Accounting Information Systems, ERM, Controls, Databases, and Emerging Technology

Which of the following is NOT a component of an information system?

Input

Which of the following accounting data components is an acquisition and payment process?

Financing

Which of the following is NOT a nonfinancial business event that can be captured through the conversion processes in the information system?

Deliver Goods

What is an input for a business that produces products?

All of these answer choices are correct.

What additional data could be captured during the conversion processes to help corporate management improve business efficiency or effectiveness?

All of these answer choices are correct.

What essential data analytics skills will Joy need to learn during her college career?

All of these answer choices are correct.

What is expected of new accounting professionals regarding data analysis?

New accounting professionals should be able to perform data analysis in Excel.

The responses to which questions lead to determining decision context?

Who will use it, and why is the information needed?

What recommendation would you give Juan regarding his taco truck's conversion process for competitive advantage?

Juan should have unique product offerings and more efficient processes than the other taco truck in town.

What kind of analysis will your consulting company perform to determine if the software is a good purchase for JK Enterprises?

Cost-benefit analysis

Which statement is TRUE about accounting?

Accounting helps support a prosperous society.

Which management responsibility area includes analyzing financial statements?

Monitoring

Which social responsibility and sustainability data points can be captured through the conversion processes?

All of these answer choices are correct.

What do transaction-based accounting systems capture?

Accounting business events.

Which management responsibility area includes identifying opportunities and assessing risk?

Planning

Which of the following is an example of data analytics?

An accountant uses software to horizontally and vertically analyze financial statements to compare with prior quarters.

What process area demands most of Tina's focus in managing a Pizza Hut franchise?

Marketing, Sales, and Collections

Which statement is TRUE regarding management's use of data?

Management uses historical reports and data analytic insights to understand reasons and context to make decisions.

What is the second step of ERM?

Categorizing risks based on their type.

What is the last step of ERM?

Risk Response.

How many types of risk response are there?

4.

What is the abbreviation for Medium?

M.

Why has reputation risk grown in importance?

More people are using and accessing social media.

Choose a major external risk category.

Strategic risk.

What is the best definition of risk acceptance?

Risk acceptance is when an inherent risk is present, but the organization chooses not to act.

How are you responding to the risk if you purchase a new cell phone and later purchase a screen protector and phone case?

Mitigate the risk.

What is the best definition of risk categorization?

Categorizing risks based on their types.

Organize the three tasks when performing risk assessment.

Identify, categorize and prioritize.

What is the third step of ERM?

Risk Prioritization.

Complete the statement: 'It is essential for accounting professionals to understand risk — including ________ in risk management.'

emerging trends.

What is the U.S. Bureau of Labor and Statistics' anticipated growth in jobs with the focus of 'risk management' between 2018-2026?

19 percent.

What is the best definition of reputational risks?

When the good name of a company is damaged.

What likelihood score would you assign to a risk with an annual occurrence of 3%?

2.

What is the abbreviation for Medium High?

MH.

Choose the best description of risk.

The likelihood of an unfavorable event occurring.

What is the best definition of technology risk?

When technology failures have the potential of disrupting business.

At what levels can risk identification be performed?

Different levels of the company.

Choose a major internal risk category.

Operational risk.

What are the three tasks when performing risk assessment?

Identify, categorize, and prioritize.

What is the key part of the COSO Internal Control Integrated Framework for implementing internal control?

control components

What reasons can lead to the failure of internal controls?

All of these answer choices are correct(collusion, human judgement, management override)

Operations objectives relate to the effectiveness and efficiency of an organization's

All of these answer choices are correct.

What do internal controls provide?

All of these answer choices are correct.

What represents the time-based model of controls for technology attacks?

P > (D + C).

What type of tool measures how far a company is on its journey to reach the ideal state?

Maturity model.

What method of controls is used when human judgment or physical interaction is required?

Manual.

What principle states that internal auditors must have no stake in the outcome of the business processes they audit?

Independence.

Which type of control is less susceptible to override and judgment errors?

Automated.

A control is characterized by its

Function, location, and implementation.

Who is responsible for ensuring that internal controls are functioning as designed?

All of these answer choices are correct.

How do companies address risk?

All of these answer choices are correct.

What do frameworks provide for a business?

All of these answer choices are correct.

Compliance with the Sarbanes-Oxley Act is required for private companies planning their initial public offering.

All of these answer choices are correct.

Which type of internal control seeks to stop problems from occurring?

Preventative controls.

What is the best definition of the COSO Cube?

The COSO Cube is a three-dimensional illustration that depicts how all parts of the Internal Control Integrated Framework are related.

To whom does internal audit report?

Both executive management and the board of directors.

What duty is Jon performing as a purchasing manager when he approves purchase orders?

Authorizing.

What is NOT a Sarbanes-Oxley (SOX) Act requirement?

Formal implementation of a maturity model.

What is the goal of the Sarbanes-Oxley Act of 2002?

Protect investors from fraud and other risks by improving the reliability and accuracy of financial statements.

What can proper internal controls do?

All of these answer choices are correct.

The American Institute of Certificate Public Accountants describes this as a basic building block of internal control.

Separation or segregation of duties

Internal controls are classified by

function and where in a business process the control exists.

What role of internal audit includes discovering improvements for risk management?

Insight.

Which type of control has a higher risk of failure?

Manual.

What is a FALSE statement concerning maturity models?

Companies use custom-designed maturity models from the Institute of Internal Auditors.

Who is responsible for enforcing mitigating measures to prevent identified risks?

Management.

What is a key feature of the production module in ERP systems?

Bill of Material.

What type of system focuses on leveraging data for information?

An online analytics processing system (OLAP).

What type of system supports core business functions like sales and accounting?

An online transaction processing system (OLTP).

What suite is Excel a part of?

Microsoft Office.

What is a disadvantage of centralized systems?

The risk of business disruption is greater because any disruption impacts the entire system.

What is an advantage of decentralized systems?

Reduction in processing bottlenecks as employees aren't competing for processing power.

What is the best definition of the production module in ERP systems?

Manages production activities including machine operations and scheduling.

What is the best definition of automating routine business processes?

By embedding best practices within the software infrastructure, the company can save money and increase efficiency.

What is the best definition of the human resources management (HRM) module?

Manages detailed employee records, training and development, and even time tracking.

What is the best definition of the supply chain management module?

Coordinates the entire supply chain, from purchasing of raw materials and supplies to inventory management and warehousing.

What is the most important ERP module that captures accounting data?

The financial module, which generates financial documents including statements and tax forms.

What does the supply chain management module coordinate?

It coordinates the entire supply chain, from purchasing of raw materials to inventory management.

What payment processing software did Julia's Cookies use?

Square

What is a key feature of the sales management module?

Receive Payment

What is a key feature of the production module?

Bill of Material

What device does Square provide to receive payments?

Phone or tablet

What is the best definition of the production module?

Manages production activities including machine operations and scheduling.

Which Excel function finds the smallest value in a range?

MIN

What is the best definition of quality improvement in ERP systems?

With continuous data collection and analysis, management can benchmark the business against competitors.

What is the best definition of future cost savings in ERP systems?

Long-term costs may be less associated with owning one system compared to multiple systems.

Which Excel function removes leading and trailing spaces in a cell?

TRIM

What is a key feature of the supply chain management module?

Inventory

What corresponds to the occurrence of business events in batch processing?

Business event

What step corresponds to updating the transaction file with additional batch transactions?

Update file

What is the best definition of organic growth?

The increase in sales, customers, and market share using the company's own resources.

What is the best definition of the financial module in ERP systems?

The most important ERP module that captures accounting data and generates financial documents.

What type of system software is initially loaded when you turn on your personal computer?

Operating System

What type of cloud deployment is chosen when hardware and software are dedicated solely to a business?

Private cloud

What are the four different levels of information systems?

Executive support system, Decision support system, Management information system, Transaction processing system

From which ERP module would you pull data to know how many new hires a company had last quarter?

Human resources management

What is an example of unstructured data?

PDF files

What is an example of Web 2.0?

All of these answer choices are correct.

What are databases composed of?

Files

What structure do data lakes use?

Agile