AIS Chapter 2

Which of the following symbols represent activities In BPMN?

(rounded) Rectangles

Which of the following is NOT a skill area in the IMA Management Accounting Competency Framework?

***People skills*** Strategic management Leadership Technology and analytics Reporting and control

Which of the following is not one of the sets of skills in the CGMA Competency Framework?

***Reporting and control***Reason: This is an IMA Competency Framework category not the CGMA Framework. Leadership skills Business skills Technical skills People skills

Documentation includes all of the following except:

***financial reports.*** training manuals. organization charts. business process models.

To be valuable business partners, accountants must understand financial reporting and additionally they must understand: (Select all that apply).

***how the accounting system collects business process information.*** ***risks that the business faces.*** how leadership affects morale of the employees. ***how the accounting system summarizes business process information.***

Documentation facilitates process improvement by:

- Effectiveness - are the outputs obtained as expected? - Efficiency - can outputs be produced with fewer inputs? - Internal control - are controls working? - Compliance - does the process comply with constantly changing local, state, federal, and international laws and regulations?

Examples of Activity models

- Flowcharts - Data Flow diagrams - Business process maps - IDEF0 Function Models - Business Process Model and Notation (BPMN)

Activity Models

- Used to analyze business processes and design changes for over 100 years - Describe the sequence of workflow in a business process or processes - Represent the sequential flow and control logic of a set of related activities - Tools for planning, documenting, discussing, and implementing systems

"good" BPMN models are:

- correct - clear - complete - consistent

Sarbanes-Oxley Act of 2002

- made documentation essential for businesses - requires managers to assess and attest to the business's internal control structure and procedures - requires external auditors to audit management's assessment of the effectiveness of internal controls and express an opinion on the company's internal control over financial reporting.

Traits for an effective Activity Model

1. Events that start, change, or stop flow in the process 2. Activities and tasks within the process 3. The sequence of flow between tasks 4. Decision points that affect the flow 5. Division of activity depending on organizational roles

The Institute of Management Accounting Competency Framework defines _____________ areas of skills that accounting professionals need to remain relevant.

6

The Institute of Management Accounting Competency Framework defines how many areas of skills that accounting professionals need to remain relevant in a digital age?

6

Which of these describes the BPMN symbol that should replace block 12 above to end the process?

A circle with a thick solid perimeter

Which BPMN symbol should replace block 1 above to start the process?

A circle with a thin solid perimeter

Which of the following best describes the value of business models?

A communication tool A planning tool A process improvement tool A tool for managing complexity ***All of the choices***

After number 5, the process branches to process the type of payment. Which of the following BPMN symbols should then replace block 6 in the process?

A diamond

The name for the symbol that you selected to replace block 6 in the process is which of the following?

A gateway

Which of the following best describes an inclusive gateway?

A gateway with one or more exit paths per instance of a process

Which of the following best describes an exclusive gateway?

A gateway with only one exit path per instance of a process

Which BPMN symbol should replace block 2 above in the process?

A rectangle with rounded corners

The name for the symbol that you selected to replace block 1 in the process is which of the following?

A start event

Which of the following is true about start events?

A start event can catch a message.

Assume that blocks 7, 8, and 9 represent 3 options for processing payments. After that branching, the process then merges again in block 10. Which of the following is the name of the BPMN symbol that should replace block 10?

A task

The name for the symbol that you selected to replace block 2 is which of the following?

A task or activity

Which of the following is the best label to replace the number 5?

Accept payment

Which of the following is used to represent a looping task?

Add a circular arrow to the symbol

Which of the following is the name of the BPMN symbol that should replace block 12?

An end event

Which of the following is true about end events?

An end event can throw a message.

Which of the following statements about BPMN is not true?

Arrows represent sequence flows. The BPMN specification is maintained by the Object Management Group (OMG). Events are modeled with a circle symbol. Annotations allow the modeler to add descriptive text. ***All of the choices are true.***

Which of the following are true with respect to data associations?

Both "It is modeled as a dotted arrow" and "The association arrowhead shows the direction of data flow." are true.

Which of the following is true about intermediate timer events?

Both "The process delays until a specific date or time" and "The process delays for a specific period of time, e.g., 1 day." are true.

Which of the following describes how participants in a process are identified in BPMN?

Both Swimlanes and Pools

Examples of Documentation

Business model processes Business rules User manuals training manuals Product Specifications Software manuals Schedules Organization charts Strategic plans

Which of the following is not an example of business process documentation?

Business process models Training manuals Organization charts ***Internal audit*** All of the choices are examples of business process documentation

Which of the following is NOT an appropriate name for a task?

Class is attend

Assume that the Starbucks barista performs multiple preparation tasks to prepare the order. Which of the following diagrams best shows the looping task? (Select each link to view the diagram choices and select the appropriate answer using the corresponding buttons below.)

DIAGRAM 2

Which of the following is the best label to replace the number 4?

Deliver order

Documentation supports the following:

Employee training Internal and external audit requirements Accountability Standardized communication within the enterprise Standardized communication between the enterprise and its customers, suppliers, and other stakeholders

Which of the following is not a purpose of business process documentation?

Facilitating process improvement Specifying accountability Training Supporting internal audit ***All of the choices are purposes of business process documentation***

True or false: Sequence flows are used between pools, and messsage flows are used within pools.

False

True or false: an end event can connect to another end event with a sequence flow.

False

True or false: BPMN does not allow the use of task types.

False.

True or false: Branching gateways reflect decisions.

False. Reason: Gateways direct flow but are not decisions.

True or false: BPMN allows flow objects to be characterized by type by including a type icon next to the flow object.

False. Reason: The type icon is placed in the flow object not next to the flow object.

True or false: Documentation facilitates process improvement because it establishes how a process can be performed with fewer inputs and resources

False. Reason: Although it supports process review, documentation does not show how a process can be performed with fewer inputs and resources; it just shows what should be done.

True or false: To show the sequence flow between pools, use a message flow.

False. Reason: Sequences are within pools and do not span multiple pools. A message flows are between pools.

True or false: An intermediate throwing message event is modeled with a white envelope icon.

False. Reason: The white icon is for catching

True or false: In BPMN, there are three types of events: start, intermittent, and end events.

False. Reason: intermediate not intermittent

True or false: Raising capital is an activity in the Accounting/Finance Operations role of accountants.

False. Reason: It is a function in the Stewardship and Reporting role not the Accounting/Finance operations role.

True or false: Rapid changes in the global marketplace that affect the accounting profession have resulted in a focus on accountings' stewardship and reporting functions.

False. The changes primarily affect the business management support role.

Which of the following is not a role of the accounting function in business?

Financial close Regulatory compliance Project management Using IT to make finance and accounting processes more efficient ***All of the choices are roles of the accounting function***

Which of the following is NOT allowed for connecting symbols with message flows.

From activity to end message event

Which of the following best describes the purpose of an intermediate error event?

Indicates alternate process flow when errors occur

Which of the following are NOT valid event types?

Intermediate sequence event

Which of the following is a stewardship and reporting role for the accounting/finance function?

Investment appraisal Planning and budgeting ***Regulatory compliance*** Financial consolidation and reporting Cost management

Which of the following best describes an intermediate error event?

It is a boundary event attached to the boundary of an activity. It indicates that alternate sequence flow begins with occurrence of an error. It is modeled with a leaning Z or flash sign. ***All of the choices describe intermediate error events.*** None of the choices describe intermediate error events.

Which of the following best describes a data object?

It is modeled with a document icon. It represents data that is only available for the duration of the process. It is linked to tasks with data associations. It is different from a datastore. ***All of the choices describe data objects.***

Which of the following is NOT true about looping tasks?

Looping tasks are indicated with an L icon

Which of the following best describes message flows?

Message flows represent exchanges between pools.

Which of the following is the best label to replace the number 6?

None of the choices are correct.

The organization that maintains the specification for BPMN (business process modeling notation) is the __________ Management Group (OMG).

Object

Which of the following is NOT an appropriate name for a task?

Order is denied

Which of the following is a business management support of the accounting/finance function?

People management Tax return preparation Financial consolidation and reporting Processing payroll ***Performance measurement, reporting and analysis***

Which of the following is NOT a type of BPMN activity?

Pool

Which of the following is the best label to replace the number 3?

Prepare order

Which of the following is the best label to replace the number 11?

Provide receipt

Which of the following is the best label or name to replace the number 2?

Receive order

Which of the following is included in Accountants' Stewardship and Reporting role?

Risk Assessment Managing accounting staff ***Statutory Reporting*** Providing Management Information ***Investor Relations***

Which of the following statements about sequence flows is not true?

Sequence flows are continuous from the start event through activities and gateways, if any, to an end event in a pool. Sequence flows may not cross pool boundaries. <wrong answer Sequence flows may not cross lane boundaries. Tokens move along sequence flows. None of the choices. <wrong answer NO IDEA! GRRR

Which of the following is true about sequence flows?

Sequence flows do not span multiple pools.

Start events do NOT connect to which of the following symbols with sequence flows.

Start events Reason: There is only one start event in a pool, so a start event would not connect to another start event with a sequence flow.

Which of the following is NOT a common gateway type?

Terminate

Which of the following is the best description of an end message event.

The external agent (pool) is notified when the process ends.

Which of the following situations would NOT be a good use of a start timer event?

The process starts when the customer submits an order.

Which of the following best describes a looping task?

The task repeats until a condition is satisfied.

Which of the following is not true about the token concept?

The token concept is a theoretical concept that describes process flow. The start event generates a token. The end event consumes the token. Tokens do not traverse message flows. ***All of the choices are true.***

Which of the following describe characteristics of good BPMN models?

They are clear. They are complete. They are consistent. They are correct. ***All of the choices***

Which of the following is NOT true about start message events?

They can send a message

Which of the following is the best description on an association?

They connect data objects to activities

Which of the following is true with respect to branching gateways?

They direct flow based on the answer to a question.

Which of the following is NOT true about intermediate catching and throwing events?

They would not connect to message flows

Which of the following is not a flow object?

Timer events Message flows Gateways? Activities <---wrong answer Message events <--- wrong answer

True or False: A best practice to enhance the use of models to describe important steps in a business process is that sequence flows should be used within pools, but not between pools.

True

True or false: An opaque pool is one that is drawn with no events or tasks.

True

True or false: Send and receive tasks to forward work are not necessary, since the sending and receiving is indicated by the sequence flow.

True

True or false: looping tasks repeat until a condition is satisfied.

True

True or false: Associations use arrowheads to show the direction of dataflow.

True.

True or false: Intermediate timer events can indicate a delay until the end of the month.

True.

True or false: Parallel branching gateways generate one token for each exiting path.

True.

True or false: A sequence flow can only connect to flow objects.

True. Reason: Sequence flows only connect to flow objects.

True or false: Management must maintain evidential matter, including documentation, to provide reasonable support that it has established adequate internal control structures and procedures.

True. Reason: Documentation supports the existence of internal controls.

Which of the following is NOT a characteristic of a good BPMN model?

Uses professional modeling software

In which of the following situations describing making travel reservations would an exclusive gateway be the best option?

You plan travel either by air or rail but not both.

Business Process

a defined sequence of business activities that use resources to transform specific inputs into specific outputs to achieve a business goal

In BPMN, the organization is identified by

a pool.

Business Model

a simple abstract representation of one or more business processes

The accounting/finance operations role includes financial close - completing period-end___________________.

accounts

Depending on the diagram's level of detail, _____ represent processes, subprocesses or tasks.

activities

Specific steps in the business process are called:

activities

Sequence flow is represented by an

arrow

In BPMN, sequence flows are modeled using

arrows

Sequence flows are represented by ____ to indicate progression of activity within the process.

arrows

Business models allow managers to do which of the following:

assess the need for change manage complexity

Intermediate error events are ____________ events to indicate alternate process flow when an error occurs in an activity.

boundary

The roles of the accounting/finance function include stewardship and reporting, accounting operation, and _______________ management support.

business

Consider the same narrative as described in the beginning. Add an intermediate error event to account for the possibility that the coffee the customer ordered is brewing and will not be ready for 5 minutes. When that happens, the Starbucks barista asks the customer if he/she wants to wait or wants another coffee. c1. Which of the following is used to represent an intermediate error event? c2.Which of the following partial diagrams best models the described features? (Select each link to view the diagram choices and select the appropriate answer using the corresponding buttons below.)

c1: Place the intermediate error symbol on the perimeter of the task c2: Diagram 4

Which of the following is considered a best practice in BPMN modeling? (Check all that apply).

clearly identify start events avoid distracting detail continuous flow from start to end events

A graphical representation presents information more __________ than a written description.

concisely

Similar to sequence flows in BPMN, message flows are modeled as arrows, but message flows are __________ arrows.

dashed or dotted

In BPMN the two elements used to model ___________ are the data object and the datastore.

data

Gateways show process branching and merging as the result of _____.

decisions

Intermediate timer events indicate a ____________ in the process flow for a specific amount of time.

delay

Accountants have four roles with respect to technology: users, managers, ____________ , and evaluators.

designers

In BPMN, gateways are represented by a:

diamond

Gateways control the branching and merging of the process flow and are represented with __________.

diamonds

In BPMN, which of the following symbols represent gateways:

diamonds

An expanded subprocess _____ the subprocess in the current process.

embeds

Message flows can connect from pools to almost all symbols except ____________ message events.

end

The CGMA Competency Framework describes four broad sets of skills anchored by a commitment to ____________, integrity, and professionalism.

ethics

Business Analysis

the process of defining business process requirements and evaluating potential improvements

Documentation

explains how business processes and business systems work; a tool for information transmission and communication

Documentation is important to businesses for all of the following reasons except:

facilitating tax reporting

True or false: Message flows are show as solid arrows connecting two pools.

false

The CGMA Competency Framework classifies skills into __________ important sets.

four

The IMA Management Accounting Competency Framework states that accountants must be able to develop financial plans consistent with the organization's strategic________.

goals

In BPMN, organizations are modeled as pools and departments within organizations are modeled as ____________ within a pool.

lanes or swimlanes

BPMN models should describe the ____________ of a business process unambiguously.

logic

A ____________ task repeats until a condition is satisfied.

looping

In BPMN, gateways show branching and ___________ as the result of decisions.

merging

In BPMN, the interaction between two pools is modeled as a __________ flow.

message

Events include all of the following except

middle.

Business _____ allow the depiction of important features of business processes clearly and concisely.

models

Documentation includes business process __________, business rules, user manuals, training manuals, and the like.

models

BPMN allows flow ____________ to be characterized by type.

object or objects

Assume that there are three sequence flows (paths) leaving an exclusive branching gateway. The token will proceed from that gateway on only ____________ path.

one or 1

An external pool can be __________ in order to focus on message flows between the pools.

opaque or opaqued

A ____________ multi-instance task is performed several times simultaneously.

parallel

Pools represent ____________ in a process.

participants, participation, or organizations

Which of the following is NOT a flow object?

pool

Which of the following is NOT a role of accountants with respect to technology?

programmers

In BPMN, a sequence flow indicates the ____________ of activity in a business process.

progression or flow or sequence, or progress

BPMN allows task types such as tasks (activities) that send or ____________ messages.

receive or catch

Looping tasks ____________ until a specified condition is satisfied.

repeat

End message events can ____________ messages when the process ends.

send or throw

Modelers do not need to use tasks with titles like send work or receive work, since the ____________ flow implies that the work is forwarded or received.

sequence

In BPMN, arrows represent:

sequence flows

A ___________ multi-instance task is performed several times sequentially.

sequential

A(n) ____________ message event is used to begin a process based on an incoming message.

start

In BPMN, activities represent specific ________ in the business process.

steps or tasks

An expanded ____________ embeds the subprocess, with the contents of the subprocess visible, in the current process.

subprocess

Activities can depict tasks, processes, or ____________

subprocesses

Business models create value in all of the following ways except:

supporting processes

An intermediate ___________ event indicates a delay in the process for a specific period of time.

timer

Start ___________ events begin processes at prescribed times.

timer

Documentation is important to auditors since it provides audit __________.

trails

Documentation is important to businesses for all of the following reasons except:

training ***facilitating tax reporting*** facilitating process improvement describing current processes standardized interactions

To be valuable business partners, accountants must first ____________ the business.

understand