Test Bank – Core Concepts of Accounting Information Systems, 14th Edition – Mark G. Simkin, James L. Worrell, Arline A. Savage – ISBN 9781119373667 (All Chapters Covered 1–16)

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Core Concepts of
Accounting Information
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Systems, 14th Edition
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TEST BANK
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Mark G. Simkin
James L. Worrell
Arline A. Savage
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Comprehensive Test Bank for Instructors
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and Students
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9781119373667

© Mark G. Simkin, James L. Worrell, & Arline A. Savage.
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All rights reserved. Reproduction or distribution without
permission is prohibited.




© MEDGEEK

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Core Concepts of Accounting Information Systems — Test
Bank
Mark G. Simkin, James L. Worrell and Charles S. Savage
ISBN: 9781119373667
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Chapter 1: Accounting Information Systems and the Accountant
Chapter 2: Accounting on the Internet
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Chapter 3: Information Technology and AISs
Chapter 4: Accounting and Data Analytics
Chapter 5: Integrated Accounting and Enterprise Software
Chapter 6: Introduction to Internal Control Systems and Risk Management
Chapter 7: Computer Controls for Organizations and Accounting Information Systems
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Chapter 8: Accounting Information Systems and Business Processes: Part I
Chapter 9: Accounting Information Systems and Business Processes: Part II
Chapter 10: Cybercrime, Fraud, and Ethics
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Chapter 11: Information Technology Auditing
Chapter 12: Documenting Accounting Information Systems
Chapter 13: Developing and Implementing Effective Accounting Information Systems
Chapter 14: Database Design
Chapter 15: Organizing and Manipulating the Data in Databases
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Chapter 16: Database Forms and Reports
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© MEDGEEK

, Core Concepts of Accounting Information Systems, 14th Edition, by Simkin, Worrell, and Savage



Chapter 1
ACCOUNTING INFORMATION SYSTEMS AND THE ACCOUNTANT


True-False Questions
1. The acronym AIS stands for “Accounting Information Standards.”
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2. Accounting information systems must be computerized to be effective.

3. It is best to view an AIS as an accounting system that must be computerized.

4. AISs often create information that is useful to non-accountants.
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5. In order to be useful, raw accounting data must be processed by a computer.

6. The path that data follow in an AIS, for example from manual source document to
completed output report, is called an audit trail.
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7. A company's audit trail is normally easier to follow under a manual data processing
system compared to a computerized information processing system.

8. The starting point for an audit trail of a weekly payroll system might be an employee time
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card.

9. The starting point for an audit trail of a production department might be the purchase
order for raw materials.
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10. The acronym ERP stands for “electronic reporting plan.”

11. The term information overload refers to providing too much data to management, often
resulting in managers ignoring it.
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12. An advantage of computerized AISs is that they do not need to be programmed to catch
simple input errors such as entering “4.0” instead of “40.0” for hours worked in a payroll
application.

13. Computers tend to make audit trails easier to follow because everything is computerized.
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14. The acronym ERP stands for “enterprise reporting system.”

15. The authors consider accountants to be “knowledge workers.”
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16. Predictive analytics use large data warehouses to help organizations improve
performance by predicting future outcomes.



TB 1.1

, Core Concepts of Accounting Information Systems, 14th Edition, by Simkin, Worrell, and Savage




17. As used in this chapter, the acronym SAR stands for “suspicious accounting reporting.”

18. Sections of the Patriot Act mandate suspicious activity reporting.

19. One of the motivations for SAR is to identify money laundering activities.

20. The term “Patriot” in the “Patriot Act of 2001 is an acronym for “providing appropriate
tools required to intercept and obstruct terrorism.”
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21. Accounting rules do not allow for any flexibility in financial reporting by management.

22. Accounting systems are useful for performing accounting tasks, but cannot be used for
such security purposes as countering terrorism.
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23. An example of a corporate scandal that was mentioned in this chapter is the Enron case.

24. The Sarbanes-Oxley Act allows CPA firms to help clients acquire, install and use
information systems and to also act as those clients’ external auditor.
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25. The Sarbanes-Oxley Act prohibits companies from using the same auditing firms for
performing both auditing and management consulting services.

26. Cloud computing is a way of using business applications over the Internet.
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27. A consulting service provided by CPA firms is risk assessment.

28. A major output of financial accounting is the preparation of financial statements such as
an income statement.
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29. The series of steps leading from data recorded in transaction records to the information
reported on financial statements is called the accounting cycle.

30. AISs are only concerned with financial information.
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31. One major difference between financial accounting and managerial accounting is that
financial accountants prepare financial statements for external investors while managerial
accountants prepare financial statements for internal managers.
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32. In a responsibility accounting system, managers trace unfavorable performance to the
department or persons causing the inefficiencies.

33. One major difference between financial accounting and managerial accounting is that
financial accountants use dashboards while managerial accountants do not.
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TB 1.2