Question 1

An ABC inventory system refers to an "activity-based costing" system.

Accepted Answer

A) True 
 B)False

Question 2

Sections of the Patriot Act mandate suspicious activity reporting.

Accepted Answer

A) True 
 B)False

Question 3

The process by which a financial transaction is recorded so that its flow through the system can be followed is called:

Accepted Answer

A) Financial shadowing 
B) Managerial trace technique 
C) Concatenation 
D) An audit trail 
A) Financial shadowing 
B) Managerial trace technique 
C) Concatenation 
D) An audit trail

Question 4

Accounting information systems must be computerized to be effective.

Accepted Answer

A) True 
 B)False

Question 5

Many accountants feel that the most important part of the Sarbanes-Oxley Act is:

Accepted Answer

A) Its anti-terrorist provisions 
B) Its provisions requiring the reporting of suspicious activities 
C) Section 404 on internal controls 
D) Section 505 on money laundering 
A) Its anti-terrorist provisions 
B) Its provisions requiring the reporting of suspicious activities 
C) Section 404 on internal controls 
D) Section 505 on money laundering

Question 6

Which of these businesses is not required to report suspicious activities under current federal laws?

Accepted Answer

A) Banks 
B) Money service organizations 
C) Commodity Traders 
D) Mutual fund dealers 
E) All of these businesses must engage in SAR 
A) Banks 
B) Money service organizations 
C) Commodity Traders 
D) Mutual fund dealers 
E) All of these businesses must engage in SAR

Question 7

The acronym AIS stands for "Accounting Information Standards."

Accepted Answer

A) True 
 B)False

Question 8

Today's AIS is an enterprise-wide information system that focuses on interdepartmental business processes.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following best describes "predictive analytics"?

Accepted Answer

A) It is a method auditors use to predict when managers might have a weak internal control system 
B) It is a technique that uses data stored in data warehouses to create systems that allow managers to use their data to make predictions about future outcomes 
C) It is a method used to prevent managers from overriding internal controls 
D) none of the above 
A) It is a method auditors use to predict when managers might have a weak internal control system 
B) It is a technique that uses data stored in data warehouses to create systems that allow managers to use their data to make predictions about future outcomes 
C) It is a method used to prevent managers from overriding internal controls 
D) none of the above

Question 10

The "S" in the acronym "AIS" stands for:

Accepted Answer

A) Standard 
B) System 
C) Symbol 
D) none of these 
A) Standard 
B) System 
C) Symbol 
D) none of these

Question 11

An example of an assurance service for a company engaged in electronic commerce is:

Accepted Answer

A) XBRL 
B) Trust US 
C) CITP 
D) CPA Trust Services 
A) XBRL 
B) Trust US 
C) CITP 
D) CPA Trust Services

Question 12

AISs often create information that is useful to non-accountants.

Accepted Answer

A) True 
 B)False

Question 13

Which of these is a certification that accountants can earn that focuses on proficiency in information technology?

Accepted Answer

A) CPA 
B) CMA 
C) CISA 
D) CITP 
A) CPA 
B) CMA 
C) CISA 
D) CITP

Question 14

Which of the following accounting functions has been automated by most companies' information processing subsystems?

Accepted Answer

A) Posting to ledgers 
B) Recording journal entries 
C) Preparing trial balances 
D) all of the above 
A) Posting to ledgers 
B) Recording journal entries 
C) Preparing trial balances 
D) all of the above

Question 15

A good audit trail within the financial accounting system should allow a manager or auditor to trace any source document back from a report to the original data entry.

Accepted Answer

A) True 
 B)False

Question 16

A consulting service provided by CPA firms is risk assessment.

Accepted Answer

A) True 
 B)False

Question 17

An example of a corporate scandal that was mentioned in this chapter is the Enron case.

Accepted Answer

A) True 
 B)False

Question 18

The acronym ERP stands for "enterprise reporting system."

Accepted Answer

A) True 
 B)False

Question 19

Predictive analytics use large data warehouses to help organizations improve performance by predicting future outcomes.

Accepted Answer

A) True 
 B)False

Question 20

As used in this chapter, the acronym SAR stands for "suspicious accounting reporting."

Accepted Answer

A) True 
 B)False

An ABC inventory system refers to an "activity-based costing" system.

Sections of the Patriot Act mandate suspicious activity reporting.

The process by which a financial transaction is recorded so that its flow through the system can be followed is called:

Accounting information systems must be computerized to be effective.

Many accountants feel that the most important part of the Sarbanes-Oxley Act is:

Which of these businesses is not required to report suspicious activities under current federal laws?

The acronym AIS stands for "Accounting Information Standards."

Today's AIS is an enterprise-wide information system that focuses on interdepartmental business processes.

Which of the following best describes "predictive analytics"?

The "S" in the acronym "AIS" stands for:

An example of an assurance service for a company engaged in electronic commerce is:

AISs often create information that is useful to non-accountants.

Which of these is a certification that accountants can earn that focuses on proficiency in information technology?

Which of the following accounting functions has been automated by most companies' information processing subsystems?

A good audit trail within the financial accounting system should allow a manager or auditor to trace any source document back from a report to the original data entry.

A consulting service provided by CPA firms is risk assessment.

An example of a corporate scandal that was mentioned in this chapter is the Enron case.

The acronym ERP stands for "enterprise reporting system."

Predictive analytics use large data warehouses to help organizations improve performance by predicting future outcomes.

As used in this chapter, the acronym SAR stands for "suspicious accounting reporting."

Accounting on the Internet

Information Technology and Aiss

Accounting and Data Analytics

Integrated Accounting and Enterprise Software

Introduction to Internal Control Systems and Risk Management

Computer Controls for Organizations and Accounting Information Systems

Accounting Information Systems and Business Processes: Part I

Accounting Information Systems and Business Processes: Part II

Cybercrime, Fraud, and Ethics

Information Technology Auditing

Documenting Accounting Information Systems

Developing and Implementing Effective Accounting Information Systems

Database Design

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Filters

Exam 1: Accounting Information Systems and the Accountant

An ABC inventory system refers to an "activity-based costing" system.

Sections of the Patriot Act mandate suspicious activity reporting.

The process by which a financial transaction is recorded so that its flow through the system can be followed is called:

Accounting information systems must be computerized to be effective.

Many accountants feel that the most important part of the Sarbanes-Oxley Act is:

Which of these businesses is not required to report suspicious activities under current federal laws?

The acronym AIS stands for "Accounting Information Standards."

Today's AIS is an enterprise-wide information system that focuses on interdepartmental business processes.

Which of the following best describes "predictive analytics"?

The "S" in the acronym "AIS" stands for:

An example of an assurance service for a company engaged in electronic commerce is:

AISs often create information that is useful to non-accountants.

Which of these is a certification that accountants can earn that focuses on proficiency in information technology?

Which of the following accounting functions has been automated by most companies' information processing subsystems?

A good audit trail within the financial accounting system should allow a manager or auditor to trace any source document back from a report to the original data entry.

A consulting service provided by CPA firms is risk assessment.

An example of a corporate scandal that was mentioned in this chapter is the Enron case.

The acronym ERP stands for "enterprise reporting system."

Predictive analytics use large data warehouses to help organizations improve performance by predicting future outcomes.

As used in this chapter, the acronym SAR stands for "suspicious accounting reporting."

Accounting on the Internet

Information Technology and Aiss

Accounting and Data Analytics

Integrated Accounting and Enterprise Software

Introduction to Internal Control Systems and Risk Management

Computer Controls for Organizations and Accounting Information Systems

Accounting Information Systems and Business Processes: Part I

Accounting Information Systems and Business Processes: Part II

Cybercrime, Fraud, and Ethics

Information Technology Auditing

Documenting Accounting Information Systems

Developing and Implementing Effective Accounting Information Systems

Database Design

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Filters