TEST BANK
Accounting Information Systems 9th Edition by Ulric J. Gelinas, Richard B.
Dull, Patrick Wheeler
Chapter 1-17 (ANSWERS AT THE END OF EVERY CHAPTER)
Chapter 1--Introduction to Accounting Information Systems
1. The three themes of the text are operating systems, e-business, and internal control.
True False
2. In an assurance service the accountant will provide the original information used for decision making.
True False
PR
3. Information systems reliability and electronic commerce have been identified by the AICPA as potential
assurance services.
True False
O
4. E-business is the application of electronic networks to undertake business processes among the functional
FD
areas in an organization.
True False
O
5. The role of the accountant has evolved to include non-financial information and information technology.
True False
C
6. Enterprise systems integrate an organization's business processes and information from all of an
organization's functional areas.
True False
7. An information system consists of an integrated set of computer-based and manual components established to
provide information to users.
True False
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.
True False
,9. The Sarbanes-Oxley Act of 2002 has dramatically changed the daily work of financial accountants and
auditors.
True False
10. According to the Sarbanes-Oxley Act of 2002, management must identify, document, and evaluate
significant internal controls.
True False
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.
True False
PR
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.
True False
O
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.
FD
True False
14. Sarbanes-Oxley Section 404 compliance is a major line of business for the biggest accounting firms.
True False
O
C
15. The Sarbanes Oxley Act of 2002 applies to publicly traded companies and not-for-profit entities.
True False
16. Historically the purpose of an accounting information system is to collect, process, and report financial
aspects of business events.
True False
17. The MIS is a subsystem of the AIS.
True False
,18. Sales/marketing information system is traditionally part of the AIS.
True False
19. Billing/accounts receivable is traditionally part of the AIS.
True False
20. Production and personnel are part of the operations process.
True False
21. The management process includes marketing and sales.
True False
PR
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.
True False
O
FD
23. Information about a customer's credit history that is received after the decision to grant additional credit
lacks completeness.
True False
O
24. The consistency principle is violated when a firm uses straight-line depreciation one year and changes to
declining balance depreciation the next year.
True False
C
25. Accuracy is the correspondence or agreement between the information and the actual events or objects that
the information represents.
True False
26. To be reliable information must be relevant.
True False
, 27. The most important information for tactical management involves information about the organization's
environment.
True False
28. Deciding how much credit to grant to a customer is a structured decision.
True False
29. Strategic management requires more detailed information than operations management.
True False
30. The three steps in decision making take place in the sequence of (1) intelligence (2) design (3) choice.
True False
PR
31. Strategic managers use more information from outside the organization than do operations managers.
True False
O
FD
32. Operations management requires information that is more accurate and timely than strategic management.
True False
33. What controls will be necessary is a question that an accountant answers in the design of the AIS.
O
True False
C
34. As a designer of an AIS the accountant will test a new system's controls.
True False
35. As a user of an AIS an accountant must know how systems are developed.
True False
Accounting Information Systems 9th Edition by Ulric J. Gelinas, Richard B.
Dull, Patrick Wheeler
Chapter 1-17 (ANSWERS AT THE END OF EVERY CHAPTER)
Chapter 1--Introduction to Accounting Information Systems
1. The three themes of the text are operating systems, e-business, and internal control.
True False
2. In an assurance service the accountant will provide the original information used for decision making.
True False
PR
3. Information systems reliability and electronic commerce have been identified by the AICPA as potential
assurance services.
True False
O
4. E-business is the application of electronic networks to undertake business processes among the functional
FD
areas in an organization.
True False
O
5. The role of the accountant has evolved to include non-financial information and information technology.
True False
C
6. Enterprise systems integrate an organization's business processes and information from all of an
organization's functional areas.
True False
7. An information system consists of an integrated set of computer-based and manual components established to
provide information to users.
True False
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.
True False
,9. The Sarbanes-Oxley Act of 2002 has dramatically changed the daily work of financial accountants and
auditors.
True False
10. According to the Sarbanes-Oxley Act of 2002, management must identify, document, and evaluate
significant internal controls.
True False
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.
True False
PR
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.
True False
O
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.
FD
True False
14. Sarbanes-Oxley Section 404 compliance is a major line of business for the biggest accounting firms.
True False
O
C
15. The Sarbanes Oxley Act of 2002 applies to publicly traded companies and not-for-profit entities.
True False
16. Historically the purpose of an accounting information system is to collect, process, and report financial
aspects of business events.
True False
17. The MIS is a subsystem of the AIS.
True False
,18. Sales/marketing information system is traditionally part of the AIS.
True False
19. Billing/accounts receivable is traditionally part of the AIS.
True False
20. Production and personnel are part of the operations process.
True False
21. The management process includes marketing and sales.
True False
PR
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.
True False
O
FD
23. Information about a customer's credit history that is received after the decision to grant additional credit
lacks completeness.
True False
O
24. The consistency principle is violated when a firm uses straight-line depreciation one year and changes to
declining balance depreciation the next year.
True False
C
25. Accuracy is the correspondence or agreement between the information and the actual events or objects that
the information represents.
True False
26. To be reliable information must be relevant.
True False
, 27. The most important information for tactical management involves information about the organization's
environment.
True False
28. Deciding how much credit to grant to a customer is a structured decision.
True False
29. Strategic management requires more detailed information than operations management.
True False
30. The three steps in decision making take place in the sequence of (1) intelligence (2) design (3) choice.
True False
PR
31. Strategic managers use more information from outside the organization than do operations managers.
True False
O
FD
32. Operations management requires information that is more accurate and timely than strategic management.
True False
33. What controls will be necessary is a question that an accountant answers in the design of the AIS.
O
True False
C
34. As a designer of an AIS the accountant will test a new system's controls.
True False
35. As a user of an AIS an accountant must know how systems are developed.
True False
