ACCT 307 Chapter 1

The “S” in the acronym “AIS” stands for:

System

Most AISs perform all of these functions except

AISs perform all of these functions

Which of the following is true?

None of these

The designation for a licensed information systems audit professional is:

CISA

Which of the following best describes “predictive analytics”?

It is a technique that uses data stored in data warehouses to create systems that allow managers to use their data to improve performance

Which of the following accounting functions has been automated by most companies' information processing subsystems?

All of the above

A special type of systems consultant who is licensed to sell particular software packages and provide organizations with consulting services related to that software is called

VAR

Which of the following is likely to be information rather than data?

Net profit

What is an Accounting Information System? (AIS)

A system that collects, records, stores, and processes data to produce useful information for decision makers

Which of the following is considered an input in an AIS?

Raw transaction data

Which functions do most AISs perform?

All of these functions

Which statement about an Accounting Information System (AIS) is correct?

None of these statements is correct.

What is the designation for a licensed information systems audit professional?

CISA

What is predictive analytics?

A technique that uses data stored in data warehouses to help managers improve performance

Which accounting functions have been automated by most companies' information processing subsystems?

All of the above

What is a special type of systems consultant who is licensed to sell particular software packages and provide related consulting services called?

VAR

Which of the following is likely to be information rather than raw data?

Net profit

The “I” in AIS stands for what?

Information

What is the main purpose of an Accounting Information System (AIS)?

To collect, record, store, and process data to produce useful information for decision makers

What are the three major components of an AIS?

Input, processing methods, and output

What does the input component of an AIS consist of?

Raw transaction data

What is the purpose of processing methods in an AIS?

To sort, organize, calculate, and apply accounting procedures

Which of the following is an example of AIS output?

Management reports and financial statements

What are the three elements of an AIS?

Accounting, information, and systems

Which of the following is included in the accounting element of AIS?

All of the above

What is data?

Raw facts about events that have little organization or meaning

What is information?

Processed data

Which of the following is an example of information rather than raw data?

The class average computed from test scores

What does the term “systems” usually refer to in AIS?

Computer systems

Why should students study AIS?

All of the above

What are major transaction cycles also known as?

Business processes

How does studying AIS help accountants in an IT environment?

It helps them design and evaluate internal controls

Why are AIS topics important for students pursuing the CPA credential?

AIS topics are tested on the CPA exam

What does CITP stand for?

Certified Information Technology Professional

What is a value-added reseller (VAR) associated with?

System consulting

What does CFE stand for?

Certified Fraud Examiner

What does CISA stand for?

Certified Information System Auditor