Accounting Information Systems Vernon Richardson 2nd Edition - Test Bank

Accounting Information Systems Vernon Richardson 2nd Edition - Test Bank 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 supply chain - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-serves as a central depository for information from orders, customers, sales, inventory and employees Attributes of reliable information include - CORRECT ANSWER-verifiable, representational faithfulness, neutrality attributes of relevant information include - CORRECT ANSWER-predictive value, feedback value, timeliness supporting activities of the value chain - CORRECT ANSWER-firm infrastructure human resource management technology procurement Primary activities of the value chain - CORRECT ANSWER-inbound logistics operations