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
e
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
e
