AIS Final
What control plan transfers the exact amount of funds necessary to reimburse the account for payroll checks cashed?
Imprest payroll bank account
Placing a customer's bills on a company's own web site and sending an e-mail telling the customer that his or her bill is there
electronic bill presentment
The assignment of an internal function to an outside vendor
Outsourcing
The AP/CD process handles the repetitive work routines of
Cashier
Has the task of evaluating alternative AIS solutions
AIS selection
What is a technique for ranking items in a group based on the value, activity, sales, or other relevant metric for the items?
ABC analysis
A user-directed test of the complete system in a test environment is called a _____ test
Acceptance
Which development phase has the purpose of developing specifications for the new or revised system?
Analysis
Hosts, manages, and provides access to software and hardware over the internet to multiple customers
Application service providers (ASP)
The control independent billing authorization ensures that bills:
Are for goods actually ordered by the customer
Deposit slips are usually generated by the B/AR/CR process...
As part of processing cash receipts
Shows when employees are at work, may be maintained near the entrance of the workplace and take the physical form of cards?
Attendance time records
At the time a purchasing process places an order for goods or services, what is typically upated?
Purchase order master data
Example of an exception routine:
Back order process
Devices that use light reflection to read differences in bar code patterns in order to identify a labeled item
Bar code readers
Data Mining technique used to analyze a customer's past purchasing behavior to help marketing develop strategies for future purchases
Basket analysis
The cash receipts process can be accelerated by using the ACH network because:
Because it is a type of EFT proess
Document that represents a contract between two parties
Bill of lading
Frauds in the cash disbursement funciton
Can be decreased or prevented using digitally signed electronic payments
Which of the following control plans is most likely to appear in the input validity and input accuracy columns, but not input completeness column of a control matrix for the billing process?
Check for authorized prices, term, freight, and discounts
Characteristic of internal hardware sources
Costs are mainly fixed
Document that is sent to notify a customer of order's acceptance and expected shipment date
Customer acknowledgement
After the analysis team studies and documents the current physical system they should next:
Define user requirements for the new/modified system
The control plan confirm input acceptance helps to achieve the sales order input control goal of:
Sales order input completeness
Cost of computer hardware to be purchased for a new system is an example of a _____ cost for that system
Direct cost
Designed to reflect the formal approval of the voucher for payment
Disbursement voucher
Process that interfaces with the GL to provide the necessary journal entries for the distribution of labor charges
Distribute labor costs
In the cash receipts process, the control plan of immediately endorsing incoming checks is designed to achieve the control goal of:
Ensure security of the cash asset
Technique that analyzes all incremental costs associated with acquiring and carrying particular items of inventory?
EOQ models
Predominant technology used in buy-side systems
Electronic data interchange (EDI)
Has the inputs of attendance and work on specific jobs
Electronic time management
Supply chain management helps:
Ensure delivery of goods and services to customers at the lowest costs while providing the
What type of payroll-related frauds may invole nonexistent employees?
Ghost employees
Payroll tax reports are initially remitted to:
Government agencies
According to the text, what is the process of managing how people are hired, trained, assigned, motivated, and retained and presumes that employees are a strategic investment?
Human capital management
Emphasizes an individual's value to the organization, personnel development to maximize the benefits that an individual can provide to the organization and retention of employees to ensure that important skills are not lost
Human capital management
Control plan for the cash receipts function where the primary goal is to ensure security of resources
Immediately endorse incoming checks
In a pre-billing system, invoices are prepared:
Immediately upon acceptance of a customer order
A control plan that helps ensure the security of resources within the AP/CD process
Independent authorization to make payments
The control plan independent validation of vendor invoice is directed primarily at which control goal?
Input validity
What is false of Check 21?
It requires that banks exchange check images
Fraud scheme where the perpetrator attempts to cover the theft of cash received from customer A by applying cash collected from customer B to A's account, then applying a receipt from C to B's account, and so forth
Lapping
Shows start and stop times on specific jobs with the purpose of allowing the distribution of payroll costs to work in process
Job time records
Information for distributing labor charges to jobs, departments, or other accounts comes primarily from:
Job time tickets
A customer is instructed to send his remittance advice and check to a bank's postal address. This method for collecting customer cash receipts is called:
Lockbox
In a logical DFD for a B/AR/CR process, you would expect that a credit memo would be sent by the B/AR/CR process to the customer from which of the following processes?
Manage customer accounts
Characteristic of external hardware sources
Management and staff are provided
A control plan to ensure input accuracy in payables processing
Match invoice, purchase order, and receiving report
The AP application matches invoices, quantities, prices, and terms when it performs the control plan:
Match invoice, purchase order, and receiving report
If a new payroll system is installed for the employees of plant 1 at time A, followed by plant 2 at time B, and finally plant 3 at time C, this is an example of the _____ approach to systems implementation
Modular
The OE/S process is part of the _____ process
Order-to-cash process
One type of accounts receivable system is balance-forward, the other is:
Open-item system
The B/AR/CR process completes the:
Order-to-cash process
Example of processing the company's payroll for a fee
Payroll service bureau
The key functions of ensuring that the information needs of HR managers and staff workers are satisfied and serving as the liaison between the IT department and the HR department is the job position of the manager of:
Personnel planning and staffing
Document that is used when filling a sales order to authorize the movement of goods from a warehouse to shipping
Picking ticket
Billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called:
Post-billing system
Checking to see if the new system is doing what it is supposed to do is part of:
Post-implementation review
Conducted as a follow-up to a system's recent implementation
Post-implementation review
At the time that an AP/CD process makes payment for goods or services, the process generally follows which order?
Prepare proposed payments, select and record payments, issue and record disbursements
Assume that one of the process bubbles in the purchasing process - level 0 diagram is called "order goods and services". The data flow between "order goods and services" and the "vendor" is called a
Purchase order
Document that is matched with the vendor invoice to ensure that the purchase was authorized (i.e., to ensure input validity)
Purchase order
The purchasing process is part of the _____ process for a merchandising firm
Purchase-to-pay process
Technique that has the reorder point based on each inventory item's sales rate
Re-order point analysis (ROP)
Process that compares total hours of each worker as shown by the attendance record with the hours reflected on the job time records for that employee
Reconcile hours worked
The document that represents an independent authorization to ship goods to the customer in an OE/S process
Sales order
The grouping of customers into categories based on key characteristics
Segmentation
Which data store is updated when employees gain new on the job training?
Skills inventory data
A control that can ensure that receiving clerks are not influenced by quantity information while actually counting incoming goods is to:
Send a blind copy of the purchase order to receiving
Which of the following normally would trigger the billing process in a B/AR/CR process?
Shipping notice
Who usually authorizes a purchase requisition?
Supervisor of the requisitioning department
Benefits that can be reasonably quantified
Tangible benefits
In structured systems analysis, the analysis preferably should start with analysis and documentation of:
The current physical system
In a purchasing process, once requirements are determined and a vendor selected, the next step is:
The purchase order
The number of sales transactions that can be entered within a specified period of time is a measure of the computer system's
Throughput
Control goal that is most likely to address the goal of input completeness
Tickler file of open purchase orders and receiving reports
Primary function of the order entry / sales process
To create information flows that support: 1. Repetitive work routines of the sales order, credit, and shipping departments 2. Decisions needs of managers and various sales and marketing functions
What control plan is an account used solely for payroll purposes and funds are transferred into the account to cover payroll checks to be issued
Use payroll clearing account
In an AP/CD process, "establish payable" would normally be triggered by:
Vendor invoice
Information for evaluating vendor performance normally would reside on the:
Vendor master data
When the sales-related data are captured in the sales order department and then the information flows to the managers housed in the marketing department, it is an example of a:
Vertical information flow
Which disbursement system most easily facilitates paying a number of invoices with a single check?
Voucher system
The goal of validating vendor proposals is to determine:
Which proposed systems meet the organization's requirments
Inventory carrying costs include all of the following except: a) clerical cost of ordering goods b) opportunity cost of investment funds c) insurance costs d) obsolescence and deterioration
a) clerical cost of ordering goods
For a typical OE/S process to check a customer's credit, all of the following data stores likely would be consulted except the: a. general ledger master data b. customer master data c. accounts receivable master data d. sales order master data
a. general ledger master data
a receiving report is to goods what a(n) _____ is to services
acceptance report
The principal master data that you would expect to see in a B/AR/CR process is the
accounts receivable
Payments not typically supported by invoices include: a) payroll b) income taxes c) investments d) all of the above
d) all of the above
Which of the following is a horizontal information flow? a. sales order department requests credit approval from credit department b. sales order department acknowledges the order to the customer c. warehousing sends completed picking ticket to shipping d. all of the above are horizontal information flows
d. all of the above are horizontal information flows
In the process of preparing a receiving report, the receiving department should perform all of the following tasks except: a. inspect and approve quality b. count the quantity received c. compare the completed receiving report to the information stored in the purchase order master data d. compare the vendor's packing slip to a copy of the purchase requisition
d. compare the vendor's packing slip to a copy of the purchase requisition
Which of the following data is least likely to be stored in the customer master data? a. customer number b. billing address c. ship-to address d. open invoices
d. open invoices
Programmed edits that match vendor number, invoice number, and amount to be paid over a set period of time are:
duplicated
Control plan compare vendors for favorable prices, terms, quality, and product availability is directed at what control goals?
ensure effectiveness of operations
Compilation of open purchase orders and includes the status of each item on order
purchase order master data
A blind copy of the purchase order should be sent to receiving so that
receiving clerks will be forced to actually count the goods that are received
When large or expensive items are purchased, most organizations make use of a procedure to obtain competitive bids from multiple vendors. The document used to obtain competitive bids is called:
request for quotation
The control plan preformatted screens is directed primarily toward achieving the information process control goal of ensuring
sales order input accuracy
Which document typically notifies the purchaser of his or her obligation to pay?
vendor invoice
Data about vendor compliance with the terms of the purchase order normally would be included in the:
vendor master data
