AIS REVIEWER

Systems analysts use DFDs extensively to represent the logical elements of the system.

• TRUE
An entity relationship (ER) diagram is a documentation technique used to represent the
relationship between entities.

• TRUE
Subsidiary ledgers contain the details of the individual accounts that constitute a particular
control account.

• TRUE
Sales orders, inventory receipts, and cash receipts are examples of master files.

• FALSE
Because of accounting complexities associated with payroll, most firms have a separate system
for payroll processing.

• TRUE
The total of journal vouchers processed is equivalent to the general ledger.

• FALSE
Events are defined as objects that are both scarce and under the control of the enterprise.

• FALSE
Nonfinancial transactions are events that do not meet the narrow definition of a financial
transaction.

• TRUE
The TPS deals with business events that occur frequently.

• TRUE
Information is determined by the effect it has on the user, not by its physical form.

• TRUE
The file is the most elemental piece of potentially useful data in the database.

• FALSE
Marketing is the activity of getting the product to the customer after the sale

• FALSE
The accounting function administers the daily flow of cash in and out of the firm.

• FALSE
Centrally organized companies maintain their data resources in a central location that is shared
by all end users.

• TRUE
IT controls relate specifically to the computer environment.

• TRUE

Management fraud usually involves the direct theft of assets.

• FALSE
The use of inappropriate accounting techniques is a characteristic common to many
financial statement fraud schemes.
• TRUE

Bribery defrauds the entity (business organization or government agency) of the right to honest
and loyal services from those employed by it.

• TRUE
Cash larceny involves stealing cash from an organization before it is recorded on the
organization’s books and records

• FALSE
Check tampering involves forging or changing in some material way a check that the
organization has written to a legitimate payee.

• TRUE
It is central to the overall function overall function of the information system by converting
economic events into financial transactions, recording financial transactions in the accounting
records (journals and ledgers), and distributing essential financial information to operations
personnel to support their daily operations.

• TRANSACTION PRECESSING SYSTEM

Which of the following is TRUE about data sources?

• THE OBJECTIVE OF DATA SOURCES IS TO ENSURE THAT EVENT DATA

ENTERING THE SYSTEM ARE VALID, COMPLETE, AND FREE FROM MATERIAL
ERRORS
It is a logical and relevant characteristic of an entity about which the firm captures data.

• DATA ATTRIBUTE
It is the process of compiling, arranging, formatting, and presenting information to users.

• INFORMATION GENERATION
The following fundamental tasks of database management EXCEPT:

• SUMMARIZATION
To support management decision making, the information system

• SUPPLIES MANAGERS WITH THE INFORMATION THEY NEED TO CARRY

OUT THEIR DECISION-MAKING RESPONSIBILITIES.
They are general-purpose systems or systems customized to a specific industry.

• TURNKEY SYSTEM
The role of an accountant is to select the appropriate accounting rules, and determining the
controls necessary to preserve the integrity and efficiency of the information system which fall
under

• ACCOUNTANT AS A SYSTEM DESIGNERS

The objectives of the data collection activity of the general model for Accounting Information
Systems are to collect data that are

• EFFICIENT AND RELEVANT

Which of the following is NOT a purpose of the Transaction Processing System?

• MANAGING AND REPORTING ON THE STATUS OF FINANCIAL

INVESTMENTS
Which of the following is not a confirmation procedure of accounts receivable?

• EVALUATES THE FINANCIAL STATEMENTS OF PUBLICLY HELD

BUSINESS ORGANIZATIONS ON BEHALF OF ITS STOCKHOLDERS AND
OTHER INTERESTED PARTIES
It contains records of past transactions that are retained for future reference

• ACHIVE FILE
They describe the type of computer media being employed in the system, such as magnetic
tape, magnetic disks, and terminals.

• SYSTEM FLOWCHARTS
One of the advantages of this coding scheme is its capacity to represent large numbers of items
which increased dramatically

• ALPHABETIC CODES
Information this system produces is used for inventory valuation, budgeting, cost control,
performance reporting, and management decisions, such as make or-buy decisions.

• COST ACCOUNTING SYSTEM

They are used to capture and formalize transaction data that the transaction cycle needs for
processing.

• SOURCE DOCUMENT
It is a log of all receipts of raw materials or merchandise ordered from vendors.

• RECEIVING REGISTER
Which of the following is a physical component of expenditure cycle?

• ACQUSITION OF GOODS
Which of the following is true of the relationship between subsidiary ledgers and general ledger
accounts?

• THE RELATIONSHIP BETWEEN THE TWO PROVIDES AN AUDIT TRAIL

FROM THE FINANCIAL STATEMENTS TO THE SOURCE DOCUMENTS
The production subsystem of the conversion cycle includes all of the following EXCEPT:

• MAKE OR BUY DECISIONS ON COMPONENTS PART

Risks can arise or change from circumstances EXCEPT

• MANAGEMENT’S METHODS FOR ASSESSING PERFORMANCE.

It involves stealing cash from an organization before it is recorded on the organization’s books
and records.

• SKIMMING
It occurs when an employee acts on behalf of a third party during the discharge of his or her
duties or has self-interest in the activity being performed.

• CONFLICT OF INTEREST
It involves direct access to assets and/or access to information that controls assets.

• OPPORTUNITY
A condition of fraudulent act which signifies a false statement or a nondisclosure.

• FALSE REPRESENTATION
A condition of fraudulent act which signifies that the misrepresentation must have been a
substantial factor on which the injured party relied.

• JUSTIFIABLE RELIANCE
The exposure to stories and reports found in the popular media regarding the good or bad
ramifications of computer technology.

• POP COMPUTER ETHICS

Which of following functions should be segregated?

• OPENING THE MAIL AND RECORDING CASH RECEIPTS IN THE JOURNAL

When will a credit check approval most likely require specific authorization by the credit
department?

• WHEN A VALID CUSTOMER RETURNS GOODS

Ensuring that all material transactions processed by the information system are valid and in
accordance with management’s objectives is an example of

• TRANSACTION AUTHORIZATION
This document identifies the items of inventory that must be located and picked from the
warehouse shelves.

• PICKING TICKET
It contains information needed to service individual customers’ accounts. This includes payment
date, account number, amount paid, and customer check number.

• REMITTANCE ADVICE
It reconciles the original sales order with the shipping notice to ensure that customers are billed
for only the quantities shipped

• BILLING FUNCTION
It verifies that the goods sent from the warehouse are correct in type and quantity.

• SHIPPING FUNCTION
It is a proof that the product has been shipped and is the trigger document that initiates the
billing process.

• SHIPPING NOTICE
It contains customer orders for out-of-stock items.

• BACK-ORDER FILE
It specifies orders shipped during the period.

• SHIPPING LOG
It shows the status of customer orders.

• OPEN SALES ORDER FILE

This is a fraud scheme that is similar to the ‘‘borrowing from Peter to pay Paul’’.

• LAPPING
It involves taking a real interest in computer ethics cases and acquiring some level of skill and
knowledge in the field.

• PARA COMPUTER ETHICS