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business
accounting information systems

Questions and Answers of Accounting Information Systems

a. What forms and documents would KKD use in the process described? Which generic step(s) in the sales / collection process would use each form?b. In a manner specified by your instructor, document
Consider the material in Chapter 11 on computer crime and information technology security.a. Which business risks / threats impact Big Marker? Explain your response.b. How does the
Most observers would agree that Big Marker is engaged in e-business.a. Which e-business categories apply to Big Marker? b. Which benefits of e-business does Big Marker provide its customers?
a. What forms of e-business does Google engage in? b. Which common ERP system modules would Google use to calculate the net sales reported on the income statement? How would they be
a. What is internal control? b. Explain the importance of COSO’s 2013 Internal Control—Integrated Framework in establishing strong internal control. c. Consider the following risk
a. How should Regal code its chart of accounts to facilitate financial reporting? Create account numbers for cash, capital stock and advertising expense for the following Regal theatres: Regal
Look up the following references online or in your school’s library. Using the criteria and specific questions from the UMUC Web site referenced in the chapter, evaluate and discuss the quality of
a. Consider the five business processes described in the chapter. Which one best applies to the activities described? Why?b. Does Richie’s need an accounting information system? Why, or why not?c.
Explain three reasons AIS is an important area of study for future accountants.
Consider each of Bumble’s statements. Determine whether each one is true; for those that are not true, indicate why.
Create database specifications for the following tables: create new community, community hero, create new community / community organizer.
The Big Marker narrative explains the process used for starting and monitoring communities. Using the technique(s) specified by your AIS instructor, document that process.
Consider the database specifications you created in Question 2. Suggest three queries Big Marker could create to inform decision making about obtaining corporate sponsors. For each query, indicate
a. Which systems documentation technique would you use if your goal was to construct the relational database that supports the narrative? Why?b. Regardless of your answer to (a), construct
The Big Marker narrative discusses the relationship between corporate sponsors and communities. Consider the REA model below; create specifications for all indicated database tables.
Using the technique(s) specified by your AIS instructor, document the process Big Marker uses to purchase new servers.
a. Create a Level Zero data flow diagram. Ensure that it is balanced with the context diagram.b. Create table specifications for the following tables: account holder, miles earned, miles used, miles
a. Prepare flowcharts of the steps described above—one flowchart for the sales / collection steps and a separate one for the acquisition / payment steps.b. Explain how you would use the
How would you describe Big Marker’s business processes using the Capability Maturity Model? Explain your classification.
Big Marker uses the standard chart of accounts in Quick Books to maintain its financial records.a. Suggest specific account titles and account numbers for at least three accounts in each of the
a. Use the steps in the systems development life cycle (SDLC) to explain how a company like Amazon, Apple or some other firm would develop a product or service to compete with the Google product you
Accounting information systems have five generic parts. Based on the preceding narrative, information on the Big Marker web site and your own critical thinking, provide two examples of each of the
Which element of expectancy theory is described in each of the following independent scenarios?a. Anh completed the steps for licensure as a Certified Public Accountant and received a pay
a. Use COSO’s framework to develop an enterprise risk management plan for McDonald’s corporate office. Ensure that the risks you identify are focused on the corporate office, not individual
Consider the list of internal controls presented in the narrative. For each one, discuss:a. Whether it is primarily preventive / detective / corrective in nature.b. Which of the four purposes of
Use the relevant COSO frameworks to develop internal control and enterprise risk management plans for Big Marker. For both plans, suggest control activities that are not mentioned in the narrative.
Create a risk / control matrix for Big Marker using some combination of the internal controls discussed in the narrative and any you created in the previous question.
The Superior Manufacturing Company produces industrial goods. The company receives purchase orders from its customers and ships goods accordingly. Assuming that the following conditions apply,
An advertisement for a desktop microcomputer says that it includes a 500-gigabyte hard drive. Exactly how many bytes is this?
Design tables to store the following attributes make sure that all tables are in third normal form: customer name, customer address, customer phone, and names of customers’ children.
Design tables to store the following attributes make sure that all tables are in third normal form: student name, student phone number, classes taken by student, student address, class number, class
Develop a document flowchart for the following information flow: The individual stores in the Easy Stop convenience chain prepare two copies of a goods requisition form (GRF) when they need
The Rocky Mountain Credit Union uses a computerized data processing system to maintain both its chequing accounts and its savings accounts. During the last 3 years, several customers have complained
Which accounting software features are likely to be the most important for the following businesses? Search the Internet for an example of an AIS that you would recommend for each of these owners
Tom O’Neal always wanted to own his own business. When he was in high school, he worked evenings and most weekends at a neighbourhood bicycle shop. When Tom went to university, he still came home
The annual report is considered by some to be the single most important printed document that companies produce. In recent years, annual reports have become large documents. They now include such
Pucinneli Supermarkets is similar to most other grocery store chains that use the 12-digit UPC code on packages to check out customers. For a variety of reasons, it is important that the computer
Avalon Peninsula Bank’s credit card department issues a special credit card that permits credit card holders to withdraw funds from the bank’s ATMs at any time of the day or night. These machines
Prairie Shoes Inc. manufactures and distributes orthopedic footwear. To sell its products, the marketing department requires sales personnel to call on the shoe retailers within their assigned
Describe the meaning of each of the entity-relationship diagrams shown in Figure 3-18.a.b. Patient Surgery %23 Doctor Nurse
Canada Moose€™s Supplies is a wholesaler of sporting goods equipment for retailers in a local metropolitan area. The company buys sporting goods equipment direct from manufacturers and then
This chapter described how to create tables and records in Microsoft Access. What other database management systems are available? Use the Internet to learn more about these systems.
Would you rather use a form or a datasheet for entering data into a database table? Why?
The data-entry department of the Rocky Mountain Manufacturing Company is responsible for converting all of the company’s shipping and receiving information to computer records. Because
The Athabascan Credit Union maintains separate bank accounts for each of its 20,000 customers. Three major files are the customer master file, the transaction file of deposits and withdrawal
The Blue Spruce Publishing Company maintains an online database of subscriber records, which it uses for preparing magazine labels, billing renewals, and so forth. New subscription orders and
The White Ocean Company is an office products distributor that must decide what to do with delinquent credit-sales accounts. Mr. Bob Smith, the credit manager, divides accounts into the following
1. Identify the important business events that occur within Hudson Bay University’s purchase/payment process.2. What changes would you suggest to the current process to take advantage of
What are some criteria that systems designers should consider when developing managerial reports for an AIS? How do system designers know what to include on reports?
What are the primary provisions of the 1992 COSO Report? The 2004 COSO Report? What is new in the 2013 COSO report?
1. For each of these concerns, identify a risk that may have created the problem.2. Recommend an internal control procedure to prevent the problem in the future.The Manitoba Menswear company was
The Iceberg Clothing Company manufactures various types of clothing for women. To accumulate the costs of manufacturing these products, the company’s accountants have established a computerized
E. Wilson & Sons, Inc. hired a consulting team from Athabasca and Associates to discuss application controls for the company’s accounting data processing. In one of the workshops, the seminar
In the early 20th century, there was an ambitious young man named Arthur who started working at a company in Calgary as a mailroom clerk. He was a hard worker and very smart, eventually ending up as
The Fredericton Company has a high turnover rate among its employees. It maintains a very large computer system that supports approximately 225 networked PCs. The company maintains fairly extensive
Discuss the role of the hash total in accounting information systems.
The Canada Revenue Agency developed a new computer system for processing provincial income tax returns of individuals and corporations. The system features direct data input and inquiry capabilities.
To address the need for tighter data controls and lower support costs, the Macdonald Company has adopted a new disk less PC system. The basic concept behind the disk less PC is simple: a LAN
What company policies or procedures would you recommend to prevent each of the following activities?a. A clerk at the Maple Ridge Company faxes a fictitious sales invoice to a company that purchases
Do you understand Gantt charts? Use Figure 13-12 and test your understanding by answering the following questions.a. When is the activity convert data files scheduled to begin and end?b. When is the
The managers at the Toronto Professional Company have decided that increased emphasis must be placed on profit planning and comparing results to plans. A new profit planning system was implemented to
Why do businesses typically need to engage in business process re-engineering when they adopt an ERP? Identify at least four key aspects of a successful BPR project.
Acadian Furniture is a large furniture manufacturer located in Halifax, Nova Scotia. It sells to furniture wholesalers across Canada and internationally. Revenues last year exceeded $50 million.
Linda Stanley is the vice president for Computing and Information Services at Hudson Bay University (HBU), a medium-size, urban university that has experienced a 3% growth in enrollments every year
1. Decrypting the cypher text created by an XOR operation is easy€”just use the same XOR operation on the encrypted bits! Demonstrate this for the example above.2. Suppose the secret key
Bay Street Office Supplies is a national retailer of office supplies, equipment, and furnishings. The company opened its first store in 1932, in Toronto, ON. Currently, Bay Street Office Supplies has
Do you understand PERT charts? Refer back to Figure 13-11 and answer the following questions:a. Which activity or activities must be completed before activity C can begin?b. Which activity or
Metro Montreal Cosmetics distributes cosmetic products to large retailers across the country. The firm was started in 1975 by its first president, Stephen Kerr, who still serves as chairman of the
Cook Consultants is currently in the process of completing the systems implementation activities for converting Samuel Company’s old system to a new one. Because of unexpected delays in performing
The Lazy Beaver Company manufactures and distributes low-priced bottled wines to retailers. You are hired as a management consultant to help this company solve some of its systems problems. Describe
Pine Tree Manufacturing is a medium-size company with regional offices in several western provinces, and manufacturing facilities in both British Columbia and Alberta. The company performs most of
What is the difference between business process outsourcing (BPO) and knowledge process outsourcing (KPO)? Why do firms outsource their IT functions?
Figure 7-14 is a system flowchart for Maple Mountain View€™s purchase order event. Prepare a narrative to accompany the flowchart describing this purchase order event. Include in your
What words were used to form each of the following acronyms?a. AAAb. ABCc. CICAd. AISe. CFOf. CISAg. CITPh. CAi. CPMj. ERPk. FASBl. ISACAm. ITn. KPIo. OSCp. REAq. SARr. SECs. SOXt. VARsu. XBRL
Clouse Analytics is a financial services consulting firm that assists its clients with financial analyses surrounding proposed business ventures. John Y. Clouse is the firm’s founder and project
Trudy’s Trendy Threads (TTT) is a regional wholesaler of women’s casual attire. The company is located in Jacksonville, Florida, and it sells to retail stores in resort communities in Florida,
Sweet Susanna’s is a local chain of bakeries in Austin, Texas. The chain has 18 locations throughout the city and its suburbs. The management is considering opening a website to conduct e-commerce
What are the ten areas of privacy practices described in the Online Privacy section of the AICPA Trust Services Principles?
Describe the benefits to a company that engages in B2B transactions via the Internet.
Much of the e-business and e-commerce conducted by companies uses the Internet as the form of electronic communication. Describe other electronic means to conduct e-business or e-commerce.
What are some of the ethical obligations of companies related to e-commerce?
Why is the use of XML advantageous in Internet EDI?
Which type of users should have access to an extranet?
Which type of users should have access to an intranet?
Which functions within the supply chain can be enhanced through the use of e-business?
Why is it important to ensure an efficient flow of goods throughout the supply chain?
Describe the concept of a supply chain.
How is e-business a broader concept than e-commerce?
What are the three resources that an organization must have to conduct a conversion (or transformation) process?
Do conversion processes occur in manufacturing companies only? Why, or why not?
Why are conversion activities typically considered routine data processes?
Differentiate between the roles of the engineering and the research and development departments.
What types of information must be taken into consideration when scheduling production?
What is the purpose of an inventory status report?
What is the overall goal of the inventory control department?
What is the purpose of the quality control department?
What is the purpose of determining standard costs?
Which three activities in the conversion process should require specific authorization before they are begun?
Using the table below, match the IT systems on the left with their definitions on the right:CAD a. A network including production equipment, computer terminals, and accounting systemsCAM b.
Suppose a company has 1,000 units of a raw material part on hand. If 750 of these units are routed into production, should the company place an order to stock up on more of these parts? In order to

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