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accounting information systems
Questions and Answers of
Accounting Information Systems
Install and run the Microsoft Security Baseline Analyzer on your home computer or laptop. Write a report explaining any weaknesses identified and how to best correct them. Attach a copy of the
Visit the Web sites listed here and write a report describing the information provided on each site about information security that would be most useful to an auditor:• The SANS Institute
Visit the Center for Internet Security Web site (www.cisecurity.org) and down¬ load the appropriate scoring tool for your computer. Run the tool to assess how well your computer conforms to the
a. Apply the following data to evaluate the time-based model of security for the XYZ Company. Does the XYZ Company satisfy the requirements of the time-based model of security? Why?• Estimated time
Create a table about the password policies enforced at the following:a. Your school’s networkb. Your school’s email systemc. Your personal email account (at Yahoo, Gmail, etc.)d. Your financial
Physical security is extremely important. List and describe the physical secu¬ rity controls that should be used to protect the data center of a financial institution. Read the article “19 Ways to
Which of the following is a fraud in which later payments on account are used to pay off earlier payments that were stolen?a. lappingb. kitingc. Ponzi schemed. salami technique
Which of the following is/are methods of reducing fraud losses once fraud has occurred? (There may be more than one right answer.)a. insuranceb. regular backup of data and programsc. contingency
A few days after the inventory control system for Revlon, the cosmetics giant, went down, officials discovered that Logisticon, a software developer, caused the downtime. Seven months earlier, Revlon
Improved computer security measures create their own set of problems: user antagonism, sluggish response time, and hampered performance. Many professionals believe that the most effective way to
An experienced senior auditor was assigned to investigate a possible fraudulent situation characterized by extremely high, unexplained merchandise shortages at one location of the company’s
A small but growing firm has recently hired you to investigate a potential fraud. The company heard through its hot line that the purchases journal clerk periodically enters fictitious acquisitions.
Most experts maintain that the computer frauds that are publicly revealed represent only the tip of the iceberg. Although the major threat to computer security is perceived by many to be external,
Fraudulent financial reporting usually occurs as the result of environmental, institutional, or individual pressures and opportune situations. These pressures and opportu¬ nities, present to some
The impact of employee and management fraud is staggering both in terms of dollar costs and the effect on the victims. For each of the following independent cases of employee fraud, describe the
Rent-A-Wreck’s policy requires a “sealed bid” to sell motor vehicles that are no longer efficient. In reviewing the sale of some vehicles that had been declared obso¬ lete, the auditor found
The auditor of a bank is called to a meeting with a senior operations manager because of a customer’s report that an auto loan payment was not credited. According to the customer, the payment was
It was a typical Wednesday on the UCLA campus when everything began going wrong in the student computer lab. The computer lab was filled to capacity as the end of the semester neared. Nearly 70
The following e-mail with an authentic looking e-mail address and logo was received by the controller of a small business:Requireda. What should Justin do about these e-mails?b. What should Big Bank
The Jamison Cardstock Company did not spend a lot of time or money insti¬ tuting proper internal controls over its cash transactions. The following information reflects Jamison’s cash position as
An accountant employed by the organizing committee for the Atlanta Summer Olympic Games was charged with embezzling approximately \($60,000.\) The money allegedly was used to purchase a used
On a Sunday afternoon in 2005 at a busy hospital in the Pacific Northwest, computers started running slower and documents would not print. By Monday morning, the situation became worse as more
The text explained how database technology may eliminate the need for double entry accounting. This creates three possibilities: (1) the double-entry model will be abandoned; (2) the double-entry
The following data elements comprise the conceptual-level schema for a database:billing address cost credit limit customer name customer number date description invoice number item number price
Most DBMS packages contain a data definition language, a data manipulation language, and a data query language. For each of the following examples, indicate which language would be used and why.a. A
Ashton wants to store the following data about S&S’s purchases of inventory:item number date of purchase vendor number vendor address vendor name purchase price quantity purchased employee number
Retrieve the S&S In-Chapter Database (in Microsoft Access format) from the text’s Web site (or create the set of relational tables in Table 4-5 in any relational DBMS product to which you have
Implement the set of relational tables shown in Table 4-15 in a relational DBMS package to which you have access. Write queries to answer the following questions. Note: For some of these questions
The Busy B Company wants to store data about its employees’ skills. Each employee may possess one or more specific skills. In addition, several employees may have the same skill. The following
You want to extend the schema depicted in Table 4-16 (see next page) to include information about payments from customers. Customers can make installment pay¬ ments oh each invoice. They may also
Using only the data in Table 4-17, create a set of relational tables that solve the update, insert, and delete anomalies. Table 4-17 Invoice table Invoice # Date Order Date Customer ID Customer Name
Using only the data in Table 4-18, create a set of relational tables that solve the update, insert, and delete anomalies. Table 4-18 Purchase Order (PO) Table Purchase Purchase Order Unit Quantity
How a user conceptually organizes and understands data is referred to as thea. physical viewc. data model viewb. logical viewd. data organization view
Which of the following is an individual user’s view of the database?a. conceptual-level schemac. internal-level schemab. external-level schemad. logical-level schema
Which of the following attributes in the Cash Receipts table (representing payments received from customers) would most likely be a foreign key?a. cash receipt numberc. customer numberb. customer
The Happy Valley Utility Company uses turnaround documents in its computerized customer accounting system. Meter readers are provided with preprinted com¬ puter forms, each containing the account
The Dewey Construction Company processes its payroll transactions to update both its payroll master file and its work-in-process master file in the same computer run. Both the payroll master file and
Prepare a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims. The process begins when the claims department receives a notice of loss from a claimant. Claims
Beccan Company is a discount tire dealer operating 25 retail stores in the metropolitan area. Beccan sells both private-brand and name-brand tires. The company operates a centralized purchasing and
Since opening its doors in Hawaii two years ago, Oriental Trading has enjoyed tremendous success. As a wholesaler, Oriental Trading purchases textiles from Asian markets and resells them to local
Ashton Fleming has worked furiously for the past month trying to document the major business information flows at S&S. Upon completing his personal interviews with cash receipts clerks, Ashton asks
A partially completed flowchart appears in Figure 3-13. The flowchart depicts the credit sales activities of the Bottom Manufacturing Corporation.A customer’s purchase order is received, and a
Match the flowchart, context diagram, or data flow diagram segments in the right column to an appropriate description in the left column. 1. Statements are prepared and sent to customers from data
Assume that you have purchased a small retail nursery. Your nursery sells various types and sizes of trees, bedding plants, vegetable plants, and shrubs. It also sells fertilizer and potting soil.
Search popular business magazines (Business Week, Fortune, Forbes) for an article that describes a dysfunctional behavior resulting from a poorly designed manager¬ ial reporting and performance
Shauna Washington started a business to sell art supplies and related curricula to home school families. The business grew quickly, with sales doubling three times during a five-year period. At that
On the following Web sites you will find several online demonstrations for the SAP and Oracle ERP systems. Visit these Web sites ^nd explore their content by doing the following:a. The SAP Web site
For each of the following scenarios identify which data processing method (batch or online, real-time) would be the most appropriate.a. Make an airline reservationb. Register for a university
A DFD is a representation of which of the following?a. relationship among modules, data, and programs of an AISb. flow of data in an organizationc. decision rules in a computer programd. computer
Which of the following statements is false?a. Flowcharts make use of many symbols.b. A flowchart emphasizes the flow of documents or records containing data.c. DFDs help convey the timing of
A DFD consists of the following four basic elements: data sources and destinations, data flows, transformation processes, and data stores. Each is represented on a DFD by a different symbol.a. Trueb.
Which of the following statements is false?a. A flowchart is an analytical technique used to describe some aspect of an information system in a clear, concise, and logical manner.b. Flowcharts use a
Which of the following flowcharts illustrates the flow of information among areas of responsibility in an organization?a. program flowchartc. system flowchartb. computer configuration chartd.
Which of the following is not one of the recommended guidelines for making flowcharts more readable, clear, concise, consistent, and understandable?a. Divide the flowchart into columns with labels.b.
Data sources and destinations are represented in a data flow diagram as:a. a squared. two parallel linesb. a curved arrowe. none of the abovec. a circle
Which of the following is not a characteristic that makes information useful?a. It is reliable.c. It is inexpensive.b. It is timely.d. It is relevant.
Which of the following is a primary activity in the value chain?a. purchasingc. post-sales serviceb. accountingd. human resource management
Top management continually emphasizes and supports investments designed to improve the efficiency of the manufacturing process. Such a focus most likely reflects the pursuit of which type of
Which of the following is not a means by which information improves decision making?a. increasing information overloadb. reducing uncertaintyc. providing feedback about the effectiveness of prior
In the value chain concept, upgrading IT is considered what kind of activity?a. primary activityc. service activityb. support activityd. structured activity
Lower-level management employees are most likely to make which of the following decisions?a. structured decisions involving strategic planningb. unstructured decisions involving managerial controlc.
Which of the following is a function of an AIS?a. reducing the need to identify a strategy and strategic positionb. transforming data into useful informationc. allocating organizational resourcesd.
One function of the AIS is to provide adequate controls to ensure the safety of organizational assets, including data. Many people, however, often view control procedures as “red tape.” Discuss
One interesting property of digital assets is that they can be reproduced and dis¬ tributed via the Internet at very little cost. What are some of the implications of having a product with a
Figure 1-2 shows that organizational culture and the design of an AIS influence one another. What does this imply about the degree to which an innovative system I developed by one company can be
Figure 1-2 shows that developments in IT affect both an organization’s strategy and the design of its AIS. How can a company determine whether it is spending too much, too little, or just enough on
To what extent can all the characteristics of useful information listed in Table 1-1 be simultaneously met? Table 1-1 Characteristics of Useful Information Relevant Reliable Complete Timely
Write a two-page report explaining the two basic strategies that S&S, Inc. can pursue and the three different strategic positions that it can adopt. Include in your report a discussion and examples
Decision scope categorizes decisions into three broad areas of managerial decision making. These three areas are operational control, management control, and strategic planning. In your own words,
Information technology is continually changing the nature of accounting and the role of accountants. Write a two-page report describing what you think the nature of the accounting function in a large
Research the programming language XBRL and write a two-page report about its effect on financial reporting via the Internet.
United Services Automotive Association (USAA) grew to become the fourth- largest insurer of homes and the fifth-largest insurer of automobiles during its first fifteen years. One reason for its
Which of the following would contain the total value of all inventory owned by an organization?a. source documentb. general ledgerc. cash budget
Which of the following is the most useful for projecting the need for short-term borrowing?a. income statementb. performance reportc. cash budgetd. balance sheet
What report expresses goals in financial terms?a. performance reportb. financial statementc. budgetd. chart of accounts
In which cycle does a company ship goods to customers?a. production cycleb. financing cyclec. revenue cycled. expenditure cycle
Recording and processing information about a transaction at the time it takes place is referred to as which of the following?a. batch processingb. online, real-time processingc. captured transaction
Examine Table 2-1 and discuss how the various information needs would be collected and reported by a company’s AIS. Table 2-1 Overview of S&S's Business Processes, Key Decisions, and Information
At most movie theaters, one employee is usually responsible for issuing tickets and collecting cash while another person collects those tickets when patrons enter the theater. What is the reason for
What piece of technology infrastructure is essential to allow the sharing of computer resources, e.g. data storage and processing capability?
Define the term ‘cloud computing’.
What are the essential features of cloud computing?
List and describe the three common cloud computing models.
Distinguish a public cloud from a private cloud.
Describe the benefits of cloud computing.
What are the potential drawbacks of cloud computing?
Which cloud computing model can offer some accounting advantages in particular to smaller business?
What are the advantages of cloud accounting software over desktop software?
In deciding between traditional desktop or cloud accounting software, what questions might a small business consider?
Earlier, in Mini-case 9.1, the features of Sort My Books cloud accounting software were highlighted.Based on Table 9.1 and/or an internet search, examine and discuss the features of other cloud
Using a web search, seek out articles or features on how business or governmental organisations are saving money and other resources by using cloud services. Discuss what cloud service models they
Why is spreadsheet software such as Excel so widespread in organisations?
What are the benefits of spreadsheet software over paper counterparts?
Name some alternative spreadsheet programmes to Microsoft Excel.
Name some uses of spreadsheets in financial accounting.
Name some uses of spreadsheets in management accounting.
What are the main advantages of using PivotTables?
How can you use the function ‘Trace precedents’ in order to ensure quality in a spreadsheet model?
Spreadsheet programmes are a prominent feature in most businesses. Very often, businesses that have reached a critical size should ideally move to more suitable systems such as accounting software or
Do a web search, and based on the results, discuss some other accounting tasks than those introduced in this chapter that can be performed using Excel. What are the most popular accounting tools that
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