Accounting Information Systems 14th Global Edition Marshall B. Romney, Paul John Steinbart - Solutions

Discover the ultimate resource for "Accounting Information Systems 14th Global Edition" by Marshall B. Romney and Paul John Steinbart. Access comprehensive online solutions, including an answers key and detailed solutions manual. Our solutions PDF offers expertly solved problems with clear step-by-step answers. Benefit from a robust test bank and chapter solutions, tailored for thorough understanding. The instructor manual complements the textbook, providing invaluable support. Enjoy the convenience of free download for these essential questions and answers, ensuring you're well-prepared and confident in your studies.

Distributed Data Processing Explain why an organization would choose to install a distributed instead of a centralized computer environment.
The REA model is based on the premise that“business data must not be preformatted or artificially constrained and must reflect all relevant aspects of the underlying economic events.” What does this mean and how is it applied?
What is the most likely system acquisition method—in-house, turnkey, backbone, or vendor-supported—for each of the following situations?• A plumbing supply company with 12 employees that sells standard products to wholesale customers in a local community needs a system to manage its
Do you agree with the statement, “The term IT auditor should be considered obsolete because it implies a distinction between regular auditors and auditors who examine computerized AIS”?Why or why not?
Discuss the importance of accounting independence in accounting information systems. Give an example of where this concept is important(use an example other than inventory control).
What is a flat-file system?
What rules govern data collection?
What is system decomposition and subsystem interdependency? How are they related?
Distinguish between natural and artificial systems.
The objectives of the data collection activity of the general model for AIS are to collect data that area. relevant and redundant.b. efficient and objective.c. efficient and redundant.d. efficient and relevant.
Which of the following is NOT a database management task?a. retrievalb. storagec. summarizationd. deletion
Which of the following is a disadvantage of distributed data processing?a. End-user involvement in systems operation is decreased.b. Disruptions due to mainframe failures are increased.c. The potential for hardware and software incompatibility across the organization is increased.d. The time
Data Attributes Drawing from your basic accounting knowledge, list the relevant data attributes that constitute the record types below. Identify which attribute is the primary key for the record.Accounts Payable record Inventory record Customer Sales Orders record Purchase Orders to vendors Cash
Characteristics of Useful Information All records in a file must be uniquely identifiable in at least one attribute, which is its primary key. Drawing on your general knowledge of accounting, identify the primary key for the following types of accounting records.To illustrate, the first record is
Communications Before the mid-1970s, systems programmers and businesspeople (including accountants)did not communicate well with one another.The programmers were criticized for using too much jargon, and the businesspeople were criticized for not adequately expressing their needs. Efforts have been
Functional Segmentation The current organization structure of Blue Sky Company, a manufacturer of small sailboats, is presented below.Required:a. What operational problems (inefficiency, errors, fraud, etc.) do you think Blue Sky could experience because of this structure?b. Draw a new diagram
Organization Functions Based on Figure 1-8, draw a diagram of functional segments for a manufacturer of diversified products. The general characteristics of the firm are as follows:a. The organization produces three unrelated products: lawn and garden furniture for sale in home improvement centers
Organization Functions Based on Figure 1-8, draw a diagram of functional segments for an oil company that has the following operations:a. A head office in New York City responsible for international and national marketing, acquisition of leases and contracts, and corporate reporting.b. Two
Flat-File versus Database Model Outline the traditional problems associated with the flat-file model that are resolved by the database model.
Information System Categorization Classify the following items as either:TPS—transaction processing system FRS—financial reporting system MRS—management reporting systema. Variance reportsb. Sales order capturec. Balance sheetd. Budgetse. Purchase order preparationf. Tax returns g. Sales
AIS & MIS Features List some AIS and MIS information from which salespeople may benefit. Clearly indicate whether the information item would be an output of a traditional AIS or MIS system.Finally, discuss the benefits of integrating this information.
AIS Model Examine the diagram below and determine what essential mechanism is missing. Once you have identified the missing element, discuss its importance. Data Collection Database Management Data Processing Information Generation
Subsystems Use the human body system to illustrate the concepts of system decomposition and subsystem interdependency. Draw a hierarchical chart similar to the one in Figure 1-2 and discuss the interdependencies.
Users of Information Classify the following users of information as either:I—internal user T—external user: trading partner S—external user: stakeholdera. Internal Revenue Serviceb. Inventory control managerc. Board of directorsd. Customerse. Lending institutionsf. Securities and Exchange
What are the four levels of activity in the pyramid representing the business organization?Distinguish between horizontal and vertical flows of information.
Are there any indications that the internal environment at Greater Providence may have been deficient? If so, how could it have contributed to this embezzlement?
Discuss whether Greater Providence’s auditors should have been able to detect this fraud.
Discuss how Greater Providence might improve its loan review procedures at bank headquarters to minimize its fraud risk. Was it a good idea to rotate the assignments of loan review clerks? Why, or why not?
Discuss how Greater Providence Deposit & Trust might improve its control procedures over the disbursement of loan funds to minimize the risk of this type of fraud. In what way does this case indicate a lack of proper segregation of duties?
Explain the pressures, opportunities, and rationalizations that were present in the Guisti fraud.
Identify the preventive, detective, and corrective controls at GPD&T, and discuss whether they were effective.
Good internal controls require that the custody, recording, and authorization functions be separated.Explain which of those functions Guisti had and how the failure to segregate them facilitated the fraud.
How did Guisti commit the fraud, conceal it, and convert the fraudulent actions to personal gain?
PriceRight Electronics (PEI) is a small wholesale discount supplier of electronic instruments and parts. PEI’s competitive advantage is its deep-discount, 3-day delivery guarantee, which allows retailers to order materials often to minimize in-store inventories. PEI processes its records with
Spring Water Spa Company is a 15-store chain in the Midwest that sells hot tubs, supplies, and accessories. Each store has a full-time, salaried manager and an assistant manager. The sales personnel are paid an hourly wage and a commission based on sales volume.The company uses electronic cash
The Langston Recreational Company (LRC) manufactures ice skates for racing, figure skating, and hockey. The company is located in Kearns, Utah, so it can be close to the Olympic Ice Shield, where many Olympic speed skaters train.Given the precision required to make skates, tracking manufacturing
A manufacturing firm’s controller created a fake subsidiary. He then ordered goods from the firm’s suppliers, told them to ship the goods to a warehouse he rented, and approved the vendor invoices for payment when they arrived. The controller later sold the diverted inventory items, and the
Many employees of a firm that manufactures small tools pocket some of the tools for their personal use. Because the quantities taken by any one employee are immaterial, the individual employees do not consider the act as fraudulent or detrimental to the company. The company is now large enough to
Many documents are not approved.REQUIRED For each of the eight conditions detected by the Covington internal audit staff:a. Describe a possible cause of the condition.b. Recommend actions to be taken and/or controls to be implemented that would correct the condition. (CMA, adapted)
An unexplained decrease in the gross profit percentage has occurred.
Many original documents are missing or lost. However, there are substitute copies of all missing originals.
There are many customer refunds and credits.
Alterations have been made to physical inventory counts and to perpetual inventory records.
There are occasional discrepancies between physical inventory counts and perpetual inventory records.
Bad debt write-offs are prepared and approved by the same employee.
Daily bank deposits do not always correspond with cash receipts.
The management at Covington, Inc., recognizes that a well-designed internal control system provides many benefits. Among the benefits are reliable financial records that facilitate decision making and a greater probability of preventing or detecting errors and fraud. Covington’s internal auditing
Do this for procedure A, procedure B, and both procedures together.
During a recent review, ABC Corporation discovered that it has a serious internal control problem. It is estimated that the impact associated with this problem is $1 million and that the likelihood is currently 5%. Two internal control procedures have been proposed to deal with this problem.
The Gardner Company, a client of your firm, has come to you with the following problem. It has three clerical employees who must perform the following functions:a. Maintain the general ledgerb. Maintain the accounts payable ledgerc. Maintain the accounts receivable ledgerd. Prepare checks for
The following description represents the policies and procedures for agent expense reimbursements at Excel Insurance Company.Agents submit a completed expense reimbursement form to their branch manager at the end of each week. The branch manager reviews the expense report to determine whether the
Explain how the principle of separation of duties is violated in each of the following situations. Also, suggest one or more procedures to reduce the risk and exposure highlighted in each example.a. A payroll clerk recorded a 40-hour work-week for an employee who had quit the previous week. He then
Describe the differences between general and specific authorization.
Discuss the internal environment and identify the elements that comprise the internal environment.
Discuss the weaknesses in COSO’s internal control framework that led to the development of the COSO Enterprise Risk Management framework.
Explain why the Foreign Corrupt Practices Act was important to accountants.
Which of the following is NOT an independent check?a. bank reconciliationb. periodic comparison of subsidiary ledger totals to control accountsc. trial balanced. re-adding the total of a batch of invoices and comparing it with your first total
Maria’s concerns about Springer’s loosely defined lines of authority and possible use of “creative accounting” are matters of management policy. With respect to Jason’s control procedures assignment, does he have a professional or an ethical responsibility to get involved?
Is a violation of control procedures acceptable if management has authorized it?
Because Ed Yates had a logical explanation for every unusual transaction, should Jason describe these transactions in his report?
Describe how to communicate information and monitor control processes in organizations.
Describe control activities commonly used in companies.
Explain how to assess and respond to risk using the Enterprise Risk Management (ERM) model.
Describe the control objectives companies need to set and how to identify events that affect organizational uncertainty.
Describe the major elements in the internal environment of a company.
Compare and contrast the COBIT, COSO, and ERM control frameworks.
Explain basic control concepts and explain why computer control and security are important.
What pieces of personal information are most valuable to identity fraudsters?
What are the most effective means of detecting identity theft?
What measures can consumers take to protect against the online brokering of their personal data?
What is the most common way that fraudsters use personal data?
What are some of the most common electronic means of stealing personal information?
How has the Internet made detecting and identifying identity fraudsters difficult?
How did Shadowcrew members conceal their identities? How can average citizens protect their identities while interacting online?
A few years ago, the Japanese government announced that computers in the country’s parliament suffered a cyber-attack originating in China. The Japanese computers were infected when a politician opened an email attachment containing malicious computer instructions. The code spread to other
When your cell phone dies, a nodding acquaintance gives you a USB wall charger. Unbeknownst to you, this device can eavesdrop on most wireless Microsoft keyboards. To which computer fraud and abuse technique could this device expose you to?a. Back doorb. Keyloggerc. Trojan horsed. Ransomwaree.
You visited Moviepass.tv, a movie download service, and browse the movie selections at the site. Three days later, oversized pop-up ads began to appear claiming that you had signed up for a three-day free trial but had not cancelled before the trial period had ended.The pop-ups demanded payment of
After experiencing a larger than usual amount of credit card fraud, the bank issuing the cards was able to determine that most of the credit cards had been used in only one location—a restaurant in New York City. An investigation uncovered a waiter that was double swiping credit cards and using
You receive an email that says: “We are offering you a special $50 coupon for being such a good customer. This offer is limited to the first 100 people, so click here immediately to claim your reward.” You click on the embedded link and are taken to a website that asks you to enter your bank
You find a web application that uses the following query structure to authenticate users: “SELECT * FROM userstable WHERE username 5 ‘userinput1’ and password5‘userinput2’;” You replace userinput1 with ‘OR 151’; which gives you access to the database without having to enter a user
A man used false names, addresses, and social security numbers to create 58,000 banking and brokerage accounts. To verify that the accounts were set up properly, the institutions would make deposits of less than a dollar into the account. He kept the funds instead of letting the institutions take
A hacker from Croatia inserted a malicious string of code in a popular news website’s database. When a researcher from a financial institution requested a page from the website, it was sent along with the malicious string. The researcher’s browser executed the string inside the response and
After a Windows vulnerability was discovered, the point-of-sale payment card system of more than 100 companies was attacked by crooks. Microsoft released a patch to fix the vulnerability a few weeks later. This is which of the following types of computer fraud and abuse?a. Man-in-the middle
Sanford Wallace sent phishing messages to Facebook users that tricked 500,000 of them into providing their passwords and user account information. He accessed their accounts and over a three-month period posted over 27 million messages on their friend’s timelines. Since he violated a court order
In August 2011, the Hong Kong Stock Exchange (HKEx) suspended trading for seven stocks after its news announcement website HKExnews was hit by a distributed denialof-service (DoS) attack. This site was the only online platform used by HKEx to make announcements for the listed companies and for
A customer of a bank received the following email:Dear Valued Customer!As part of our continuing commitment to protect your account and to reduce instance of fraud on our website, we are performing a periodic review of the accounts of our customers. You are requested to visit our website by
The controller of a small business received the following e-mail with an authenticlooking e-mail address and logo:From: Big Bank [antifraud@bigbank.com]To: Justin Lewis, Controller, Small Business USA Subject: Official Notice for all users of Big Bank!Due to the increased incidence of fraud and
A few years ago, news began circulating about a computer virus named Michelangelo that was set to “ignite” on March 6, the birthday of the famous Italian artist. The virus attached itself to the computer’s operating system boot sector. On the magical date, the virus would release itself,
What is social engineering? Describe at least four social engineering techniques.DISCUSSION QUESTIONS
When U.S. Leasing (USL) computers began acting sluggishly, computer operators were relieved when a software troubleshooter from IBM called. When he offered to correct the problem they were having, he was given a log-on ID and password. The next morning, the computers were worse. A call to IBM
Describe the different types of malware used to harm computers.
Explain how social engineering techniques are used to gain physical or logical access to computer resources.
Compare and contrast computer attack and abuse tactics.
Recommend one or more controls to prevent or detect each means of committing fraud.
What control weaknesses make each fraud possible?
What risk factor, unusual item, or abnormality would alert you to each fraud?
Figure 5-3 shows the employees and external parties that deal with Heirloom. Explain how Heirloom could defraud the bank and how each internal and external party, except the bank, could defraud Heirloom.
What could the victimized companies have done to prevent Miller’s embezzlement?
Why do companies hesitate to prosecute whitecollar criminals? What are the consequences of not prosecuting? How could law enforcement officials encourage more prosecution?
Miller had a framed T-shirt in his office that said,“He who dies with the most toys wins.” What does this tell you about Miller? What lifestyle red flags could have tipped off the company to the possibility of fraud?

Showing 400 - 500 of 5294

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Accounting Information Systems 14th Global Edition Marshall B. Romney, Paul John Steinbart - Solutions

Step by Step Answers