Consider the flowchart below as you respond to the question:
Which of the following statements is most true based on the systems flowchart above?
A. The credit approval process is completely automated.
B. The type and nature of documents used in the system should be clearer.
C. Both the credit approval process is completely automated and the type and nature of
documents used in the system should be clearer.
D. Neither the credit approval process is completely automated nor the type and nature
of documents used in the system should be clearer.
Internal control risks associated with XBRL include all of the following except:
A. Hardware and software failure.
B. Lack of appropriate tags.
C. Selecting an appropriate taxonomy.
D. Compromised data.
Consider the following diagram as you answer the questions:
Jon and Sam are current employees. Jon has never hired a new employee, but Sam has
hired many. Which of the following statements is most true?
A. A new agent should be added to the model.
B. A new event should be added to the model.
C. The primary key from the “hire applicant” table should be included in the
“employee” table.
D. The primary key from the “employee” table should be included in the “hire
applicant” table.
Malicious software, such as a logic bomb, is most closely related to which generic
element of the accounting information system?
A. Inputs
B. Processing
C. Outputs
D. Storage
Eric and Gloria are partners in Health Care Consulting Associates, a firm specializing in
enterprise risk management and internal controls for hospitals. As their client base
expands, they want to develop a knowledge management system that will benefit both
themselves and their employees. In what order should they complete the following steps
to achieve their goal?A.Diagram the relationships between key knowledge
areas.B.Convene required quarterly retreats to discuss ways to improve the
system.C.Hire a consultant to construct an Access database and teach employees how to
use it.D.Hold a staff meeting to discuss the importance of learning from one
another.E.Create a team that will specify what the new system should accomplish.
F.Ask employees to complete a short online survey focused on key knowledge areas for
the company.
G.Work with department managers to establish some broad principles for managing
knowledge.
The accounting department at a local university uses the prefix ACC for all its courses,
thus exemplifying which type of coding system?
A. Sequential
B. Block
C. Hierarchical
D. Mnemonic
Which of the following statements is true?
A. A bank is unlikely to benefit from e-business.
B. In a university, the costs of e-business usually exceed the benefits.
C. Both a bank is unlikely to benefit from e-business and in a university, the costs of
e-business usually exceed the benefits are true.
D. Neither a bank is unlikely to benefit from e-business nor in a university, the costs of
e-business usually exceed the benefits is true.
Common transactions in the sales/collection process include:
A. Selling goods on credit.
B. Receiving cash on account.
C. Both selling goods on credit and receiving cash on account.
D. Neither selling goods on credit nor receiving cash on account.
Consider the following set of flowcharting symbols along with the case as you respond
to the question:
When the CEO of NTL Corporation resigned, the board of directors hired a recruitment
firm to look for a replacement. The recruitment firm prepared several job
announcements, then presented them to the board of directors. The board of directors
approved one of the job announcements; the recruitment firm used it to advertise the
position on the Internet and in relevant newspapers and professional publications. After
receiving several applications, the recruitment firm selected a pool of ten to pass on to
NTL’s board of directors. The board of directors, with the assistance of the recruitment
firm, went through three rounds of interviews, narrowing the pool from ten to three.
Each of the three finalists prepared a presentation on the strategic future of NTL and
delivered the presentation at a meeting of NTL shareholders. The board of directors
then made the final choice for a new CEO.
A systems flowchart of the case would represent the final decision of the board of
directors with:
A. Symbol B or Symbol F.
B. Symbol B or Symbol G.
C. Symbol B or Symbol I.
D. Symbol G or Symbol I.
Consider the table below as you respond to the questions:
Which of the following is the best choice for Item E in the table?
A. Based on feedback from employee interviews, plan the organization and appearance
of each module.
B. State law mandates annual safety training for all employees.
C. Review the relevant law to determine its specifications.
D. Require all employees to complete the training.
Consider the following table as you respond to the questions:
Which of the following developed the framework DFN is using?
A. COSO
B. AICPA
C. FASB
D. Vroom
Virtue ethics and utilitarianism differ in that ___ focuses on action, while ___
emphasizes character.
A. virtue ethics; utilitarianism
B. utilitarianism; virtue ethics
C. consequences; intentions
D. intentions; consequences
COBIT’s enablers include “information.” According to ISACA, information is very
often the key product of the enterprise itself. Which of the following best exemplifies
ISACA’s explanation?
A. A CPA firm
B. A computer manufacturer
C. A textbook publisher
D. A college bookstore
If an accounting information system is documented with a systems flowchart:
A. It does not need to be documented with a data flow diagram.
B. It cannot be documented with a data flow diagram.
C. It may also be documented with a data flow diagram.
D. A data flow diagram would serve no practical purpose.
Gelton was leading a team of three co-workers focused on improving their company’s
process for hiring new employees. They had read the company procedures manual
describing the current process, then interviewed newly-hired workers about their
experiences. They used the principles of activity-based costing to determine the average
cost of hiring a new employee, then created a line graph tracing the average cost over
the last twelve months. “Reading the company procedures manual” and “interviewing
newly-hired workers” are examples of:
A. Two different steps in the generalized BPM model discussed in the text.
B. The second step in the generalized BPM model discussed in the text.
C. The sixth step in the generalized BPM model discussed in the text.
D. Things that must happen in every BPM project.
AIS can be linked to other areas of study in accounting by focusing on the five generic
elements of the AIS. Which of the following pairs a generic element of the AIS with a
specific example from financial accounting?
A. Bank reconciliation, internal control
B. Adjusting entries, output
C. Financial statements, storage
D. FASB Conceptual Framework, input
Indicate whether each of the following statements is: (a) always true, (b) sometimes
true or (c) never true.
1> AIS outputs are important only in AIS and financial accounting.
2> An accounting information system can determine materiality without human
intervention.
3> Financial accounting can involve unstructured problems.
4> Internal controls cut across many areas of accounting study.
5> The objective of an accounting information system is to report true financial data.
The vice president for customer service of First United Bank determined that Lee had
overpaid his mortgage. The bank sent Lee a letter asking him if he wanted a refund of
the overpayment or if he wanted to apply it to future mortgage payments. Has the vice
president for customer service used an accounting information system based on the
definition provided in the text?
A. No, because no mention is made of software.
B. No, because the letter does not constitute an output.
C. No, because no mention is made of general purpose financial statements.
D. Yes, because all elements of the definition are present or implied.