AIS Final

Picking, packing, and transportation scheduling are accomplished through the creation of a(n):

Outbound delivery.

a. Pay for raw materials

Pay vendors for goods and services Expenditure cycle

a. Pay property taxes on office building

Pay vendors for goods and services Expenditure cycle

a. Pay utility bills

Pay vendors for goods and services Expenditure cycle

. Relevant

. An accounts receivable aging report used in credit granting decisions (i.e., the report was pertinent/applicable for using to make the particular decision)

Closed-loop verification typically helps enhance which of the following common transaction-related objectives

A particular transaction is recorded accurately

The automatic posting/updating of records in SAP (such as to the general ledger at the time of goods receipt) helps enhance each of the following transaction-related control objectives, except

A particular transaction is valid.

Reliable

A report checked by 3 different people for accuracy Note: This item and item c are somewhat similar but are different. Item c gets more specific that the checking was done independently, therefore speaking very specifically to verifiability. Verifiability is a more specific sub-characteristic of reliability. This item is describing in more general terms the primary characteristic of reliability while item c "drills" down further to emphasize verifiability.

Central storage of master records, such as that for vendors and customers, avoids inconsistencies in data that is duplicated in numerous locations in SAP. Which transaction-related control objective is most enhanced by this feature?

All transactions are recorded accurately

Timely

An accounts receivable aging report was received before the credit manager had to make a decision whether to extend customer credit

a. Establish a $10,000 credit limit for XYZ company

Approve credit sales Revenue cycle

Which of the following activities is not part of financial accounting in SAP

Assignment of costs and revenues to objects

What type of duty is creating/updating master records?

Authorization

a. Draw on line-of-credit

Borrow money from lenders Financing cycle

a. Obtain a bank loan

Borrow money from lenders Financing cycle

The set of linked activities that transform an input into a more valuable output thus creating value are known as:

Businesses Processes

Pay federal payroll taxes

Calculate and disburse taxes and benefit payments Human resources/payroll cycle

a. Record factory employee timecards

Collect and validate time, attendance, and commission data Human resources/payroll cycle

An organizational unit within a controlling area that represents a defined area of cost incurrence is a:

Cost center

Which of the following is used to classify valuated consumption of production factors in controlling?

Cost elements

All data necessary for processing business transactions and correspondence with a customer is located in the:

Customer master record

Financial accounting and sales logistics are linked primarily through the:

Customer master record.

Typical distribution channels include:

Direct, Wholesale, and Retail

The allocation method in which a primary cost is allocated to receiver cost centers/business processes is a (an):

Distribution.

The current processing status of a given sale can be determined by referencing the:

Document flow.

In SAP the data processing for external accounting is carried out by the:

Financial accounting module.

a. Decide how many units to make next month

Forecast, plan, and schedule production Production cycle

The complete record of all business transactions is contained in the:

General ledger.

In order to update the quantity records for material purchased, which of the following is processed?

Goods receipt

a. Update the allowance for uncollectible accounts

Handle sales returns, discounts, allowances, and bad debts Revenue cycle

In cases where there are frequently occurring material combinations and common delivery quantities for a customer, this data can be stored in the form of a:

Item proposal.

a. Complete a picking ticket for goods ordered by customer

Pick and pack customer orders Revenue cycle

Disburse payroll checks to factory workers

Prepare and disburse payroll Human resources/payroll cycle.

a. Pay sales commissions

Prepare and disburse payroll Human resources/payroll cycle

Send an order to a vendor

Prepare, approve, and send purchase orders to vendors Expenditure cycle

Application controls are a ___________________ when reducing the threat of recording inaccurate and/or incomplete data.

Preventive control

Costs that arise from the consumption of goods and services originating outside of the company are known as:

Primary costs.

a. Collect payments on customer accounts

Receive customer payments and deposit them in the bank Revenue cycle

a. Record goods received from a vendor

Receive goods and services and complete a receiving report Expenditure cycle

a. Hire a new assistant controller

Recruit, hire, and train new employees Human resources/payroll cycle

a. Send new employees to a business ethics course

Recruit, hire, and train new employees Human resources/payroll cycle

Purchase raw materials

Request goods and services to be purchased Expenditure cycle

a. Payoff mortgage on factory

Retire debt Financing cycle

The organizational unit that is responsible for the sale and distribution of goods and services is the:

Sales organization.

That which specifies a delivery schedule for specific quantities and delivery dates is the

Scheduling agreement

a. Sell DVD player

Ship goods to customers or perform services Revenue cycle

a. Sell concert tickets

Ship goods to customers or perform services Revenue cycle

Order items can be grouped together in one delivery if they have identical shipping criteria and the same:

Sold to party.

a. Put purchased goods into the warehouse

Store goods Expenditure cycle

The material types primarily involved in SD include all of the following except:

Supplies.

Which of the following does not occur as the result of a goods issue?

The customer inquiry is closed.

Verifiable

The data on a report was checked by two clerks working independently (see note above under #2 for the distinction between reliability and its sub-characteristic of verifiability)

Accessible

The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company's network. Note:Although a particular time is alluded to - the weekend - for gathering information, the focus of the item is being able to find or obtain the report at that given time, therefore alluding to accessibility

Understandable

The report was carefully designed so that the data contained on the report became information to the reader

Which of the following items is not included in processing a customer inquiry?

The shipping point.

Goods or material that are purchased for later resale are known as:

Trade goods.

In order to purchase a material from a vendor, which of the following records must be in the system?

Vendor master record

The account used to track amounts owed to a vendor is the:

Vendor number.

. Complete

d. An accounts receivable aging report that included all customer accounts

· MM01 and MM05 · Setup Parameter ID and Create Material Master for Raw Materials

o Compatible because MM01 is setting up the system to certain default setting and MM05 is setting up a certain vendor in the master data. The same individual could do both processes (if they do not have contact with a vendor) because they are very similar and would require the same level of authorization.

· MM07 and MM10 · Create Material Master for Finished Products and Create Purchase Order

o Compatible, the two occur in different cycles with no direct interaction.

· MM08 and MM10 · Create Purchasing Info Records and Create Purchase Order

o Incompatible because MM08 is creating the master data for the purchase materials to automatically pick a certain vendor and MM10 is creating the purchase order. Purchase orders are usually created by the purchasing department who could want to use a different vendor than the one listed in the master data. The purchasing department should have to seek approval before making these changes which is why they should not be making the master data.

· MM02 and MM12 · Post Statistical key Figures and Create an Invoice Receipt

o Incompatible, the two are different kinds of duties involving the same vendor data.

That which determines what a user is allowed to do within SAP is determined by the

users role

SD06 and SD18 · SD06 - Create sales views for finished products. · SD18 - Post goods issue

· Incompatible, SD06 is to create a master data for the finished products and SD18 is just telling the system you are shipping out certain inventory. They involve the same master data and could falsify sales.

SD01 and SD12 · SDO1 - Create general ledger reconciliation account for accounts receivable and sale revenue and sale discounts. · SD12 - Assign item proposal to customer.

· Compatible, these both require master data information to be entered and the item proposal leaves no reason for fraud.

SD07 and SD21 · SD07 - Create material prices. SD21 - Create sales order using item proposal

· Incompatible - The individual making the sales prices should not be also issuing sales orders. The individual can change the prices for certain customers.

SD02 and SD19 · SD02 - Create customer · SD19 - Billing the customer

· Incompatible, creating the customer information in the system and billing the customer leave room for them to change things in the master data before billing.