Skip to main content

Bartleby Sitemap - Textbook Solutions

All Textbook Solutions for Accounting Information Systems

1RQ 2RQ 3RQ 4RQ What is discretionary reporting?6RQ 7RQ 8RQ 9RQ 10RQ 11RQ 12RQ 13RQ 14RQ 15RQ What is the role of the accounting function in an organization?17RQ 18RQ 19RQ What two roles are played by accountants with respect to the information system?Define the term attest function.Define the term financial services.23RQ Distinguish between conceptual and physical systems.25RQ 26RQ 27RQ 28RQ 29RQ 30RQ 31RQ 32RQ Why are custom systems more expensive than commercial systems?34RQ Briefly explain accounting independence.36RQ 1DQ 2DQ Distinguish between financial and nonfinancial transactions. Give three examples of each.4DQ Do you think transaction processing Systems differ significantly between Service and manufacturing industries? Are they equally important to both sectors?Discuss the difference between the financial reporting system and the general ledger system.7DQ Discuss how the dements of efficiency, effectiveness, and flexibility are crucial to the design of an information system.Discuss what is meant by the statement, The accounting system is a conceptual flow of information that represents physical personnel, machinery, and flows of raw materials and cash through the organization.Discuss the importance of accounting independence in accounting information systems. Give an example of where this concept is important (use an example other than inventory control).11DQ 12DQ Discuss how conceptual and physical systems differ and which functions are responsible for each of these systems.14DQ 15DQ 16DQ 17DQ 18DQ 19DQ 1MCQ 2MCQ 3MCQ 4MCQ 5MCQ 6MCQ 7MCQ 8MCQ Which of the following is NOT an objective of all information systems? a. Support for the stewardship function ofmanagement b. Support for management decision making c. Support for the day-to-day operations of thefirm d. All of the above are objectives 10MCQ Which of the following best describes the activities of the production function? a. Maintenance, inventory control, and production planning b. Quality control, production planning,manufacturing, and payroll c. Maintenance, production planning, storage, andquality control d. Production planning, quality control,manufacturing, and maintenance e. Manufacturing, quality control, andmaintenance 12MCQ 13MCQ Which of the following statements is most accurate? a. ERP systems are commercial software packages that are sometimes called turnkey systems because they can be implemented by the user with little or no modification. b. Substantive tests provide evidence focused on the system controls. c. Public accounting firms that provide attest services are not allowed under SOX to offer IT advisory services. d. Both small and large firms that have standardized information needs are potential customers for commercial software. e. External auditors may rely on the work of internal auditors only if they report to the controller or the CEO of the client company.1P 2P ACCOUNTING INFORMATION SYSTEM ACQUISITION What is the most likely system acquisition methodcommercial software, custom software, or ERPforeach of the following situations? Explain your answers. A heating and air-conditioning supply companywith 20 employees that sells standard off-the-shelfproducts to wholesale customers in a local community needs a system to manage its affairs. A major oil company with diverse holdings, complexoil leases, and esoteric accounting practices needs asystem that can coordinate its many enterprises. A large organization with multiple divisions needsan information system to support its operations.The information needs of the various divisions arcdiverse but standard within their respectiveindustries.4P 5P 6P FUNCTIONAL SEGMENTATION The current organizational structure of Blue Sky Company, a manufacturer of small sailboats, is presented here. Required a. What operational problems (e.g., inefficiency, errors, or fraud) do you think Blue Sky could experience because of this structure? b. Draw a new diagram reflecting an improved structure that solves the problems you identified. If necessary, you may add up to two new positions.COMMUNICATIONS Before the mid-1970s, systems programmers and businesspeople (including accountants) did not communicate well with one another. The programmerswere criticized for using too much jargon, and thebusinesspeople were criticized for not adequatelyexpressing their needs. Efforts have been made toovercome this communication gap, but room forimprovement still exists. What problems do youthink may result from this communication gap?What can you do to help further close the gapwhen you enter the workforce?CHARACTERISTICS OF USEFUL INFORMATION All records in a file must be uniquely identifiable in at least one attribute, which is its primary key.Drawing on your general knowledge of accounting,identify the primary key for the following types ofaccounting records. To illustrate, the first record isdone for you.10P 11P 12P 1RQ 2RQ 3RQ 4RQ Name the major subsystems of the revenue cycle.6RQ Name the two types of journals.Distinguish between a general journal and journal vouchers.Name the two types of ledgers.10RQ 11RQ 12RQ 13RQ 14RQ 15RQ 16RQ 17RQ 18RQ 19RQ Distinguish between batch and real-time processing.21RQ 22RQ 23RQ 24RQ 25RQ 26RQ 27RQ 28RQ 29RQ 30RQ 31RQ 32RQ 33RQ 34RQ 35RQ 36RQ 37RQ 38RQ Discuss the flow of cash through the transaction cycles. Include in your discussion the relevant subsystems and any time lags that may occur.Explain whether the cost accounting system primarily supports internal or external reporting.3DQ 4DQ Would the writing down of obsolete inventory be recorded in a special journal or the general journal? Why?Are both registers and special journals necessary?Discuss the relationship between the balance in the accounts payable general ledger control account and what is found in the accounts payable subsidiary ledger.8DQ 9DQ Are large batch sizes preferable to small batch sizes? Explain.11DQ 12DQ 13DQ 14DQ 15DQ 16DQ 17DQ 18DQ 19DQ 1MCQ 2MCQ 3MCQ 4MCQ 5MCQ 6MCQ Which of the following is NOT a true statement? a. Transactions are recorded on ledgers and areposted to journals. b. Transactions are recorded in journals and areposted to ledgers. c. Infrequent transactions are recorded in thegeneral journal. d. Frequent transactions are recorded in specialjournal.Which of the following is true of the relationship between subsidiary ledgers and general ledgeraccounts? a. The two contain different and unrelated data. b. The relationship between the two constitutepart of the audit trail. c. All general ledger accounts have subsidiaries. d. The total of subsidiary ledger accounts usuallyexceeds the total in the related general ledgeraccount.9MCQ 10MCQ 11MCQ 12MCQ 13MCQ 14MCQ 15MCQ 16MCQ 17MCQ 18MCQ 19MCQ The production subsystem of the conversion cycle includes all of the following EXCEPT a. make-or-buy decisions on component parts. b. determining raw materials requirements. c. release of raw materials into production. d. scheduling the goods to be produced.21MCQ 22MCQ 1P 2P 3P 4P 5P 6P 7P 8P 9P 10P 11P 12P 13P 14P 15P 16P 17P 18P 19P The following describes the payroll procedures for a hypothetical company. Every Thursday, the timekeeping clerk sends employee time cards to the payroll department for processing. Based on the hours worked reflected on the time cards, the employee pay rate and withholding information in the employee file, and the tax rate reference file, the payroll clerk calculates gross pay, withholdings, and net pay for each employee. The clerk then manually prepares paychecks for each employee, files hard copies of the paychecks in the payroll department, and posts the earnings to the hard-copy employee records. Finally, the clerk manually prepares a payroll summary and sends it and the paychecks to the cash disbursements department. The cash disbursements clerk reconciles the payroll summary with the paychecks and manually records the transaction in the hard-copy cash disbursements journal. The clerk then files the payroll summary and sends the paychecks to the treasurer for signing. The signed checks are then sent to the paymaster, who distributes them to the employees on Friday morning. Required Prepare a data flow diagram and a system flowchart of the payroll procedures previously described.21P 22P 23P 24P 25P 26P CODING SCHEME Devise a coding scheme using block and sequential codes for the following chart of accounts for JensenCamera Distributors. Cash Accounts Receivable Office Supplies InventoryPrepaid Insurance Inventory Investments in Marketable Securities Delivery Truck Accumulated DepreciationDelivery Truck Equipment Accumulated DepreciationEquipment Furniture and Fixtures Accumulated DepreciationFurniture and Fixtures Building Accumulated DepreciationBuilding Land Accounts Payable Wages Payable Taxes Payable Notes Payable Bonds Payable Common Stock Paid-In Capital in Excess of Par Treasury StockRetained EarningsSales Sales Returns and Allowances Dividend Income Cost of Goods Sold Wages Expense Utility Expense Office Supplies Expense Insurance Expense Depreciation Expense Advertising Expense Fuel Expense Interest Expense What is ethics?2RQ 3RQ 4RQ What are the three ethical principles that may provide some guidance for ethical responsibility?What is computer ethics?7RQ 8RQ What are the computer ethical issues regarding privacy?What are the computer ethical issues regarding security?What are the computer ethical issues regarding ownership of property?12RQ What are the computer ethical issues regarding the environment?14RQ 15RQ What are the computer ethical issues regarding misuse of computers?17RQ 18RQ Name the three fraud-motivating forces.20RQ 21RQ 22RQ 23RQ What is lapping?25RQ What is bribery?What is economic extortion?28RQ Define check tampering.What is billing (or vendor) fraud?31RQ 32RQ 33RQ 34RQ 35RQ 36RQ 37RQ 38RQ 39RQ 40RQ 41RQ Give one example of an error that a check digit control detects.43RQ 44RQ What is the objective of a transaction log?46RQ 47RQ 48RQ 49RQ 50RQ Distinguish between ethical issues and legal issues.2DQ 3DQ 4DQ 5DQ The estimates of losses annually resulting from computer fraud vary widely. Why do you think obtaining a good estimate of this figure is difficult?7DQ 8DQ 9DQ 10DQ 11DQ 12DQ 13DQ 14DQ Distinguish between exposure and risk.16DQ 17DQ 18DQ 19DQ 20DQ 21DQ 22DQ 23DQ 24DQ 25DQ 26DQ 27DQ 28DQ Explain the problems associated with inappropriate accounting practices.30DQ 31DQ 32DQ 33DQ 34DQ 35DQ 36DQ 37DQ 1MCQ 2MCQ 3MCQ 4MCQ 5MCQ 6MCQ 7MCQ 8MCQ 10MCQ 12MCQ Which of the following controls would best prevent the lapping of accounts receivable? a. Segregate duties so that the clerk responsible for recording in the accounts receivable subsidiary ledger has no access to the general ledger. b. Request that customers review their monthly statements and report any unrecorded cash payments. c. Separate the tasks of depositing cash receipts and posting to the AR subledger. d. Request that customers make checks payable to the company.14MCQ 15MCQ 16MCQ The fraud scheme that is similar to the concept of borrowing from Peter to pay Paul is a. expense account fraud. b. bribery. c. lapping. d. transaction fraud.18MCQ 19MCQ FRAUD SCHEME - HEALTH INSPECTOR A city health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to the inspector. If the restaurant owner does not cooperate, he will not be able to open for business and the publicity will drive away his customers permanently. Faced with a threat of economic loss, the owner makes the payment. Required What type of fraud is this, and what controls can be implemented to prevent or detect the fraud?FRAUD SCHEME PURCHASING AGENT A purchasing agent for a large hardware retailer has sole discretion in selecting vendors for the parts and supplies sold by the company. The agent directs a disproportionate number of purchase orders to a supply company owned by the agents brother-in-law, which charges above-market prices for its products. The agents relationship with the supplier is unknown to his employer. Required What type of fraud is this, and what controls can be implemented to prevent or detect the fraud?3P 4P EXPENSE ACCOUNT FRAUD While auditing the financial statements of Petty Corporation, the certified public accounting firm of True Blue and Smith discovered that its clients legal expense account was abnormally high. Further investigation of the records indicated the following: Since the beginning of the year, several disbursements totaling 15,000 had been made to the law firm of Swindle, Fox, and Kreip. Swindle, Fox, and Kreip were not Petty Corporations attorneys. A review of the canceled checks showed that they had been written and approved by Mary Boghas, the cash disbursements clerk. Boghass other duties included performing the end-of-month bank reconciliation. Subsequent investigation revealed that Swindle, Fox, and Kreip are representing Mary Boghas in an unrelated embezzlement case in which she is the defendant. The checks had been written in payment of her personal legal fees. Required a. What control procedures could Petty Corporation have employed to prevent this unauthorized use of cash? Classify each control procedure in accordance with the COSO framework (authorization, segregation of functions, supervision, etc.). b. Comment on the ethical issues in this case.6P 7P 8P 9P

Page: [1][2][3][4][5]