ACC 535 Midterm

A system can be further divided into

subsystems

A set of interdependent elements that together accomplish specific objectives is a

system

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

IS and AIS are one in the same

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

Information system

Which of the following is usually not part of an ERP's core applications?

Legacy systems

The general term for software that connects third-party modules to ERP systems is known as:

Middleware

Internal control is a process designed to provide absolute assurance regarding achieving objectives in which of the following?

None of the above

The ____ suggests that technology improves information available for decision making.

Occupational Outlook Handbook

Regarding management problem structure and information requirements, which of the following represents the vertical information flows from lowest to highest?

Operations and business event processing, operations management, tactical management, strategic management

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

Operations management

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

Operations process

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

Predictive value and feedback value

The most dominant player in the ERP market for large companies is:

SAP

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

information

A system that consists of an integrated set of computer-based and manual components established to collect, store, and manage data and to provide output information to users is a(n)

information system

The sequence of components in the functional model of an information system is

input, processing, output, users

Efficiency and effectiveness of operations are goals of:

internal control

The Sarbanes-Oxley Act of 2002 dramatically changed the daily work of financial accountants and auditors because

it required that external auditors report on the effectiveness of an organization's system of internal controls

A man-made system consisting of people, authority, organization, policies and procedures whose objective is to accomplish the work of planning and controlling the operations of the organization.

management process

Decision-making is an activity of the

management process

An information system:

may consist of both computer-based and manual components

Accounting is an activity of the

operations process

The three logical components of a business process include all of the following except:

organization process

Which of the following is one of the three most prominent management activities?

planning

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

production

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

programmer

What is the correct sequence of the order-to-cash process?

responding to customer inquiries; sales order processing; pick and pack; shipping; billing; payment

The three themes of the text book include all of the following except:

risk assessment

____ are facts and figures in raw form.

data

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.

false

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

false

As a user of an AIS an accountant must know how systems are developed.

false

E-business is the application of electronic networks to undertake business processes among the functional areas in an organization.

false

In an assurance service the accountant will provide the original information used for decision making.

false

Information about a customer's credit history that is received after the decision to grant additional credit lacks completeness.

false

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.

false

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

false

Strategic management requires more detailed information than operations management.

false

Tactical management uses the most detailed and accurate information.

false

The MIS is a subsystem of the AIS.

false

The Sarbanes Oxley Act of 2002 applies to publicly traded companies and not-for-profit entities.

false

The management process includes marketing and sales.

false

The most important information for tactical management involves information about the organization's environment.

false

The three themes of the text are operating systems, e-business, and internal control.

false

To be reliable information must be relevant.

false

With a best-of-breed approach an organization can minimize the number of different software modules employed to implement an enterprise system.

false

All of the following are components of reliability except:

feedback value

E-business does not include

ERP systems

Enterprise systems can include

ERP systems

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

AIS is part of the IS

Which of the following questions might the accountant answer in the design of the AIS?

All the above

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

Enterprise database

DreamWeaver is a Web services platform from SAP that can be used to build applications that integrate business processes and databases from a number of sources within and between organizations.

False

ERP systems have proved to be quite easy to install and in short periods of time.

False

In a disaggregated information system, the customer will be notified immediately whether the item is on the shelf and not committed to another customer.

False

The order-to-cash process includes events surrounding the purchase of goods from a vendor, the recognition of those costs, and the payment to the vendor.

False

The value chain is a chain of activities performed by the organization to transform outputs into inputs valued by the customer.

False

Which of the following tracks a product from design, continuing through manufacture, and culminating with the disposal of the product at the end of its life?

Product life cycle management (PLM)

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

Strategic management

At which level of the organization are decisions most unstructured?

Strategic management level

helps plan & execute demand planning; acquiring inventory; and manufacturing, distributing and selling a product

Supply chain management (SCM) software

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.

True

An enterprise systems centralized database can make data, such as inventory data, visible throughout the organization.

True

In event driven architecture (EDA) the business unit "pushes" the event to the recipient rather than waiting for the recipient to request or "pull", the event.

True

Product life-cycle management (PLM) software manages product data from design through manufacture, and disposal.

True

Segregation of duties includes separating the sales and credit departments.

True

The activities in the value chain, the value activities, are business processes that convert inputs to valued outputs.

True

Which statement about ERP installation is least accurate?

When a business is diversified, little is gained from ERP installation.

The four Ws of capturing data do not include:

Why

The correspondence or agreement between the information and the actual events or objects that the information represents is known as

accuracy

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

action

Some third-party modules can extract data from:

all the above

A primary reason that the FASB requires that GAAP be consistently applied from one period to the next is

comparability

The information quality that enables users to identify similarities and differences in two pieces of information is

comparability

The degree to which information includes data about every relevant object or event necessary to make a decision is

completeness

The ___ is violated when a firm uses straight-line depreciation one year and changes to declining balance depreciation the next year.

consistency principle

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

consulting

If information arrives too late to impact a decision, then there is a problem with

timeliness

According to the Sarbanes-Oxley Act of 2002, management must identify, document, and evaluate significant internal controls.

true

Accuracy is the correspondence or agreement between the information and the actual events or objects that the information represents.

true

An information system consists of an integrated set of computer-based and manual components established to provide information to users.

true

Billing/accounts receivable is traditionally part of the AIS.

true

Deciding how much credit to grant to a customer is a structured decision.

true

Enterprise systems integrate an organization's business processes and information from all of an organization's functional areas.

true

Historically the purpose of an accounting information system is to collect, process, and report financial aspects of business events.

true

Information systems reliability and electronic commerce have been identified by the AICPA as potential assurance services.

true

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.

true

Operations management requires information that is more accurate and timely than strategic management.

true

Production and personnel are part of the operations process.

true

Sarbanes-Oxley Section 404 compliance is a major line of business for the biggest accounting firms.

true

Strategic managers use more information from outside the organization than do operations managers.

true

The Sarbanes-Oxley Act of 2002 has dramatically changed the daily work of financial accountants and auditors.

true

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.

true

The role of the accountant has evolved to include non-financial information and information technology.

true

The three steps in decision making take place in the sequence of (1) intelligence (2) design (3) choice.

true

What controls will be necessary is a question that an accountant answers in the design of the AIS.

true

With a more structured decision, there is a need for well defined, more accurate data.

true

All of the following are components of relevance except:

verifiability

The ability of more than one individual to come to the same measurement is known as

verifiability

Which of the following is an unstructured decision?

which research and development projects should be undertaken