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Acct Sys Ch 1 Quiz
| Question | Answer |
|---|---|
| What is an information system? | Collects data, organizes and analyzes it and outputs it for users. |
| What was the purpose of Sarbanes-Oxley? | To create independence in companies (prevent one person doing connecting things), and to establish internal controls that had to be documented |
| What is the top section of the management triangle? | Top Management |
| What is the top-middle section of the management triangle? | Middle Management |
| What is the bottom-middle section of the management triangle? | Operational Management |
| What is the bottom section of the management triangle? | Day to Day Operations |
| What does top management do? | Sets long term strategic goals for the company through planning |
| What does middle management do? | Account for short term planning to achieve organizational objectives |
| What does operational management do? | Manage day to day operations |
| What does day to day ops do? | Everyday activities |
| What is information like from management down? | Highly detailed (budgets, instructions, quotes) |
| What is information like from day to day up? | Summarized |
| How does information flow to those in the same department? | Horizontally |
| What external users does top management work with? | Fiduciary responsibility to give out information to stakeholders (stockholders, lenders, community, regulatory agencies) |
| What external users does day to day work with? | Trade partners (suppliers, customers, purchase info, etc) |
| What does going dark mean in regards to SOX? | Companies stopped trading publicly in order to avoid adhering to SOX regulations |
| What are the three fundamental information objectives? | 1. Support day to day operations. 2. Support management decision making. 3. Support the stewardship function of management (to external users) |
| What are the two systems within an information system for a business? | Accounting Info System (AIS) and Management Info System (MIS) |
| What kind of transactions does an AIS deal with? | Financial transactions |
| What kind of transactions does an MIS deal with? | Nonfinancial transactions |
| What are the nondiscretionary parts of the AIS? (GAAP) | General ledger/Financial report system and Transaction processing system |
| What are the discretionary parts of the AIS? | Management reporting system |
| Is MIS discretionary or nondiscretionary? | Discretionary |
| What are the three parts of the Transaction Processing System? | Expenditure System, Conversion System and Sales Order (Revenue) System |
| What is an on page connector used for? | For within a system |
| What is an off page connector used for? | For different departments |
| What is the Transaction Processing System a catalyst for? | The general ledger and financial reporting systems |
| Where do the majority of transactions occur? | The transaction processing system |
| What could be nonfinancial information within the GL/FR and TP systems? | Contact info, address, identification numbers, etc |
| What are external sources of data? | Financial transactions that enter the IS system |
| Examples of external sources of data include? | Sales, Purchases, Cash Receipts and Cash Disbursements |
| What are internal sources of data? | Financial transactions within the company |
| Examples of internal sources of data include? | RM, WIP, DG, and factory overhead allocation |
| What are the three objectives of data collection? | Valid, Complete and Free from Errors |
| What are the two rules of data collection? | Efficient and Relevant |
| In a general model of AIS where do external and internal sources of data go? | Into data collection |
| In a general model of AIS where does data collection and DBMS go? | Into data processing |
| In a general model of AIS where does data processing go? | Information generation |
| In a general model of AIS where does information generation go? | Internal and external end users |
| What occurs throughout a general model of AIS system? | Feedback |
| What is data processing? | IT personal set algorithms or statistical procedures to process data into information |
| What is a database management system? | Physical repository for financial and nonfinancial data (Hard drive or filing cabinet) |
| What is the smallest part of the data hierarchy? | Attribute |
| What is the middle part of the data hierarchy? | Record |
| What is the largest part of the data hierarchy? | File |
| What are the three fundamentals of a DBMS? | Storage, Retrieval and Deletion |
| What is information generation? | Process of compiling, arranging and formatting information |
| What does CARTS stand for in relation to information generation? | Complete, Accurate, Relevant, Timely and Summarized |
| What do internal auditors do? | Figure out what information id important to internal users at the company |
| What do external auditors do? | Make sure everything is faithfully represented in financial statements |
| What are the opinions that an auditor can give an audit? | Unqualified, Qualified and Adverse Reports |
| How are external auditors chosen? | By an audit committee |
| What are the four information technology functions? | Data Processing, Systems Development and Maintenance, Database Administration and Network Administration |
Created by:
Erika.Meakins
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