If the client pays within 15
days, HSO gives a 3% discount off the amount due.
Consider the process from HSO's point of view. Which of the following would be
included as column headings in a systems flowchart?
A. HSO Corporation
B. Client
C. Both HSO Corporation and Client
D. Neither HSO Corporation nor Client
Which of the following best explains why AIS is an important area of study for future
accountants?
A. AIS connects other areas of accounting, such as intermediate and cost accounting.
B. AIS connects accounting with other subjects, such as finance and management.
C. Both AIS connects other areas of accounting, such as intermediate and cost
accounting and AIS connects accounting with other subjects, such as finance and
management.
D. Neither AIS connects other areas of accounting, such as intermediate and cost
accounting nor AIS connects accounting with other subjects, such as finance and
management.
Adjusting entries for accrued revenues and accrued expenses are similar in that:
A. They both involve cash flows after service.
B. They both involve cash flows before service.
C. They both debit temporary accounts.
D. They both credit temporary accounts.
Which of the following is most likely to be represented with a set of parallel lines in a
data flow diagram?
A. Sell product to customers
B. Customer file
C. Sold products
D. Any of these
Accounting information systems has links with other areas of accounting study,
including financial accounting. Which of the following combines an example of AIS
storage with information you would expect to find in it?
A. Balance sheet, listing of current asset accounts with their balances
B. Master file, customer address
C. Both balance sheet, listing of current asset accounts with their balances and master
file, customer address
D. Neither balance sheet, listing of current asset accounts with their balances nor master
file, customer address
View-driven AIS have been criticized because their data are often outdated. Which of
the following journal entries for the purchase of inventory best illustrates that criticism?
A. Debit purchases, credit cash
B. Debit inventory, credit cash
C. Debit purchases, credit inventory
D. Debit inventory, credit purchases
Consider the table below as you respond to the questions:
QRM is using the seven-step process known as the ___ to develop the modules.
A. systems development life cycle
B. capability maturity model
C. expectancy theory of human motivation
D. generalized model of business process management
ANF Corporation's company procedures manual is available to all employees on the
corporate network, while RSP Corporation distributes a hard copy of its company
procedures manual to all new employees. Which of the following statements is most
true?
A. Because the procedures manual would be reported as an asset on the balance sheet,
RSP is doing a better job safeguarding its assets.
B. Because the procedures manual would be reported as an asset on the balance sheet,
ANF is doing a better job safeguarding its assets.
C. ANF employees are more likely to comply with management directives than RSP
employees.
D. The method of distributing the procedures manual is unlikely to be related to
ensuring financial statement reliability.
