Accounting Information Systems The Crossroads of Accounting and IT.docx

Accounting Information Systems The Crossroads of Accounting and IT Accounting Systems Insights Objective 1 1) An IT auditor must understand the terms and definitions used by accounting and IT professionals. Answer: TRUE Objective: Q1.1 How do I navigate the crossroads of accounting and IT? 2) Which of the following professionals is the most important group an IT auditor must be able to communicate? A) Accounting and Human Resource professionals B) IT and Sales professionals C) Accounting and IT professionals D) Sales and Human Resource professionals Answer: C Objective: Q1.1 How do I navigate the crossroads of accounting and IT? Objective 2 1) A Supply Chain Management (SCM) system is a subsystem of an Accounting System. Answer: FALSE Objective: Q1.2 How is the accounting system related to the enterprise system? 2) Only internal users, for example accountants, directors, and executives, may use an integrated enterprise system. Answer: FALSE Objective: Q1.2 How is the accounting system related to the enterprise system? 3) An integrated enterprise system allows different departments to use the same information. Answer: TRUE Objective: Q1.2 How is the accounting system related to the enterprise system? 4) Enterprise Resource Planning (ERP) software focuses on integrating information flows across an entire enterprise. Answer: TRUE Objective: Q1.2 How is the accounting system related to the enterprise system? Match the following accounting cycles to the appropriate subsystems. A) Customer Relationship Management B) Operations/Production System C) Supply Chain Management 5) Purchasing Cycle Objective: Q1.2 How is the accounting system related to the enterprise system? 6) Payroll Cycle Objective: Q1.2 How is the accounting system related to the enterprise system? 7) Sales Cycle Objective: Q1.2 How is the accounting system related to the enterprise system? Answers: 5) C 6) B 7) A Match the following enterprise subsystem with the business process it supports. A) Tracking and Coordinating Operations to Make the Service, Product, or Experience B) Purchasing Items from Vendors C) Marketing and Sales Activities 8) Supply Chain Management (SCM) Objective: Q1.2 How is the accounting system related to the enterprise system? 9) Operations/Production System (OPS) Objective: Q1.2 How is the accounting system related to the enterprise system? 10) Customer Relationship Management (CRM) Objective: Q1.2 How is the accounting system related to the enterprise system? Answers: 8) B 9) A 10) C 11) When data is "hard keyed" into the program, which of the following is true? A) Changing the data is cost efficient and may be accomplished in a matter of minutes. B) Changing the data is costly and may take days or weeks. C) Changing the data requires purchasing additional computer storage and may take days or weeks. D) Changing the data requires recreating (recoding) the entire program. Answer: B Objective: Q1.2 How is the accounting system related to the enterprise system? 12) What is an alternative to "hard keyed" data? A) Using variables in the program, such as cell addresses in a spreadsheet B) Creating the program in a way that does not require data C) If user requirements are correctly defined, the data will not change and may be "hard keyed." D) Alternatives to "hard keyed" data is not possible. All data must be "hard keyed." Answer: A Objective: Q1.2 How is the accounting system related to the enterprise system? 13) The three basic functions of an enterprise system are A) Processing, Output, and Reports B) Input, Data, and Reports C) Input, Processing, and Output D) Business Intelligence, Processing, and Output Answer: C Objective: Q1.2 How is the accounting system related to the enterprise system? 14) What is the main benefit of a company giving vendors access to the enterprise system? A) To suggest new products to sell B) To help test the system security C) To provide suggestions on improving the enterprise system D) To coordinate inventory deliveries Answer: D Objective: Q1.2 How is the accounting system related to the enterprise system? 15) What is the purpose of Enterprise Resource Planning (ERP) software? A) Identify new trends in consumer purchasing B) Help managers control organizational resources C) Help identify the end of a product's life cycle D) Analyze an organization's sales projections Answer: B Objective: Q1.2 How is the accounting system related to the enterprise system? 16) An accounting system spans which of the following Value Chain components? A) Support B) Purchase C) Customers D) All the above except C. Answer: D Objective: Q1.2 How is the accounting system related to the enterprise system? 17) Which of the following data is shared between a Supply Chain Management system and an accounting system? A) The sale price of the finished product B) The current inventory levels of the raw materials C) The product delivery costs D) The number of hours employees worked to create the product Answer: B Objective: Q1.2 How is the accounting system related to the enterprise system? 18) Which of the following data is shared between a operations/production system and an accounting system? A) The cost of the raw materials B) The monthly sales levels C) The current inventory levels of the finished product D) Customer information Answer: C Objective: Q1.2 How is the accounting system related to the enterprise system? 19) Which of the following data is shared between a Customer relationship management system and an accounting system? A) Employee information B) The advertising costs C) The cost of goods sold D) Vendor information Answer: B Objective: Q1.2 How is the accounting system related to the enterprise system? 20) The purchasing cycle consists of transactions between which entities? A) A company and vendors B) A company and employees C) A company and customers D) A company and a bank Answer: A Objective: Q1.2 How is the accounting system related to the enterprise system? 21) Which of the following is the best way to protect information assets? A) Limit the number of users that can access the data at the same time to 5 people. B) Implement policies and procedures for data deletion (destruction). C) Limit the amount of time a user may access the data. D) Require an ID and password to access data in the databases. Answer: D Objective: Q1.2 How is the accounting system related to the enterprise system? 22) What are the results of using "hard keyed" data in a program and why? Please provide an example. Answer: Using "hard keyed" data in a program results in a program with limited or no flexibility and is costly to update. "Hard keyed" data is any data that a programmer/developer inserts directly into the program code. It becomes part of the program. For example, if a programmer creates a program to calculate monthly mortgage payments and hard keys 5% for the interest rate and 30 years for the loan length, the program will not be useful for loans with a different interest rate or for a different amount of time. (The student may provide a different example.) Objective: Q1.2 How is the accounting system related to the enterprise system? 23) How does an enterprise system support people in the same company to perform different but related business activities? Please provide an example. Answer: People within a company often need the same information to perform different tasks. that are often interconnected. An enterprise system allows the information to be shared throughout the company. This ensures the data used to perform the tasks are the same. The example provided in the text is the creation of a paycheck. Human Resources enters personal data and salary information. The accounting department uses that information to generate a paycheck. Students may provide a different example. Objective: Q1.2 How is the accounting system related to the enterprise system? 24) You are an intern at a small mom-and-pop type corner grocery store. The owner's accountant is trying to talk the owners into purchasing an integrated enterprise system for small businesses. The owner thinks the accountant is just trying find a way to charge more money. How would you convince the owner each piece of the integrated enterprise system would help the business? Answer: The answer should include the following information. - Supply Chain Management: items are automatically removed from inventory and calculations made for reordering from vendors, identify fast moving items (keep reordering from vendor ) or slow moving items (consider removing from inventory) - Customer Relationship Management: the purchase is analyze for trends, products purchased at a particular time of day and/or day of the week, analyze for more targeted marketing (coupons) - Operations/Production System : track items from the meat counter/deli/bakery to know when to order inputs (flour, sugar, various meat products, etc.) - Human Resources Management: track appropriate personnel positions (more/less bakers, more/less butchers, more/less sales clerks, more/less stockers, etc.) Comment: Modified CPA exam question Objective: Q1.2 How is the accounting system related to the enterprise system? 25) You are an accountant and one of your clients is a small business that sells only over the Internet. How would you convince the owner to purchase an integrated enterprise system? Answer: The answer should include the following information. - SCM: items are automatically removed from inventory and calculations made for reordering from vendors, identify fast moving items (keep reordering from vendor ) or slow moving items (consider removing from inventory) - CRM: the purchase is analyze for trends, products purchased at a particular time of day and/or day of the week, analyze for more targeted marketing (coupons) - Operations/Production System: track shipping supplies - Human Resources Planning: track appropriate personnel positions (more/less people for gathering items in the purchase, more/less people for packaging the purchase, more/less people in the shipping department, etc.) Comment: Modified CPA exam question Objective: Q1.2 How is the accounting system related to the enterprise system? 26) What types of data does a Supply Chain Management system and an accounting system need to share? How does each system use that data? Answer: A Supply Chain Management system and an accounting system would share vendor information (company name, primary contact, address, and phone number), items supplied by the vendor, purchase orders, delivery dates, delivery receipt., and current raw material inventory levels. (The student may provide additional types of data.) The Supply Chain Management system uses this information to order more supplies and verify delivery content. Raw material inventory levels are used to calculate when to order more raw materials. The accounting system uses this data to know which vendor to pay, how much to pay the vendor, and when to pay the vendor. Raw material inventory is used in various financial reports. Objective: Q1.2 How is the accounting system related to the enterprise system? 27) What types of data does an operations/production system and an accounting system need to share? How does each system use that data? Answer: An operations/production system and an accounting system would share production employee information, work in process, and the current level of finished product. (The student may provide additional types of data.) The operations/production system uses the employee information to estimate production capacity. The work in process and current level of finished product issued to calculate needed production rate. The accounting system uses the employee data to run payroll. The work in process and current level of finished product is used in various financial reports. Objective: Q1.2 How is the accounting system related to the enterprise system? Objective 3 1) The enterprise-wide view of accounting enables the accountant to see how the accounting system interacts with other subsystems in the enterprise system. Answer: TRUE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 2) The Customer Module of a baseline accounting system includes creating purchase orders. Answer: FALSE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 3) The Financial Module of a baseline accounting system includes payroll transactions. Answer: FALSE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 4) The database is a key component of an accounting system. Answer: TRUE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 5) A database may have two or more tables with the exact same name. Answer: FALSE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 6) Understanding how the data will be used is essential when designing a database. Answer: TRUE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 7) A database record is a collection of related database tables. Answer: FALSE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 8) A primary key may be used to associate customer information (name, address, phone number, etc.) with a sales order. Answer: TRUE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 9) Database queries search the database to answer a specific question and extract information from one or more tables. Answer: TRUE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 10) Spreadsheet software can be used to perform analysis on data the cannot be done within a relational database. Answer: TRUE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 11) Business Intelligence tools use queries to extract data directly from the relational database, bypassing the OLAP cube and any accompanying delay. Answer: FALSE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 12) Data cubes allow you to view data in two dimensions. Answer: FALSE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 13) Private companies (companies that are not publicly traded) are not required to have their internal controls assessed by an independent CPA firm. Answer: TRUE Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? Match the following cycles with their corresponding accounting system module. A) Banking Module B) Employees Module C) Financial Module D) Customers Module E) Vendors Module 14) Payroll Cycle Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 15) Sales Cycle Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 16) Financial Cycle Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 17) Purchasing Cycle Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? Answers: 14) B 15) D 16) C 17) E 18) When looking at an accounting system using the aerial view, you see A) Accounting information available to internal users, primarily management B) Detailed information recorded in the accounting system C) An enterprise-wide view of an organization showing the entire accounting system D) Information available on the tax reports for the Internal Revenue Service and other tax agencies Answer: C Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 19) When looking at an accounting system using the zoom view, you see A) Accounting information available to internal users, primarily management B) Detailed information recorded in the accounting system C) An enterprise-wide view of an organization showing the entire accounting system D) Information available on the tax reports for the Internal Revenue Service and other tax agencies Answer: B Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 20) The ________ module in the Baseline Accounting System consists of transactions such as the purchasing of goods or services from a vendor. A) Customers B) Banking C) Employees D) Vendors Answer: D Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 21) Which transactions are usually performed in the Customers module of the Baseline Accounting System? A) Pay Bills B) Create Purchase Order C) Create Invoice D) Receive Inventory Answer: C Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 22) The ________ module consists of transactions for payroll. A) Customers B) Banking C) Employees D) Vendors Answer: C Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 23) Which event is part of the Purchasing Cycle? A) Enter Bill B) Pay Bill C) Make Deposit D) Create Invoice Answer: A Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 24) Which event is part of the Sales Cycle? A) Receive Item B) Enter Time C) Make Deposit D) Create Purchase Order Answer: C Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 25) When making adjusting entries, you are using the ________ module in the base line accounting system. A) Reporting B) Financial C) Banking D) Company Answer: B Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 26) The reports module produces for the following people except A) Investors B) Managers C) Accountants D) Customers Answer: D Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 27) What modules comprise a baseline accounting system? A) Vendors, Employees, Sales, Banking, Financial, and Reports B) Inventory, Employees, Sales, Banking, Financial, and Reports C) Inventory, Employees, Sales, Banking, Accounting, and Reports D) Vendors, Employees, Customers, Banking, Financial, and Reports Answer: D Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 28) To record a payment for inventory delivered, the information would be entered in a screen that looks similar to which paper form? A) Check B) Sales Receipt C) Purchase Order D) Invoice Answer: A Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 29) To record an inventory order, the information would be entered in a screen that looks similar to which paper form? A) Check B) Sales Receipt C) Purchase Order D) Invoice Answer: C Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 30) What is the purpose of an onscreen entry form? A) Onscreen entry forms help ensure information is entered only once in the database. B) Onscreen entry forms provide a familiar interface for entering information into a database. C) Onscreen entry forms allow you perform data analysis that is cumbersome in a relational database. D) Onscreen entry forms provide predictive modeling to gain insights from data to improve business decisions. Answer: B Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 31) Which accounting software is designed for a large-scale company? A) SAP Business All-in-One B) SAP Business One C) Oracle's JD Edwards EnterpriseOne D) Oracle's PeopleSoft Enterprise Answer: D Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 32) When designing a database, which field would not belong in a table storing customer information? A) Zip Code B) Street Address C) Last Name D) Order Number Answer: D Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 33) When designing a database, which field would not belong in a table storing inventory information? A) Part Number B) Purchase Order C) Sale Price D) Cost Answer: B Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 34) When designing an accounting database, where should you begin? A) With the outcome in mind B) The accounting software C) The paper forms D) The development phase of the software development life cycle Answer: A Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 35) In an accounting system database, which field belongs in a table containing customer information? A) Item Number B) Street Address C) Invoice Number D) Cost Answer: B Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 36) A ________ is a collection of related database tables. A) Field B) Relational Database C) Operational Database D) Primary Key Answer: B Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 37) In an accounting system database, which field belongs in a table containing inventory information? A) Invoice Number B) Purchase Order C) Vendor ID D) City Answer: C Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 38) The following field names are part of a table for a company's inventory. Which field name could be the primary key for this table? A) Vendor ID B) Item ID C) Cost D) Sales Price Answer: B Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 39) In a relational database, how are tables connected? A) By fields that are common in two or more tables B) By the table names C) By a query statement D) By network addresses Answer: A Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 40) The following fields are common to tables storing customer, vendor, and employee information except? A) Area Code B) City C) State D) Cost Answer: D Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 41) Which field below would not be stored in an order table? A) Order ID B) Item ID C) Vendor ID D) Customer ID Answer: C Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 42) What is the purpose of a database query? A) To provide a format for viewing data B) To search the database to answer a specific question C) To connect related tables D) To uniquely identify a record in a database table Answer: B Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 43) How much time do accountants spend using spreadsheets? A) 30% B) 50% C) 80% D) 90% Answer: D Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 44) Spreadsheets containing data extracted from a relational database are called what? A) Ghost Data B) Intelligent Data C) Shadow Data D) Gray Data Answer: C Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 45) Online Analytical Processing (OLAP) cubes allow you to A) View the same data from just one perspective B) Manipulate data in a spreadsheet C) View the same data from different perspectives D) Add data to the database Answer: C Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 46) Which act requires publicly traded companies to assess the effectiveness of their internal controls and have an independent CPA firm audit this assessment? A) Wheat Commission B) Sarbanes-Oxley Act of 2002 C) Security Exchange Commission Act of 1934 D) The GAAP Act of 1932 Answer: B Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 47) What is the purpose of security and controls over information assets? A) Security and controls are to prevent fraud, unauthorized access, modification, destruction, or disclosure of information assets. B) Security and controls are to prevent data analysis. C) Security and controls are to frustrate employees with legitimate need to access information assets. D) Security and controls are to ensure all the information assets are available to all employees. Answer: A Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 48) To find patterns in data you would use A) A spreadsheet application B) Business intelligence applications C) Flat file D) All the above except C Answer: D Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 49) What is the difference between the aerial view and zoom view of an accounting system? Answer: The aerial view of an accounting system is the enterprise-wide view of a company showing a global view of the entire accounting system and how information flows through the enterprise. For example, the aerial view allows an account to see how employee information entered in the Human Resource Management is used in operations/productions system and the accounting system. (The student my provide a different example.) The zoom view of accounting focuses on (drills down) specific detailed information, events, and transactions recorded in the accounting system. For example, closing entries. (The student may provide a different example.) Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 50) Identify the six modules in the baseline accounting system. Which transaction cycle is associated with each module? What type of transactions are associated with each module? Answer: - Vendor module — consists of transactions with vendors; this module relates to the purchasing cycle. - Customer module — consists of transactions with customers; this module relates to the sales cycle. - Employee module — consists of transactions with employees for payroll; this module relates to the payroll cycle. - Banking module — involves cash received (deposits) and cash paid (checks/withdrawals) with the enterprise's bank; this modules does not relate to a transaction cycle. - Financial module — consists of other transactions that are not part of the other modules; for example, adjusting entries, correcting entries, and closing entries; this module relates to the financial cycle. - Reports module — consists of output from the Accounting system (hard copies and soft copies); for example financial reports, tax reports, and management reports; this module does not relate to a transaction cycle. Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 51) If you were the person entering transactions into an accounting system, why would you want the input screens to look like paper forms? Answer: Input screens that mirror paper forms provide a familiar interface for entering data. This reduces the amount of time needed to learn how to enter data and learn the system. The familiarity also helps the user to become comfortable with the system. Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 52) What are the three database essentials an accounting professional needs to know? Define and provide an example of each. Answer: Field - A piece of information about events, people, or objects. Example, phone number. (The student may provide a different example. Record - A collection of related fields. Example, customer ID, first name, last name, street address, city, state, zip code, area code, and phone number. (The student may provide a different example.) Table - A collection of related records with a unique table name. For example, Customer. ( The student may provide a different example.) Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 53) What is the purpose of a primary key? What would happen if a relational database was designed without any primary keys? Answer: The purpose of a primary key is to provide a unique identifer for each record in a relational database. If a relational database was designed without any primary keys - the same information may be entered multiple times in the database - it would be difficult (maybe even impossible) to connect related tables - data retrieved may be out of date and inaccurate Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 54) You are hired by a consulting company to assist in creating an accounting system for a company that sells exclusively online. List the fields needed for the Customer table and the Inventory table. Identify the primary key in each table. Answer: Customer table: Customer ID (primary key), First Name, Last Name, Street Address, City, State, ZIP Code, Cell Area Code, Cell Phone, Home Area Code, Home Phone Number, Work Area Code, Work Phone Number, Email Address, Contact Preference (the student may have additional fields) Inventory table: Item Number (primary key), Item Name, Primary Vendor ID, Secondary Vendor ID, Cost, Sale Amount, Amount On Hand, Amount On Order, Warehouse ID, Location in Warehouse (the student may have additional fields) Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 55) How are database tables connected in a relational database? How does this help prevent entering data multiple times? Please provide an example. Answer: Database tables in a relational database are connected by fields that are common to two or more tables. The common field is usually the primary key for one of the tables. This connection helps prevent entering data multiple times by associating data in one table with data in another table. For example, customer information is usually stored in a table (Customer) with a primary key (Customer ID) and sales order (Order) information are stored in another table with a primary key (Order NO). By including a field for Customer ID in the Order table, the Order table and Customer table are connected. (The student may provide a different example.) Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 56) How can data in an accounting information system improve decision making? Provide examples of these decisions. Answer: Data in an accounting information system can improve decision making by being transformed into information. With further analysis, that information is transformed in to business intelligence. Business intelligence can help a business predict what type of new product customers will buy next year and/or what type of existing product customers will stop buying next year. It can help a business increase sales and reduce returns. Business intelligence can help investors decide if they should invest in the company or sell any existing investments in company. Business intelligence can help banks decide if they should loan the company money. Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 57) What is the difference between data, information, and business intelligence? Answer: Data is an individual piece of a larger entity. For example, the amount of a customer's purchase is data. An individual piece of data is generally not helpful in making business decisions. Information is a collection of related data. For example, an income statement. Information provides details about what occurred in the past. Business intelligence is an analysis of related information. For example, financial analytics and predictive modeling. Business intelligence helps decision makers make various predictions such as what customers will buy next year. Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 58) What is shadow data and why is it used? Answer: Shadow data is data extracted from the relational database to perform financial analyses. The analysis generally happens in a spreadsheet. Shadow data is used because it is that it is easier to perform analysis using spreadsheet features than performing the analysis using a relational database. Also, using a relational database to perform analysis often requires the assistance of IT staff to program the necessary queries, which creates dependency on IT availability and knowledge. Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 59) What are the advantages and disadvantages of using a shadow data system? Answer: Advantages - Easier to perform analysis using spreadsheets - No need to depend on IT staff to program and run necessary queries Disadvantages - Spreadsheets have very little documentation; therefore, when the individual who created it leaves, the spreadsheet is abandoned or must be recreated - Spreadsheets may have inadequate on nonexistent security to prevent unauthorized access Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? 60) What may be classified as a information asset? Please provide an example. Answer: Data contained in the information system. For example, electronic records, files, and databases. Information technology which is defined as hardware such as computers, servers, routers, keyboards, and monitors (the student may list other hardware) and software such as firewalls, applications, analysis tools (the student may list other software). Objective: Q1.3 What are the secrets of my success at the crossroads of accounting and IT? Objective 4 1) IT infrastructure is the design of an organization's information technology. Answer: FALSE Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 2) An IT audit includes auditing the System Development Life Cycle (SDLC). Answer: TRUE Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 3) What are the three key factors to consider for a successful accounting system? A) People, Processes, and Technology B) People, Budget, and Time C) Processes, Budget, and Time D) Time, Processes, and Technology Answer: A Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 4) Which of the following agents is internal to a company? A) Investor B) Customer C) Employee D) Vendor Answer: C Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 5) Which of the following is not a phase in the SDLC? A) Buy B) Design C) Plan D) Sell Answer: D Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 6) Which of the following processes are performed in the Designing Phase of the SDLC? A) Identify the requirements for the new system B) Test the new system C) Identify the new business processes D) Install the new system Answer: C Comment: Modified CISA question. Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 7) The staffing process occurs in which phase of the SDLC? A) Plan Phase B) Analyze Phase C) Build/Buy Phase D) Deploy Phase Answer: A Comment: Modified CISA question. Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 8) Analyzing the impact an accounting system will have on people should occur in which phase of the SDLC? A) Planning B) Analyze C) Design D) Deploy Answer: B Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 9) IT ________ is the design or blueprint for an enterprise's information technology. A) Infrastructure B) Architecture C) Technology D) Network Answer: B Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 10) Identify the people involved in an accounting system. What type of transactions do they generate? Answer: Vendors - Purchase transactions resulting from when an enterprise purchases goods and services from vendors Customers - Sales transactions related to an enterprise selling goods and services to customers Employees - Payroll transactions related to processing payments to employees and governmental agencies Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT? 11) What are the six main phases in the System Development Life Cycle. What happens in each phase? Answer: Plan the system project including scheduling, budgeting, and staffing. Analyze the new system requirements, such as what reports are required and what data needs to be collected by the system. Design business processes and databases for the new system. Build/buy and test databases and computer programs for the new system. Install new IT hardware, software, and databases. Deploy the new system, using the system on an ongoing basis and maintaining and updating it as necessary. Objective: Q1.4 What are three keys to opportunity at the crossroads of accounting and IT?