Question 1

The term "accounting independence" refers to

Accepted Answer

A)   data integrity
B)   separation of duties,such as record keeping and custody of physical resources
C)   generation of accurate and timely information
D)   business segmentation by functionE) C) and D)
F) A) and D)

Question 2

Motivations for IT outsourcing include each of the following except

Accepted Answer

A)   IT's highly technical nature
B)   Long term contracts in IT outsourcing
C)   Expense of IT
D)   Dynamically changing nature of ITE) A) and D)
F) All of the above

Question 3

Accountants play many roles relating to the accounting information system,including all of the following except

Accepted Answer

A)   system users
B)   system designers
C)   system auditors
D)   system convertersE) B) and C)
F) A) and B)

Question 4

The internal auditor represents the interests of third-party outsiders.

Accepted Answer

A) True 
 B)False

Question 5

The objectives of an information system include each of the following except

Accepted Answer

A)   support for the stewardship responsibilities of management
B)   furthering the financial interests of shareholders
C)   support for management decision making
D)   support for the firm's day-to-day operationsE) B) and D)
F) A) and B)

Question 6

Which subsystem is not part of the Accounting Information System?

Accepted Answer

A)   Transaction Processing System
B)   Expert System
C)   General Ledger/Financial Reporting System
D)   Management Reporting SystemE) All of the above
F) A) and B)

Question 7

Several advantages of cloud computing have been discussed.Discuss at least three.

Accepted Answer

The advantages of cloud comput...

Question 8

Attestation services are performed by

Accepted Answer

A)   external auditors
B)   internal accountants
C)   internal auditors
D)   third-party accountantsE) B) and C)
F) All of the above

Question 9

Which of the following is not a cloud computing service?

Accepted Answer

A)   Software as a service
B)   Infrastructure as a service
C)   Network as a service
D)   Platform as a serviceE) All of the above
F) A) and D)

Question 10

Which individuals may be involved in the Systems Development Life Cycle?

Accepted Answer

A)   accountants
B)   systems professionals
C)   end users
D)   all of the aboveE) All of the above
F) A) and B)

Question 11

Transactions with trading partners include ____________________ and ____________________.

Accepted Answer

The answer of Transactions with trading partners include ____________________ and...

Question 12

Retrieval is the task of permanently removing obsolete or redundant records from the database.

Accepted Answer

A) True 
 B)False

Question 13

Useful information must possess all of the following characteristics except

Accepted Answer

A)   relevance
B)   precision
C)   accuracy
D)   completenessE) A) and B)
F) A) and C)

Question 14

What factors motivate management to outsource IT?

Accepted Answer

Management may be motivated to outsource...

Question 15

Name and explain the purpose of the three major subsystems of the AIS:

Accepted Answer

None...

Question 16

How has SOX legislation impacted the consulting practices of public accounting firms?

Accepted Answer

Prior to SOX,a gray area of overlap exis...

Question 17

The author distinguishes between the Accounting Information System and the management Information System based on

Accepted Answer

A)   whether the transactions are financial or nonfinancial
B)   whether discretionary or nondiscretionary reports are prepared
C)   the end users of the reports
D)   the organizational structure of the businessE) A) and D)
F) B) and C)

Question 18

The Management Reporting System provides the internal financial information needed to manage a business.

Accepted Answer

A) True 
 B)False

Question 19

An example of a nonfinancial transaction is

Accepted Answer

A)   sale of products
B)   cash disbursement
C)   log of customer calls
D)   purchase of inventoryE) A) and C)
F) A) and B)

Question 20

Three activities that are part of the finance function are __________________________,__________________________,and __________________________.

Accepted Answer

portfolio management...

Exam 1: The Information System: an Accountants Perspective

How has SOX legislation impacted the consulting practices of public accounting firms?

Correct AnswerverifiedPrior to SOX,a gray area of overlap exis...View AnswerShow Answer

Transactions with trading partners include ____________________ and ____________________.

Correct AnswerverifiedShow Answer

What factors motivate management to outsource IT?

Correct AnswerverifiedManagement may be motivated to outsource...View AnswerShow Answer

The Management Reporting System provides the internal financial information needed to manage a business.

Correct AnswerverifiedShow Answer

Several advantages of cloud computing have been discussed.Discuss at least three.

Correct AnswerverifiedThe advantages of cloud comput...View AnswerShow Answer

Name and explain the purpose of the three major subsystems of the AIS:

Correct AnswerverifiedNone...View AnswerShow Answer

The author distinguishes between the Accounting Information System and the management Information System based on

Correct AnswerverifiedShow Answer

Accountants play many roles relating to the accounting information system,including all of the following except

Correct AnswerverifiedShow Answer

Motivations for IT outsourcing include each of the following except

Correct AnswerverifiedShow Answer

Attestation services are performed by

Correct AnswerverifiedShow Answer

The objectives of an information system include each of the following except

Correct AnswerverifiedShow Answer

Retrieval is the task of permanently removing obsolete or redundant records from the database.

Correct AnswerverifiedShow Answer

The internal auditor represents the interests of third-party outsiders.

Correct AnswerverifiedShow Answer

The term "accounting independence" refers to

Correct AnswerverifiedShow Answer

Three activities that are part of the finance function are __________________________,__________________________,and __________________________.

Correct Answerverifiedportfolio management...View AnswerShow Answer

An example of a nonfinancial transaction is

Correct AnswerverifiedShow Answer

Useful information must possess all of the following characteristics except

Correct AnswerverifiedShow Answer

Which subsystem is not part of the Accounting Information System?

Correct AnswerverifiedShow Answer

Which of the following is not a cloud computing service?

Correct AnswerverifiedShow Answer

Which individuals may be involved in the Systems Development Life Cycle?

Correct AnswerverifiedShow Answer

Correct Answer
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Prior to SOX,a gray area of overlap exis...
View Answer

Transactions with trading partners include and .

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Management may be motivated to outsource...
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Correct Answer
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The advantages of cloud comput...
View Answer

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None...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Three activities that are part of the finance function are ,,and __.

Correct Answer
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portfolio management...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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