,Test Bank For Accounting Information Systems
Chapter 1—Introduction to Accounting Information Systems
Chapter 1—Introduction to Accounting Information Systems
TRUE/FALSE
1. The three themes of the text are operating systems, e-business, and internal control.
ANS: F PTS: 1
2. It is critical for accountants to understand enterprise resource planning (ERP) systems.
ANS: T PTS: 1
3. Information systems reliability and electronic commerce have been identified by the AICPA as
potential assurance services.
ANS: T PTS: 1
4. E-business is the application of electronic networks to undertake business processes among the
functional areas in an organization.
ANS: F PTS: 1
5. The role of the accountant has evolved to include non-financial information and information
technology.
ANS: T PTS: 1
6. Enterprise systems integrate an organization's business processes and information from all of an
organization's functional areas.
ANS: T PTS: 1
7. An information system consists of an integrated set of computer-based and manual components
established to provide information to users.
ANS: T PTS: 1
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.
ANS: F PTS: 1
9. The Sarbanes-Oxley Act of 2002 has dramatically changed the daily work of financial accountants and
auditors.
1
,Test Bank For Accounting Information Systems
Chapter 1—Introduction to Accounting Information Systems
ANS: T PTS: 1
10. According to the Sarbanes-Oxley Act of 2002, management must identify, document, and evaluate
significant internal controls.
ANS: T PTS: 1
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.
ANS: F PTS: 1
12. According to the Sarbanes-Oxley Act's Section 409, material changes in the organization's financial
condition must be disclosed to the public on a rapid and current basis.
ANS: T PTS: 1
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.
ANS: T PTS: 1
14. Sarbanes-Oxley Section 404 compliance is a major line of business for the biggest accounting firms.
ANS: T PTS: 1
15. The Sarbanes Oxley Act of 2002 applies to publicly traded companies and not-for-profit entities.
ANS: F PTS: 1
16. Historically the purpose of an accounting information system is to collect, process, and report financial
aspects of business events.
ANS: T PTS: 1
17. The MIS is a subsystem of the AIS.
ANS: F PTS: 1
18. Sales/marketing information system is traditionally part of the AIS.
ANS: F PTS: 1
19. Billing/accounts receivable is traditionally part of the AIS.
ANS: T PTS: 1
20. Production and personnel are part of the operations process.
2
, Test Bank For Accounting Information Systems
Chapter 1—Introduction to Accounting Information Systems
ANS: T PTS: 1
21. The management process includes marketing and sales.
ANS: F PTS: 1
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.
ANS: T PTS: 1
23. Information about a customer's credit history that is received after the decision to grant additional
credit lacks completeness.
ANS: F PTS: 1
24. The consistency principle is violated when a firm uses straight-line depreciation one year and changes
to declining balance depreciation the next year.
ANS: T PTS: 1
25. Accuracy is the correspondence or agreement between the information and the actual events or objects
that the information represents.
ANS: T PTS: 1
26. Information has understandability when it is capable of making a difference in a decision-making
situation..
ANS: F PTS: 1
27. The most important information for tactical management involves information about the organization's
environment.
ANS: F PTS: 1
28. Deciding how much credit to grant to a customer is a structured decision.
ANS: T PTS: 1
29. Strategic management requires more detailed information than operations management.
ANS: F PTS: 1
30. The three steps in decision making take place in the sequence of (1) intelligence (2) design (3) choice.
ANS: T PTS: 1
3
Chapter 1—Introduction to Accounting Information Systems
Chapter 1—Introduction to Accounting Information Systems
TRUE/FALSE
1. The three themes of the text are operating systems, e-business, and internal control.
ANS: F PTS: 1
2. It is critical for accountants to understand enterprise resource planning (ERP) systems.
ANS: T PTS: 1
3. Information systems reliability and electronic commerce have been identified by the AICPA as
potential assurance services.
ANS: T PTS: 1
4. E-business is the application of electronic networks to undertake business processes among the
functional areas in an organization.
ANS: F PTS: 1
5. The role of the accountant has evolved to include non-financial information and information
technology.
ANS: T PTS: 1
6. Enterprise systems integrate an organization's business processes and information from all of an
organization's functional areas.
ANS: T PTS: 1
7. An information system consists of an integrated set of computer-based and manual components
established to provide information to users.
ANS: T PTS: 1
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.
ANS: F PTS: 1
9. The Sarbanes-Oxley Act of 2002 has dramatically changed the daily work of financial accountants and
auditors.
1
,Test Bank For Accounting Information Systems
Chapter 1—Introduction to Accounting Information Systems
ANS: T PTS: 1
10. According to the Sarbanes-Oxley Act of 2002, management must identify, document, and evaluate
significant internal controls.
ANS: T PTS: 1
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.
ANS: F PTS: 1
12. According to the Sarbanes-Oxley Act's Section 409, material changes in the organization's financial
condition must be disclosed to the public on a rapid and current basis.
ANS: T PTS: 1
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.
ANS: T PTS: 1
14. Sarbanes-Oxley Section 404 compliance is a major line of business for the biggest accounting firms.
ANS: T PTS: 1
15. The Sarbanes Oxley Act of 2002 applies to publicly traded companies and not-for-profit entities.
ANS: F PTS: 1
16. Historically the purpose of an accounting information system is to collect, process, and report financial
aspects of business events.
ANS: T PTS: 1
17. The MIS is a subsystem of the AIS.
ANS: F PTS: 1
18. Sales/marketing information system is traditionally part of the AIS.
ANS: F PTS: 1
19. Billing/accounts receivable is traditionally part of the AIS.
ANS: T PTS: 1
20. Production and personnel are part of the operations process.
2
, Test Bank For Accounting Information Systems
Chapter 1—Introduction to Accounting Information Systems
ANS: T PTS: 1
21. The management process includes marketing and sales.
ANS: F PTS: 1
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.
ANS: T PTS: 1
23. Information about a customer's credit history that is received after the decision to grant additional
credit lacks completeness.
ANS: F PTS: 1
24. The consistency principle is violated when a firm uses straight-line depreciation one year and changes
to declining balance depreciation the next year.
ANS: T PTS: 1
25. Accuracy is the correspondence or agreement between the information and the actual events or objects
that the information represents.
ANS: T PTS: 1
26. Information has understandability when it is capable of making a difference in a decision-making
situation..
ANS: F PTS: 1
27. The most important information for tactical management involves information about the organization's
environment.
ANS: F PTS: 1
28. Deciding how much credit to grant to a customer is a structured decision.
ANS: T PTS: 1
29. Strategic management requires more detailed information than operations management.
ANS: F PTS: 1
30. The three steps in decision making take place in the sequence of (1) intelligence (2) design (3) choice.
ANS: T PTS: 1
3
