AFM 341 MIDTERM EXAM QUESTIONS AND ANSWERS
WITH COMPLETE VERIFIED SOLUTIONS GRADED A++
what can be done to minimize IT incidents?
1) better board level governance - increased attention to IT issues during board
meetings: mitigating IT risks and delivering IT value, board members able to ask tough
IT-related questions
2) more effective internal controls - implementing mechanisms and activities that
mitigate risks by preventing and detecting IT issues, adoption of IT governance
frameworks
3) more effective IT audits - independent reviews of the organizational use of IT that
focus on areas of risk and aid in the early identification of IT issues
data vs information
data are facts collected, recorded, and stored by an information system
VS
information is data that have been organized and processed to provide meaning and
improve the decision-making process
what makes information useful? (7)
1. Relevant - information needed to make a decision
2. Reliable - information is accurate and free from bias
3. Complete - does not omit important aspects of events or activities
4. Timely - information needs to be provided in time to make the decision
,5. Understandable - information must be presented in a meaningful manner
6. Verifiable - two independent people can produce the information
7. Accessible - available when needed and in a usable format
business process
a set of related, coordinated, and structured activities (e.g., transactions) and tasks
performed by people, machines, or both to achieve a specific organizational goal
for each characteristic of information that makes it useful, provide an example of
how an organization could improve the usefulness of their data
1. relevant - an e-commerce company can improve relevance by tracking customer
browsing history and purchase patterns. With this data, they can recommend products
that are similar to what the customer has previously viewed or purchased, increasing
the chances of making a sale.
2. reliable - a financial institution can improve reliability by implementing strict data
validation checks to ensure that the data entered into their financial systems is accurate.
This minimizes errors in financial statements and reports.
3. complete - a supply chain company can enhance completeness by implementing a
system that tracks the entire lifecycle of a product from manufacturing to delivery. This
allows them to have comprehensive visibility into the supply chain, helping them identify
bottlenecks and inefficiencies.
4. timely - a stock trading platform can improve timeliness by reducing the latency in
data feeds. They can invest in faster network infrastructure and data processing
systems to ensure that traders receive real-time market data.
5. understandable - a healthcare provider can make medical records more
, understandable by creating patient summaries that use plain language and visual aids.
This helps patients and caregivers better comprehend the patient's medical history and
treatment plan.
6. verifiable - an auditing firm can enhance the verifiability of financial data by
implementing a digital audit trail. This system records all changes to financial records,
allowing auditors to easily verify the accuracy and legitimacy of transactions.
7. accessible - a research institution can improve accessibility by providing a secure
online portal for researchers to access and download datasets. This ensures that
authorized individuals can easily access the data they need for their research.
benefits of improving the usefulness of information
- help organizations make better-informed decisions
- enhance operational efficiency
- maintain a competitive edge in their respective industries
accounting information system (AIS)
a system that collects, records, stores, and processes data to produce information for
decision makers
parts of an AIS (4)
- people who use the system
- processes (procedures and instructions to collect, process, and store data)
- technology (data, software, and information technology)
- controls to safeguard information
how does an AIS add value to an organization? (6)
WITH COMPLETE VERIFIED SOLUTIONS GRADED A++
what can be done to minimize IT incidents?
1) better board level governance - increased attention to IT issues during board
meetings: mitigating IT risks and delivering IT value, board members able to ask tough
IT-related questions
2) more effective internal controls - implementing mechanisms and activities that
mitigate risks by preventing and detecting IT issues, adoption of IT governance
frameworks
3) more effective IT audits - independent reviews of the organizational use of IT that
focus on areas of risk and aid in the early identification of IT issues
data vs information
data are facts collected, recorded, and stored by an information system
VS
information is data that have been organized and processed to provide meaning and
improve the decision-making process
what makes information useful? (7)
1. Relevant - information needed to make a decision
2. Reliable - information is accurate and free from bias
3. Complete - does not omit important aspects of events or activities
4. Timely - information needs to be provided in time to make the decision
,5. Understandable - information must be presented in a meaningful manner
6. Verifiable - two independent people can produce the information
7. Accessible - available when needed and in a usable format
business process
a set of related, coordinated, and structured activities (e.g., transactions) and tasks
performed by people, machines, or both to achieve a specific organizational goal
for each characteristic of information that makes it useful, provide an example of
how an organization could improve the usefulness of their data
1. relevant - an e-commerce company can improve relevance by tracking customer
browsing history and purchase patterns. With this data, they can recommend products
that are similar to what the customer has previously viewed or purchased, increasing
the chances of making a sale.
2. reliable - a financial institution can improve reliability by implementing strict data
validation checks to ensure that the data entered into their financial systems is accurate.
This minimizes errors in financial statements and reports.
3. complete - a supply chain company can enhance completeness by implementing a
system that tracks the entire lifecycle of a product from manufacturing to delivery. This
allows them to have comprehensive visibility into the supply chain, helping them identify
bottlenecks and inefficiencies.
4. timely - a stock trading platform can improve timeliness by reducing the latency in
data feeds. They can invest in faster network infrastructure and data processing
systems to ensure that traders receive real-time market data.
5. understandable - a healthcare provider can make medical records more
, understandable by creating patient summaries that use plain language and visual aids.
This helps patients and caregivers better comprehend the patient's medical history and
treatment plan.
6. verifiable - an auditing firm can enhance the verifiability of financial data by
implementing a digital audit trail. This system records all changes to financial records,
allowing auditors to easily verify the accuracy and legitimacy of transactions.
7. accessible - a research institution can improve accessibility by providing a secure
online portal for researchers to access and download datasets. This ensures that
authorized individuals can easily access the data they need for their research.
benefits of improving the usefulness of information
- help organizations make better-informed decisions
- enhance operational efficiency
- maintain a competitive edge in their respective industries
accounting information system (AIS)
a system that collects, records, stores, and processes data to produce information for
decision makers
parts of an AIS (4)
- people who use the system
- processes (procedures and instructions to collect, process, and store data)
- technology (data, software, and information technology)
- controls to safeguard information
how does an AIS add value to an organization? (6)
