AIS EXAM CH 1-5 FULL VOL TL2
1 An accounting information system is defined as - Ans--a system that
records, processes, summarizes and reports on business transactions to
provide financial and nonfinancial information to facilitate decision making
2.Benefits of enterprise system or enterprise resource planning - Ans--a
centralized database that collects data from throughout the firm
Can significantly lower the cost of support processes included in sales,
general and admin expenses
3. As business analysts and info providers, accountants understand what
data is needed to solve a problem and are, thus, in a unique position to serve as
a ____ of accounting information systems - Ans--designer
Certified Information Systems Auditor (CISA) - Ans--professionals in IT audit,
control, and security skills
(will perform IT audits to evaluate the accounting info system's internal control
design)
Information - Ans--data organized in a meaningful way to be useful to the user
data - Ans--raw facts that describe the characteristics of an event that, in
isolation, have little meaning
Discretionary Information - Ans--information that is generated according to
one's own judgement
Managerial accounting information (activity based costing) is generally
produced for internal information purposes and would be considered - Ans--
discretionary information
Mandatory Information - Ans--information that is required to be generated or
provided by law or regulation
(usually produced at the lowest possible cost to comply with the laws and
regulators)
, a corporate tax return and information produced for investors, banks, the SEC
and the IRS would be considered to be - Ans--mandatory info
because discretionary info is not required, - Ans--management must
determine if the benefits of receiving that info are greater than the costs of
producing it
Storage - Ans--recorded transactions that are saved in the cloud
input - Ans--sales recorded in a cash register or point of sale terminal
output - Ans--a monthly sales report produced by an IS
information from an AIS must be - Ans--relevant, and reliable to be useful to
decision makers
information value chain - Ans--overall transformation from a business need
and business event to the collection of data and info to an ultimate decision
when auditors assess the internal controls in an AIS as part of the Sarbanes-
Oxley Act, they are serving in their role as - Ans--evaluators of the system
supply chain - Ans--the flow of materials, information, payments, and
services from raw materials suppliers, thru factories and warehouses, all the
way to the final customers of the firm's products
Supply chain refers to a network of processes that - Ans--deliver a finished
good or service to the final customer
(includes the firms and processes that create and deliver products,
information, and services to the final customer)
enterprise system - Ans--serves as a central depository for information from
orders, customers, sales, inventory and employees
Attributes of reliable information include - Ans--verifiable, representational
faithfulness, neutrality
1 An accounting information system is defined as - Ans--a system that
records, processes, summarizes and reports on business transactions to
provide financial and nonfinancial information to facilitate decision making
2.Benefits of enterprise system or enterprise resource planning - Ans--a
centralized database that collects data from throughout the firm
Can significantly lower the cost of support processes included in sales,
general and admin expenses
3. As business analysts and info providers, accountants understand what
data is needed to solve a problem and are, thus, in a unique position to serve as
a ____ of accounting information systems - Ans--designer
Certified Information Systems Auditor (CISA) - Ans--professionals in IT audit,
control, and security skills
(will perform IT audits to evaluate the accounting info system's internal control
design)
Information - Ans--data organized in a meaningful way to be useful to the user
data - Ans--raw facts that describe the characteristics of an event that, in
isolation, have little meaning
Discretionary Information - Ans--information that is generated according to
one's own judgement
Managerial accounting information (activity based costing) is generally
produced for internal information purposes and would be considered - Ans--
discretionary information
Mandatory Information - Ans--information that is required to be generated or
provided by law or regulation
(usually produced at the lowest possible cost to comply with the laws and
regulators)
, a corporate tax return and information produced for investors, banks, the SEC
and the IRS would be considered to be - Ans--mandatory info
because discretionary info is not required, - Ans--management must
determine if the benefits of receiving that info are greater than the costs of
producing it
Storage - Ans--recorded transactions that are saved in the cloud
input - Ans--sales recorded in a cash register or point of sale terminal
output - Ans--a monthly sales report produced by an IS
information from an AIS must be - Ans--relevant, and reliable to be useful to
decision makers
information value chain - Ans--overall transformation from a business need
and business event to the collection of data and info to an ultimate decision
when auditors assess the internal controls in an AIS as part of the Sarbanes-
Oxley Act, they are serving in their role as - Ans--evaluators of the system
supply chain - Ans--the flow of materials, information, payments, and
services from raw materials suppliers, thru factories and warehouses, all the
way to the final customers of the firm's products
Supply chain refers to a network of processes that - Ans--deliver a finished
good or service to the final customer
(includes the firms and processes that create and deliver products,
information, and services to the final customer)
enterprise system - Ans--serves as a central depository for information from
orders, customers, sales, inventory and employees
Attributes of reliable information include - Ans--verifiable, representational
faithfulness, neutrality
