Fundamentals of Information Systems

8th Edition
Ralph Stair + 1 other
Publisher: Cengage Learning
ISBN: 9781305082168
Chapter 6, Problem 4DQ
Textbook Problem

Why is auditing so important in a financial MIS? Give an example of an audit that failed to disclose the true nature of the financial position of a firm. What was the result?

Expert Solution
Program Plan Intro

Describe the importance of auditing in a financial MIS.Provide an example where an audit failed to disclose the true nature of the financial position of a firm and mention the result of failure.

Explanation of Solution

Financial Management Information system is to provide financial information for executives and a broader set of people who needs to make better decisions on daily basis. It also integrates financial and operational information from multiple sources. In financial MIS, auditing is important because it analysis the financial condition of the organization and determine whether the reports and statements generated by the financial MIS are accurate and also provide opinion that these statement are as per specified criteria.

Example of where audit failed to disclose the true nature of financial position of a firm− auditors in China 's financial market- It was after the outbreak of financial crisis in China when auditors were blamed for their inability to predict the failure of the companies...

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Chapter 6 Solutions

Fundamentals of Information Systems
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Ch. 6 - How can GIS be used to facilitate the sitting of...Ch. 6 - The group support system recorded the interaction...Ch. 6 - In what other ways can tracking individual...Ch. 6 - The Thiokol engineers doubted the reliability of...Ch. 6 - What lessons can be learned from the Challenger...Ch. 6 - During which stage of the problem-solving process...Ch. 6 - The three stages of derision making are augmented...Ch. 6 - ____________ decisions deal with typically onetime...Ch. 6 - A decision that inventory should be ordered when...Ch. 6 - A satisificing model is one that will find a good...Ch. 6 - A(n) _______________ presents a set of key...Ch. 6 - The ____________ defines the accounting categories...Ch. 6 - Financial accounting and managerial accounting are...Ch. 6 - ______________ is an independent business unit...Ch. 6 - Decision support systems are designed solely for...Ch. 6 - What component of a decision support system allows...Ch. 6 - The __________ approach is a structured,...Ch. 6 - The __________________ is a structured method for...Ch. 6 - There are several multi-voting processes that can...Ch. 6 - What is the difference between decision making and...Ch. 6 - What is a satisficing model? What is an...Ch. 6 - Identify and brief1y describe the three stages of...Ch. 6 - What is the difference between a structured and an...Ch. 6 - Give several examples of heuristics that you use...Ch. 6 - Identify and briefly describe the basic kinds of...Ch. 6 - Describe the difference between a profit center,...Ch. 6 - How can a social networking site be used in a DSS?Ch. 6 - What are the primary activities supported by a...Ch. 6 - Describe the functions of a human resource MIS.Ch. 6 - What is a geographic information system? Give an...Ch. 6 - How can location analysis be used in a marketing...Ch. 6 - 13. List some software tools used in group support...Ch. 6 - Identify and briefly describe the primary...Ch. 6 - State the objective of a group Support system...Ch. 6 - Identify and briefly describe five decision-making...Ch. 6 - What is a decision room and when might one be...Ch. 6 - Think of an important problem you had to solve...Ch. 6 - Identify a problem that would benefit from using...Ch. 6 - Describe the key features of a human resource MIS...Ch. 6 - Why is auditing so important in a financial MIS?...Ch. 6 - Describe two industries where a marketing MIS is...Ch. 6 - Pick a company and research its human resource...Ch. 6 - Under what conditions and for what types of...Ch. 6 - What functions do DSSs support in business...Ch. 6 - How is decision making in a group environment...Ch. 6 - You have been hired to develop group support...Ch. 6 - Use the Internet to identify two GSS software...Ch. 6 - Review the summarized consolidated statement of...Ch. 6 - As the head buyer for a major supermarket chain,...Ch. 6 - Do research on the Web to find an example of an...Ch. 6 - 2. Use the Internet to explore applications for...Ch. 6 - Software, such as Microsoft Excel, is often used...Ch. 6 - What decisions are critical for success in a...Ch. 6 - Describe the features of a decision support system...Ch. 6 - Irish Life had a business software that was only...Ch. 6 - What steps can companies take to make sure that...Ch. 6 - What data do financial experts at a company like...Ch. 6 - Irish Life is now offering online tools that...Ch. 6 - As a manager, you must choose between two...Ch. 6 - As manager of a Mando factory, you might be faced...Ch. 6 - Managers at Mando receive daily and monthly...Ch. 6 - Explain why it would be more difficult for Mando...

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