CORRECT QUESTIONS AND ANSWERS |VERIFIED BY
EXPERTS
1 An accounting information system is defined as - correct answer 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 - correct answer 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 - correct answer designer
Certified Information Systems Auditor (CISA) - correct answer professionals in IT audit,
control, and security skills
(will perform IT audits to evaluate the accounting info system's internal control design)
Information - correct answer data organized in a meaningful way to be useful to the user
data - correct answer raw facts that describe the characteristics of an event that, in
isolation, have little meaning
Discretionary Information - correct answer 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 - correct answer discretionary
information
Mandatory Information - correct answer 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 - correct answer mandatory info
because discretionary info is not required, - correct answer management must determine if
the benefits of receiving that info are greater than the costs of producing it
Storage - correct answer recorded transactions that are saved in the cloud
input - correct answer sales recorded in a cash register or point of sale terminal
output - correct answer a monthly sales report produced by an IS
information from an AIS must be - correct answer relevant, and reliable to be useful to
decision makers
information value chain - correct answer 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 - correct answer evaluators of the system