Accounting Information Systems 9th Edition Ulric J. Gelinas – Complete Test Bank (Chapters 1–17)

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,Test Bank for Accounting Information Systems 9e Ulric Gelinas Richard
Dull Patrick Wheeler
Answers At The End Of Each Chapter
Chapter 1--Introduction to Accounting Information Systems

Student:

1. The three themes of the text are operating systems, e-business, and internal control.
True False
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2. In an assurance service the accountant will provide the original information used for decision making.
True False
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3. Information systems reliability and electronic commerce have been identified by the AICPA as potential
assurance services.
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True False
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4. E-business is the application of electronic networks to undertake business processes among the functional
areas in an organization.
True False
D
5. The role of the accountant has evolved to include non-financial information and information technology.
True False
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6. Enterprise systems integrate an organization's business processes and information from all of an
organization's functional areas.
True False
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7. An information system consists of an integrated set of computer-based and manual components established to
provide information to users.
True False



8. Internal control is a process that provides complete assurance that the organization is meeting its objectives,
such as efficiency and effectiveness of operations and reliable reporting.
True False

,9. The Sarbanes-Oxley Act of 2002 has dramatically changed the daily work of financial accountants and
auditors.
True False



10. According to the Sarbanes-Oxley Act of 2002, management must identify, document, and evaluate
significant internal controls.
True False
N
11. According to the Sarbanes-Oxley Act of 2002 and PCAOB Auditing Standard No. 5, management must
audit and report on auditors' assertions about the organizations' systems of internal controls.
True False
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12. According to the Sarbanes-Oxley Act's Section 409, material changes in the organization's financial
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condition must be disclosed to the public on a rapid and current basis.
True False
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13. The Sarbanes-Oxley Act's Section 404 creates changes in both how companies document and evaluate
internal control and how auditors audit and report on internal control.
True False
D
14. Sarbanes-Oxley Section 404 compliance is a major line of business for the biggest accounting firms.
True False
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15. The Sarbanes Oxley Act of 2002 applies to publicly traded companies and not-for-profit entities.
True False
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16. Historically the purpose of an accounting information system is to collect, process, and report financial
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aspects of business events.
True False



17. The MIS is a subsystem of the AIS.
True False

, 18. Sales/marketing information system is traditionally part of the AIS.
True False



19. Billing/accounts receivable is traditionally part of the AIS.
True False



20. Production and personnel are part of the operations process.
True False
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21. The management process includes marketing and sales.
True False
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22. Information that is capable of making a difference in a decision-making situation, by reducing uncertainty or
increasing knowledge for that particular decision, has the quality of relevance.
True False
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23. Information about a customer's credit history that is received after the decision to grant additional credit
lacks completeness.
True False
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24. The consistency principle is violated when a firm uses straight-line depreciation one year and changes to
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declining balance depreciation the next year.
True False
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25. Accuracy is the correspondence or agreement between the information and the actual events or objects that
the information represents.
True False
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26. To be reliable information must be relevant.
True False