Hall--Accounting-Information-Systems-8e

1、Accounting Information Systems, 8e Test Bank, Chapter 1Chapter 1The Information System: An Accountants PerspectiveTRUE/FALSE1.Information is a business resource.ANS:TPTS:12.IT outsourcing is location-independent computing.ANS:FPTS:13.Transaction processing systems convert non-financial transactions

2、into financial transactions.ANS:FPTS:14.Information lacking reliability may still have value.ANS:FPTS:15.A balance sheet prepared in conformity with GAAP is an example of discretionary reporting.ANS:FPTS:16.The Management Reporting System provides the internal financial information needed to manage

3、a business.ANS:TPTS:17.Most of the inputs to the General Ledger System come from the Financial Reporting System.ANS:FPTS:18.When preparing discretionary reports, organizations can choose what information to report and how to present it.ANS:TPTS:19.Retrieval is the task of permanently removing obsole

4、te or redundant records from the database.ANS:FPTS:110.Systems development represents 80 to 90 percent of the total cost of a computer system.ANS:FPTS:111.The database administrator is responsible for the security and integrity of the database.ANS:TPTS:112.Custom software is completely finished, tes

5、ted, and ready for implementation.ANS:FPTS:113.The internal auditor represents the interests of third-party outsiders.ANS:FPTS:114.Information Technology (IT) audits can be performed by both internal and external auditors.ANS:TPTS:115.Custom software is the most affordable systems development option

6、.ANS:FPTS:116.A database is a collection of interconnected computers and communications devices that allows users to communicate, access data and applications, and share information and resources.ANS:FPTS:117.Systems maintenance consumes the majority of a systems total costs.ANS:TPTS:118.Cloud compu

7、ting is a practice in which the organization sells its IT resources to a third-party outsourcing vendor then leases back IT services from the vendor for a contract period.ANS:FPTS:119.A potential benefit of cloud computing is that the client firm does not need to know where its data are bring proces

8、sed.ANS:FPTS:120.One of the greatest disadvantages of database systems is that all data is always available to all users.ANS:FPTS:121.Under SOX legislation public accounting firms are no longer allowed to provide consulting services to audit clients.ANS:TPTS:122.Under SOX legislation public accounti

9、ng firms are no longer allowed to provide consulting services to their clients.ANS:FNOTE: They may not provide such services to audit clients, but may still provide them to non-audit clientsPTS:1MULTIPLE CHOICE1.Which of the following is not a business resource?a.raw rmationd.al

10、l are business resourcesANS:DPTS:12.Which level of management is responsible for short-term planning and coordination of activities necessary to accomplish organizational objectives?a.operations managementb.middle managementc.top managementd.line managementANS:BPTS:13.Which level of management is re

11、sponsible for controlling day-to-day operations?a.top managementb.middle managementc.operations managementd.executive managementANS:CPTS:14.Location-independent computing in which shared data centers deliver hosted IT services over the Internet.a.IT outsourcingb.Network administrationc.Cloud computi

12、ngd.Custom softwareANS:CPTS:15.The value of information for users is determined by all of the following pletenessANS:CPTS:16.An example of a nonfinancial transaction isa.sale of productsb.cash disbursementc.log of customer callsd.purchase of inventoryANS:

13、CPTS:17.An example of a financial transaction isa.the purchase of computerb.a suppliers price listc.a delivery scheduled.an employee benefit brochureANS:APTS:18.Which subsystem is not part of the Accounting Information System?a.Transaction Processing Systemb.Expert Systemc.General Ledger/Financial R

14、eporting Systemd.Management Reporting SystemANS:BPTS:19.The major difference between the Financial Reporting System (FRS) and the Management Reporting System (MRS) is thea.FRS provides information to internal and external users; the MRS provides information to internal usersb.FRS provides discretion

15、ary information; the MRS provides nondiscretionary informationc.FRS reports are prepared using information provided by the General Ledger System; the MRS provides information to the General Ledger Systemd.FRS reports are prepared in flexible, nonstandardized formats; the MRS reports are prepared in

16、standardized, formal formatsANS:APTS:110.The purpose of the Transaction Processing System includes all of the following excepta.converting economic events into financial transactionsb.recording financial transactions in the accounting recordsc.distributing essential information to operations personn

17、el to support their daily operationsd.measuring and reporting the status of financial resources and the changes in those resourcesANS:DPTS:111.The Transaction Processing System includes all of the following cycles excepta.the revenue cycleb.the administrative cyclec.the expenditure cycled.the conver

18、sion cycleANS:BPTS:112.The primary input to the Transaction Processing System isa.a financial transactionb.an accounting recordc.an accounting reportd.a nonfinancial transactionANS:APTS:113.When designing the data collection activity, which type of data should be avoided?a.data that is relevantb.dat

19、a that is efficientc.data that is redundantd.data that is accurateANS:CPTS:114.The most basic element of useful data in the database isa.the recordb.the keyc.the filed.the attributeANS:DPTS:115.In a database, a complete set of attributes for a single occurrence of an entity class is calleda.a keyb.a

20、 filec.a recordd.a characterANS:CPTS:116.Effective information has all of the following characteristics pletenessc.summarizationd.structureANS:DPTS:117.Database management tasks do not includea.summarizationb.storagec.retrievald.deletionANS:APTS:118.The author distinguishes bet

21、ween the Accounting Information System and the management Information System based ona.whether the transactions are financial or nonfinancialb.whether discretionary or nondiscretionary reports are preparedc.the end users of the reportsd.the organizational structure of the businessANS:APTS:119.Which

22、activity is not part of the finance function?a.cash receiptsb.portfolio managementc.creditd.general ledgerANS:DPTS:120.Market research and advertising are part of which business function?a.materials ductionANS:CPTS:121.Which function manages the financial resources

23、 of the firm through portfolio management, banking, credit evaluation, and cash receipts and disbursements?a.accountingb.financec.materials managementd.distributionANS:BPTS:122.Which of the following is not part of the accounting function?a.managing the financial information resource of the firmb.ca

24、pturing and recording transactions in the databasec.distributing transaction information to operations personneld.managing the physical information system of the firmANS:DPTS:123.The term “accounting independence” refers toa.data integrityb.separation of duties, such as record keeping and custody of

25、 physical resourcesc.generation of accurate and timely informationd.business segmentation by functionANS:BPTS:124.In the distributed data processing puter services are consolidated and managed as a shared organization resourceb.the computer service function is a cost centerc.the end use

26、rs are billed using a charge-back puter services are organized into small information processing units under the control of end usersANS:DPTS:125.Which of the following is not a cloud computing service?a.Software as a serviceb.Infrastructure as a servicec.Network as a serviced.Platform as

27、 a serviceANS:CPTS:126.Data processing does not involvea.data puter operationsc.system maintenanced.data conversionANS:CPTS:127.Attestation services are performed bya.external ernal ernal auditorsd.third-party accountantsANS:APTS:128.Which individual is least

28、 involved in new systems development?a.systems analystb.external auditorc.end userd.data librarianANS:DPTS:129.The objectives of all information systems include all of the following excepta.support for the stewardship function of managementb.evaluating transaction datac.support for the day-to-day op

29、erations of the firmd.support for management decision makingANS:BPTS:130.Which individuals may be involved in the Systems Development Life Cycle?a.accountantsb.systems professionalsc.end usersd.all of the aboveANS:DPTS:131.An appraisal function housed within the organization that performs a wide ran

30、ge of services for management ernal auditingb.data control groupc.external auditingd.database administrationANS:APTS:132.Which of the following is not a production support activity?a.Maintenanceb.Marketingc.Production planningd.Quality controlANS:BPTS:133.Advantages of cloud computing include

31、 all of the following excepta.Access to whatever computing power is neededb.Paying only for what is usedc.Unknown data processing locationd.Flexible, short term contractsANS:CPTS:134.Motivations for IT outsourcing include each of the following excepta.ITs highly technical nature b.Long term contract

32、s in IT outsourcingc.Expense of ITd.Dynamically changing nature of ITANS:BPTS:135.These are focuses on the system itself.a.Cloud computingb.Fraud auditsc.Substantive testsd.Tests of controlsANS:DPTS:136.What factor conceptually distinguishes external auditing and internal auditing?a.Tests of control

33、sb.Substantive testsc.Education d.Constituencies ANS:DPTS:137.All of the following are external end users excepta.Cost accountantsb.Creditorsc.Stockholdersd.Tax authoritiesANS:APTS:138.Useful information must possess all of the following characteristics ple

34、tenessANS:BPTS:139.The objectives of an information system include each of the following excepta.support for the stewardship responsibilities of managementb.furthering the financial interests of shareholdersc.support for management decision makingd.support for the firms day-to-day operationsANS:BPTS

35、:140.Accountants play many roles relating to the accounting information system, including all of the following excepta.system usersb.system designersc.system auditorsd.system convertersANS:DPTS:1SHORT ANSWER1.Entities outside the organization with a direct or indirect interest in the firm, such as s

36、tockholders, financial institutions, and government agencies, are called _.ANS:stakeholdersPTS:12.Location-independent sharingof data centers hosting IT servers over Yhe internet is called _.ANS:Cloud computingPTS:13.Transactions with trading partners include _ and _.ANS:sales, purchasesPTS:14.A pra

37、ctice in which an organization sells its IT resources and leases them back is called _.ANS:IT outsourcingPTS:15.The task of locating and transferring an existing record from the database for processing is called data _.ANS:retrievalPTS:1=6.These tests focus on data rather than process: _, ANS:Substa

38、ntive testsPTS:17.Three activities that are part of the finance function are _, _, and _.ANS:portfolio management, treasury, credit, cash disbursements, cash receiptsPTS:18.Two distinct ways to structure the Data Processing Department are _ and _.ANS:centralized, distributedPTS:19.Two methods to acq

39、uire information systems are to _ and to _.ANS:develop customized systems, purchase commercial systemsPTS:110.Audits are conducted by _, _, and _ auditors.ANS:internal, external, ITPTS:111.Sales of products to customers, purchases of inventory from vendors, and cash disbursements are all example of

40、_.ANS:financial transactionsPTS:112.The three major subsystems of the AIS are _, _, and _.ANS:the transaction processing system, the general ledger/financial reporting system, the management reporting systemPTS:113.The _ and _ standards that characterize the AIS clearly distinguish it from the MIS.A

41、NS:legal, professionalPTS:114.The transaction processing system is comprised of three cycles: _, _, and _.ANS:revenue, expenditure, conversionPTS:115.The tests that focus on the system itself and how it is designed to reduce risk is called _.ANS:Tests of controlsPTS:116.Sarbanes-Oxley legislation re

42、quires that management designs and implements controls over the entire financial reporting process. What systems does this include?ANS:This includes the financial reporting system, the general ledger system, and the transaction processing systems that supply the data for financial reporting.PTS:117.

43、Why is it necessary to distinguish between AIS and MIS?ANS:Because of the highly integrative nature of modern information systems, management and auditors need a conceptual view of the information system that distinguishes key processes and areas of risk and legal responsibility from the other (non-

44、legally binding) aspects of the system. Without such a model, critical management and audit responsibilities under SOX may not be met.PTS:118.How has SOX legislation impacted the consulting practices of public accounting firms?ANS:Prior to SOX, a gray area of overlap existed between assurance and co

45、nsulting services. Auditors were once allowed to provide consulting services to their audit clients. This is now prohibited from doing so under SOX legislation.PTS:119.What is discretionary reporting?ANS:Reports used by management that the company is not obligated by law, regulation, or contract to

46、provide. These are often used for internal problem-solving issues rather than by external constituents.PTS:120.Name the five characteristics of information?ANS:Relevance, accuracy, completeness, summarization, and timeliness.PTS:1ESSAY1.Contrast the responsibilities of operations management, middle

47、management, and top management. Explain the different information needs for each level of management.ANS:Operations management is directly responsible for controlling day-to-day operations. Operations managers require detailed information on individual transactions such as sales, shipment of goods,

48、usage of labor and materials in the production process, and internal transfers of resources from one department to another. Budgeting information and instructions flow downward from top and middle management to operations management.Middle managers perform short-term planning and coordination of act

49、ivities necessary to accomplish organizational objectives. Middle management requires information that is more summarized and oriented toward reporting on overall performance and problems, rather than routine operations.Top management is responsible for longer-term planning and setting organizationa

50、l objectives. Information provided to top management is highly summarized.PTS:12.Explain the difference between data and information.ANS:Data are facts which may or may not be processed; data have no particular impact on the user. Information is processed data that causes the user to take action.PTS

51、:13.Why do auditors need to understand the organizational structure of the business?ANS:The structure of an organization reflects the distribution of responsibility, authority, and accountability throughout the organization. Auditors need to know how the organization functions to properly audit it.PTS:14.Several advantages of cloud computing have been discussed. Discuss at least three.ANS:The advantages of cloud computing include access to whatever computing power it needs, paying only for what is used, and