Accounting Information Systems Review
Questions
Course Introduction
Accounting Information Systems explores the integration of accounting principles with modern information technology to support decision-making and business processes within organizations. The course examines the design, implementation, and management of systems that collect, process, and report financial data. Topics include internal controls, system security, data analytics, and the use of accounting software. Students will learn how to evaluate and improve accounting information systems to ensure accuracy, reliability, and compliance in an increasingly digital business environment.
Recommended Textbook
Information Technology Auditing 3rd Edition by James A. Hall
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12 Chapters
1295 Verified Questions
1295 Flashcards
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Page 2
Chapter 1: Auditing and Internal Control
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103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/5812
Sample Questions
Q1) List the four broad objectives of the internal control system. Answer: safeguard assets, ensure the accuracy and reliability of accounting records, promote organizational efficiency, comply with management's policies and procedures
Q2) An accounting system that maintains an adequate audit trail is implementing which internal control procedure?
A) access controls
B) segregation of functions
C) independent verification
D) accounting records
Answer: D
Q3) What are the objectives of application controls?
Answer: The objectives of application controls are to ensure the validity,completeness,and accuracy financial transactions.
Q4) Locking petty cash in a safe is an example of __________________________.
Answer: access controls
Q5) Sequentially numbering all sales invoices is an example of
Answer: accounting records
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Chapter 2: Auditing IT Governance Controls
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) Which of the following is not an essential feature of a disaster recovery plan?
A) off-site storage of backups
B) computer services function
C) second site backup
D) critical applications identified
Answer: B
Q2) Briefly explain the core-competency theory.
Answer: Core competency theory argues that an organization should focus exclusively on its core business competencies,while allowing outsourcing vendors to efficiently manage the non-core areas such as the IT functions.
Q3) What are commodity IT assets?
Answer: Commodity IT assets are not unique to a particular organization and are thus easily acquired in the marketplace.These include such things as network management,systems operations,server maintenance,and help-desk functions.
Q4) Commodity IT assets include such things are network management.
A)True
B)False
Answer: True
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Chapter 3: Security Part I: Auditing Operating Systems and Networks
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) What is an operating system? What does it do? What are operating system control objectives?
Answer: An operating system is a computer's control program.It controls user sharing of applications and resources such as processors,memory,databases,and peripherals such as printers.Common PC operating systems include Windows 2000,Windows NT,and Linux.
An operating system carries out three primary functions: translating high level languages into machine language using modules called compilers and interpreters; allocating computer resources to users,workgroups,and applications; and managing job scheduling and multiprogramming.
Operating systems have five basic control objectives:
1.to protect itself from users, 2.to protect users from each other, 3.to protect users from themselves, 4.to protect it from itself,and 5.to protect itself from its environment.
Q2) The client-server model can only be applied to ring and star topologies. A)True B)False
Answer: False
Page 5
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Chapter 4: IT Security Part II: Auditing Database Systems
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) The data definition language
A) identifies, for the database management system, the names and relationships of all data elements, records, and files that comprise the database
B) inserts database commands into application programs to enable standard programs to interact with and manipulate the database
C) permits users to process data in the database without the need for conventional programs
D) describes every data element in the database
Q2) Audit objectives for the database management system include all of the following except
A) verifying that the security group monitors and reports on fault tolerance violations
B) confirming that backup procedures are adequate
C) ensuring that authorized users access only those files they need to perform their duties
D) verifying that unauthorized users cannot access data files
Q3) The __________________________ describes every data element in the database.
Q4) How does the database approach solve the problem of data redundancy?
Q5) Distinguish between a database lockout and a deadlock.
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Chapter 5: Systems Development and Program Change
Activities
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) When the nature of the project and the needs of the user permit,most organizations will seek a pre-coded commercial software package rather than develop a system in-house.
A)True
B)False
Q2) A cost-benefit analysis is a part of the detailed
A) operational feasibility study
B) schedule feasibility study
C) legal feasibility study
D) economic feasibility study
Q3) One time costs include all of the following except
A) site preparation
B) insurance
C) programming and testing
D) data conversion
Q4) List at least three one-time costs and three recurring costs in system development.
Q5) ____________________ benefits can be measured and expressed in financial terms,while ____________________ benefits cannot be easily measured and/or quantified.
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Chapter 6: Overview of Transaction Processing and Financial Reporting Systems
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143 Flashcards
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Sample Questions
Q1) List two duties that the general ledger clerk should not perform.
Q2) Give a brief description of each of the following documentation techniques: systems flowchart,and program flowchart.
Q3) For what purpose are ER diagrams used?
Q4) How is backup of database files accomplished?
Q5) The characteristics that distinguish between batch and real-time systems include all of the following except
A) time frame
B) resources used
C) file format
D) efficiency of processing
Q6) Operational efficiencies can be improved by
A) updating accounts both common and unique to many concurrent transactions in real time.
B) updating accounts both common and unique to many concurrent transactions in batch mode.
C) updating accounts unique to many concurrent transactions in real time and updating common accounts in batch mode.
D) None of the above are true statements
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Chapter 7: Computer-Assisted Audit Tools and Techniques
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) Risk exposures associated with creating an output file as an intermediate step in the printing process (spooling)include all of the following actions by a computer criminal except
A) gaining access to the output file and changing critical data values
B) using a remote printer and incurring operating inefficiencies
C) making a copy of the output file and using the copy to produce illegal output reports
D) printing an extra hardcopy of the output file
Q2) Auditors do not rely on detailed knowledge of the application's internal logic when they use the __________________________ approach to auditing computer applications.
Q3) Program testing
A) involves individual modules only, not the full system
B) requires creation of meaningful test data
C) need not be repeated once the system is implemented
D) is primarily concerned with usability
Q4) A run-to-run control is an example of an output control.
A)True
B)False
Q5) Give one example of an error that is detected by a check digit control.
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Chapter 8: Data Structures and CAATTs for Data Extraction
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89 Verified Questions
89 Flashcards
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Sample Questions
Q1) Give three examples that illustrate how cardinality reflects an organization's underlying business rules.
Q2) Generalized audit software packages perform all of the following tasks except
A) recalculate data fields
B) compare files and identify differences
C) stratify statistical samples
D) analyze results and form opinions
Q3) Give an advantage and a disadvantage of the sequential data structure
Q4) Which statement is true about a hashing structure?
A) The same address could be calculated for two records.
B) Storage space is used efficiently.
C) Records cannot be accessed rapidly.
D) A separate index is required.
Q5) Data normalization groups data attributes into tables in accordance with specific design objectives.
A)True
B)False
Q6) The physical database is an abstract representation of the database.
A)True
B)False
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Chapter 9: Auditing the Revenue Cycle
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) The stock release copy of the sales order is not used to
A) locate and pick the items from the warehouse shelves
B) record any out-of-stock items
C) authorize the warehouse clerk to release custody of the inventory to shipping
D) record the reduction of inventory
Q2) Which control does not help to ensure that accurate records are kept of customer accounts and inventory?
A) reconcile accounts receivable control to accounts receivable subsidiary
B) authorize credit
C) segregate custody of inventory from record keeping
D) segregate record keeping duties of general ledger from accounts receivable
Q3) What is the role of the shipping notice?
Q4) State two specific functions or jobs that should be segregated in the sales processing system.
Q5) Copies of the sales order can be used for all of the following except
A) purchase order
B) credit authorization
C) shipping notice
D) packing slip
Q6) How is independent verification carried out in a manual revenue system?
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Chapter 10: Auditing the Expenditure Cycle
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?
Q2) In the expenditure cycle,general ledger does not
A) post the journal voucher from the accounts payable department
B) post the account summary from inventory control
C) post the journal voucher from the purchasing department
D) reconcile the inventory control account with the inventory subsidiary summary
Q3) A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.
A)True B)False
Q4) Timekeeping is part of the personnel function. A)True B)False
Q5) If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.
A)True B)False
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Chapter 12: Business Ethics, Fraud, and Fraud Detection
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85 Verified Questions
85 Flashcards
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Sample Questions
Q1) Employees should be made aware of the firm's commitment to ethics.
A)True
B)False
Q2) Business ethics is the analysis of the nature and social impact of computer technology,and the corresponding formulation and justification of policies for the ethical use of such technology.
A)True
B)False
Q3) Why are the computer ethics issues of privacy,security,and property ownership of interest to accountants?
Q4) Operations fraud includes
A) altering program logic to cause the application to process data incorrectly
B) misusing the firm's computer resources
C) destroying or corrupting a program's logic using a computer virus
D) creating illegal programs that can access data files to alter, delete, or insert values
Q5) What is the objective of SAS 99?
Q6) Explain the problems associated with Questionable Executive Compensation Schemes
Q7) Contrast management fraud with employee fraud.
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Q8) Explain the Pay and Return scheme.
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Chapter 11: Enterprise Resource Planning Systems
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92 Verified Questions
92 Flashcards
Source URL: https://quizplus.com/quiz/5823
Sample Questions
Q1) Companies are more likely to modify an ERP to accommodate the company than to modify company processes to accommodate the ERP.
A)True
B)False
Q2) What is data mining?
Q3) Which of the following is NOT as a risk associated with ERP implementation.?
A) A drop in firm performance after implementation because the firm looks and works differently than it did while using a legacy system.
B) Implementing companies have found that staff members, employed by ERP consulting firms, do not have sufficient experience in implementing new systems.
C) Implementing firms fail to select systems that properly support their business activities.
D) The selected system does not adequately meet the adopting firm's economic growth.
E) ERP's are too large, complex, and generic for them to be well integrated into most company cultures.
Q4) How can a firm acquire bolt-on software? What are the options?
Q5) What is the "Big-Bang" approach?
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