Info
Warning
Danger

Study Resources (Accounting)

SHORT ANSWER 1.Entities outside the organization with a direct or indirect interest in the firm, such as stockholders, financial institutions, and government agencies, are called ____________________. 2.The process of breaking a system into smaller subsystem parts is called ______________________________. 3.Transactions with trading partners include ____________________ and ____________________. 4.A system is a group of two.
4 Views
View Answer
3.The presence of an audit trail is critical to the integrity of the accounting information system. Discuss three of the techniques used to preserve the audit trail. 4.Define each of the following input controls and give an example of how they may be used: a.  Missing data check b.  Numeric/alphabetic data check c.  Limit.
6 Views
View Answer
31.An appraisal function housed within the organization that performs a wide range of services for management is a.internal auditing b.data control group c.external auditing d.database administration 32.Advantages of a database system include all of the following except a.elimination of data redundancy b.open access to all data by all users c.single update for changes in data d.confidence that all data.
3 Views
View Answer
11.Sales of products to customers, purchases of inventory from vendors, and cash disbursements are all example of __________________________. 12.The three major subsystems of the AIS are _______________________________, ___________________________, and _______________________________. 13.The __________________________ and __________________________ standards that characterize the AIS clearly distinguish it from the MIS. 14.The transaction processing system is comprised of three.
4 Views
View Answer
11.The most frequent victims of program viruses are microcomputers. 12.Access controls protect databases against destruction, loss or misuse through unauthorized access. 13.Operating system integrity is not of concern to accountants because only hardware risks are involved. 14.Audit trails in computerized systems are comprised of two types of audit logs: detailed logs of individual.
7 Views
View Answer
6.Resource use is one characteristic used to distinguish between batch and real-time systems. Explain. 7.Give a brief description of each of the following documentation techniques: document flowchart, systems flowchart, and program flowchart. 8.Give an example of how cardinality relates to business policy? 9.For what purpose are ER diagrams used? 10.What is an entity? 11.Is a.
4 Views
View Answer
SHORT ANSWER 1.Contrast the source program library (SPL) management system to the database management system (DBMS). 2.Describe two methods used to control the source program library. 3.New system development activity controls must focus on the authorization, development, and implementation of new systems and its maintenance. Discuss at least five control activities that are.
3 Views
View Answer
11.An example of a hash total is a.total payroll checks–$12,315 b.total number of employees–10 c.sum of the social security numbers–12,555,437,251 d.none of the above 12.Which statement is not true? A batch control record a.contains a transaction code b.records the record count c.contains a hash total d.control figures in the record may be adjusted during processing e.All the above are true 13.Which.
4 Views
View Answer
TRUE/FALSE 1.Processing more transactions at a lower unit cost makes batch processing more efficient than real-time systems. 2.The process of acquiring raw materials is part of the conversion cycle. 3.Directing work-in-process through its various stages of manufacturing is part of the conversion cycle. 4.The top portion of the monthly bill from a credit card.
18 Views
View Answer
MULTIPLE CHOICE 1.Which statement is not correct? The audit trail in a computerized environment a.consists of records that are stored sequentially in an audit file b.traces transactions from their source to their final disposition c.is a function of the quality and integrity of the application programs d.may take the form of pointers, indexes, and embedded.
9 Views
View Answer
31.In an electronic data interchange environment, the audit trail a.is a printout of all incoming and outgoing transactions b.is an electronic log of all transactions received, translated, and processed by the system c.is a computer resource authority table d.consists of pointers and indexes within the database 32.All of the following are designed to control exposures.
3 Views
View Answer
TRUE/FALSE 1.Information is a business resource. 2.An information system is an example of a natural system. 3.Transaction processing systems convert non-financial transactions into financial transactions. 4.Information lacking reliability may still have value. 5.A balance sheet prepared in conformity with GAAP is an example of discretionary reporting. 6.The Management Reporting System provides the internal financial information needed.
11 Views
View Answer
11.Why is the audit trail important? 12.List a method of data processing that uses the destructive update approach? 13.Only four symbols are used in data flow diagrams. What are they? 14.Which flowchart depicts the relationship between processes and the documents that flow between them and trigger activities? 15.What are the three characteristics that are.
6 Views
View Answer
31.All of the following concepts are associated with the black box approach to auditing computer applications except a.the application need not be removed from service and tested directly b.auditors do not rely on a detailed knowledge of the application's internal logic c.the auditor reconciles previously produced output results with production input transactions d.this approach.
6 Views
View Answer
6.In general a special journal would not be used to record a.sales b.cash disbursements c.depreciation d.purchases 7.Which account is least likely to have a subsidiary ledger? a.sales b.accounts receivable c.fixed assets d.inventory 8.Subsidiary ledgers are used in manual accounting environments. What file is comparable to a subsidiary ledger in a computerized environment? a.archive file b.reference file c.transaction file d.master file 9.A journal is used in.
6 Views
View Answer
SHORT ANSWER 1.List two of the three transaction cycles. 2.Documents that are created at the beginning of the transaction are called __________________________. 3.______________________________________ are the two data processing approaches used in modern systems. 4.Give a specific example of a turn-around document. 5.Explain when it is appropriate to use special journals. 6.What are the subsystems of the.
6 Views
View Answer
9.What is the purpose of the auditor's review of SDLC documentation? 10.Microcomputers have traditionally been difficult to control, leaving auditors with special problems in verifying physical controls. Discuss what an auditor's objectives might be in testing microcomputer controls. 11.Contrast the "black box" approach to IT auditing and the "white box" approach. Which.
5 Views
View Answer
SHORT ANSWER 1.Briefly define an operating system. 2.What is a virus? 3.Describe one benefit of using a call-back device. 4.Contrast the Private Encryption Standard approach with the Public Key Encryption approach to controlling access to telecommunication messages. 5.List three methods of controlling unauthorized access to telecommunication messages. .
4 Views
View Answer
11.Describe a test of controls that would provide evidence that only authorized program maintenance is occurring. 12.Auditors do not rely on detailed knowledge of the application's internal logic when they use the __________________________ approach to auditing computer applications. 13.Describe parallel simulation. 14.What is meant by auditing around the computer versus auditing through the.
7 Views
View Answer
ESSAY 1.Describe the key activities in the revenue, conversion, and expenditure cycles. 2.Categorize each of the following activities into the expenditure, conversion or revenue cycles and identify the applicable subsystem. a.Preparing the weekly payroll for manufacturing personnel. b.Releasing raw materials for use in the manufacturing cycle. c.Recording the receipt of payment for goods sold. d.Recording the.
6 Views
View Answer
Chapter 17—IT Controls Part III: Systems Development, Program Changes, and Application Controls TRUE/FALSE 1.Programs in their compiled state are very susceptible to the threat of unauthorized modification. 2.Maintenance access to systems increases the risk that logic will be corrupted either by the accident or intent to defraud. 3.Source program library controls should prevent and.
12 Views
View Answer
6.What are the three primary functions performed by the transaction processing system? 7.The most commonly stated benefits of DDP are cost savings, increased user satisfaction, and improved operational efficiency. Explain. 8.Data redundancy is described as a problem in flat-file systems due to data storage, updating, and currency issues. Explain. 9.Explain the elements of.
3 Views
View Answer
26.Which symbol represents a data store? a. b. c. d. 27.Which symbol represents a manual operation? a. b. c. d. 28.Which symbol represents accounting records? a. b. c. d. 29.Which symbol represents a document? a. b. c. d. 30.Which symbol represents a magnetic tape (sequential storage device)? a. b. c. d. 31.Which symbol represents a decision? a. b. c. d. 32.The characteristics that distinguish between batch and real-time systems include all of the following except a.time frame b.resources used c.file format d.efficiency of processing 33.A.
7 Views
View Answer
21.Which function manages the financial resources of the firm through portfolio management, banking, credit evaluation, and cash receipts and disbursements? a.accounting b.finance c.materials management d.distribution 22.Which of the following is not part of the accounting function? a.managing the financial information resource of the firm b.capturing and recording transactions in the database c.distributing transaction information to operations personnel d.managing the.
4 Views
View Answer
11.Why have re-engineering efforts been made to integrate AIS and MIS? 12.Why is it important to organizationally separate the accounting function from other functions of the organization? 13.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.
8 Views
View Answer
MULTIPLE CHOICE 1.Which of the following is not a business resource? a.raw material b.labor c.information d.all are business resources 2.Which level of management is responsible for short-term planning and coordination of activities necessary to accomplish organizational objectives? a.operations management b.middle management c.top management d.line management 3.Which level of management is responsible for controlling day-to-day operations? a.top management b.middle management c.operations management d.executive management 4.The ability to.
6 Views
View Answer
11.Which is not a biometric device? a.password b.retina prints c.voice prints d.signature characteristics 12.Which of the following is not a basic database backup and recovery feature? a.checkpoint b.backup database c.transaction log d.database authority table 13.All of the following are objectives of operating system control except a.protecting the OS from users b.protesting users from each other c.protecting users from themselves d.protecting the environment from users 14.Passwords.
5 Views
View Answer
ESSAY 1.Contrast the responsibilities of operations management, middle management, and top management. Explain the different information needs for each level of management. 2.Explain the difference between data and information. 3.Why do accountants need to understand the organizational structure of the business? 4.Several disadvantages of distributed data processing have been discussed. Discuss at least three. 5.Name.
4 Views
View Answer
11.Achieving batch control objectives requires grouping similar types of input transactions (such as sales orders) together in batches and then controlling the batches throughout data processing. 12.The "white box" tests of program controls are also known as auditing through the computer. 13.The presence of a SPLMS effectively guarantees program integrity. 14.When using the.
5 Views
View Answer
11.The Transaction Processing System includes all of the following cycles except a.the revenue cycle b.the administrative cycle c.the expenditure cycle d.the conversion cycle 12.The primary input to the Transaction Processing System is a.a financial transaction b.an accounting record c.an accounting report d.a nonfinancial transaction 13.When designing the data collection activity, which type of data should be avoided? a.data that is relevant b.data.
3 Views
View Answer
MULTIPLE CHOICE 1.The operating system performs all of the following tasks except a.translates third-generation languages into machine language b.assigns memory to applications c.authorizes user access d.schedules job processing 2.Which of the following is considered an unintentional threat to the integrity of the operating system? a.a hacker gaining access to the system because of a security flaw b.a hardware.
15 Views
View Answer
21.Run-to-run control totals can be used for all of the following except a.to ensure that all data input is validated b.to ensure that only transactions of a similar type are being processed c.to ensure the records are in sequence and are not missing d.to ensure that no transaction is omitted 22.Methods used to maintain an.
5 Views
View Answer
16.What are the audit’s objectives relating to systems development? ) systems development activities are applied consistently and in accordance with management’s policies to all systems development projects; (2) the system as originally implemented was free from material errors and fraud; (3) the system was judged necessary and justified at various checkpoints.
5 Views
View Answer
11.Program flowcharts are used to describe the logic represented in system flowcharts. 12.Batch processing systems can store data on direct access storage devices. 13.Backups are automatically produced in a direct access file environment. 14.The box symbol represents a temporary file. 15.Auditors may prepare program flowcharts to verify the correctness of program logic. 16.A control account.
6 Views
View Answer
11.The database administrator is responsible for the security and integrity of the database. 12.A backbone system is completely finished, tested, and ready for implementation. 13.The internal auditor represents the interests of third-party outsiders. 14.Information Technology (IT) audits can be performed by both internal and external auditors. 15.The single largest user of computer services is.
5 Views
View Answer
13.How may batch processing be used to improve operational efficiency? 14.If an organization processes large numbers of transactions that use common data records, what type of system would work best (all else being equal)? 15.Why might an auditor use a program flowchart? 16.How are computer system flowcharts and program flowcharts related? 17.What are the.
18 Views
View Answer
21.All of the following tests of controls will provide evidence that adequate computer virus control techniques are in place and functioning except a.verifying that only authorized software is used on company computers b.reviewing system maintenance records c.confirming that antivirus software is in use d.examining the password policy including a review of the authority table 22.Audit.
4 Views
View Answer
21.Real-time processing in systems that handle large volumes of transactions each day can create operational inefficiencies. 22.Operational inefficiencies occur because accounts unique to many concurrent transactions need to be updated in real time. 23.Operational inefficiencies occur because accounts common to many concurrent transactions need to be updated in real time. 24.Batch processing of.
6 Views
View Answer
16.Document flowcharts a.depict logical tasks that are being performed, but not who is performing them b.illustrate the relationship between processes, and the documents that flow between them and trigger activities c.represent relationships between key elements of the computer system d.describe the logic of the process 17.When determining the batch size, which consideration is the least.
3 Views
View Answer
6.What are the three categories of processing control? 7.What control issue is related to reentering corrected error records into a batch processing system? What are the two methods for doing this? 8.Output controls ensure that output is not lost, misdirected, or corrupted and that privacy is not violated. What are some output.
5 Views
View Answer
6.Describe two ways that passwords are used to authorize and validate messages in the electronic data interchange environment. 7.Explain how transactions are audited in an electronic data interchange environment. 8.Describe are some typical problems with passwords? 9.Discuss the key features of the one-time password technique: 10.Describe two tests of controls that would provide evidence.
4 Views
View Answer
Student
Expert

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

Let us boost your grade together!

Welcome Aboard!

Let's join the fastest growing Online Academic Experts Community. Earn more than $3K/Month

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

Every Project is learning oppurtunity & our Experts commits to constant lifelong learning.

Let us boost your grade together!