Accounting Information System

Accounting Information System

An accounting as an information system is a system of collecting, storing and processing financial and accounting data that are used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources.


An order may include many products. Refer to the following diagram. Which of the following answers provides the best interpretation of the multiplicities for the association between the Order class and the Products class?
Business continuity. Bacchus, Inc. is a large multinational corporation with various business units around the world. After a fire destroyed the corporation headquarters and largest manufacturing site, plans for which of the following would help Bacchus ensure a timely recovery?
FALSE In Access, users can edit database information in reports.
A foreign key cannot be NULL. Which of the following statements about foreign keys is not true?
Stakeholder assurance Which of the following is not an Accounting/Finance Operations role of the Accounting/Finance Function in Business?
TRUE The goal of information security management is to maintain confidentiality, integrity and availability of a firm's information.
FALSE The risk of a company's internal auditing processes failing to catch the misstated dollar amount of revenue on the company's income statement is classified as inherent risk.
Illustrate process flow when an exception occurs. Which of the following best describes the purpose of an intermediate error event?
TRUE Data governance is the convergence of data quality, data management, data policies, business process management, and risk management surrounding the handling of data in a company.
FALSE In Unified Modeling Language (UML) the options for minimum multiplicity values are 1 and *.
TRUE The Purchases table would have four foreign keys.
Inherent risk Which of the following is not a component of internal control as defined by COSO?
TRUE Data mining is the process of searching for patterns in the data in a data warehouse and to analyze the patterns for decision making.
TRUE The Cash Disbursements table would have three foreign keys.
Enter data into tables Which of the following tasks cannot be performed through queries in access?
Increased responsiveness and flexibility while aiding in the decision-making process. An enterprise resource planning system has which of the following advantages over multiple independent functional systems?
0 and 1 Which of following are possible options for minimum multiplicities?
The network model Which type of data models allows each record to have multiple parent and child records?
TRUE One type of fault tolerance is using redundant units to provide a system the ability to continue functioning when part of the system fails.
An inherent limitation to internal control is the fact that controls can be circumvented by management override. Which of the following statement is correct regarding internal control?
All of the choices The purpose of a company's firewall is to:
FALSE The Purchase Orders table would have the same foreign keys as the Purchases table.
TRUE Data is defined as being information organized in a meaningful way to be useful to the user.
TRUE Segregation of duties reduces the risk of errors and irregularities in accounting records.
Compulsory Which of the following is not a form of business rules?
Refers to the flow of materials, information, payments and services. A supply chain:
Conducting appropriate awareness training on wireless networks Which of the following is not a management control for wireless networks?
One employee can authorize production multiple times. Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Employees and Production Authorization classes?
All of the choices are correct Which of the following is considered as class in the relational database model?
Choreography In a BPMN collaboration model of the purchase process, which of the following is the appropriate term for the message flows between pools?
FALSE Asymmetric-key encryption is suitable for encrypting large data sets or messages.
Independently verify the transactions. Which of the following control activities should be taken to reduce the risk of incorrect processing in a newly installed computerized accounting system?
TRUE Segregation of duties reduces the risk of errors and irregularities in accounting records.
Data storage In Microsoft Access, we use tables in a database for:
Independently verify the transactions. Which of the following control activities should be taken to reduce the risk of incorrect processing in a newly installed computerized accounting system?
Allowing for greater management oversight of incompatible activities. Which of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?
Detective. Review of the audit log is an example of which of the following types of security control?
Records, processes and reports Accounting information systems are:
A digital signature is a message digest encrypted using the document creator's public key. Which of the following statements is incorrect about digital signature?
FALSE Computer-assisted audit techniques (CAAT) are often used when auditing a company's IT infrastructure.
FALSE Disaster recovery planning and business continuity management are preventive controls.
TRUE The main objective of the ISO 27000 series is to provide a model for establishing, implementing, operating, monitoring, maintaining, and improving information security.
FALSE According to the Sarbanes-Oxley Act of 2002, it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control.
TRUE The asterisk (*) following the SELECT SQL statement is a wild card indicating all columns should be selected.
TRUE An intermediate error event can be used to model process exceptions.
Access controls limit who can change records and application controls provide an audit trail of any changes. Which of the following best describes the difference between access controls and application controls?
FALSE Each Purchase Order would be ultimately linked to one cash disbursement.
TRUE COBIT (Control Objectives for Information and related Technology) is a generally accepted framework for IT governance in the U.S.
Financial consolidation, reporting and analysis Which of the following is not a Business Management Support role of the Accounting/Finance Function in Business?
All of the choices are correct Which of the following is considered as class in the relational database model?
TRUE A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.
Ensuring no production without a customer order Which of the following least reflects the purpose of a business rule in the conversion process?
TRUE The "Where" SQL clause can be used to link two tables.
FALSE The associate between Purchase Orders and Purchases would be implemented with a linking table.
TRUE An enterprise system is a centralized database that collects data from throughout the firm. This includes data from orders, customers, sales, inventory and employees.
FALSE The SQL command "Group by" can be used to order an amount in a descending order.
FALSE Application controls limit who can change records in a system.
A and B are correct. Integrity of information means the information is:
TRUE The chief executive officer is ultimately responsible for enterprise risk management.
Certified Information Technology Professional (CITP) Which designation is for CPAs with a broad range of technology knowledge and experience?
FALSE In Unified Modeling Language (UML) Class diagrams, Associations are represented by dashed lines.
User accounts are not removed upon termination of employees. When client's accounts payable computer system was relocated, the administrator provided support through a dial-up connection to server. Subsequently, the administrator left the company. No changes were made to the accounts payable system at that time. Which of the following situations represents the greatest security risk?
Directs sequence flow when an activity aborts Which of the following best describes the purpose of an intermediate error event?
TRUE The "Where" SQL clause can be used to link two tables.
TRUE Encryption is a preventive control ensuring data confidentiality and privacy during transmission and for storage.
Prospective customers A supply chain system does not include information about.
FALSE Access offers modules, which are defined by users to automate processes like opening a specific form.
TRUE Data governance is the convergence of data quality, data management, data policies, business process management, and risk management surrounding the handling of data in a company.
FALSE Virtual private network (VPN) is a private network, provided by a third party, for exchanging information through a high capacity connection.
The data value for a foreign key could be null Which of the following correctly describes the Referential Integrity Rule?
Multiplicities Which of the following is not a common element of activity models regardless of the specific modeling notation?
"Yes (No Duplicates)" The property of the primary key in a table in Microsoft Access should be set to:
FALSE The Sarbanes-Oxley Act of 2002 (SOX) 2002 requires the management of all companies and their auditors to assess and report on the design and effectiveness of internal control over financial reporting annually.
FALSE The association between Purchase Orders and Cash Disbursements would be implemented with a linking table.
An enterprise resource planning system. A company would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application?
FALSE Classes could be grouped into Resources (R), Entity (E), and Assets (A) in data modeling.
TRUE Fraud triangle includes incentive, opportunity and an attitude to rationalize the fraud.
TRUE A labor plan class would establish standard overhead allocation rates.
FALSE The characteristics of reliable information are that the information is verifiable, without bias and timely.
TRUE Business rules describe appropriate actions to take based on process conditions.
Disaster recovery plan. An information technology director collected the names and locations of key vendors, current hardware configuration, names of team members, and an alternative processing location. What is the director most likely preparing?
TRUE An accounting information system (AIS) is defined as being an information system that records, processes and reports on transactions to provide financial information for decision making and control.
Add a sequence flow to an end event after the discard errors activity. Consider the following BPMN diagram of a subprocess. Which of the following is required to correct an error in the diagram?
Map Associations to Primary Keys. Which of the following is not a step in using a Unified Modeling Language (UML) Class model to prepare a database?
FALSE A Class is a separately identifiable collection of business relationships.
TRUE The association between Purchase Orders and Products would be implemented with a linking table.
One employee can authorize production multiple times. Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Employees and Production Authorization classes?
An inherent limitation to internal control is the fact that controls can be circumvented by management override. Which of the following statement is correct regarding internal control?
The CEO can request a check with no purchase order. Which of the following represents an inherent limitation of internal controls?
TRUE In Unified Modeling Language (UML) the options for maximum multiplicity values are 1 and *.
Internal environment. According to COSO, which of the following components of the enterprise risk management addresses an entity's integrity and ethical values?
TRUE The chief executive officer is ultimately responsible for enterprise risk management.
TRUE A pool in a BPMN model does not actually have to display any activities.
The auditors first calculating expected results from the transactions entered into the system. Then, the auditors compare these calculations to the processing or output results. Which of the following statements regarding the black-box approach for systems auditing is correct?
FALSE To be valuable business partners, accountants must understand how the business delivers value to its employees.
TRUE Type images can be used to allow process information to be summarized by category.
Restricting access to the computer center by use of biometric devices. Which of the following statements presents an example of a general control for a computerized system?
TRUE Key distribution and key management are problematic under the symmetric-key encryption.
The relational model What kind data model is most commonly used as a basis for today's enterprise systems?
FALSE The Generally Accepted Auditing Standards (GAAS) issued by PCAOB provide guidelines for conducting an IS/IT audit.
FALSE Accounting Information Systems at this date are all computerized.
TRUE The Cash Disbursements table would have three foreign keys.
Enter data into tables Which of the following tasks cannot be performed through queries in access?
FALSE Outbound logistics are the activities associated with receiving and storing raw materials and other partially completed materials, and distributing those materials to manufacturing when and where they are needed.
The supplier's activities In a BPMN collaboration model of the purchase process, one pool describes the focal organization's activities and the other pool describes what?
The network model Which type of data models allows each record to have multiple parent and child records?
FALSE A BPMN process flow can start in one pool and end in the collaborating pool.
Managing remote access. In a large multinational organization, which of the following job responsibilities should be assigned to be network administrator?
TRUE Unified Modeling Language (UML) Class diagrams describe the logical structure of a database system.
Allowing for greater management oversight of incompatible activities. Which of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?
TRUE Documentation can be thought of as a tool for information transmission and communication.
FALSE A company's audit committee is responsible for fraud risk assessments.
Detective. Review of the audit log is an example of which of the following types of security control?
TRUE In a computerized environment, internal controls can be categorized as general controls and application controls.
Includes data for the current fiscal year only Which of the statements regarding the data warehouse is incorrect?
Sales and Distribution Which SAP modules would a manufacturing company use to create a delivery order for a sales transaction?
Illustrate process flow when an exception occurs. Which of the following best describes the purpose of an intermediate error event?
FALSE According to the Sarbanes-Oxley Act of 2002, it is the responsibility of the Board of Directors to establish and maintain the effectiveness of internal control.
Retail Store Which of the following businesses is least likely to employ a conversion process?
TRUE The Purchase Orders table would contain two foreign keys to implement the associations with Employees.
TRUE Key distribution and key management are problematic under the symmetric-key encryption.
FALSE A company's audit committee is responsible for fraud risk assessments.
Links each raw material item to one or more finished good items. Which of the following best describes the purpose of a bill of material class?
TRUE The Object Management Group maintains the standard for Unified Modeling Language (UML) Class diagrams.
Certified Information Systems Auditors (CISA) Which designation would most appropriate for those professionals possessing an IT audit, control and security skills?
TRUE The Cash Disbursements table would have three foreign keys.
Internal audit staff who report to the board of directors. In a large pubic corporation, evaluating internal control procedures should be responsibility of:
Ship products to stores Which of the following is not a basic activity in the conversion process?
All of the choices The purpose of a company's firewall is to:
All conversion activities are internal to the organization. Which of the following is the best reason that a collaboration model would not be used to diagram the conversion process?
FALSE Documentation helps with training but won't help with regulatory compliance issues.
FALSE The data in a data warehouse are updated when transactions are processed.
FALSE Queries in Access are utilized by users to enter data into tables and view existing records.
The CEO can request a check with no purchase order. Which of the following represents an inherent limitation of internal controls?
"Yes (No Duplicates)" The property of the primary key in a table in Microsoft Access should be set to:
Each production authorization is related to one product. Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Products and Production Authorization classes?
Inbound Logistics -> Operations -> Outbound Logistics The correct order of effects in the value chain are:
FALSE Classes could be grouped into Resources (R), Entity (E), and Assets (A) in data modeling.
Financial reports for the Securities and Exchange Commission Which of the following are considered to be mandatory information required by a regulatory body?
TRUE The Purchases table would have four foreign keys.
The attacker actively intercepts communications between wireless clients and access points to obtain authentication credentials and data. What is the man-in-the-middle threat for wireless LANs?
TRUE Service Activities as defined in the value chain are those activities that provide the support of customers after the products and services are sold to them (e.g. warranty repairs, parts, instruction manuals, etc.).
Employee performance appraisal Business models provide value in all of the following areas except which one?
FALSE Internal controls guarantee the accuracy and reliability of accounting records.
FALSE The Purchase Orders table would have five foreign keys.
FALSE In a collaboration model using BPMN, the interaction between participants is called orchestration.
FALSE Processing controls are IT general controls.
Retail store Which of the following types of businesses is least likely to employ a conversion process?
FALSE Symmetric-key encryption method is used to authenticate users.
Internal environment. According to COSO, which of the following components of the enterprise risk management addresses an entity's integrity and ethical values?
FALSE In Unified Modeling Language (UML) the options for minimum multiplicity values are 0, 1, and 2.
TRUE Encryption is a preventive control ensuring data confidentiality and privacy during transmission and for storage.
TRUE The main objective of the ISO 27000 series is to provide a model for establishing, implementing, operating, monitoring, maintaining, and improving information security.
The relational model What kind data model is most commonly used as a basis for today's enterprise systems?
TRUE Certificate Authority (CA) issues digital certificates to bond the subscriber with a public key and a private key.
TRUE Firewalls are security systems comprised of hardware and software that is built using routers, servers, and a variety of software.
TRUE Fraud triangle includes incentive, opportunity and an attitude to rationalize the fraud.
Each quote may result in many future Orders. Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Quote class and the Order class?
Directs sequence flow when an activity aborts Which of the following best describes the purpose of an intermediate error event?
FALSE A value chain is defined as the flow of materials, information, payments, and services from customer to supplier.
TRUE Three types of data models used today are: the hierarchical model, the network model and the relational model.
Batch processing. An entity doing business on the internet most likely could use any of the following methods to prevent unauthorized intruders from accessing proprietary information except:
TRUE Integrated test facility (ITF) is an automated technique that enables test data to be continually evaluated during the normal operation of a system.
FALSE Virtual private network (VPN) is a private network, provided by a third party, for exchanging information through a high capacity connection.
TRUE Conversion labor costs become part of cost of goods sold.
All conversion activities are internal to the organization. Which of the following is the best reason that a collaboration model would not be used to diagram the conversion process?
FALSE In a hierarchical data model, data elements are related in many-to-many relationships.
Longer key values are better than shorter key values. Which of the following is not a criterion for selection of a primary key?
Edit check. Which of the following is considered an application input control?
The data value for a foreign key could be null Which of the following correctly describes the Referential Integrity Rule?
FALSE Computer-assisted audit techniques (CAAT) are often used when auditing a company's IT infrastructure.
TRUE An intermediate error event can be used to model process exceptions.
The sequence that entities are accessed Which of the following is not something a model of database structures must be able to describe?
To ensure that data storage media are subject to authorization prior to access, change, or destruction. What is the primary objective of data security controls?
FALSE Queries in Access are utilized by users to enter data into tables and view existing records.
TRUE Cloud computing is an internet-based computing where shared resources, software, and information is provided to firms on demand.
Each production authorization is related to one product. Review the following diagram. Which answer provides the best interpretation of the multiplicities for the association between the Products and Production Authorization classes?
FALSE Each Purchase Order would be ultimately linked to one cash disbursement.
FALSE In Access, users can edit database information in reports.
Links work in process events to the original production authorization. In a basic UML diagram of the conversion process, which of the following best describes the purpose of a duality association?
FALSE In a hierarchical data model, data elements are related in many-to-many relationships.
Human Resource management Which of the following is not a Stewardship and Reporting role of the Accounting/Finance Function in Business?
Restricting access to the computer center by use of biometric devices. Which of the following statements presents an example of a general control for a computerized system?
An enterprise resource planning system. A company would like to implement a management information system that integrates all functional areas within an organization to allow information exchange and collaboration among all parties involved in business operations. Which of the following systems is most effective for this application?
FALSE Accounting and Finance is a primary activity in the value chain.
TRUE The asterisk (*) following the SELECT SQL statement is a wild card indicating all columns should be selected.
TRUE Conversion labor costs become part of cost of goods sold.