Number range CHAPTERACCOUNTING INFORMATION SYSTEMS
CONTROLS AND PROCESSES
TURNER / WEICKGENANNT
CHAPTER 1: Introduction to AIS
TEST BANK – CHAPTER 1 – TRUE/FALSE:
1. A business process has a well-defined beginning and end.
2. Each business process has a direct effect on the financial status of an organization.
3. Few accounting information systems rely on computer hardware and software to
track business processes.
4. The rethinking and redesigning that occur during business process reengineering
are aided by the use of information technology.
5. There are very few business processes that have the potential to be improved by
IT enablement.
6. Business process reengineering should leverage the capabilities of information
technology to improve the efficiency of business processes.
7. It is important for accountants to have some understanding of basic computer
terminology.
, 8. When files are organized as sequential access, and the user needs to access record
number 250, the previous 249 records will be read by the computer before reading
record number 250.
9. When files are organized as sequential access, the sequence is normally based on
one key record in each file.
10. Batch processing is best suited to applications that have large volumes of similar
transactions that can be processed as regular intervals.
11. Online processing is the opposite of real-time processing.
12. Batch processing is best suited to sequential access files.
13. Online processing is best suited to sequential access files.
14. Online processing is best suited to situations were there is a large volume of
records but only a few records are needed to process any individual transaction.
15. Each time a new transaction is completed, parts of the data warehouse must be
updated.
,16. Data in the data warehouse are called nonvolatile because they do not change
rapidly in the same way that operational data change.
17. A system of local area networks connected over any distance via other net work
connections is called a WAN, or wide area network.
18. E-business is a type of e-commerce.
19. The “intercompany” component of electronic data interchange means that two or
more companies are conducting business electronically.
20. In order to have an automated matching system it is necessary to have access to
paper copies of purchase orders and invoices.
21. When automated matching is used, the system will not approve an invoice for
payment unless the items and quantities match with the packing slip and the
prices match the purchase order prices.
22. The evaluated receipt settlement system is an IT enabled system that reduces the
time and cost of processing customer payments.
23. ERP systems are based on a relational database system.
24. Traditional accounting software is much more comprehensive and encompassing
that ERP software.
25. Before ERP software systems, modules such as human resources were in separate
software but well integrated with the accounting software.
, 26. Although accountants are heavily involved in the creation, implementation, and
monitoring of the control structure, management has the ultimate responsibility to
establish a control environment.
27. Once a company has decided on the control processes needed, it is not necessary
to have an ongoing assessment of risks.
28. A code of ethics should reduce opportunities for employees to conduct fraud if
management emphasizes the cost and disciplines or discharges those who violate
it.
29. IT systems are to be chosen and implemented to support the attainment of
strategies and objectives.
30. It is likely that an accountant will select a career path, within accounting, that will
not in some way, involve the use of an accounting information system.
31. An auditor cannot make informed decisions necessary to complete the audit
without an understanding of the accounting information system.
32. The accounting information system is often the tool used to commit or cover up
unethical behavior.
ANSWERS TO TEST BANK – CHAPTER 1 – TRUE/FALSE:
1. True 8. True 15. False 22. False 29.
T
r
u
CONTROLS AND PROCESSES
TURNER / WEICKGENANNT
CHAPTER 1: Introduction to AIS
TEST BANK – CHAPTER 1 – TRUE/FALSE:
1. A business process has a well-defined beginning and end.
2. Each business process has a direct effect on the financial status of an organization.
3. Few accounting information systems rely on computer hardware and software to
track business processes.
4. The rethinking and redesigning that occur during business process reengineering
are aided by the use of information technology.
5. There are very few business processes that have the potential to be improved by
IT enablement.
6. Business process reengineering should leverage the capabilities of information
technology to improve the efficiency of business processes.
7. It is important for accountants to have some understanding of basic computer
terminology.
, 8. When files are organized as sequential access, and the user needs to access record
number 250, the previous 249 records will be read by the computer before reading
record number 250.
9. When files are organized as sequential access, the sequence is normally based on
one key record in each file.
10. Batch processing is best suited to applications that have large volumes of similar
transactions that can be processed as regular intervals.
11. Online processing is the opposite of real-time processing.
12. Batch processing is best suited to sequential access files.
13. Online processing is best suited to sequential access files.
14. Online processing is best suited to situations were there is a large volume of
records but only a few records are needed to process any individual transaction.
15. Each time a new transaction is completed, parts of the data warehouse must be
updated.
,16. Data in the data warehouse are called nonvolatile because they do not change
rapidly in the same way that operational data change.
17. A system of local area networks connected over any distance via other net work
connections is called a WAN, or wide area network.
18. E-business is a type of e-commerce.
19. The “intercompany” component of electronic data interchange means that two or
more companies are conducting business electronically.
20. In order to have an automated matching system it is necessary to have access to
paper copies of purchase orders and invoices.
21. When automated matching is used, the system will not approve an invoice for
payment unless the items and quantities match with the packing slip and the
prices match the purchase order prices.
22. The evaluated receipt settlement system is an IT enabled system that reduces the
time and cost of processing customer payments.
23. ERP systems are based on a relational database system.
24. Traditional accounting software is much more comprehensive and encompassing
that ERP software.
25. Before ERP software systems, modules such as human resources were in separate
software but well integrated with the accounting software.
, 26. Although accountants are heavily involved in the creation, implementation, and
monitoring of the control structure, management has the ultimate responsibility to
establish a control environment.
27. Once a company has decided on the control processes needed, it is not necessary
to have an ongoing assessment of risks.
28. A code of ethics should reduce opportunities for employees to conduct fraud if
management emphasizes the cost and disciplines or discharges those who violate
it.
29. IT systems are to be chosen and implemented to support the attainment of
strategies and objectives.
30. It is likely that an accountant will select a career path, within accounting, that will
not in some way, involve the use of an accounting information system.
31. An auditor cannot make informed decisions necessary to complete the audit
without an understanding of the accounting information system.
32. The accounting information system is often the tool used to commit or cover up
unethical behavior.
ANSWERS TO TEST BANK – CHAPTER 1 – TRUE/FALSE:
1. True 8. True 15. False 22. False 29.
T
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u
