10th Edition

ISBN: 9781337619202

Author: Hall, James A.

Publisher: Cengage Learning,

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Textbook Question

Chapter 1, Problem 14MCQ

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.

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Chapter 1, Problem 13MCQ

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Questions Explain how client internal controls can be improved through the proper installation of IT. Identify risks for accounting systems that rely heavily on IT functions. Define what is meant by an audit trail and explain how it can be affected by the client’s integration of IT. Distinguish between random error resulting from manual processing and systematic error resulting from IT processing and give an example of each category of error. Identify the traditionally segregated duties in noncomplex IT systems and explain how increases in the complexity of the IT function affect that separation. Distinguish between general controls and application controls and give two examples of each. Identify the typical duties within an IT function and describe how those duties should be segregated among IT personnel. Explain how the effectiveness of general controls affects the auditor’s tests of automated application controls, including the auditor’s ability to rely on tests done in prior…

Explain how client internal controls can be improved through the proper installation of IT. Identify risks for accounting systems that rely heavily on IT functions. Define what is meant by an audit trail and explain how it can be affected by the client’s integration of IT. Distinguish between random error resulting from manual processing and systematic error resulting from IT processing and give an example of each category of error. Identify the traditionally segregated duties in noncomplex IT systems and explain how increases in the complexity of the IT function affect that separation. Distinguish between general controls and application controls and give two examples of each. Identify the typical duties within an IT function and describe how those duties should be segregated among IT personnel. Explain how the effectiveness of general controls affects the auditor’s tests of automated application controls, including the auditor’s ability to rely on tests done in prior audits

An internal auditor is examining the effectiveness of procedures management established to protect customer data from cyberattacks and whether those procedures are cost effective. This is an example of an operational audit. Question options: True False

Chapter 1 Solutions

Accounting Information Systems

Ch. 1 - Prob. 1RQ Ch. 1 - Prob. 2RQ Ch. 1 - Prob. 3RQ Ch. 1 - Prob. 4RQ Ch. 1 - What is discretionary reporting?Ch. 1 - Prob. 6RQ Ch. 1 - Prob. 7RQ Ch. 1 - Prob. 8RQ Ch. 1 - Prob. 9RQ Ch. 1 - Prob. 10RQ

Ch. 1 - Prob. 11RQ Ch. 1 - Prob. 12RQ Ch. 1 - Prob. 13RQ Ch. 1 - Prob. 14RQ Ch. 1 - Prob. 15RQ Ch. 1 - What is the role of the accounting function in an...Ch. 1 - Prob. 17RQ Ch. 1 - Prob. 18RQ Ch. 1 - Prob. 19RQ Ch. 1 - What two roles are played by accountants with...Ch. 1 - Define the term attest function.Ch. 1 - Define the term financial services.Ch. 1 - Prob. 23RQ Ch. 1 - Distinguish between conceptual and physical...Ch. 1 - Prob. 25RQ Ch. 1 - Prob. 26RQ Ch. 1 - Prob. 27RQ Ch. 1 - Prob. 28RQ Ch. 1 - Prob. 29RQ Ch. 1 - Prob. 30RQ Ch. 1 - Prob. 31RQ Ch. 1 - Prob. 32RQ Ch. 1 - Why are custom systems more expensive than...Ch. 1 - Prob. 34RQ Ch. 1 - Briefly explain accounting independence.Ch. 1 - Prob. 36RQ Ch. 1 - Prob. 1DQ Ch. 1 - Prob. 2DQ Ch. 1 - Distinguish between financial and nonfinancial...Ch. 1 - Prob. 4DQ Ch. 1 - Do you think transaction processing Systems differ...Ch. 1 - Discuss the difference between the financial...Ch. 1 - Prob. 7DQ Ch. 1 - Discuss how the dements of efficiency,...Ch. 1 - Discuss what is meant by the statement, The...Ch. 1 - Discuss the importance of accounting independence...Ch. 1 - Prob. 11DQ Ch. 1 - Prob. 12DQ Ch. 1 - Discuss how conceptual and physical systems differ...Ch. 1 - Prob. 14DQ Ch. 1 - Prob. 15DQ Ch. 1 - Prob. 16DQ Ch. 1 - Prob. 17DQ Ch. 1 - Prob. 18DQ Ch. 1 - Prob. 19DQ Ch. 1 - Prob. 1MCQ Ch. 1 - Prob. 2MCQ Ch. 1 - Prob. 3MCQ Ch. 1 - Prob. 4MCQ Ch. 1 - Prob. 5MCQ Ch. 1 - Prob. 6MCQ Ch. 1 - Prob. 7MCQ Ch. 1 - Prob. 8MCQ Ch. 1 - Which of the following is NOT an objective of all...Ch. 1 - Prob. 10MCQ Ch. 1 - Which of the following best describes the...Ch. 1 - Prob. 12MCQ Ch. 1 - Prob. 13MCQ Ch. 1 - Which of the following statements is most...Ch. 1 - Prob. 1P Ch. 1 - Prob. 2P Ch. 1 - ACCOUNTING INFORMATION SYSTEM ACQUISITION What is...Ch. 1 - Prob. 4P Ch. 1 - Prob. 5P Ch. 1 - Prob. 6P Ch. 1 - FUNCTIONAL SEGMENTATION The current organizational...Ch. 1 - COMMUNICATIONS Before the mid-1970s, systems...Ch. 1 - CHARACTERISTICS OF USEFUL INFORMATION All records...Ch. 1 - Prob. 10P Ch. 1 - Prob. 11P Ch. 1 - Prob. 12P

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Which of the following statements is NOT correct? a. EAMs capture transactions during processing without removing the application from service. b. EAMs support continuous monitoring of controls. c. EAMs have the potential to corrupt corporate databases d. EAMs decrease operational performance. e. All of the above are correct statements.
You are conducting substantive tests on the Accounts Receivable file to verify its accuracy. The file is large, and you decide to test only a sample of records. Because of the complexity of the database structure, you cannot access the database directly. The client's systems programmer uses a utility program to write a query that produces a flat file, which he provides for testing purposes. Discuss any concerns you would have as an auditor and any actions you would take.
Among the client electronic data processing (EDP) systems listed below, which one can typically undergo an audit without the need for examining or directly testing the EDP computer programs of the system? Select one: a. A system that updates a few essential master files and produces no printed output other than final balances. b. A system that affects a number of essential master files and produces a limited output. c. A system that performs relatively uncomplicated processes and produces detailed output. d. A system that performs relatively complicated processing and produces very little detailed output. Question 8 Not yet answered Marked out of 1 Flag question Question text In the aftermath of the initial stage of examini

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