Exam 14: Decision-Making Models and Knowledge Management

Jon attempted to read an advanced accounting text after sleeping four hours the previous night.Which of the following statements is most true?

Brown's taxonomy of risk includes "systems risk" as a form of operational risk.An organization creating a knowledge management system has the greatest exposure to systems risk in which of the seven steps for creating the knowledge management system?

Call recommended a seven-step process for creating a knowledge management system.The first step could be completed by:

Consider the following short case as you respond to the question: Amanda is a partner in a CPA firm; she supervises a staff of ten professionals, some of whom are already licensed CPAs and some of whom are still working toward licensure.She is responsible for audits of independent bookstores in California, Nevada and Arizona.Amanda is concerned that the less experienced professionals she supervises are repeating the mistakes she and the more experienced professionals on her team made when they began auditing.She therefore wants to create a knowledge management system.Consider the following comments Amanda could make after purchasing or building appropriate tools for knowledge management.Which of them best demonstrates that she understands the seven steps in creating a knowledge management system?

Which element of Steps for Better Thinking is described in each independent item below? Use each element of the model exactly twice. a.Classifying previously identified costs and benefits as financial or nonfinancial b.Conducting internal audits to assess the effectiveness of implemented internal controls c.Organizing focus groups to discuss ways to improve internal controls after implementing several controls d.Preparing a list of previously identified costs and benefits for specific internal controls e.Ranking a list of five internal control objectives according to their importance f.Reading an article about the purposes of internal control g.Recognizing a weakness in internal control h.Recommending specific internal controls to implement i.Taking a course to learn about the COSO internal control framework j.Wondering if a CEO supports changes in internal control

Task and process parameters can contribute to information overload.All of the following are task and process parameters except:

Consider the following independent situations as you answer the questions: A.Irene, a freshman accounting major, thought she would benefit from reading an intermediate accounting text while taking introductory financial accounting. B.Bradley developed a plan to study for all four parts of the CPA exam during his last semester at college, thus making himself ready to take the exam immediately after graduation. C.Jorge met weekly with a group of five students, all of whom were preparing their resume for the very first time. D.Every time Maria encountered a topic she did not understand in her accounting information systems course, she did a Google search for it.Which decision makers are experiencing relapse errors?

Russell had been asked by his supervisor to document the purchasing process in his company, but did not specify any particular technique for doing so.If Russell uses Steps for Better Thinking to choose a documentation technique, which of the following statements is most true?

Accounting information systems work often involves documenting business processes through flowcharts, data flow diagrams and REA models.Briefly explain the importance of managing knowledge about documentation techniques; also explain, in your own words, how you would manage that knowledge.

The nature and complexity of topics in accounting information systems can lead to information overload.Consider the situations below; for each situation, indicate one countermeasure from the list suggested by Eppler and Mengis. a.Ray attempted to design relational database tables for his company's acquisition/payment process before lunch. b.Employees at TRM Corporation listened to Susan's two-hour presentation on the COSO internal control model. c.Peter prepared a report for the board of directors explaining each inventory purchase for the previous six months. d.Juanita, the chief financial officer of TRM Corporation, attempted to explain the role and purpose of financial statements without using the proper accounting terminology. e.After receiving a report evaluating various prospective ERP vendors, Sam decided to delay making a choice for three weeks.

Consider the following short case as you respond to the question: Amanda is a partner in a CPA firm; she supervises a staff of ten professionals, some of whom are already licensed CPAs and some of whom are still working toward licensure.She is responsible for audits of independent bookstores in California, Nevada and Arizona.Amanda is concerned that the less experienced professionals she supervises are repeating the mistakes she and the more experienced professionals on her team made when they began auditing.She therefore wants to create a knowledge management system.One important step in conducting an audit is the evaluation of internal controls; one step in creating a knowledge management system is the creation of a visual map.If Amanda wanted to create a visual map focused on internal control, it could be organized into which of the following categories?

Samantha and Josephine were preparing to start their own clothing business; they contacted their friend David, a recent graduate from Big State University's accounting program, to learn about setting up their accounting information system.After some discussion, they decided to use Quickbooks as their basic AIS software.Editing the standard chart of accounts to fit their clothing business would be part of ___ in Steps for Better Thinking.

Isabella is the CEO of BHR Corporation.By virtue of her position, she is in the best position to complete which of the seven steps involved in creating a knowledge management system?

In which stage of Steps for Better Thinking should a decision maker interpret and organize information?

Cloud computing involves:

YHW Corporation had been a traditional brick-and-mortar business, but was interested in expanding into e-business practices.Starting with the "identifying" phase, explain how you would use Steps for Better Thinking to make a recommendation on the expansion.

Examples of Step 1 in Steps for Better Thinking include:

Bumble Beasley was attempting to improve internal controls over his firm's sales/collection process.He completed the following tasks in the order listed, but made several errors.Revise each statement based on Steps for Better Thinking. a.Read one general article about the importance of internal control. b.Focus on the costs of physical and technical controls in the sales/collection process. c.Make a list of three cost categories common to physical and technical controls in the sales/collection process. d.Implement the two least expensive physical and two least expensive technical controls. e.Write a report summarizing his work; store it in a three-ring binder on his office bookshelf.

Big Data can originate:

Consider the following short case as you respond to the question: Amanda is a partner in a CPA firm; she supervises a staff of ten professionals, some of whom are already licensed CPAs and some of whom are still working toward licensure.She is responsible for audits of independent bookstores in California, Nevada and Arizona.Amanda is concerned that the less experienced professionals she supervises are repeating the mistakes she and the more experienced professionals on her team made when they began auditing.She therefore wants to create a knowledge management system.Call recommended seven steps for developing a knowledge management system, one of which relates to defining business goals.Appropriate business goals for Amanda's situation include: