Question 1

Section 352 of the Patriot Act requires auditors to verify that their organizations have adequate risk assessment systems.

Accepted Answer

A) True 
 B)False

Question 2

An advantage of computerized AISs is that they do not need to be programmed to catch simple input errors such as entering "4.0" instead of "40.0" for hours worked in a payroll application.

Accepted Answer

A) True 
 B)False

Question 3

Within the traditional AIS,a sales order would not be considered an accounting transaction.

Accepted Answer

A) True 
 B)False

Question 4

Suspicious activity reporting:

Accepted Answer

A) Only applies to banking transactions 
B) Is mandated by state,but not federal,regulations 
C) Is mostly concerned with embezzlement issues 
D) Is a requirement under the Sarbanes-Oxley Law of 2002 
E) none of these 
A) Only applies to banking transactions 
B) Is mandated by state,but not federal,regulations 
C) Is mostly concerned with embezzlement issues 
D) Is a requirement under the Sarbanes-Oxley Law of 2002 
E) none of these

Question 5

The term "Patriot" is an acronym for "providing appropriate tools required to intercept and obstruct terrorism."

Accepted Answer

A) True 
 B)False

Question 6

The starting point for an audit trail of a production department might be the purchase of raw materials.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following captures the same idea as the term "GIGO?"

Accepted Answer

A) Computers cannot turn straw into gold 
B) Too much information is the same as garbage 
C) Great investments lead to great returns 
D) Too many cooks spoil the broth 
A) Computers cannot turn straw into gold 
B) Too much information is the same as garbage 
C) Great investments lead to great returns 
D) Too many cooks spoil the broth

Question 8

An example of a financial report that would be prepared by a managerial accountant (instead of a financial accountant)is a budget report.

Accepted Answer

A) True 
 B)False

Question 9

As a result of computerized information processing systems in many organizations today,the need for accountants in these organizations has significantly declined.

Accepted Answer

A) True 
 B)False

Question 10

It is best to view an AIS as an accounting system that must be computerized.

Accepted Answer

A) True 
 B)False

Question 11

The acronym ERP stands for "electronic reporting plan."

Accepted Answer

A) True 
 B)False

Question 12

In order to be useful,raw accounting data must be processed by a computer.

Accepted Answer

A) True 
 B)False

Question 13

Which of these is a drawback of cloud computing?

Accepted Answer

A) Inability to handle periods of peak processing loads 
B) Users must still invest heavily in computer resources of their own 
C) Requires users to pay for services,whether they use them or not 
D) May requires users to trust service provider with sensitive data 
E) none of these are drawbacks of cloud computing 
A) Inability to handle periods of peak processing loads 
B) Users must still invest heavily in computer resources of their own 
C) Requires users to pay for services,whether they use them or not 
D) May requires users to trust service provider with sensitive data 
E) none of these are drawbacks of cloud computing

Question 14

The certified information systems auditor certification is sponsored by:

Accepted Answer

A) ISACA 
B) AICPA 
C) IMA 
D) none of these 
A) ISACA 
B) AICPA 
C) IMA 
D) none of these

Question 15

Information systems auditors are:

Accepted Answer

A) Auditors who are concerned with analyzing risks associated with computerized information systems 
B) Individuals who often work closely with financial auditors 
C) Auditors who have a lot of technical expertise related to information technology 
D) all of the above 
A) Auditors who are concerned with analyzing risks associated with computerized information systems 
B) Individuals who often work closely with financial auditors 
C) Auditors who have a lot of technical expertise related to information technology 
D) all of the above

Question 16

As used in the chapter,"knowledge workers":

Accepted Answer

A) Are blue collar workers in non-managerial positions 
B) Are the same as delivery clerks 
C) Include most accountants 
D) Does not include most accountants 
A) Are blue collar workers in non-managerial positions 
B) Are the same as delivery clerks 
C) Include most accountants 
D) Does not include most accountants

Question 17

Which of the following best describes a data warehouse as discussed in Chapter 1?

Accepted Answer

A) A repository of historical information from one accounting application 
B) A repository of historical information from a set of accounting applications 
C) A repository of information from many business applications-some not accounting 
D) A repository of information from many businesses in the same industry 
A) A repository of historical information from one accounting application 
B) A repository of historical information from a set of accounting applications 
C) A repository of information from many business applications-some not accounting 
D) A repository of information from many businesses in the same industry

Question 18

Managerial accounting principally provides information to:

Accepted Answer

A) Stockholders 
B) Government regulators (e.g.,SEC,Federal bank examiners) 
C) Internal company management 
D) Potential creditors 
A) Stockholders 
B) Government regulators (e.g.,SEC,Federal bank examiners) 
C) Internal company management 
D) Potential creditors

Question 19

Which of these statements best describes the relationship between "AISs" and "countering terrorism?"

Accepted Answer

A) These are completely independent items; there is no relationship 
B) AISs can help counter terrorism using data warehouses 
C) AISs can help by denying financial aid to terrorist groups 
D) AISs can help by identifying international embezzlers 
A) These are completely independent items; there is no relationship 
B) AISs can help counter terrorism using data warehouses 
C) AISs can help by denying financial aid to terrorist groups 
D) AISs can help by identifying international embezzlers

Question 20

The letter "P" in the acronym "ERP" stands for:

Accepted Answer

A) Production 
B) Planning 
C) Project 
D) none of these 
A) Production 
B) Planning 
C) Project 
D) none of these

Section 352 of the Patriot Act requires auditors to verify that their organizations have adequate risk assessment systems.

An advantage of computerized AISs is that they do not need to be programmed to catch simple input errors such as entering "4.0" instead of "40.0" for hours worked in a payroll application.

Within the traditional AIS,a sales order would not be considered an accounting transaction.

Suspicious activity reporting:

The term "Patriot" is an acronym for "providing appropriate tools required to intercept and obstruct terrorism."

The starting point for an audit trail of a production department might be the purchase of raw materials.

Which of the following captures the same idea as the term "GIGO?"

An example of a financial report that would be prepared by a managerial accountant (instead of a financial accountant)is a budget report.

As a result of computerized information processing systems in many organizations today,the need for accountants in these organizations has significantly declined.

It is best to view an AIS as an accounting system that must be computerized.

The acronym ERP stands for "electronic reporting plan."

In order to be useful,raw accounting data must be processed by a computer.

Which of these is a drawback of cloud computing?

The certified information systems auditor certification is sponsored by:

Information systems auditors are:

As used in the chapter,"knowledge workers":

Which of the following best describes a data warehouse as discussed in Chapter 1?

Managerial accounting principally provides information to:

Which of these statements best describes the relationship between "AISs" and "countering terrorism?"

The letter "P" in the acronym "ERP" stands for:

Information Technology and Aiss

Data Modeling

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Documenting Accounting Information Systems

Documenting Accounting Information Systems

Accounting Information Systems and Business Processes: Part II

Introduction to Internal Control Systems

Computer Controls for Organizations and Accounting Information Systems

Computer Crime,fraud,ethics,and Privacy

Information Technology Auditing

Developing and Implementing Effective Accounting Information Systems

Accounting on the Internet

Accounting on the Internet

Filters

Exam 1: Accounting Information Systems and the Accountant

Section 352 of the Patriot Act requires auditors to verify that their organizations have adequate risk assessment systems.

An advantage of computerized AISs is that they do not need to be programmed to catch simple input errors such as entering "4.0" instead of "40.0" for hours worked in a payroll application.

Within the traditional AIS,a sales order would not be considered an accounting transaction.

Suspicious activity reporting:

The term "Patriot" is an acronym for "providing appropriate tools required to intercept and obstruct terrorism."

The starting point for an audit trail of a production department might be the purchase of raw materials.

Which of the following captures the same idea as the term "GIGO?"

An example of a financial report that would be prepared by a managerial accountant (instead of a financial accountant)is a budget report.

As a result of computerized information processing systems in many organizations today,the need for accountants in these organizations has significantly declined.

It is best to view an AIS as an accounting system that must be computerized.

The acronym ERP stands for "electronic reporting plan."

In order to be useful,raw accounting data must be processed by a computer.

Which of these is a drawback of cloud computing?

The certified information systems auditor certification is sponsored by:

Information systems auditors are:

As used in the chapter,"knowledge workers":

Which of the following best describes a data warehouse as discussed in Chapter 1?

Managerial accounting principally provides information to:

Which of these statements best describes the relationship between "AISs" and "countering terrorism?"

The letter "P" in the acronym "ERP" stands for:

Information Technology and Aiss

Data Modeling

Organizing and Manipulating the Data in Databases

Database Forms and Reports

Documenting Accounting Information Systems

Documenting Accounting Information Systems

Accounting Information Systems and Business Processes: Part II

Introduction to Internal Control Systems

Computer Controls for Organizations and Accounting Information Systems

Computer Crime,fraud,ethics,and Privacy

Information Technology Auditing

Developing and Implementing Effective Accounting Information Systems

Accounting on the Internet

Accounting on the Internet

Filters