Accounting Information Systems Chapter 1
What is the IT strategic role that replaces human labor with technology?
Automate
What would be the most appropriate designation for a professional who serves as an IT auditor?
Certified Information Systems Auditor (CISA)
What would be an appropriate designation for a CPA with a broad range of technology knowledge and experience?
Certified Information Technology Professional (CITP)
Which information system is most likely to impact the total revenue line item for a company?
Customer Relationship Management
In the information value chain presented in the book, what precedes the receipt of information?
Data
True or false: Data that simply collects the characteristics of different transactions has great value to an organization.
False
True or false: Management is required to produce discretionary information due to regulatory requirements.
False
True or false: Too much information is not possible.
False
_____ would generally be considered the first primary activity in the value chain.
Inbound logistics
What is the IT strategic role that uses technology to provide information about business activities to senior management or to employees across the firm?
Informate
What is the IT strategic role that uses technology to provide information to the line (entry-level) worker?
Informate-down
What is the IT strategic role that uses technology to provide information to senior management?
Informate-up
______ is the difficulty a person faces in understanding a problem and making a decision when faced with too much information.
Information overload
What is a primary activity of the value chain?
Outbound logistics
What is a supporting activity of the value chain?
Procurement
What process refers to the flow of materials, information, payments and services from raw materials suppliers to the final customer?
Supply chain
What is a support activity of the value chain?
Technology
What is the IT strategic role that fundamentally redefines business process and relationships through the use of technology?
Transform
Discretionary information should only be produced if the costs _________________________.
are less than the benefits of using that information
Raw facts that describe the basic characteristics of an event would be defined as _________.
data
Accountants serving in a _______ capacity must have significant practical exposure to the key phases of systems analysis and design, including preparation of the feasibility analysis and data file design and documentation.
designer
As business analysts and information providers, accountants understand what data is needed to solve a problem and are, thus, in a unique position to serve as a __________ of accounting information systems.
designer
Activity-based costing would be an example of ____________.
discretionary information
When auditors assess the internal controls in an AIS as part of the Sarbanes-Oxley Act, they are serving in their role as a(n) __________ of the system.
evaluator
Information that is not designed to lead users to accept or reject any specific decision would be an attribute of __________.
faithful representation
Accountants are _____ of accounting information systems when they plan, coordinate, organize, staff, direct and lead those information systems.
manager
The four roles of accountants with respect to accounting information systems include user, designer, evaluator and _____.
manager
An accounting information system is defined as a system that _____.
records, processes, summarizes and reports on business transactions
Information which helps users evaluate how past decisions actually worked would be an attribute of __________.
relevant information
Information which helps users predict what will happen in the future would be an attribute of __________.
relevant information
Recorded transactions that are saved in the cloud would be an example of a(n) ____________ activity in an information system.
storage
An attribute of relevant information is: the information is _________.
timely
An accounting information system is defined as a system that records, processes and reports on business (decisions/transactions).
transactions
When a product passes through value-enhancing activities, the process is called the _______________.
value chain
Which software manages sales and market for current sales and customer service?
Customer Relationship Management Software
_____ manages the interaction between the company and its customer, from initial lead to customer service after the sale.
Customer Relationship Management Software
Accountants gather information relevant in solving business problems, create or extract that information, and then ______ the information to solve the problem.
analyze
As part of the faithful representation attribute of useful information, the information that contains all monetary transactions and doesn't miss any would be _____.
complete
An attribute of faithful representation is the information is ______________.
free from error
A corporate tax return would be considered to be ______________.
mandatory information
Information produced for investors, banks, the SEC and the IRS would be considered ______________.
mandatory information
To have faithful representation, the attributes of AIS information should be complete, ______, and free from error.
neutral
Attributes of faithful representation include complete, free from error and ____________.
neutrality
A monthly sales report produced by an information system would be an example of a(n) ____________ activity.
output
An attribute of relevant information is: the information provides _________.
predictive value
Information is defined as data organized in a meaningful way to be useful to the __________.
user
When accountants input journal entries or calculate the cost of a product input, the accountants' role in an accounting information system is that of a _____.
user
True or false: Supply chain is the term used to describe a firm's interactions with its current and potential clients.
False
True or false: To produce data, information is often processed and then combined with the appropriate context.
False
In the information value chain presented in the book, what precedes the collection of data?
Business event
The International Federation of Accountants suggests that accounting can hardly be viewed separately from which field?
Information Technology
Which information system is most likely to impact the total cost of goods sold line item?
Supply chain management software
To be useful to decision makers, information from an AIS must be both relevant and __________.
be a faithful representation
Managerial accounting information is generally produced for internal information purposes and would be considered to be ____________.
discretionary information
Accounting Information Systems include _________________.
either manual or computerized systems
A(n) _________ system is a centralized database that collects data from throughout the firm.
enterprise
A(n) _________ system serves as a central depository for information from orders, customers, sales, inventory, and employees.
enterprise
An IT auditor serves as a(n) ____________ of the accounting information system.
evaluator
External auditors accessing their client's accounting information system would be serving the accountant's role in an accounting information system of a(n) _____.
evaluator
Neutrality, or information without bias, would be considered a component of ________, which are critical for providing useful accounting information.
faithful representation