Question 1

It is important for accountants to have some understanding of basic computer terminology.

Accepted Answer

A) True 
 B)False

Question 2

In order to achieve the objective of managing risk, management should establish control structures that include, at a minimum:

Accepted Answer

A) Accounting internal controls. 
B) Accounting internal controls, IT controls, corporate governance, enterprise risk management, and IT governance. 
C) IT controls, IT governance, corporate governance, and accounting internal controls. 
D) IT controls and accounting internal controls. 
A) Accounting internal controls. 
B) Accounting internal controls, IT controls, corporate governance, enterprise risk management, and IT governance. 
C) IT controls, IT governance, corporate governance, and accounting internal controls. 
D) IT controls and accounting internal controls.

Question 3

The company's development and adherence to this should reduce the opportunities for managements or employees to conduct fraud.

Accepted Answer

A) Code of ethics 
B) Internal control structure 
C) Application controls 
D) Corporate governance 
A) Code of ethics 
B) Internal control structure 
C) Application controls 
D) Corporate governance

Question 4

There are two modes of processing transactions in accounting systems.The mode that will record transactions, one at a time, is referred to as:

Accepted Answer

A) Batch Processing 
B) Online Processing 
C) Real-Time Processing 
D) Sequential Processing 
A) Batch Processing 
B) Online Processing 
C) Real-Time Processing 
D) Sequential Processing

Question 5

Accountants have some form of use of the AIS in all but which role?

Accepted Answer

A) User 
B) Programmer 
C) Auditor 
D) Designer 
A) User 
B) Programmer 
C) Auditor 
D) Designer

Question 6

The entities, processes, and information flows that involve the movement of materials, funds, and related information through the full logistics process, from the acquisition of raw materials to the delivery of the finished products to the end use is a set of linked activities referred to as:

Accepted Answer

A) Management Information System 
B) Supply Chain 
C) Accounting Information System 
D) Logistics Management 
A) Management Information System 
B) Supply Chain 
C) Accounting Information System 
D) Logistics Management

Question 7

The evaluated receipt settlement system is an IT enabled system that reduces the time and cost of processing customer payments.

Accepted Answer

A) True 
 B)False

Question 8

There are many reasons for accountants to become aware of potential unethical behaviors.Which of the following is not one of the reasons identified by the authors?

Accepted Answer

A) Accountants are responsible for identifying unethical and illegal activities. 
B) Accounts assist in developing and implementing internal control structures that should decrease the chance of unethical actions. 
C) Accountants are often pressured to assist in, or cover up, unethical actions. 
D) Accountants deal with assets or records that could easily tempt accountants to engage in unethical behavior.
TEST BANK - CHAPTER 1 - TRUE/FALSE: 
A) Accountants are responsible for identifying unethical and illegal activities. 
B) Accounts assist in developing and implementing internal control structures that should decrease the chance of unethical actions. 
C) Accountants are often pressured to assist in, or cover up, unethical actions. 
D) Accountants deal with assets or records that could easily tempt accountants to engage in unethical behavior.
TEST BANK - CHAPTER 1 - TRUE/FALSE:

Question 9

A business process has a well-defined beginning and end.

Accepted Answer

A) True 
 B)False

Question 10

Once a company has decided on the control processes needed, it is not necessary to have an ongoing assessment of risks.

Accepted Answer

A) True 
 B)False

Question 11

IT Controls can be divided into two categories, general controls and application controls.Which of the following is an example of a general control?

Accepted Answer

A) The alignment of a company's IT strategy with its business strategy. 
B) The use of passwords to allow only authorized users to log into an IT-based accounting system. 
C) The use of an elaborate set of checks and balances whereby a company's leadership is held accountable for building shareholder value. 
D) A company performing background checks on employees of its IT department. 
A) The alignment of a company's IT strategy with its business strategy. 
B) The use of passwords to allow only authorized users to log into an IT-based accounting system. 
C) The use of an elaborate set of checks and balances whereby a company's leadership is held accountable for building shareholder value. 
D) A company performing background checks on employees of its IT department.

Question 12

IT controls can be divided into two categories.Which of the following is a correct statement of one of those categories?

Accepted Answer

A) Application controls apply overall to the IT accounting system. 
B) Application controls apply to the prevention of erroneous or incomplete input or processing of data. 
C) Application controls are used specifically in accounting applications to control inputs, processing, and output. 
D) Application controls are used to prohibit fraudulent financial reporting. 
A) Application controls apply overall to the IT accounting system. 
B) Application controls apply to the prevention of erroneous or incomplete input or processing of data. 
C) Application controls are used specifically in accounting applications to control inputs, processing, and output. 
D) Application controls are used to prohibit fraudulent financial reporting.

Question 13

The proper order of activity in an accounting information system would be as follows:

Accepted Answer

A) Capture, Record, Process, Report 
B) Process, Record, Capture, Report 
C) Capture, Process, Report, Record 
D) Record, Capture, Process, Report 
A) Capture, Record, Process, Report 
B) Process, Record, Capture, Report 
C) Capture, Process, Report, Record 
D) Record, Capture, Process, Report

Question 14

A company's private network, accessible only to the employees of that company is the:

Accepted Answer

A) WAN 
B) Intranet 
C) Internet 
D) LAN 
A) WAN 
B) Intranet 
C) Internet 
D) LAN

Question 15

Before ERP software systems, modules such as human resources were in separate software but well integrated with the accounting software.

Accepted Answer

A) True 
 B)False

Question 16

A company's ____________ encompasses the tone of an organization and sets the basis for how risk is viewed and addressed by an entity's people.

Accepted Answer

A) Internal Environment 
B) Internal Controls Framework 
C) Code of Ethics 
D) IT Governance Structure 
A) Internal Environment 
B) Internal Controls Framework 
C) Code of Ethics 
D) IT Governance Structure

Question 17

IT systems are to be chosen and implemented to support the attainment of strategies and objectives.

Accepted Answer

A) True 
 B)False

Question 18

A contemporary type of computer infrastructure that is used by an increasing number of companies involves the use of shared services, software, and / or data stored on servers at a remote location, which are accessible over a network, is referred to as:

Accepted Answer

A) Database 
B) Cloud Computing 
C) Internet 
D) Relational Internet 
A) Database 
B) Cloud Computing 
C) Internet 
D) Relational Internet

Question 19

The use of electronic means to enhance business processes is termed:

Accepted Answer

A) E-business 
B) Electronic data interchange 
C) Point of sale system 
D) E-commerce 
A) E-business 
B) Electronic data interchange 
C) Point of sale system 
D) E-commerce

Question 20

An auditor cannot make informed decisions necessary to complete the audit without an understanding of the accounting information system.

Accepted Answer

A) True 
 B)False

It is important for accountants to have some understanding of basic computer terminology.

In order to achieve the objective of managing risk, management should establish control structures that include, at a minimum:

The company's development and adherence to this should reduce the opportunities for managements or employees to conduct fraud.

There are two modes of processing transactions in accounting systems.The mode that will record transactions, one at a time, is referred to as:

Accountants have some form of use of the AIS in all but which role?

The entities, processes, and information flows that involve the movement of materials, funds, and related information through the full logistics process, from the acquisition of raw materials to the delivery of the finished products to the end use is a set of linked activities referred to as:

The evaluated receipt settlement system is an IT enabled system that reduces the time and cost of processing customer payments.

There are many reasons for accountants to become aware of potential unethical behaviors.Which of the following is not one of the reasons identified by the authors?

A business process has a well-defined beginning and end.

Once a company has decided on the control processes needed, it is not necessary to have an ongoing assessment of risks.

IT Controls can be divided into two categories, general controls and application controls.Which of the following is an example of a general control?

IT controls can be divided into two categories.Which of the following is a correct statement of one of those categories?

The proper order of activity in an accounting information system would be as follows:

A company's private network, accessible only to the employees of that company is the:

Before ERP software systems, modules such as human resources were in separate software but well integrated with the accounting software.

A company's ____________ encompasses the tone of an organization and sets the basis for how risk is viewed and addressed by an entity's people.

IT systems are to be chosen and implemented to support the attainment of strategies and objectives.

A contemporary type of computer infrastructure that is used by an increasing number of companies involves the use of shared services, software, and / or data stored on servers at a remote location, which are accessible over a network, is referred to as:

The use of electronic means to enhance business processes is termed:

An auditor cannot make informed decisions necessary to complete the audit without an understanding of the accounting information system.

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters

Exam 1: Introduction to AIS

It is important for accountants to have some understanding of basic computer terminology.

In order to achieve the objective of managing risk, management should establish control structures that include, at a minimum:

The company's development and adherence to this should reduce the opportunities for managements or employees to conduct fraud.

There are two modes of processing transactions in accounting systems.The mode that will record transactions, one at a time, is referred to as:

Accountants have some form of use of the AIS in all but which role?

The entities, processes, and information flows that involve the movement of materials, funds, and related information through the full logistics process, from the acquisition of raw materials to the delivery of the finished products to the end use is a set of linked activities referred to as:

The evaluated receipt settlement system is an IT enabled system that reduces the time and cost of processing customer payments.

There are many reasons for accountants to become aware of potential unethical behaviors.Which of the following is not one of the reasons identified by the authors?

A business process has a well-defined beginning and end.

Once a company has decided on the control processes needed, it is not necessary to have an ongoing assessment of risks.

IT Controls can be divided into two categories, general controls and application controls.Which of the following is an example of a general control?

IT controls can be divided into two categories.Which of the following is a correct statement of one of those categories?

The proper order of activity in an accounting information system would be as follows:

A company's private network, accessible only to the employees of that company is the:

Before ERP software systems, modules such as human resources were in separate software but well integrated with the accounting software.

A company's ____________ encompasses the tone of an organization and sets the basis for how risk is viewed and addressed by an entity's people.

IT systems are to be chosen and implemented to support the attainment of strategies and objectives.

A contemporary type of computer infrastructure that is used by an increasing number of companies involves the use of shared services, software, and / or data stored on servers at a remote location, which are accessible over a network, is referred to as:

The use of electronic means to enhance business processes is termed:

An auditor cannot make informed decisions necessary to complete the audit without an understanding of the accounting information system.

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters