AIS - Lesson 1(Prelim)

Question 1

is an event that affects or is of interest to the organization and is processed by its information system as a unit of work.

Answer 1

transaction

Question 2

is the set of formal procedures by which data are collected, processed into information, and distributed to users.

Answer 2

information system

Question 3

is a system that processes nonfinancial transactions not normally processed by traditional accounting information systems.

Answer 3

Management information system (mis)

Question 4

is an economic event that affects the assets and equities of the organization, is measured in financial terms, and is reflected in the accounts of the firm.

Answer 4

financial transaction

Question 5

are specialized subset of information systems that processes financial transactions.

Answer 5

accounting information system

Question 6

are the flows of information into and out of an organization.

Answer 6

information flows

Question 7

are the flows of information into and out of an organization.

Answer 7

information flows

Question 8

is a category of external user, including customer sales and billing information, purchase information for suppliers, and inventory receipts information.

Answer 8

trading partners

Question 9

is a category of external user, including customer sales and billing information, purchase information for suppliers, and inventory receipts information.

Answer 9

trading partners

Question 10

are entities either inside or outside an organization that have a direct or indirect interest in the firm.

Answer 10

stakeholders

Question 11

is an activity composed of three major subsystems—the revenue cycle, the expenditure cycle, and the conversion cycle.

Answer 11

the transaction processing system (tps)

Question 12

is a system that produces traditional financial statements, such as income statements, balance sheets, statements of cash flows, tax returns, and other reports required by law.

Answer 12

general ledger

Question 13

is a system that produces traditional financial statements, such as income statements, balance sheets, statements of cash flows, tax returns, and other reports required by law.

Answer 13

general ledger

Question 14

is a system that provides the internal financial information needed to manage a business.

Answer 14

management reporting system (mrs)

Question 15

is a system that provides the internal financial information needed to manage a business.

Answer 15

management reporting system (mrs)

Question 16

is a type of reporting in which the organization can choose what information to report and how to present it.

Answer 16

discretionary reporting

Question 17

is a type of reporting in which the organization has few or no choices in the information it provides. Much of this information consists of traditional financial statements, tax returns, and other legal documents.

Answer 17

non discretionary reporting

Question 18

is a model that describes all information systems, regardless of their technological architecture.

Answer 18

general model for ais

Question 19

is a model that describes all information systems, regardless of their technological architecture.

Answer 19

general model for ais

Question 20

are users for whom the system is built.

Answer 20

end user

Question 21

include management at all levels of the organization as well as operations personnel.

Answer 21

internal user

Question 22

include management at all levels of the organization as well as operations personnel.

Answer 22

internal user

Question 23

include creditors, stockholders, potential investors, regulatory agencies, tax authorities, suppliers, and customers.

Answer 23

external user

Question 24

include creditors, stockholders, potential investors, regulatory agencies, tax authorities, suppliers, and customers.

Answer 24

external user

Question 25

are facts, which may or may not be processed (edited, summarized, or refined) and which have no direct effect on the user. Information causes the user to take an action that he or she otherwise could not, or would not, have taken.

Answer 25

data

Question 26

are facts, which may or may not be processed (edited, summarized, or refined) and which have no direct effect on the user. Information causes the user to take an action that he or she otherwise could not, or would not, have taken.

Answer 26

data

Question 27

are financial transactions that enter the information system from either internal or external sources.

Answer 27

data source

Question 28

is the first operational stage in the information system.

Answer 28

data collection

Question 29

is the first operational stage in the information system.

Answer 29

data collection

Question 30

is a group that manages the computer resources used to perform the day-to-day processing of transactions.

Answer 30

data processing

Question 31

is a physical repository for financial data.• DATA ATTRIBUTE• RECORD• FILE• DATABASE MANAGEMENT TASKS:

Answer 31

database

Question 32

is a physical repository for financial data.• DATA ATTRIBUTE• RECORD• FILE• DATABASE MANAGEMENT TASKS:

Answer 32

database

Question 33

is the process of compiling, arranging, formatting, and presenting information to users. • RELEVANCE • TIMELINESS • ACCURACY • COMPLETENESS • SUMMARIZATION

Answer 33

information generation

Question 34

is a form of output that is sent back to the system as a source of data.

Answer 34

feedback

Question 35

is the property of information that makes it useful to users.

Answer 35

reliability

Question 36

is the separation of the record-keeping function of accounting from the functional areas that have custody of physical resources.

Answer 36

independence

Question 37

is the separation of the record-keeping function of accounting from the functional areas that have custody of physical resources.

Answer 37

independence

Question 38

is the production of several alternative designs for a new system.

Answer 38

conceptual system

Question 39

is the production of several alternative designs for a new system.

Answer 39

conceptual system

Question 40

is the medium and method for capturing and presenting the information.

Answer 40

physical system

Question 41

is an efficient information system that captures and stores data only once and makes this single source available to all users who need it.

Answer 41

data storage

Question 42

is an efficient information system that captures and stores data only once and makes this single source available to all users who need it.

Answer 42

data storage

Question 43

is an expert who expresses an opinion about the fairness of a company’s financial statements.

Answer 43

auditor

Question 44

is an expert who expresses an opinion about the fairness of a company’s financial statements.

Answer 44

auditor

Question 45

is an independent auditor’s responsibility to opine as to the fair presentation of a client firm’s financial statement.

Answer 45

attest function

Question 46

is an independent auditor’s responsibility to opine as to the fair presentation of a client firm’s financial statement.

Answer 46

attest function

Question 47

are tests that determine whether database contents fairly reflect the organization’s transactions.

Answer 47

substantive test

Question 48

are tests that establish whether internal controls are functioning properly.

Answer 48

test of controls

Question 49

are tests that establish whether internal controls are functioning properly.

Answer 49

test of controls

Question 50

is the review of the computer-based components of an organization. The audit is often performed as part of a broader financial audit.

Answer 50

IT auditing

Question 51

is the review of the computer-based components of an organization. The audit is often performed as part of a broader financial audit.

Answer 51

IT auditing

Question 52

is the appraisal function housed within the organization.

Answer 52

internal auditing

Question 53

is the appraisal function housed within the organization.

Answer 53

internal auditing