Test bank for accounting information systems 9th edition

Users, Processing, Input, Output Historically, the relationship between an information system and an accounting information system has been: 1.. Management designs the operations and in

Test Bank for Accounting Information Systems 9th Edition

Efficiency and effectiveness of operations are goals of:

4 accounting information system

A system can be further divided into

1. output

2 ERP

3 database

4 information system

An information system:

1. is composed of only the computer-based information resources of an organization

2 may consist of both computer-based and manual components

3 is different from a data processing system because it uses computers

4 is not generally used for transaction processing

The AICPA has identified all but which of the following as assurance services?

1. Output, Input, Processing, Users

2 Input, Processing, Output, Users

3 Processing, Input, Users, Output

4 Users, Processing, Input, Output

Historically, the relationship between an information system and an accounting information system has been:

1. the AIS is a part of the IS

2 the IS is a part of the AIS

3 the IS and the AIS are one in the same

4 the IS and AIS are unrelated

The text takes the following view of the relationship between an IS and an AIS:

1. the AIS is part of the IS

2 the IS is part of the AIS

3 the IS and the AIS are one in the same

4 the AIS is the primary system and the IS the subsystem

A man-made system that generally consists of an integrated set of based components and manual components established to collect, store, and manage data and to provide output information to users

3 Occupational Outlook Handbook

4 Accounting Information System

A man-made system consisting of people, equipment, organization, policies and procedures with the objective of accomplishing the work of the

Which of the following statements is true?

1. The information process facilitates operations by maintaining data such as inventory and customer data

2 The information process provides the means by which management monitors the operations process.

3 Management designs the operations and information processes

4 All of the statements are true

Which of the following statements is false?

1. Management designs the operations and information processes and

establishes these processes with people, equipment, and policies

2 Information process users include operations personnel, management, and people outside the organization

3 Operations related and accounting related processes are designed by those external to the organization

4 None of the statements are true

is (are) data presented in a form that is useful to decision makers

All of the following are components of relevance except:

The Sarbanes-Oxley Act of 2002 dramatically changed the daily work of

financial accountants and auditors because it

1. expanded the scope of the audit beyond financial information

2 required that organizations work with their auditors to design systems of internal control

3 required that external auditors report on the effectiveness of an organizationssystem of internal control

4 expanded the opportunities for auditors to engage in consulting activities with their audit clients

Internal control is a process designed to provide absolute assurance

regarding achieving objectives in which of the following?

1. efficiency and effectiveness of operations

2 reliability of reporting

3 compliance with applicable laws and regulations

4 none of the above

improves the decision maker's capacity to predict, confirm, or correct earlier expectations

1. understandability

2 predictive value and feedback value

3 neutrality

4 comparability

The information quality that enables users to identify similarities and

differences in two pieces of information is

Which of the following is NOT one of the three steps in decision making as described in the text

Which of the following statements is true?

1. With a more structured decision, there is a need for less accurate information

2 With a more structured decision, there is a need for summarized data

3 With a more structured decision, there is a need for well defined, more

accurate data

4 With a less structured decision, there is a need for well defined more accuratedata

Which of the following is an unstructured decision?

1. how much inventory to reorder

2 how fast an assembly line should operate

3 when scheduled maintenance should be performed

4 which research and development projects should be undertaken

At which level of the organization are decisions most unstructured?

1. operations and business event processing level

2 strategic management level

3 operations management level

4 tactical management level

requires information to assess the environment and to project future events and conditions

1. strategic management

2 tactical management

3 operations management

4 operations and business event processing

requires information that focuses on the day to day management of the business

The central repository for all the data related to the enterprise's business activities and resources

1. information system

2 management information system

3 enterprise database

4 strategic planning

E-business does not include

1. business processes between individuals and organizations

2 electronic networks

3 ERP systems

4 interaction between back-office and front-office processes

Enterprise systems

1. integrate back-office and front-office processes

2 can include ERP systems

3 have become fairly easy to implement

4 facilitate business processes between organizations

Which of the following statements is false?

1. Strategic planning is relatively unstructured

2 Strategic planning uses much information from outside the firm

3 Tactical management focuses on relevant operations units and uses some external information

4 Tactical management uses the most detailed and accurate information

Generally, which of the following is NOT one of the three roles an accountant typically fills in relation to the AIS?

1. what will be recorded

2 what controls are necessary

3 what reports will be produced

4 all of the above

Which of the following is an element of the operations process?

Information systems reliability and electronic commerce have been identified

by the AICPA as potential assurance services

Enterprise systems integrate an organization's business processes and

information from all of an organization's functional areas

Internal control is a process that provides complete assurance that the

organization is meeting its objectives, such as efficiency and effectiveness of operations and reliable reporting

According to the Sarbanes-Oxley Act of 2002 and PCAOB Auditing Standard

No 5, management must audit and report on auditors' assertions about the organizations' systems of internal controls

1. True

2 False

According to the Sarbanes-Oxley Act's Section 409, material changes in the organization's financial condition must be disclosed to the public on a rapid and current basis

1. True

2 False

The Sarbanes-Oxley Act's Section 404 creates changes in both how companies document and evaluate internal control and how auditors audit and report on internal control

Sales/marketing information system is traditionally part of the AIS

Information that is capable of making a difference in a decision-making

situation, by reducing uncertainty or increasing knowledge for that particular decision, has the quality of relevance

1. True

2 False

Information about a customer's credit history that is received after the

decision to grant additional credit lacks completeness

1. True

2 False

The consistency principle is violated when a firm uses straight-line

depreciation one year and changes to declining balance depreciation the next year

Strategic management requires more detailed information than operations management

1. True

2 False

The three steps in decision making take place in the sequence of (1)

intelligence (2) design (3) choice

As a designer of an AIS the accountant will test a new system's controls

4.

5 The Act of 2002 changed the daily work

of financial accountants, auditors, and others.

6.

7 A(n) is a set of independent elements that together accomplish specific objectives.

15 is a process¾effected by an entity's board of directors, management, and other

personnel¾designed to provide reasonable assurance regarding achieving objectives in the following categories: efficiency and

effectiveness of operations, reliability of reporting, and compliance with applicable laws and regulations.

16.

17 The units of the Big Four public accounting firms have accounted for a significant percentage of the firm's business and, prior to the Sarbanes-Oxley Act of 2002, were growing faster than the accounting, auditing, and tax portions of their businesses.

18.

19 To provide non-audit services the accountant will be required to have core competencies that include

"interpretation of converging information" (able to interpret and

provide a broader context using financial and nonfinancial information) and ''technology adept'' (able to use and leverage technology in ways that add value to clients, customers, and employers).

20.

21 Three of the five proposed core services of the

are assurance and information integrity, management consulting and performance measurement, and

technology services.

23 Historically, the accountant has performed a(n)

function to determine the reliability of financial information presented in printed financial statements.

24.

25 A(n) system generally consists of both computerized and manual components that operate to collect, store, and manage data and to provide output information to users.

26.

27 The is a man-made system

consisting of the people, equipment, organization, policies, and

procedures whose objective is to accomplish the work of the

organization.

28.

29 To present the results of their endeavors effectively, accountants must possess strong .

31 decisions are those for which all three decision phases (intelligence, design, and choice) are relatively routine or repetitive.

32.

33 A(n) is designed to collect,

process, and report information related to financial transactions.

39 In the management hierarchy, the level that lies between

strategic management and operations management is called

43 The quality of information

concerns the provision of information through the optimal (most productive and economical) use of resources.

47 Information that is capable of making a difference in a decision of

a user is said to possess the quality of .

48.

49 Information that is available before it loses its capacity to

influence a user's decision possesses the quality of

53 The quality of information when there is a high degree of

consensus about the information among independent measurers using the same measurement methods is referred to as

.

55 Information that is not biased is said to possess

.

56.

57 The quality of information that enables users to identify

similarities and differences in two pieces of information is referred to as .

61 Section of the Sarbanes-Oxley Act

of 2002 requires auditors to report on about the effectiveness of the organizations' systems of internal control.

63 Section of the Sarbanes-Oxley Act

of 2002 requires management to identify, document and evaluate significant internal controls.

64.

65 Section of the Sarbanes-Oxley Act

of 2002 requires disclosure to the public on a rapid and current basis of material changes in an organization's financial condition.

66.

67 The is a man-made system

consisting of the people, authority, organization, policies, and

procedures whose objective is to plan and control the operations of the organization

68.

69 is data presented in a form that is useful in a decision-making activity.

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