Deck 2: Accounting Systems Documentation

Question 1

Accounting systems documentation is used for which of the following?

A) To communicate how an accounting system works
B) To communicate management's overall corporate strategy
C) To describe the role of financial planners in an organization
D) To depict a company's hierarchical organizational chart

Answer 1

A

Question 2

What does the Sarbanes-Oxley Act of 2002 require relative to documentation?

A) A company must document its internal control in detail.
B) A company must document its internal control at a general level.
C) A company must document each step in its cash receipts and disbursements processes in detail.
D) A company must document each step in its cash receipts and disbursements processes at a general level.

Answer 2

A

Question 3

What is the appropriate use of a narrative description?

A) When there is not enough justification to hire technical personnel to develop graphical documentation
B) As an alternative to graphical representation
C) As a companion to graphical representation
D) None of the above

Answer 3

C

Question 4

What are two types of block diagrams?

A) Horizontal block diagrams; program block diagrams
B) Horizontal block diagrams; hierarchical block diagrams
C) Hierarchical block diagrams; functional block diagrams
D) Functional block diagrams; program block diagrams

Question 5

Which of the following statements about data flow diagrams is correct?

A) They can only be understood when used in conjunction with block diagrams.
B) They show what an accounting system is doing and how the system is doing it.
C) They are also called functional information diagrams.
D) They provide a more detailed representation of an accounting information system than do block diagrams.

Question 6

What does end-user documentation include?

A) Control procedures
B) Error recovery procedures
C) Names of technical support people who participated in preparing the documentation
D) A and B

Question 7

What is one question that documentation standards can answer?

A) How long should the documentation be?
B) What authorizations are required?
C) What amount should the cost of documentation be restricted to?
D) How should documentation be discarded?

Question 8

Which of the following statements concerning user documentation is true?

A) User documentation describes the system from the outside looking in.
B) Different classes of users have different capabilities and needs and require different types of user documentation.
C) User documentation emphasizes how to operate the system and includes instructions for executing the various programs and instructions for handling data.
D) All of the above statements are true.

Question 9

Data flow diagrams include what symbols?

A) A stop-sign indicating that a process is complete
B) A circle to indicate a process or operation
C) A square to indicate the beginning point of a diagram
D) A square to indicate a data store

Question 10

Which is not true about a level 0 data flow diagram?

A) It describes the entire system of interest on a sheet of paper.
B) It shows all the major processes, data stores, and external entities.
C) Each process can be exploded into subprocesses.
D) It can only accommodate up to a 10.0 level to ensure understandability.

Question 11

Which of the following issues should system narrative descriptions attempt to cover?

A) Relationship of every member in the organization as they pertain to the system
B) Cost of the system
C) The relationship between the current system documentation and any past documentation
D) System specifications

Question 12

What is a disadvantage of a data flow diagram?

A) Inability to show relationships among subsystems
B) Poor communications tool
C) Difficulty of understanding for nontechnical personnel
D) Inability to represent points of detail

Question 13

In the following horizontal block diagram, what do the connecting lines represent?

A) Interlevel association of parent-child relationship
B) Movement of paperwork from one group to another
C) Flow of documents, transactions, and objects among sources and destinations
D) Major information flows among subsystems of the accounting information system

Question 14

Documentation types can be divided into two group according to which of the following?

A) Cost
B) Ease of understanding
C) Intended recipients
D) Complexity

Question 15

What are two types of system documentation?

A) Narrative description; relationship-entity diagram
B) Narrative description; data flow diagrams
C) Linear matrix diagram; relationship-entity diagram
D) Cost-benefit analysis; data flow diagram

Question 16

Which of the following applies to documentation standards?

A) Standards must conform to applicable industry, national or international conventions.
B) Each item of documentation should bear the name of person checking and authorizing documentation for use.
C) Each item should bear the date and name of person preparing it.
D) All of the above apply.

Question 17

What is the correct labeling, in correct order, for the following data flow diagram symbols?

A) Source of data, data store, destination of data
B) Data store, process that transforms data, source or destination of data
C) Destination of data, source of data, process that transforms data
D) Process that transforms data, destination of data, source of data

Question 18

Who would be most likely to use system documentation?

A) Auditors
B) Management
C) Human resources
D) Administrative support

Question 19

What type of documentation describes an accounting system from the outside looking in?

A) System design documentation
B) Top-down design documentation
C) User documentation
D) Technical documentation

Question 20

How should distribution of or access to documentation be handled?

A) Through multiple channels
B) Saved so that is can be a basis of comparison for future documentation development
C) On a need-to-know basis
D) None of the above

Question 21

What is the symbol that can be used as short-hand for a group of symbols for a process that may be repeated in several locations in a system flowchart?

A) Pre-defined operation symbol
B) Display device symbol
C) Organizational change symbol
D) Communication link symbol

Question 22

What does the following symbol represent in a data flow diagram?

A) Data store
B) Flow direction
C) Source or destination of data
D) Process that transforms data

Question 23

Which type of system documentation provides the most detail?

A) System flowchart
B) Block diagram
C) Data flow diagram
D) System narrative description

Question 24

Which of the following statements about computer-assisted system documentation tools is correct?

A) They consist primarily of flowcharting programs.
B) They are restricted to helping create block diagrams.
C) They have the disadvantage of being difficult to distribute.
D) They are also known as accounting systems development guideline tools.

Question 25

Which of the following is not a characteristic of system flowcharts?
A They are governed by national and international standards.
B) They show technical details.
C) They are used to guide the construction of new systems and maintain/evaluate existing systems.
D) They are also known as problem definition documentation.

Question 26

What is a step that should be taken prior to creating a system flowchart?

A) List the steps in the system processes.
B) Determine what software should be used.
C) Avoid making decisions based on personnel requests as this biases the development.
D) Restrict the research of the accounting system to the outputs of the system.

Question 27

The system flowchart symbol for a filing a paper document (such as filing a copy of a paid invoice by date) is:

Question 28

Which type of documentation shows the flow of data through various stages of processing without regard for the logic of the individual processing activities?

A) System flowchart
B) Hierarchical block diagram
C) Structure chart
D) Data flow diagram

Question 29

What type of documentation is the following?

A) Data flow diagram
B) System flowchart
C) Hierarchical block diagram
D) Horizontal block diagram

Question 30

Which is not true about system flowchart symbols?

A) They are more numerous than are data flow diagram symbols.
B) Rigid conventions determine their use.
C) Labels attached to the symbols are self-explanatory.
D) Completely different sets of symbols are used for computerized and manual systems.

Question 31

Which of the following statements about system flowcharts is correct?

A) Like other graphical representations, system flowcharting is not governed by national and international standards.
B) Because it is governed by standards, flowcharting is not a subjective activity.
C) Individual styles can help achieve a clear and orderly layout.
D) If two different people flowchart the same system, the flowcharts will be identical.

Question 32

Which of the following statements about a system flowchart is correct?

A) It is usually designed for top-management.
B) It focuses on the role of accountants in the system.
C) It shows what a system does and how it does it.
D) It is amenable to complex accounting systems than to simple systems.

Question 33

System documentation is prepared for the benefit of top management.

Question 34

Which of the following symbolic representations indicates that a purchase order has been prepared?

Question 35

The system flowchart symbol for a decision (such as whether the customer is approved) is:

Question 36

What are the broadest and most detailed forms of system documentation, respectively?

A) Block diagrams; system flowcharts
B) Narrative descriptions; block diagrams
C) System flowcharts; narrative descriptions
D) Narrative descriptions; system flowcharts

Question 37

What is the most common, flexible, and useful type of overall design documentation for an accounting information system?

A) System flowcharts
B) Pseudocode
C) HIPO charts
D) Block diagrams

Question 38

Which of the following serves as a bridge between broad system design documentation and detailed system flowcharts?

A) Data flow diagrams
B) Block diagrams
C) Narrative descriptions
D) HIPO charts

Question 39

What is the difference in an internal control flowchart and a system flowchart?

A) An internal control flowchart uses fewer symbols than a system flowchart.
B) An internal control flowchart shows functional areas to indicate the authorization of transactions, the custody of assets, and the recording of transactions.
C) An internal control flowchart is prepared prior to preparing a system flowchart.
D) An internal control flowchart needs an auditor's input for accurate development.

Question 40

In the figure below, what does the flowcharting symbol at Point A represent?

A) A manual operation
B) Initiation of a process
C) A computerized operation
D) A decision

Question 41

Arrange by increasing amount of detail the types of system documentation that are frequently used by accountants.

Question 42

A hierarchical block diagram shows the subsystems of an accounting system and the direction of the information flows among the subsystems.

Question 43

Systems flowcharts suffer from a lack of standard flowcharting symbols.

Question 44

End-user documentation typically includes a list of programs with operating instructions.

Question 45

A data flow diagram show what an accounting system is doing and how the system is doing it.

Question 46

Because of the differences in each type of system documentation, there is rarely an overlap of flexibility in accommodating users' needs.

Question 47

System documentation can include narrative description or graphical representation.

Question 48

Documentation as it relates to accounting systems is a communication device that describes in pictures, words, or both how to use the system, and what the system does, and how the system operates.

Question 49

A systems flowchart uses only four symbols.

Question 50

Because of the limited amount of detail, block diagrams are generally used in conjunction with other documentation that shows complementary aspects of an accounting system.

Question 51

A systems flowchart identifies all existing control procedures for preventing or detecting errors and irregularities.

Question 52

The initial data flow diagram is called a context diagram.

Question 53

Narrative descriptions are the dominant choice of documentation for showing details.

Question 54

A type of system documentation is pseudocode.

Question 55

Information about a system's goals and objectives should be included in a narrative description.

Question 56

In a systems flowchart, a rectangle represents a process, or operation.

Question 57

A horizontal block diagram is typically prepared prior to preparing a detailed hierarchical block diagram.

Question 58

Unauthorized documentation circulating in an organization should be immediately destroyed.

Question 59

User documentation offers an inside view of the accounting system and is written in precise technical language.

Question 60

A narrative description should cover the reasons for having the accounting system, including the background, the objectives of the system, and the scope of the system.

Question 61

List three questions that document standards should answer.

Question 62

One guideline for creating an effective system flowchart is to show the source and disposition of all major documents and copies of those documents. What are four other guidelines?

Question 63

What are four forms of systems documentation used frequently by accountants?

Question 64

MATCHING QUESTIONS
Several types of system documentation are listed below.
A. System flowchart
B. Block diagram
C. Narrative description
D. Data flow diagram
E. Internal control flowchart
Fill in the letter that corresponds to the type of documentation that is defined in 1-4 below. One type may be used more than one time, and some types may not be used at all.

Question 65

Define the following terms: file maintenance, level 0 DFD, data flow diagrams, exception report, system flowchart.

Question 66

List three guidelines for effective systems flowcharting.

Question 67

Explain the difference between a horizontal and a hierarchical block diagram.