Advanced Accounting Information Systems
Exam Review
Course Introduction
Advanced Accounting Information Systems focuses on the application and integration of complex information technologies within accounting environments. The course explores topics such as systems analysis and design, enterprise resource planning (ERP), data analytics, internal controls, and cybersecurity within accounting frameworks. Students learn to evaluate and implement advanced systems that support financial reporting, auditing, and regulatory compliance, with exposure to current software and technologies shaping the profession. Emphasis is placed on enhancing decision-making skills through the use of real-time data, automation, and best industry practices, preparing students for leadership roles in managing and innovating accounting information systems.
Recommended Textbook
Accounting Information Systems 10th Edition by James A. Hall
Available Study Resources on Quizplus
16 Chapters
1672 Verified Questions
1672 Flashcards
Source URL: https://quizplus.com/study-set/3789
Page 2
Chapter 1: The Information System: an Accountants Perspective
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/75666
Sample Questions
Q1) The objectives of all information systems include all of the following except
A)support for the stewardship function of management
B)evaluating transaction data
C)support for the day-to-day operations of the firm
D)support for management decision making
Answer: B
Q2) The most basic element of useful data in the database is the
A)record
B)key
C)file
D)attribute
Answer: D
Q3) Which individuals may be involved in the systems development life cycle?
A)accountants
B)systems professionals
C)end users
D)all of the above
Answer: D
Q4) Name the five characteristics of information.
Answer: Relevance,accuracy,completeness,summarization,and timeliness.
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Introduction to Transaction Processing
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/75665
Sample Questions
Q1) When determining the batch size,which consideration is the least important?
A)achieving economies by grouping together large numbers of transactions
B)complying with legal mandates
C)providing control over the transaction process
D)balancing the trade-off between batch size and error detection
Answer: B
Q2) Is a DFD an effective documentation technique for identifying who or what performs a particular task? Explain.
Answer: No.A DFD shows which tasks are being performed,but not who performs them.It depicts the logical system.
Q3) Mnemonic codes are appropriate for items in either an ascending or descending sequence,such as the numbering of checks or source documents.
A)True
B)False
Answer: False
Q4) What are the two broad classes of file technologies?
Answer: Flat files and databases
Q5) Give a specific example of a turnaround document.
Answer: credit card,electricity,water,or telephone bill,etc.
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Ethics,fraud,and Internal Control
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/75664
Sample Questions
Q1) Cash larceny involves
A)stealing cash from an organization before it is recorded
B)stealing cash from an organization after it has been recorded
C)manufacturing false purchase orders, receiving reports, and invoices
D)paying a vendor twice for the same products and cashing the reimbursement check issued by the vendor
Answer: B
Q2) SAS 109 requires auditors to obtain an understanding of an organization's control environment.Discuss two techniques that may be used to obtain such understanding.
Answer: Auditors should assess the integrity of management and may use investigative agencies to report on the background of key managers.
Auditors should be aware of conditions that would predispose management fraud,such as lack of sufficient working capital,adverse industry conditions,bad credit ratings,or restrictive bank or indenture agreements.
Auditors should understand a client's business and industry and be aware of conditions peculiar to the industry that may affect the audit.
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The Revenue Cycle
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/75663
Sample Questions
Q1) Physical controls are embedded in computer systems to control access to data.
A)True
B)False
Q2) A remittance advice is a form of turnaround document.
A)True
B)False
Q3) Integrated accounting systems automatically transfer data between modules.
A)True
B)False
Q4) What is the purpose of the credit memo?
Q5) All of the following are advantages of real-time processing of sales except A)The cash cycle is shortened
B)Paperwork is reduced
C)Incorrect data entry is difficult to detect
D)Up-to-date information can provide a competitive advantage in the marketplace
Q6) The stock release document is prepared by the shipping department to provide evidence that the goods have been released to the customer.
A)True
B)False
Q7) Distinguish between a packing slip,shipping notice,and a bill of lading.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: The Expenditure Cycle Part I: Purchases and Cash
Disbursements Procedures
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/75662
Sample Questions
Q1) Copies of a purchase order are sent to all of the following except A)inventory control
B)receiving
C)general ledger
D)accounts payable
Q2) Which internally generated document should be compared to the supplier's invoice to verify the quantity being billed for?
Q3) The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.
A)True
B)False
Q4) 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
Q5) In a voucher system,the sum of all unpaid vouchers in the voucher register equals the firm's total voucher payable balance.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: The Expenditure Cycle Part II: Payroll Processing and
Fixed Asset Procedures
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/75661
Sample Questions
Q1) Employee paychecks should be drawn against a special checking account.
A)True
B)False
Q2) Which department authorizes changes to employee pay rates?
Q3) Work centers provide the personnel action form,which triggers the payroll process.
A)True
B)False
Q4) Which of the following is popular among businesses with employees in the field who travel between clients and companies with foreign-based employees?
A)Biometric time clocks
B)Magnetic swipe ID cards
C)Mobile remote devices
D)Proximity cards
Q5) Which transaction is not processed in the fixed asset system?
A)purchase of building
B)improvement of equipment
C)purchase of raw materials
D)sale of company van
Q6) Why should the employee's supervisor not distribute paychecks?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Conversion Cycle
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/75660
Sample Questions
Q1) Discuss inventory control objectives.
Q2) Automation is at the heart of the lean manufacturing philosophy.Discuss its stages and its distinguishing features.
Q3) What is one benefit of the flexible production system?
Q4) Explain how CAD can contribute to a firm's move toward world-class status.
Q5) Which of the following is not an example of waste?
A)overproduction of products
B)safety hazards that cause injury
C)stand-alone processes that are not linked to upstream or downstream processes
D)All of the above are examples of waste.
Q6) The cost accounting system authorizes the release of raw materials into production. A)True
B)False
Q7) The complexities of ABC have caused many firms to abandon this method in favor of value stream accounting.
A)True
B)False
Q8) What document triggers the beginning of the cost accounting process for a given production run?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Financial Reporting,and Management Reporting Systems
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/75659
Sample Questions
Q1) What mechanism is used to convey to managers the standards by which their performance will be measured?
A)the responsibility report
B)the scheduled report
C)the budget
D)all of the above
Q2) Which statement is not true?
A)Authority refers to an individual's obligation to achieve desired results.
B)If an employee is given the responsibility for a task, that employee should be given authority to make decisions within the limits of that task.
C)The level of detail provided to an employee is a function of the employee's position with the firm.
D)All of the above are true.
Q3) The decision to enter a new market is an example of
A)strategic planning
B)tactical planning
C)management control
D)operational control
Q4) What distinguishes big data analytics from small data analytics?
10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Database Management Systems
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/75658
Sample Questions
Q1) Which of the following is not one of four interrelated components of the database concept?
A)the database management system
B)the database administrator
C)the physical database
D)the conceptual database
Q2) What is a database lockout?
Q3) Which characteristic is not associated with the database approach to data management?
A)the ability to process data without the help of a programmer
B)the ability to control access to the data
C)constant production of backups
D)the inability to determine what data is available
Q4) Which term is not associated with the relational database model?
A)tuple
B)attribute
C)collision
D)relation
Q5) What is the update anomaly?
Q6) What are the four characteristics of a properly designed database table?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: The Rea Approach to Business Process
Modeling
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/75657
Sample Questions
Q1) According to the REA philosophy,information systems should support only the needs of accounting professionals.
A)True
B)False
Q2) When modeling M:M associations,it is conventional to include link tables in the REA diagram so that the model reflects closely the actual database.
A)True
B)False
Q3) Which of the following is true?
A)REA diagram entities are arranged in constellations by entity class.
B)ER diagrams present a static picture of the underlying business phenomena.
C)Events entity names in REA diagrams are in the verb form.
D)All of the above are true statements.
Q4) Which of the following are characteristics of internal agents?
A)They participate in economic events, but do not assume control of the resources.
B)They are employees of the company whose system is being modeled.
C)They participate in economic events, but not in support events.
D)All of the above.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Enterprise Resource Planning Systems
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/75656
Sample Questions
Q1) Core applications are
A)sales and distribution
B)business planning
C)shop floor control and logistics
D)all of the above
Q2) Data in a data warehouse are in a stable state.Explain how this can hamper data mining analysis.What can an organization do to alleviate this problem?
Q3) Organizations using ERP systems employ an internal control tool called a role.
A)True
B)False
Q4) What are the three key internal control concerns for managers and auditors regarding ERP roles?
Q5) Legacy systems are
A)old manual systems that are still in place
B)flat file mainframe systems developed before client-server computing became standard
C)stable database systems after debugging
D)advanced systems without a data warehouse
Q6) Why must a data warehouse include both detail and summary data?
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Electronic Commerce Systems
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/75655
Sample Questions
Q1) What is a certification authority and what are the implications for the accounting profession?
Q2) To physically connect a workstation to a LAN requires a
A)file server
B)network interface card
C)multiplexer
D)bridge
Q3) Because of network protocols,users of networks built by different manufacturers are able to communicate and share data.
A)True
B)False
Q4) The rules that make it possible for users of networks to communicate are called protocols.
A)True
B)False
Q5) Is cloud computing the best option for all companies? Why or why not?
Q6) Discuss the three levels of Internet business models.
Q7) Business-to-consumer is the largest segment of Internet commerce.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Managing the Systems Development Life Cycle
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/75654
Sample Questions
Q1) Name four techniques that systems analysts use to gather facts during system surveys.
Q2) Which statement is not correct? The structured design approach
A)is a top-down approach
B)is documented by data flow diagrams and structure diagrams
C)assembles reusable modules rather than creating systems from scratch
D)starts with an abstract description of the system and redefines it to produce a more detailed description of the system
Q3) Name three topics that would not be included in the systems analysis report.
Q4) After the systems analysis phase of the systems development life cycle (SDLC)is complete,the company will have a formal systems analysis report on
A)the conceptual design of the new system
B)an evaluation of the new system
C)users' needs and requirements for the new system
D)a comparison of alternative implementation procedures for the new system
Q5) What are some of the intangible benefits that may be expected from the new system? Discuss their importance and why they are difficult to value.
Q6) Discuss two areas in which accountants offer expertise.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Auditing It Controls Part I: Sarbanes-Oxley and It Governance
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/75653
Sample Questions
Q1) Statements on Auditing Standards recommendations must be followed by every member of the profession unless it can be shown why a standard does not apply in a given situation.
A)True
B)False
Q2) Explain why certain duties that are deemed incompatible in a manual system may be combined in an automated environment? Give an example.
Q3) The IT audit focuses on systems where technology plays a material role and thus makes the entire audit process more complex.
A)True
B)False
Q4) What is a mirrored data center?
Q5) Discuss the key features of Section 404 of the Sarbanes-Oxley Act.
Q6) What are the components of audit risk?
Q7) Substantive testing techniques provide information about the accuracy and completeness of an application's processes.
A)True
B)False
Q8) Define fault tolerance. Page 16
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 15: Auditing It Controls Part II: Security and Access
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/75652
Sample Questions
Q1) Explain how smurf attacks can be controlled.
Q2) Discuss three techniques for breaching operating system controls.
Q3) Explain how the one-time password approach works.
Q4) Passwords are secret codes that users enter to gain access to systems.Security can be compromised by all of the following except
A)failure to change passwords on a regular basis
B)using obscure passwords unknown to others
C)recording passwords in obvious places
D)selecting passwords that can be easily detected by computer criminals
Q5) The database management system controls access to program files.
A)True
B)False
Q6) In an electronic data interchange environment,the audit trail
A)is a printout of all incoming and outgoing transactions
B)is an electronic log of all transactions received, translated, and processed by the system
C)is a computer resource authority table
D)consists of pointers and indexes within the database
Q7) Discuss three sources of exposure (threats)to the operating system.
Page 18
Q8) What can be done to defeat a DDoS attack?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Auditing It Controls Part III: Systems
Development, program Changes, and Application Auditing
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/75651
Sample Questions
Q1) Contrast embedded audit modules with generalized audit software.
Q2) Which statement is not true? Embedded audit modules
A)can be turned on and off by the auditor
B)reduce operating efficiency
C)may lose their viability in an environment where programs are modified frequently D)identify transactions to be analyzed using white box tests
Q3) What are CAATS? Identify five of them.
Q4) Which statement is not true?
A)An audit objective for systems maintenance is to detect unauthorized access to application databases.
B)An audit objective for systems maintenance is to ensure that applications are free from errors.
C)An audit objective for systems maintenance is to verify that user requests for maintenance reconcile to program version numbers.
D)An audit objective for systems maintenance is to ensure that the production libraries are protected from unauthorized access.
Q5) What is GAS? Identify two examples of GAS products.
Q6) What is an embedded audit module?
Page 19
To view all questions and flashcards with answers, click on the resource link above.