Questions and Answers of Introduction To Accounting Information Systems

How do the characteristics of poor file system design limit their usefulness for decision making and reporting? (LO3)
Describe the elements of a database system, including the DBMS.
Explain why database modelling is performed. How is it performed?
Which of the following statements is false?(a) Good decision making and reporting are vital for organisational performance.(b) Good decision making and reporting require accurate information.(c)
The limitations of poor file systems come from:(a) data management.(b) structural independence.(c) database redundancy.(d) all of the above.
Which of the following statements is true?(a) Implementation models show how the data are represented in the database.(b) Conceptual models focus on what is represented in the database.(c)
The advantage of a relational database is:(a) structural dependence.(b) its powerful and flexible query language.(c) a data dictionary.(d) all of the above.
Database modelling is used for:(a) describing and representing complex real-world data structures.(b) improving understanding of an organisation’s existing database.(c) providing a blueprint for
Which of the following is a step to developing an E-R diagram?(a) Develop a general narrative of a business’s operations.(b) Construct a working version of the E-R diagram for review by the
Which of the following statements is true?(a) Normalisation should eliminate all redundancies every time.(b) Controlled redundancies should not be allowed in database design.(c) Data anomalies cause
‘My manager wants to make important strategic and operational decisions for the company, but complains about the quality of information from the files. | tell him or her that he or she needs to
The organisation runs a file system. The following is an extract of its sales file.(a) Discuss the limitations of this file.(b) Explain how a databas2 would overcome these limitations.(c) Illustrate
Best Bikes is a large bicycle retailer that also manufactures its own brand, assembles made-to-order bicycles from purchased components and sells fully assembled branded names. You have been employed
Beautiful Flowers Company has been running an outdated file system for many years.It has just employed you as a consultant to advise it on updating its file system to a database. It knows that the
Using the tables provided below relating to customer and salespersons:(a) Prepare entity-relationship diagrams to model the relationships between sales person and customer as one-to-one (1:1),
Using the following entity-relationship diagram for the partial order entry system.(a) Write relationship sentences for all of the relationships.(b) Discuss what each of the relationships mean in
Does business process management always involve information technology?
Why should accounting students learn about business process management
Business process management can be defined asa. A business improvement strategy based on documenting, analyzing, and redesigning processes for greater performance.b. A method of efficiently aligning
The first step in many BPM projects is selecting a process and defining its boundaries.Which of the following is the best example of a well-defined process?a. Keeping clients happyb. Motivating
The fourth step in many BPM projects is analyzing data, which could be accomplished witha. A flowchart.b. A value-added study.c. An analysis of the organization’s strategy.d. The FASB Conceptual
Which of the following is the best example of a BPM project that promotes strong internal control?a. Developing an online order-taking processb. Drawing a flowchart of a company’s new production
Accountants can be involved in business process management through I. Documenting processes.II. Designing process inputs and outputs.III. Auditing.a. I and II onlyb. II and III onlyc. I and III
Business processes should supporta. Organizational strategy.b. Top management.c. Information technology.d. Employees.
All of the following are elements of a value-added activity excepta. A customer is willing to pay for it.b. It involves a transformation of a process or activity.c. It is performed correctly the
Which of the following statements is most true?a. Organizations that use activity-based costing must use activity-based management.b. An organization must implement activity-based management before
Examples of value-added activities include I. Ordering raw materials.II. Testing product quality.III. Fueling delivery trucks.a. I and II onlyb. I and III onlyc. II and III onlyd. I, II, and III
Which of the following generic BPM steps occurs first?a. Analyze process-related data.b. Collect process-related data.c. Identify potential improvements.d. Optimize the process.
What broad categories can be used to describe computer crime?
How can accountants help safeguard organizations against computer crime?
The name most closely associated with a taxonomy of computer crime isa. Sarbanes.b. Oxley.c. Legault.d. Carter.
Computer crime has been defined as any illegal act for which knowledge of __________is used to commit the offense.a. Database softwareb. Hacking techniquesc. Computer technologyd. Spamming
Which of the following is most closely associated with a computer worm?a. Sapphireb. Online gamblingc. Organized crimed. All of the above are associated with computer worms.
Which of the following is not a type of computer criminal?a. Script kiddieb. Hackerc. Salami criminald. Terrorist
Administrative security controls includea. Management constraints.b. Operational procedures.c. Accountability procedures.d. All of the above.
The CoBIT framework includes ____________information criteria.a. Threeb. Fourc. Sevend. Some other number
Which of the following is not a domain in CoBIT?a. Prevent and correctb. Plan and organizec. Acquire and implementd. Monitor and evaluate
In CoBIT, accountability flows downward froma. External auditors to internal auditors.b. The audit committee to internal auditors.c. Stockholders to the audit committee.d. Stakeholders to the board
Which of the following uses an algorithm to secure information transmitted between computers?a. Password rotationb. Firewallsc. Encryptiond. Security audit
In CoBIT, which of the following flows upward from the board of directors to stakeholders?a. Financial and internal control disclosuresb. Accountabilityc. Disclosures regarding information governance
What steps should firms follow to implement the recommendations listed above?
Which of the following types of information is most likely to create information overload for an experienced accountant?a. Elements of financial statementsb. Tax pronouncementsc. The Sarbanes-Oxley
The Gunning Fog Index is most closely related toa. Task and process parameters.b. Information characteristics.c. Organizational design.d. Personal factors.
Which of the following statements about Steps for Better Thinking is most true?a. Using the steps effectively requires a college degree as a precursor.b. SBT is the best model for decision making
A group of accounting students told their accounting professor to “give them the right answer to a problem so they could memorize it for the exam.” The students were exhibitinga. Satisficing.b.
Knowledge should be managed as a(n)a. Asset.b. Element of shareholders’ equity.c. Liability.d. Source of revenue.
Which of the following is not a cause of information overload?a. Personal factorsb. Relapse errorsc. Information technologyd. Task and process parameters
Which element of Steps for Better Thinking focuses on dealing with limitations of problem solutions?a. Identifyingb. Exploringc. Prioritizingd. Envisioning
The concepts discussed in this chapter can be applied toa. Evaluating software for an accounting information system.b. The job search process.c. Studying for professional exams.d. All of the above.
Which of the following is not an effective way to deal with information overload?a. Leave important decisions to others.b. Define decision models and rules for common decision contexts.c. Focus on
Who first suggested the ideas of satisficing and bounded rationality?a. Druckerb. Wolcottc. Simond. Pacioli
What is the relationship between earning an accounting degree and becoming professionally certified?
What professional certifications are available in the accounting profession? How are they related to your study of AIS?
What are the costs and benefits associated with professional certification?
Which of the following is common to all four certifications discussed in the chapter?a. They are globally recognized.b. They require professional experience.c. Both of the above.d. None of the above.
The common components associated with professional accounting certification area. Education, experience, and oral examination.b. Ethics, education, and experience.c. Education, experience, and
Which professional exams are given in an entirely online environment?a. CMA and CISAb. CISA and CFEc. CMA and CFEd. CISA and CIA
Which of the following statements is most true?a. All accountants should become CPAs.b. Professional certification really isn’t necessary if you have a master’s degree.c. Most accounting
Which of the certifications discussed in the chapter covers the broadest range of topics?a. CFEb. CMAc. CISAd. CIA
The difference between a “license” and a “certificate” isa. A certificate is issued by a state; a license is issued by a federal agency.b. A license is issued by a state; a certificate is
CPA licenses are issued bya. The American Institute of CPAs.b. Universities.c. The federal government.d. States.
Which of the following gives you a three-letter code based on Holland’s Hexagon?a. Discoverb. StrengthsQuestc. Myers-Briggs Type Indicatord. Minnesota Multiphasic Personality Inventory
Holland’s Hexagon contains all of the following excepta. Enterprising.b. Conventional.c. Realistic.d. Numeric.
“People with math and science abilities, who like working alone and solving complex problems”most clearly describes which element of Holland’s Hexagon?a. Artisticb. Investigativec. Sociald.
How are the topics we’ve examined in accounting information systems related to the audit process?
What are the costs and benefits of outsourcing internal auditing?
Which type of audit requires the broadest knowledge of nonfinancial issues?a. Financialb. Investigativec. Complianced. International
Which of the following information sources would you consult first in an investigative audit?a. Targetb. Co-conspiratorsc. Documentsd. Neutral third-party witnesses
Which of the following is not a classification associated with generally accepted auditing standards?a. Information technologyb. Field workc. Reportingd. General
An ERP system could be associated with_________ audits.a. Systemsb. Financialc. Investigatived. All of the above
In a financial audit, which of the following can someone assume is adequate unless specifically told otherwise?a. Consistencyb. Disclosurec. Internal controlsd. All of the above
In an investigative audit, co-conspirators are interviewed before the targeta. Because the information they can provide is more important.b. So the investigative auditor will be certain to get a
Which of the following is not associated with field work standards?a. Supervisionb. Internal controlc. Evidenced. Risk management
Which type of audit opinion ensures that financial statements are true and correct?a. Unqualifiedb. Qualifiedc. Both of the aboved. None of the above
The standard for government audits isa. The Yellow Book.b. SAS 70.c. COSO’s internal control framework.d. SOX.
As part of their annual reports, SOX-compliant organizations must discuss the scope and adequacy of internal controls. That requirement comes from sectiona. 302.b. 401.c. 404.d. 802.
Which of the following statements about data flow diagrams is not true?a. Processes should always be numbered and named.b. A context diagram cannot include any data stores.c. Data flows should be
In creating a data flow diagram for a course registration process, which of the following is most likely to be an external entity?a. Parentsb. Studentc. Registration systemd. Bank
Which of the following best describes a context diagram?a. A flowchart that shows the relationship of an accounting information system to its environment.b. A data flow diagram that does not include
John is designing a database table to keep track of his customers. Which of the following would most likely be the primary key in the table?a. Customer number generated automatically by the
A foreign keya. Is another name for a table’s primary key.b. Is a primary key in another database table.c. Is a primary key written in a foreign language.d. Cannot be incorporated in a normalized
Database tables in first normal form eliminatea. Repeating groups.b. Redundant data.c. Columns not dependent on the primary key.d. All of the above.
A database junction tablea. Is needed when an item in one table can be associated with many items in a second table.b. Is needed when many items in one table can be associated with one item in a
Which of the following is not a symbol associated with data flow diagrams?a. Triangleb. Circlec. Lined. Rectangle
If data about a customer reside in a junction table, the table is not ina. First normal form.b. Second normal form.c. Third normal form.d. Compliance with rules about derivable data.
Which of the following is derivable?a. A customer’s Zip codeb. A student’s agec. Cost per unit of inventoryd. All of the above are derivable
Which of the following is least likely to be classified as a strategically significant operating event in a REAL model?a. Selling inventory to customersb. Updating a client databasec. Purchasing
In a REAL model, the maximum cardinalities between an agent and an event are many and many. How many tables would you need to create?a. Twob. Threec. Oned. More than three
A REAL model contains the following cardinality: customer (1,1)—rent equipment (1, * ).Which of the following is the best interpretation?a. Every piece of equipment can only be rented one time.b. A
Which of the following statements is most true regarding the cardinalities in the previous question?a. The customer table will have a compound primary key.b. A junction table is required.c. The
Identifying the relevant behaviors and characteristics of the elements of a REAL model helps the designera. Create cardinalities.b. Create database tables.c. Both of the above.d. None of the above.
Consider the Netflix example presented in the chapter. “Record cash receipts in the accounting information system” would be considered a(n)a. Operating event.b. Information event.c.
A junction table is required in a relational database whena. One item A is associated with many item Bs.b. One item B is associated with many item As.c. Both of the above.d. None of the above.
Consider the Netflix REAL model presented in Figure 7.4. Which of the following relationships indicates strong internal control through separation of duties?a. DVDs and ship DVDsb. Collect payment
REAL models can includea. Internal agents and external agents.b. Internal agents and strategic agents.c. External agents and strategic agents.d. Internal agents, external agents, and strategic agents.
Which of the following is most likely to require locations in a REAL model?a. A company uses both UPS and FedEx to ship products.b. A company maintains multiple manufacturing facilities around the
As a future accounting professional, which phase of the SDLC are you least likely to be involved in?a. Buildb. Requirements analysisc. Operations/maintenanced. Test
If a system does poorly during the testing phase of the SDLC, it may be due to issues in I. Requirements analysis.II. Design.III. Build.a. I and II onlyb. II and III onlyc. I and III onlyd. I, II,
Data flow diagrams are most likely to be used first in which step of the SDLC?a. Initiation/planningb. Requirements analysisc. Designd. Data flow diagrams are not used in the SDLC.
Which of the following is the best example of the “initiation/planning” stage of the SDLC?a. “We need to use XBRL to produce financial statements.”b. “We should adopt Peachtree as our

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