Information Systems for Accountants
Exam Answer Key
Course Introduction
This course examines the intersection of accounting and information systems, focusing on how accountants use technology to collect, process, and communicate financial data. Students explore the design, implementation, and evaluation of accounting information systems (AIS), including topics such as systems documentation, internal controls, database management, and the role of AIS in supporting decision-making processes. The course also addresses contemporary issues such as cybersecurity, data analytics, and emerging technologies relevant to the accounting profession. Through case studies and practical projects, students gain hands-on experience in analyzing, selecting, and utilizing information systems that enhance organizational efficiency and ensure the integrity of financial information.
Recommended Textbook
Accounting Information Systems Understanding Business Processes 4th
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16 Chapters
947 Verified Questions
947 Flashcards
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Page 2
Edition by Brett Considine
Chapter 1: Systems Fundamentals
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57 Verified Questions
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Source URL: https://quizplus.com/quiz/65590
Sample Questions
Q1) Which of the following statements concerning working professionals is correct?
A)A working professional in the accounting domain will not be involved in system development.
B)A working professional in a domain extended beyond accounting is more likely to be involved in system development than their counterparts in the accounting domain.
C)A working professional in a domain extended beyond accounting is less likely to be involved in system development than their counterparts in the accounting domain.
D)System development will be part of the career of a working professional in the accounting domain.
Answer: D
Q2) An example of an output from an accounting information system could be:
A)the screen for entering transactions.
B)the screen for selecting what report to produce.
C)the screen that lists updated and categorised account balances.
D)the screen for entering file saving locations.
Answer: C
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3
Chapter 2: Systems Characteristics and Considerations
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Sample Questions
Q1) Which one of the following is NOT a BPR principle in practice?
A)Combine jobs and let workers make decisions.
B)Perform process steps in a functionally logical order.
C)Allow processes to vary.
D)Reduce the impediment of controls and reconciliations.
Answer: B
Q2) Which of the following is NOT a central tenet of BPR?
A)Look for ways technology can potentially be applied to solve a business problem.
B)Look for ways technology can potentially be applied to create a unique strategic position for an organisation.
C)Look for ways technology can potentially be applied to help organisation grasp emergent opportunities.
D)Look for ways technology can potentially be applied to help organisation sustain competitive advantage.
Answer: D
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4
Chapter 3: Database Concepts I
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) What is the highest normal form?
A)Third
B)Fourth
C)Fifth
D)Sixth
Answer: C
Q2) Refer to the ER diagram in the previous question.The "charges time to" entity is a result of:
A)The resolution of a many-to-many relationship
B)The resolution of a one-to-many relationship
C)The resolution of a one-to-one relationship
D)The resolution of an unnormalised relationship
Answer: A
Q3) The process of developing ER diagrams is:
A)Iterative
B)Nondiscretionary
C)Linear
D)Discrete
Answer: A
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Page 5
Chapter 4: Database Concepts II
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Sample Questions
Q1) REA database modelling is based on the premise that:
A)revenues,expenses and accrual items need to be identified for effective modelling
B)in every exchange in a process there is a revenue,event and agent involved
C)in every exchange in a process there is a resource,event and agent involved
D)none of the options are correct
Q2) Normal forms higher than 3NF are often not performed because:
A)the process usually requires artificial assumptions that rarely hold in the business environment
B)the process is too time-consuming
C)the process requires special knowledge in database design that is not generally available in the everyday business environment
D)the process is for academic use only
Q3) Which of the following combination regarding the client-server architecture is correct?
A)A thin client with a fat server
B)A thin client with a thin server
C)A fat client with a fat server
D)Any combination of thin and fat clients and servers is fine.
Q4) What basic problems does the second normal form solve?
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Chapter 5: XBRL Reporting
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Sample Questions
Q1) Continuous auditing looks at:
A)the output rather than the process
B)the process rather than the output
C)the process and the output
D)the outputs from XBRL tagged accounts
Q2) It is advocated that every accountant and financial professional should be familiar with XBRL.However,which of the following is actually NOT required in this regard?
A)Knowing how to navigate the XBRL taxonomies.
B)Knowing how to use the XBRL taxonomies.
C)Knowing how to create XBRL instance documents.
D)Knowing how to obtain a high level of XBRL assurance.
Q3) ______________ are the dictionaries that define each accounting item that can be tagged in XBRL.
A)Taxonomies
B)Schemas
C)Elements
D)Data dictionaries
Q4) Describe the relationship between taxonomy,schema,element,tag,and linkbase in terms of XBRL.
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Chapter 6: System Mapping and Documentation
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Sample Questions
Q1) A structured narration is:
A)a written description of the processes to be followed when auditing the AIS
B)a written description that accompanies a data flow diagram
C)a written description of how the process operates
D)None of the above options are correct.
Q2) Refer to the diagram . Where does the purchase order originate?
A)The sales assistant
B)The computer
C)The accounts receivable clerk
D)The customer
Q3) One of the ways the auditor can understand a business process is through the observation and inspection of documents within the organisation.These documents include: (i)organisation charts (ii)procedures manuals (iii)systems documentation
A)(iii)only
B)(i)and (iii)only
C)(ii)and (iii)only
D)(i)(ii)(iii)
Q4) Discuss what an entity is in terms of systems documentation and what the distinction of internal and external entity is dependent on.
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Chapter 7: Internal Controls I
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Sample Questions
Q1) Which of the following is NOT one of the principles identified in the IT governance standard released by Standards Australia that encapsulate the domain of IT governance?
A)Ensure ICT performs well,with performance including the satisfaction of business needs,responding to changing business needs and being a reliable support for organisational activities whenever required.
B)Ensure ICT conforms with any external obligations as well as any internal policies that may exist in the organisation.
C)Put in place well understood responsibilities for ICT throughout the organisation and the greater society.
D)Ensure ICT use respects human factors,particularly the meeting of the needs of the different system stakeholders.
Q2) Which of the following is the most important requirement of internal control?
A)effectiveness and efficiency of operations
B)reliability of financial reporting
C)compliance with applicable laws and regulations
D)systems and procedures that help to manage risk and achieve objectives
Q3) Identify and briefly explain the major IT stages in the COBIT framework.
Q4) Describe the merits and nature of audit committees.
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Chapter 8: Internal Controls II
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Sample Questions
Q1) Which of the following is a risk to the financial statement of a company when it places a purchase order with a supplier?
A)the supplier delivers the goods with an invoice instead of a delivery note
B)the goods are not available
C)the supplier delivers the wrong goods or wrong quantity
D)the purchasing officer orders the wrong goods.
Q2) Computer-based controls are extremely dependent on: (i)a sound control environment (ii)sound general controls (iii)the COBIT framework
A)(i)(ii)
B)(i)(iii)
C)(ii)(iii)
D)(i)(ii)(iii)
Q3) Provide at least five examples of processing controls.
Q4) Information processing controls are those that are put in place within the organisation to work towards the _______ of transactions.
A)efficiency,effectiveness,and accuracy
B)timeliness,efficiency,and completeness
C)accuracy,completeness,and authorisation
D)authorisation,processing,accuracy
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Chapter 9: Transaction Cycle The Revenue Cycle
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Sample Questions
Q1) Why is the revenue cycle strategically important?
Q2) Cycle performance should be measured,primarily,relative to:
A)industry-average cycle time
B)whether the process is efficiently carried out
C)how cost-effective the process is
D)how well the process outcomes achieve the overall objectives of that cycle
Q3) To bill a customer,the billing department must:
A)Check inventory levels
B)Perform a credit check
C)Check that the sale has been completed
D)Check that the customer has received the goods.
Q4) In terms of ensuring payments for goods and services are correctly received,recorded and banked,which of the following is unlikely to be a KPI?
A)Credit requests
B)Aged accounts receivable reporting
C)Number of bad debts written off
D)Average payment times
Q5) Give at least four examples of operation level decisions in the revenue cycle.
Q6) Give at least three examples of strategy level decisions in the revenue cycle.
Q7) Describe how the revenue cycle can benefit from online payment facilities?
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Chapter 10: Transaction Cycle The Expenditure Cycle
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59 Verified Questions
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Sample Questions
Q1) Give at least three examples of strategy level decisions in the expenditure cycle.
Q2) Describe the objectives of the purchasing phase of the expenditure cycle and how these objectives can be achieved.
Q3) The expenditure cycle commences when:
A)~ A section of the organisation signals a need for goods or services to be provided
B)The goods or services that are acquired by a section of the organisation have been paid for
C)Purchase orders are appropriately authorised
D)Delivered goods are received
Q4) Typically,when receiving goods in the expenditure cycle:
A)One should accept the delivery before recording goods received.
B)One should record goods received before accepting the delivery.
C)It doesn't matter whether accepting the delivery or the recording goods received comes first.
D)One should ensure that there is always an invoice attached with all goods received.
Q5) Give at least three examples of operation level decisions in the expenditure cycle.
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Chapter 11: Transaction Cycle The Production Cycle
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Sample Questions
Q1) The document that details when the raw materials will be used,when the work-in-process goods will be stored and finally when the finished goods will be available at the end of the production process is:
A)Bill of material
B)Work order
C)Material requisition
D)Production schedule
Q2) What is the objective of the execution phase in the production cycle? What happens if errors occur in the execution phase?
Q3) Typical risks encountered in planning the production schedule include
A)under/overestimating product demand
B)underutilisation of available resource
C)under/overestimating materials requirements
D)All of the options are correct.
Q4) The primary responsibility of the production cycle is to ensure that:
A)goods produced are of good quality
B)production costs are brought to the minimum
C)sufficient goods are manufactured in time to meet the demand
D)All of the options are correct.
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Chapter 12: Transaction Cycle The HR Management and Payroll Cycle
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Sample Questions
Q1) Give three KPI that can be used to measure the objective of "Effectively,efficiently and objectively recruit suitable staff".
Q2) Why employee exit should be managed carefully?
Q3) All recruiting and retention activities should be guided by:
A)organisation vision
B)organisation strategy
C)organisation culture
D)All of the options are correct.
Q4) Which of the following is not directly involved in the calculation of payroll?
A)Production cycle.
B)Revenue cycle.
C)Operational department.
D)Tax agencies.
Q5) Which of the following is not a risk that occurs during payroll disbursement?
A)Leave balances incorrectly recorded
B)Non/slow payment to employees and third parties.
C)Inaccurate payments to employees and third parties.
D)Theft of valid employee payments.
Q6) When are data about a new employee created and who creates them?
Q7) Briefly explain how a performance review is done and the persons involved. Page 14
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Chapter 13: Transaction Cycle The General Ledger and Financial Reporting Cycle
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Sample Questions
Q1) A well-designed chart of accounts will:
A)support key reporting requirements while minimising or even eliminating data entry error
B)support diverse reporting requirements while maintaining an acceptably low data entry error rate
C)contain more digits in general ledger account number
D)not include an indicator for every possible dimension that the transaction may conceivably need to be reported on
Q2) Why budgets are created and how budgets are used to assess performance?
Q3) Which of the following is NOT a KPI that can be used to measure the objective "To validate and correctly transfer all relevant transactional data"?
A)Number of data errors detected
B)The volume of transactional data transferred
C)Reconciled balances in subsidiary ledger control accounts
D)Number of un-cleared transactions in suspense accounts
Q4) What are the key considerations when setting budget targets?
Q5) Give examples of different budget levels and explain any deficiencies that may associate with these levels.
Q6) What are the considerations when planning budget breakdown?
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Chapter 14: Systems Development
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Sample Questions
Q1) If any activity that is on the critical path is delayed:
A)The finishing day of the project will not be affected.
B)The finishing day of the project will be brought forward.
C)The finishing day of the project will be delayed.
D)One should no longer follow the critical path for calculating project completion time.
Q2) Which of the following statements regarding in-house-developed programs is true?
A)In-house-developed programs are often better than commercial off-the-shelf programs.
B)In-house-developed programs are often cheaper than commercial off-the-shelf programs.
C)In-house-developed programs often have less strategic alignment issues than commercial off-the-shelf programs.
D)In-house-developed programs are often chosen over commercial off-the-shelf programs.
Q3) Briefly explain the typical problems of systems development.
Q4) Explain the systems development steering committee's role in selecting the most feasible alternative of systems development.
Q5) What are the steps in preparing a PERT chart?
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Chapter 15: Auditing of Accounting Information Systems
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Sample Questions
Q1) Which of the following is not true?
A)Australian Auditing Standards (ASAs)are legally binding auditing standards.
B)Australian Auditing Standards (ASAs)are issued by the Australian Auditing and Assurance Standards Board.
C)Australian Auditing Standards (ASAs)set out audit requirements for listed companies under the Corporations Act
D)Australian Auditing Standards (ASAs)are legally enforceable legislative instruments.
Q2) The risk of material misstatement resulting from the internal controls in place failing to detect a fraudulent or erroneous transaction is:
A)An inherent risk
B)A control risk
C)A detection risk
D)An incontrollable risk
Q3) What are the five general infrastructure controls of a system that need to be evaluated during an audit?
Q4) Good corporate governance requires effective management oversight.What does this oversight include?
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18
Chapter 16: Ethics, fraud and Computer Crime
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Sample Questions
Q1) The saying that an action is morally right if it is motivated by a good will that stems from a sense of duty is known as:
A)Kantianism
B)Hedonism
C)Realism
D)Utilitarianism
Q2) How a person approaches and responds to an ethical issue is termed:
A)Ethics
B)Morals
C)Critical thinking
D)Decision making
Q3) Which of the following is not true?
A)Research studies have found that the incidence of fraud tends to be related to the ethical environment of the organisation.
B)Ethical conducts can be promoted through professional registration.
C)Ethical guidelines exist to guide auditors when making client acceptance decisions,when determining the level of non-audit service fees,and on what gifts from the client can be accepted.
D)Codes of ethics should be formal.
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