ACC 350 Midterm
What is true of value chains
They consist of activities performed by the organization to transform inputs into outputs valued by the customer.
________ is a special code or password that enables programmers to bypass the security features of the program to access the program.
Back door
Which of the following entities would be considered external to a process in a data flow diagram of a cash receipts process?
Both banks and customers are external entities
Organizational governance is
A process by which organizations select objectives, establish processes to achieve objectives, and monitor performance
if information has reliability, then it is
regarded as true and credible
Which of the following objectives addresses reliability of reporting
reporting
Add-on modules that complement the core elements of an ERP system do not include:
vendor relationship software (VRM)
Which of the following is not a control goal of information processes?
Ensure security of resources
Describe the basic differences between ES and NN
NNs develop their own knowledge base and continue to learn
Which software automates sales tasks such as order processing and inventory monitoring?
Sales force automation (SFA) software
Which software helps enable the steps in an organization's supply chain?
Supply chain management (SCM) software
The advantage of a logical DFD is that the focus is on
The activities that a system performs
What is the purpose of a systems flowchart?
The purpose of the systems flowchart is to give the reader a complete picture of a system by combining the physical and logical aspects
_________ is a module of unauthorized computer code which is covertly placed in a seemingly harmless program.
Trojan horse
What are the limitations of the centralized database approach to business information systems?
b. Companies that have adopted the centralized database approach have found it necessary to create a database administrator function
When is a set of DFDs balanced?
When two DFDs have equivalent external data flows, the DFDs are balanced
In a DFD the customer would be represented by
a square
The following are included in the 10 elements are included in the study of AI
a. Communications, accounting and auditing principles b. Business operations, events processing, management decision making, systems development and operation c. Technology, databases, reporting, control
How are the applications approach and the centralized database approach to business event processing different?
a. Ease of data maintenance compared to the applications approach b. Powerful features that protect the database from unauthorized users compared to the applications approach c. Decreased need for continuous data protection compared to the applications approach
A knowledge base
a. Generally contains proprietary information b. Is a collection of a company's files and documents c. Is analogous to a database
Data redundancy
a. Is a problem that can be solved when using the centralized database approach b. Is a major issue with the applications approach c. Can cause conditions which violate data integrity
Steps in the purchase-to-pay process include:
a. Requirements determination b. Payment processing c. Purchase order processing
If the customer service process were integrated:
a. The system automatically determines the price and the customer's creditworthiness b. The enterprise system establishes the ATP date by determining whether the item is available in warehouses, scheduled to be manufactured and when it will be available. c. Inpu
Why do we need to document an information system?
a. To evaluate the structure of the company's internal controls b. To understand and improve the system c. To comply with regulatory requirements
Explain when a database designer might use a relationship table in constructing a relational database.
a. To link two relational tables in a M:N relationship
Supporting activity in the value chain
accounting
each of the following is one of the themes for this text except
assurance services
which roles can an accountant assume in the ais?
auditor, designer, user
Elements common to definitions of internal control include all of the following, except:
automation of business processes
What are the guidelines for grouping logical activities for a logical DFD?
b. Group activities if they occur at the same time but at different places c. Group activities if they occur in the same place and at the same time d. Group activities that seem to be logically related
Intelligent Agents
b. Perform their tasks without further direction from the user c. Are sometimes called "bots" d. Are frequently used by search engine
How will systems documentation differ between business processes that employ an enterprise system and those that do not?
b. The context diagram and the logical DFD would not change c. There might be replacement of paper reports d. The data stores would be replaced by one data store labeled "Enterprise database"
What is the purpose of a table of entities and activities?
b. The table summarizes the narrative so that entities (nouns) and activities (verbs) found in a narrative are clearly identified
It is important to capture the who, what, where, and when in describing business events because:
b. This information can supplement accounting information and can assist managers in their decision making.
the info system is important to the success of the organization by
facilitating operations processes and providing info for the organization's management
4 main elements in a relational database
forms tables queries reports
coding schemes on relational databases do not include
normalized coding
Which of the following objectives addresses management's effective and efficient use of resources?
operations
The ERM framework addresses which of the following categories of management objectives?
operations reporting strategic
_____ require info that is an aggregate of data related to several business events
operations managers
the ____ is a system consisting of the people, equipment, organization, policies, and procedures whose objective is to accomplish the work of the organization
operations process
___ ______is a process by which organizations select objectives, establish processes to achieve objectives, and monitor performance.
organizational governance
Two types of activities in the value chain are known as
primary and supporting
Which of the following is a primary activity in the value chain?
production
A _____ is a graphical representation of a business process
systems flowchart
_____ require info that is summarized, broader in scope, and need not be accurate
tactical manegement
Which of the following SAP modules is used to automate the order-to-cash process?
Sales and Distribution
a Process designed to provide confidence that the organization is achieving its objectives
internal control
The systems flowchart combines which aspects
the physical and logical
ESSAY: What is an AIS? Differences between an AIS and Enterprise.
- A specialized subsystem of the IS that collects, processes, and reports information related to the financial aspects of business events. - an AIS is a subsystem of Enterprise -Enterprise is entire thing combined
ESSAY: Explain Moore's law and its impact on accountants.
-Every 2 years, technology's power doubles -software is constantly becoming old/obsolete -must update frequently and adapt to the changes
Which of following activities are not considered on a level 0 DFD depicting a particular grouping of the logical activities?
-actions that merely send or receive data rather than transform data -actions performed in other than normal situations -activities performed by the operations process
A data flow diagram consists of which of the following symbols
-bubble -data flow symbol -data store symbol
An enterprise system can support the functioning of an organization's processes by enhancing all of the following except:
-communication w the org -systems integration -automation of business processes
ESSAY: Why was SOX passed? Identify 5 impacts
-created as a response to fraud scandals in early 2000s -created PCAOB -strengthened auditor independence rules -increased accountability of company officers and directors -mandated upper management to take responsibility for company's internal control structure -enhanced quality of financial reporting -increased white collar crime penalties
in entity-relationship modeling the designer
-draws a diagram of the relational model -identifies how the things are related to each other -identifies the entities
ESSAY: Identify five benefits of AIS.
-efficiency (speed, time saving) -volume -accuracy -profitability -comparability -internal controls -workflow -analytical ability -connectivity -GAAP / SEC -completeness
What are the main advantages of using a centralized database approach when designing and implementing business information systems?
-eliminating data redundancy -reduced labor and storage costs -ease of data maintenance
business processes include
-events processing -business operations -managemnt decision making
To improve decision making and operations companies combine their data resources with
-executive info systems -decision support systems -group decision systems
The following are key features/characteristics of an enterprise resource planning (ERP) system except:
-integration of the major business processes -automation or computerization of business processes -consists of modules
ESSAY: SOX impact on management and auditors
-management: makes officers sign off on financial statements - also now responsible for internal control enviornment -auditors: stricter auditor independence rules -pcaob created to keep audits in check -in general stricter penalties
ESSAY: What is PCAOB? Why created? Effect on auditors.
-nonprofit organization created by Congress to oversee audits and ensure honesty in them -created in SOX as response to scandals -put auditors on a tighter leash with their audits, enforces SOX compliance
What are the most important limitations of the applications approach to business information system design?
-potentially lead to data integrity problems -can lead to data redundancy -it is more likely to lead to some data being out of date than when using centralized database approach
An enterprise system
-provides central info resource for the organization -makes possible the coordinated operation of the organization's functions -integrates and automates process fucntionality and info in an org
The purpose of creating flowcharts is to
-simplify and clarify a narrative -portray a system's logica and implementation -analyze and understand a system
Orgs use a database management system to
-simplify the tasks of creating, accessing, and managing a centrlaized database -provide data useful to managers -coordinate the activities of functional areas
Data Warehousing
-the use of info system facilities -provides users w eassy access to large quantities of varied data -is typically created by copying data periodically from the transaction databases
Where are error and exception routines shown on systems flowcharts?
. Errors and Exceptions are noted on the flowchart with an annotation
The Sales and Distribution modules in SAP
. Includes recording customer orders, shipping goods to the customer, and billing customers
Enterprise Risk Management (ERM):
. Is the responsibility of an entity's board of directors, management, and other personnel b. All of these choices are correct are features of an ERM c. Provides reasonable assurance regarding the achievement of entity objectives d. Is designed to manage risk
Organization, interrelationships, integration, and central objectives must be present in a system because:
A system is a set of interdependent elements that together accomplish specific objectives
What is a context diagram?
A top-level diagram of a system that depicts the system and all its activities as a single bubble
What is the relationship between an ais and an is?
An AIS cannot be distinguished separately from an IS
Which of the following cannot be the maximum cardinalities of two relational tables
M:0
Whose definition of internal control has become widely accepted and is the basis for definitions of control adopted for other international control frameworks?
COSO
All of the following are true about add-on modules to an ERP system except that they:
Can be used to enhance the interface with business partners but not with customers
ESSAY: What is data: character, field, record, table
Character: one digit Field: one cell Record: one row of cells table: table of data
Which software builds and maintains an organization's customer-related database?
Customer relationship management software (CRM)
Which software and allows a customer to inquire, perform a task, or troubleshoot problems without the help of the organization's employees?
Customer self-service (CSS) software
What factors distinguish DSS from EIS?
DSSs can provide "recommendations" but EISs do not usually do so
Which if the following is a graphical representation of systems documentation for a process?
Data flow diagram
All of the following is true of databases except
Decentralized data is when the system must store and maintain multiple versions of the same data in different files
The first step in the E-R modeling is to
Determine users' requirements for the databse
Which of the following is true about enterprise application integration (EAI)?
EAI is an approach that combines processes, software, standards, and hardware to link two or more systems together.
Why are some entities found in a narrative included in the context diagram as external entities, whereas others are included as internal entities?
Entities that do not perform any information processing activities are external entities; the remaining entities are internal
Explain how business ethics relate to internal control
Ethics must be a central concern when designing an effective internal control system
When does functional dependence exist
If a value for the first attribute determines a single value for the second attribute
What are info processing activites?
Information processing activities retrieve data from storage, transform data, or file data.
What are the three steps in decision making?
Intelligence, design, choice
What is the relationship between fraud and internal control?
Internal control must be designed to address the risks of fraud
A primary key
Is used for linking database tables together
The eight elements of ERM do not include:
Issue management
Why have knowledge managment systems become important
Knowledge management systems help capture, store, organize, present, distribute, and control access to the knowledge base
What are three logical components of a business process?
Management, operations and info processes
Which of the following SAP modules is used to automate the purchase to pay process?
Materials management (MM)
How do horizontal and vertical info flows differ?
Operations and info flows are both horizontal and vertical
_____control plans relate to a multitude of goals and processes and business _______control plans relate to the technology used to implement the process
Pervasive, process
A ____ specify where, how, and by whom a system's activities are accomplished
Physical dfd
Which software manages product data during a product's life
Product life-cycle managment (PLM) software
Which of the following is an advantage of eliminating redundant data?
Reduced storage and labor costs
The difference between risks and opportunities is:
Risks could have a negative impact and opportunities could have a positive impact on the organization's objectives.
_______ are unauthorized instructions inserted into a program to systematically steal very small amounts.
Salami slicing
Lack of information systems integration when receiving a customer order over the phone can cause all of the following problems except
Sales person may have to determine whether or not an item is available
Which of the following is NOT one of the five primary schemes for coding data?
Schema
Computer crime does not include
Sequentially numbering invoices
In a data flow diagram (DFD), a(n) ______ symbol portrays a source or a destination of data outside the system.
Square
ESSAY: Differences between strategic, tactical, and operational decision
Strategic: decision with an organization's strategy in mind (what we do) - generally has whole business in mind Tactical: who does it, focused on what parts of the organization need to do to be successful in Operational: where are we, where do we want to be; how do we accomplish our strategical goals and tractical goals
What is structure as it relates to decisions?
Structure is the degree of repetition and routine in the decision
Which software manages the interactions with the organizations that supply the goods and services to an enterprise?
Supplier relationship management (SRM) software
One of the most important functions provided by an enterprise system is
The coordination of value activities in the value chain
Where are error and exception routines shown on logical DFDs?
They are shown below the level 0 DFD with reject stubs that indicate that exceptional processing must be performed
What advantages do intelligent agents have in the operation of a decision support system
They can collect specific information from the Internet or large data warehouses c. They can identify factors that should be considered when using a system for decision making d. They can perform time-consuming tasks
Two major functions of an info system are
This info can supplement accounting info and can assit mamangers in their decision making
The SOX section that establishes an independent board to oversee public company audits is:
Title I - Public Company Accounting Oversight Board
The SOX section that prohibits a CPA firm that audits a public company from engaging in certain nonaudit services with the same client is:
Title II -Auditor Independence
The SOX section that requires a company's CEO and CFO to certify quarterly and annual reports is:
Title III - Corporate Responsibility
The Sox section that requires is
Title IV - Enhanced Financial Disclosures
which questions do accountants address when designing ais?
What reports produced? What will be recorded? What controls are necessary?
What is partial dependency
When an attribute is dependent on a portion of the primary key, not on the entire key
In a data flow diagram, a____ symbol depicts an entity or a process within which incoming data flows are transformed into outgoing data flows
bubble
Which of the following objectives compliance with applicable laws and regulations?
compliance
Lack of systems integration may result in the same data having to be multiple times into the systems. This can weaken which of the following data characteristics?
consistency, accuracy, and completeness
The following are key features/characteristics of an enterprise system except
consists of modules
Which of the following is not one of the main ways users can access information stored in a DBMS?
d. By downloading the information onto a separate data drive
A ____ depicts a system's components; the data flows among the components; and the sources, and storage of data
data flow dfd
A major difference between the centralized database approach and the applications approach is decoupling, also known as
data independence
Benefits of centralized database approach
data integrity, data independence, ease of data maintenance
Symbol on dfd where data is stored
data store
All of the following are advantages of enterprise systems except
decentralized empowerment
is the use of elctronic networks to enable business processes between Indvidual's and organization
e-business
the _____ is the central repository for all the data related to the enterprise's business activities and resources
enterprise database
integrate the business processes and information from all of an organization's functional areas
enterprise systems
software packages that can be used to support enterprise systems
erp systems
if information has integrity, then it is
free of error and complete
if info has confidentiality, then it is
has restricted access
centralized databases have
improved efficency of processing business event data
On dfd exception routines
left on another page of the flowchart
A ____ shows the flows of data into and out of the processes and data stores
logical dfd
A ___ shows the systems' internal and external entities and the fllows of data into and out of these entities
physical dfd
Qualities of info include all of the following except (relevance, integrity, undertstandability)
public access
Some of 5 primary schmes for coding data
sequential heirarchical mnemoic
Risk responses do not include:
staying in the activity that is giving rise to the risk
Which of the following objectives are high-level goals aligned with and supporting the organization's mission?
strategic
____ requires summarized and external info
strategic management
____ degree of repetition and routine in the decision
structure
Which statement is true regarding knowledge management
the primary enabler is info tech
On a physical dfd reading computer data stores and writing computer data stores must go
through a computer bubble
dependencies cause several problems called
update anomalies