ACC 324 - AIS Chapter Quizzes & PPT Questions
Which of the following is a true statement? A. Organizational culture directly influences business strategy, but not AIS. B. AIS directly influences information technology, but not business strategy. C. Business strategy directly influences AIS, but not information technology. D. Information technology directly influences organizational culture, but not business strategy.
C. Business strategy directly influences AIS, but not information technology.
File-oriented approaches create problems for organizations because of A .Multiple transaction files. B. A lack of sophisticated file maintenance software. C. Multiple users. D. Multiple master files.
D. Multiple master files.
Data flow diagrams depict A .Processes, but not who is performing the processes. B. Processes, but not the data that flows between processes. C. Who is performing processes, but not how they perform the process. D. Who is performing processes, but not the data that flows between processes.
A .Processes, but not who is performing the processes.
Separating the shipping and billing functions is designed to reduce the threat of A .failure to bill customers. B. billing customers for wrong quantities. C. billing customers before merchandise has been shipped. D. shipping the wrong merchandise.
A .failure to bill customers.
Data processing includes all of the following except... A .verifying subsidiary ledger balances. B .changing customer addresses. C. removing inventory items no longer offered. D. adding the name of a new vendor.
A .verifying subsidiary ledger balances.
In a data flow diagram of the customer payment process, "Customer" will appear above or in A. A square. B. A circle. C. Two horizontal lines. D .None of the above
A. A square.
Which of the following is NOT a step in the data processing cycle? A. Data collection B. Data input C. Data storage D. Data processing
A. Data collection
The process of translating complex data analyses into more easy-to-understand terms to enable better decision making is an example of what? A. Data storytelling B. Data visualization C. Data ethicality D. Data analytics.
A. Data storytelling
Which of the following areas of financial reporting is most suitable for applying data analytics techniques? A. Evaluation of estimates and valuations. B. Variance reporting. C. Calculating the components of equity. D. Depreciation.
A. Evaluation of estimates and valuations.
The largest differences between the COSO Integrated Control (IC) framework and the COSO Enterprise Risk Management (ERM) framework is A. IC is controls-based, while the ERM is risk-based. B. IC is risk-based, while ERM is controls-based. C. IC is required, while ERM is optional. D. IC is more applicable to international accounting standards, while ERM is more applicable to generally accepted
A. IC is controls-based, while the ERM is risk-based.
Graphical representations of information are often supplemented by A. Narrative descriptions. B. Relevant e-mail communications. C. Logic charts. D. Oral descriptions from management.
A. Narrative descriptions.
Which of the following is a support activity in the value chain? A. Purchasing B. Manufacturing C. Post-sales service D. Receiving materials
A. Purchasing primary activities: 1. Inbound Logistics (receiving and storing materials) 2. Operations (manufacturing, repackaging) 3. Outbound Logistics (distribution, shipping) 4. Marketing & Sales (advertising, selling) 5. Service (repair, maintenance) support activities: 1. Firm Infrastructure 2. Human Resources 3. Technology 4. Purchasing
An ERP system might facilitate the purchase of direct materials by all of the following except ... A. Selecting the best supplier by comparing bids. B. Preparing a purchase order when inventory falls to reorder point C. Routing a purchase order to a purchasing agent for approval. D. Communicating a purchase order to a supplier.
A. Selecting the best supplier by comparing bids.
For the following question, identify which SMART objective is most likely violated. An auditor asks a client "Will you please get me the relevant data for the last year?" A. Specific B. Measurable C. Achievable D. Relevant E. Timely
A. Specific
What corporate objective is based on a company's mission statement? A. Strategic objectives. B. Operations objectives. C. Compliance objectives. D. Reporting objectives.
A. Strategic objectives.
At its core, data analytics fits into the information value chain in which of the following ways? A. The process of data analytics aims at transforming raw data into valuable information. B. Data analytics aims to make an organization's conversion process more efficient. C. Data analytics requires organizations to share synced data with upstream and downstream business partners. D. The process of data analytics is geared toward providing additional insight into customer activities and preferences.
A. The process of data analytics aims at transforming raw data into valuable information.
Flowchart symbols A. are divided into four categories. B. are unique to the organization creating the flowchart. C. are normally drawn using a flowcharting template. D. eliminate the need for narrative descriptions or explanations.
A. are divided into four categories.
The ________ is a legal contract that defines responsibility for goods that are in transit. A. bill of lading B. packing slip C. back order D. picking list
A. bill of lading
The use of a data warehouse in strategic decision making is often referred to as A. business intelligence. B. managerial accounting. C. data analysis. D. analytical modeling.
A. business intelligence.
An attribute in a table that serves as a unique identifier in another table and is used to link the two tables is a A. foreign key. B. primary key. C. relational key. D. linkage key.
A. foreign key.
If a firm does not use an ERP, the best way to mitigate the risk of the destruction of master data is to A. implement backup and disaster recovery procedures. B. use an ERP. C. proper segregation of duties. D. use multiple master data files.
A. implement backup and disaster recovery procedures.
A control procedure designed so that the employee that records cash received from customers does not also have access to the cash itself is an example of a(n) A. preventive control. B. detective control. C. corrective control D. authorization control.
A. preventive control.
A monthly statement sent to customers serves a control purpose by A. providing an opportunity for customers to verify the balance owed and activity on the account. B. triggering the process to record a customer payment. C. summarizing invoices and amounts due for customers. D. reminding customers of the balance due and due date.
A. providing an opportunity for customers to verify the balance owed and activity on the account.
Upon acquiring a new computer operating system, management at Berryhill worried that computer virus might cripple the company's operation. Management decided to install anti-virus software and to build a firewall for its operating system. Berryhill chose to ________ the risk of being crippled by computer virus. A. reduce B. share C. avoid D. accept
A. reduce
Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If information is free from error or bias and accurately represents the events or activities of the organization, it is representative of the characteristic of? A. reliability. B. understandability. C. timeliness. D. relevancy.
A. reliability. Seven general characteristics that make information useful: (1) Relevant: information needed to make a decision (e.g., the decision to extend customer credit would need relevant information on customer balance from an A/R aging report) (2) Reliable: information free from bias (3) Complete: does not omit important aspects of events or activities (4) Timely: information needs to be provided in time to make the decision 5) Understandable: information must be presented in a meaningful manner (6) Verifiable: two independent people can produce the same conclusion (7) Accessible: available when needed
Pre-numbered shipping documents and pre-numbered invoices are examples of... A. sequence codes. B. block codes. C. group codes. D. mnemonic codes.
A. sequence codes.
Regularly reviewing an accounts receivable aging report can help management do what? A. spot firms who are falling behind in their payments B. identify customers who have not purchased anything lately C. improve the speed which customers make payments D. determine whether the firm's pricing policy is effective
A. spot firms who are falling behind in their payments
The purpose of the COSO ERM framework is A. to improve the organization's risk management process. B. to improve the organization's financial reporting process. C. to improve the organization's manufacturing process. D. to improve the organization's internal audit process.
A. to improve the organization's risk management process.
Which of the following COSO objectives involves parties external to the organization? A. Strategic objectives B. Compliance objectives. C. Operation objectives. D. Reporting objectives.
B. Compliance objectives.
Identify the piece of information below that is typically needed to hire and train employees. A. vendor performance B. market coverage C. capacity needs D. job descriptions
D. job descriptions
All of the following are benefits of the database approach except A. Data integration and sharing. B. Decentralized management of data. C. Minimal data redundancy. D. Cross-functional analysis and reporting.
B. Decentralized management of data.
A BPD is a visual way of: A. Describing the systems program B. Describing the activities in a process C. Describing the internal controls of a process D. Describing the documents in a process
B. Describing the activities in a process
Which transaction cycle includes interactions between an organization and its suppliers? A. Revenue cycle B. Expenditure cycle C. Human resources/payroll cycle D. General ledger and reporting system
B. Expenditure cycle Revenue cycle: give goods / give service—get cash Expenditure cycle: get goods / get service—give cash Production cycle: give labor and give raw materials—get finished goods Payroll cycle: give cash—get labor Financing cycle: give cash—get cash
A DFD is a representation of which of the following? A. Relationship among modules, data, and programs of an AIS B. Flow of data in an organization C. Decision rules in a computer program D. Computer hardware configuration
B. Flow of data in an organization
Data differs from information in which way? A. Data are facts about a sale B. Information is data organized to provide meaning C. Data are meaningful bits of information D. There is no difference
B. Information is data organized to provide meaning
The use of data analytics will likely result in significant changes to clients' expectations of their auditors. Which of the following is most likely not one of those expected changes? A. More innovative thinking. B. More time spent gathering and testing data. C. Deeper and broader insights. D. Faster and more efficient delivery of audit findings.
B. More time spent gathering and testing data.
Recording and processing information about a transaction at the time it occurs is referred to as which of the following? A. Batch processing B. Online, real-time processing C. Captured transaction processing D. Chart of accounts processing
B. Online, real-time processing
The value chain concept is composed of the following two types of activities: A. Primary and secondary B. Primary and support C. Support and value D. Technology and support
B. Primary and support Primary activities provide direct value to the customer. Support activities enable primary activities to be efficient and effective.
Which of the following statements is not correct? A. The audit trail is intended to verify the validity and accuracy of transaction recording. B. The audit trail consists of records stored sequentially in an audit file. C .The audit trail provides the means for locating and examining source documents. D. The audit trail is created with document numbers and posting references.
B. The audit trail consists of records stored sequentially in an audit file.
Who of the following is not a stakeholder with whom an accounting information system typically communicates directly? A. Company that purchases finished goods for resale to consumers. B. The federal government. C. Company that supplies raw material. D. Venture capitalist.
B. The federal government.
In a DFD, a "bubbles" is also known as a A. Data store. B. Transformation process. C. Data flow. D. Data destination.
B. Transformation process.
Which of the following is a function of an AIS? A. Reducing the need to identify a strategy and strategic position. B. Transforming data into useful information. C. Allocating organizational resources. D. Automating all decision making.
B. Transforming data into useful information. Three important business functions of AIS: Collect and store data about organizational activities, resources, and personnel Transform data into information so management can plan, execute, control, and evaluate activities, resources, and personnel. Provide adequate controls to safeguard the organization's assets and data.
An AIS provides value by A. providing timely and reliable information to decision makers. B. both improving products or services through information that increases quality and reduces costs and providing timely and reliable information to decision makers C. creating new products. D. improving products or services through information that increases quality and reduces costs.
B. both improving products or services through information that increases quality and reduces costs and providing timely and reliable information to decision makers
Which of the following is not a general threat to the revenue cycle? A. inaccurate master data B. loss of customers C. poor performance D. unauthorized disclosure of sensitive information
B. loss of customers
Which of the following is a primary activity in the value chain? A. technology B. marketing and sales C. infrastructure D. purchasing
B. marketing and sales
A company uses the method for tracking accounts receivable where customers pay according to individual sales invoices. This describes the ________ method. A. monthly statement B. open-invoice C. balance forward D. cycle billing
B. open-invoice
Common source documents for the revenue cycle include all of the following except A .sales order B. receiving report C. delivery ticket D .credit memo
B. receiving report
Databases were originally developed to address which problem? A.to replace the double entry-system B.to address the proliferation of master files C.to increase the speed that an organization could process transactions D.to decrease the costs associated with manual accounting systems
B.to address the proliferation of master files
An ________ is an arrangement where a bank receives customer payments and transmits payment data to the organization. A. e-commerce B. electronic funds transfer (EFT) C .electronic lockbox D. electronic data interchange (EDI)
C .electronic lockbox
Which of the following is not a characteristic that makes information useful? A. It is reliable B. It is timely C. It is inexpensive D. It is relevant
C. It is inexpensive
Which of the following is not one of the skillsets often associated with data analytics? A. Mining and analyzing data. B. Creating data structures and models. C. Normalizing data structures. D. Acquiring and cleansing data.
C. Normalizing data structures.
Which of the following is a primary activity in the value chain? A. Purchasing B. Accounting C. Post-sales service D. Human resource management
C. Post-sales service primary activities: 1. Inbound Logistics (receiving and storing materials) 2. Operations (manufacturing, repackaging) 3. Outbound Logistics (distribution, shipping) 4. Marketing & Sales (advertising, selling) 5. Service (repair, maintenance) support activities: 1. Firm Infrastructure 2. Human Resources 3. Technology 4. Purchasing
If a data analyst uses machine learning to create an estimation of which suppliers are likely to be late in providing goods for a manufacturing process, what type of analytic did the data analyst create? A. Descriptive analytic B. Diagnostic analytic C. Predictive analytic D. Prescriptive analytic
C. Predictive analytic
In which cycle does a company ship goods to customers? A. Production cycle B. Financing cycle C. Revenue cycle D. Expenditure cycle
C. Revenue cycle Revenue cycle: give goods / give service—get cash Expenditure cycle: get goods / get service—give cash Production cycle: give labor and give raw materials—get finished goods Payroll cycle: give cash—get labor Financing cycle: give cash—get cash
The Data Accountability and Trust Act of 2009 (DATA) requires data owners to notify which of the following when a data breach has been discovered? A. The Federal Bureau of Investigation (FBI). B. The Securities and Exchange Commission (SEC). C. The Federal Trade Commission (FTC). D. The National Security Agency (NSA).
C. The Federal Trade Commission (FTC).
COSO requires that any internal deficiencies identified through monitoring be reported to whom? A. The external auditor. B. The company's management. C. The board of directors. D. The audit committee.
C. The board of directors.
The four Vs are considered a defining feature of big data. Which of the following is the best definition of the term big data? A. Volition, variety, veracity, & velocity. B. Variety, visibility, variety, & valuation. C. Volume, velocity, variety, & veracity. D. Volume, velocity, visibility, & veracity.
C. Volume, velocity, variety, & veracity.
The physical view of a database system refers to A. how a user or programmer conceptually organizes and understands the data. B. how the DBMS accesses data for a certain application program. C. how and where the data are physically arranged and stored. D. how master files store data values used by more than one application program.
C. how and where the data are physically arranged and stored.
A low-level view of the database that describes how the data are actually stored and accessed is the A. conceptual-level schema. B. subschema. C. internal-level schema. D. external-level schema.
C. internal-level schema
The packing slip A. lists the quantity, price, and description of each item included in the shipment. B. lists the price and description of each item included in the shipment. C. lists the quantity and description of each item included in the shipment D. lists the quantity and price of each item included in the shipment.
C. lists the quantity and description of each item included in the shipment
One activity within the value chain is research and development. This activity can be identified as a A. human resources activity. B. purchasing activity. C. technology activity. D. firm infrastructure activity.
C. technology activity.
The value of information can best be determined by...? A. its relevance to decision makers. B. its usefulness to decision makers. C. the benefits associated with obtaining the information minus the cost of producing it. D. the extent to which it optimizes the value chain.
C. the benefits associated with obtaining the information minus the cost of producing it.
Which of the following statements is FALSE? A. A flowchart is an analytical technique used to describe some aspect of an information system in a clear, concise, and logical manner. B. Flowcharts use a standard set of symbols to describe pictorially the flow of documents and data through a system. C. Flowcharts are easy to prepare and revise when the designer utilizes a flowcharting software package. D. A system flowchart is a narrative representation to identify system weaknesses.
D. A system flowchart is a narrative representation to identify system weaknesses.
Which of the following statements is TRUE? A. An internal environment consists of an organizational structure. B. Control activities are a component of COSO ERM. C. The Sarbanes-Oxley Act requires all public companies to have an audit committee. D. All of the above are true.
D. All of the above are true.
Which of the following is a set of standards created by the AICPA for data files and fields in order to support external audits? A. Extract, Transform & Load (ETL). B. Online Analytical Processing (OLAP). C. Audit Control Language (ACL). D. Audit Data Standards (ADS).
D. Audit Data Standards (ADS).
Which of the following is not considered the Internal Environment in COSO-ERM? A. External influences. B .Management's risk appetite. C. Ethical Values. D. Compliance with the SEC.
D. Compliance with the SEC.
When the human resources manager wants to build a data dictionary, the manager would use which language? A. Data Manipulation Language B. Data Query Language C. Data Report Language D. Data Definition Language
D. Data Definition Language
The principle of obtaining or generating relevant, high-quality information to support internal control belongs to which of the COSO ERM component? A. Control environment. B. Risk assessment. C. Control activities. D. Information and communication.
D. Information and communication.
Which of the following statements below shows the contrast between data and information? A. Data and information are the same. B. Data is more useful in decision making than information. C. Data is the primary output of an accounting information system. D. Information is the primary output of an accounting information system.
D. Information is the primary output of an accounting information system.
Which of the following is NOT an advantage of an ERP system? A. Better access control B. Standardization of procedures and reports C. Improved monitoring capabilities D. Simplicity and reduced costs
D. Simplicity and reduced costs
Transaction cycles can be summarized on a high level as "give-get" transactions. An example of "give-get" in the revenue cycle would be... A. give cash, get goods. B. give cash, get cash. C. give cash, get labor. D. give goods, get cash.
D. give goods, get cash.
How does the chart of accounts list general ledger accounts? A. Alphabetical order B. Chronological order C. Size order D. The order in which they appear in financial statements
D. The order in which they appear in financial statements
A clerk at a grocery store scanned the bar code for a low-cost bag of frozen chicken wings then gave his friend an expensive brand-name bag of frozen chicken wings. Which of the following controls would best prevent the clerk from getting away with doing this? A. Physical inventory count. B. Segregation of duties. C. Limited physical access to bar codes. D. Use of RFID tags.
D. Use of RFID tags.
An AIS provides value by: A. improving products or services through information that increases quality and reduces costs B. providing timely and reliable information to decision makers C .creating new products D. both A and B
D. both A and B Improving products or services through information that increases quality and reduces costs & providing timely and reliable information to decision makers. A well thought out AIS can add value by: Improving the quality and reducing the costs of products or services Improving efficiency Sharing knowledge Improving efficiency and effectiveness of its supply chain Improving the internal control structure Improving decision making
What acts as an interface between the database and the various application programs? A. data warehouse B. database administrator C. database system D. database management system
D. database management system
The database design method in which a designer uses knowledge about business processes to create a diagram of the elements to be included in the database is called A. normalization. B. decentralization. C. geometric data modeling. D. semantic data modeling.
D. semantic data modeling.
The general ledger... A. summarizes the information on the trial balance. B.is posted in total to the general journal. C. only includes balance sheet accounts. D. summarizes the transactions in journals.
D. summarizes the transactions in journals.