ATI ACCOUNTING FINAL EXAM
STUDY GUIDE
Accounting Information Systems - CORRECT ANSWER -A system that records, processes, summarizes,
reports and communicates the results of business transactions to provide financial and nonfinancial
information to facilitate decision making.
It is designed to ensure appropriate levels of internal controls for those transactions.
What makes information useful? - CORRECT ANSWER -In order for information to be useful, it must be
relevant and be a faithful representation.
Relevance: information must be relevant to the decision maker, capable of influencing the decisions of
users
Faithful representation: information is complete, neutral, and is free from error. Represents the
substance of the underlying economic transaction.
What are the mandatory reporting requirements for public corporations? - CORRECT ANSWER -Tax
returns and audited financial statements.
What is the value chain? - CORRECT ANSWER -A chain of business processes for a firm.
Primary activities:
1. Inbound logistics: receiving and storing raw materials + distributing materials to where they are
needed
2. Operations: activities that transform inputs into finished goods and services
3. Outbound logistics: activities that warehouse and distribute finished goods to customers
, 4. Marketing and sales activities: identify needs and wants of customers to help attract them to firm's
products
5. Service activities: provide support of customers after products and services are sold to them
Support activities:
1. Firm infrastructure: activities needed to support the firm (CEO, finance, legal, and accounting depts.)
2. HRM activities
3. Technology activities to support value creating activities
4. Procurement activities: purchasing inputs (raw materials, supplies, equipment)
What skills are required for CISA (Certified Information Systems Auditor)? - CORRECT ANSWER -- Pass
CISA exam
- have 5+ years in IS/IT audit, control, assurance, or security job
- adhere to professional code of ethics
What skills are required for a CIA (Certified Internal Auditor)? - CORRECT ANSWER -- Bachelor's degree
or higher
- 5+ years of internal audit experience or
- active student in final year of college or
- active student with approved Internal Audit Education Partnership school
What skills are required for a CITP (Certified Information Technology Professional)? - CORRECT ANSWER
-- member of AICPA in good standing
- valid CPA license
- minimum 1,000 hours of business experience within 5-year period preceding date of CITP application
- pass the CITP exam
STUDY GUIDE
Accounting Information Systems - CORRECT ANSWER -A system that records, processes, summarizes,
reports and communicates the results of business transactions to provide financial and nonfinancial
information to facilitate decision making.
It is designed to ensure appropriate levels of internal controls for those transactions.
What makes information useful? - CORRECT ANSWER -In order for information to be useful, it must be
relevant and be a faithful representation.
Relevance: information must be relevant to the decision maker, capable of influencing the decisions of
users
Faithful representation: information is complete, neutral, and is free from error. Represents the
substance of the underlying economic transaction.
What are the mandatory reporting requirements for public corporations? - CORRECT ANSWER -Tax
returns and audited financial statements.
What is the value chain? - CORRECT ANSWER -A chain of business processes for a firm.
Primary activities:
1. Inbound logistics: receiving and storing raw materials + distributing materials to where they are
needed
2. Operations: activities that transform inputs into finished goods and services
3. Outbound logistics: activities that warehouse and distribute finished goods to customers
, 4. Marketing and sales activities: identify needs and wants of customers to help attract them to firm's
products
5. Service activities: provide support of customers after products and services are sold to them
Support activities:
1. Firm infrastructure: activities needed to support the firm (CEO, finance, legal, and accounting depts.)
2. HRM activities
3. Technology activities to support value creating activities
4. Procurement activities: purchasing inputs (raw materials, supplies, equipment)
What skills are required for CISA (Certified Information Systems Auditor)? - CORRECT ANSWER -- Pass
CISA exam
- have 5+ years in IS/IT audit, control, assurance, or security job
- adhere to professional code of ethics
What skills are required for a CIA (Certified Internal Auditor)? - CORRECT ANSWER -- Bachelor's degree
or higher
- 5+ years of internal audit experience or
- active student in final year of college or
- active student with approved Internal Audit Education Partnership school
What skills are required for a CITP (Certified Information Technology Professional)? - CORRECT ANSWER
-- member of AICPA in good standing
- valid CPA license
- minimum 1,000 hours of business experience within 5-year period preceding date of CITP application
- pass the CITP exam
