Core Concepts of Accounting Information Systems 13th Edition By Mark G. Simkin – Test Bank

 

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Sample Questions Are Posted Below

 

Chapter 5 DOCUMENTING ACCOUNTING INFORMATION SYSTEMS

 

 

True-False Questions

 

1. Documentation describes how an accounting information system works.

 

2. Documentation can help train new users of an accounting information system.

 

3. Documentation can help businesses save money—for example, by saving on training costs.

 

4. Documentation includes everything except narrative descriptions.

 

5. A data flow diagram represents a physical, rather than logical, view of an accounting information system.

 

6. Data flow diagrams are only used to audit an AIS.

 

7. Data flow diagrams use more symbols than system flowcharts.

 

8. A circle or bubble symbol in a data flow diagram is used to represent a “transformation process.”

 

9. Like system flowcharts, data flow diagrams have levels which show varying amounts of detail.

 

10. The highest level of a data flow diagram is also called a “context diagram.”

 

11. The first level of detail in a data flow diagram is called a “physical data flow diagram.”

 

12. The task of creating more-detailed data flow diagrams is called “decomposition.”

 

13. An important guideline to follow when creating data flow diagrams is to avoid drawing temporary files in them.

 

14. An important guideline to follow when creating data flow diagrams is to show only one system entity even when several of them perform the same tasks.

 

15. An important guideline to follow when creating data flow diagrams is to avoid user feedback because employees rarely understand data flow diagrams.

 

16. A document flowchart describes the physical flow of data through an accounting information system.

 

17. The direction of information flow in a document flowchart is represented by arrows.

 

18. Document flowcharts are mainly an educational aid and are seldom used in the business world.

 

19. A document flowchart is a particular kind of system flowchart.

 

20. Flowcharting is best viewed as a science, with strict rules and procedures.

 

21. An example of a system flowcharting symbol is a rectangle, which represents “processing.”

 

22. It is better to use connector symbols in flowcharts than to cross lines.

 

23. The keying operation that transfers payroll change requests directly to floppy disk is called an off‑line job entry system.

 

24. A system flowchart represents a flow or job stream of accounting data through the various processing phases of the accounting system.

 

25. Process maps are a special kind of flowchart.

 

26. Process maps use circles and arrows as their primary symbols.
27. When drawing a process map, a good idea is to meet with employees to solicit ideas, suggestions, and comments.

 

28. Program flowcharts and decision tables are used primarily by systems analysts and programmers.

 

29. The highest level program flowchart is called a “macro program flowchart.”

 

30. Decision tables are useful when a data processing task includes a large number of conditions and subsequent courses of action.

 

31. Decision tables use most of the same symbols as process maps.

 

32. The maximum number of rules for a decision table is 2ⁿ, where n is the number of conditions.

 

33. A major disadvantage of decision tables is that they are unable to summarize data processing tasks associated with a large number of data conditions into any kind of compact or easily understood format.

 

34. A useful guideline for drawing decision trees is to begin on the right and draw branches to the left.

 

35. When drawing a decision tree, a node can represent an entire subset of conditions, which can be drawn later in a separate tree.

 

36. You can draw documentation charts of various types using Microsoft Word or Excel.

 

37. Programs such as allClear and Visio are examples of CASE tools.

 

38. Documentation is not important when end users create their own computer programs or applications.

 

39. Good documentation to include when creating spreadsheets is the name of the original developer and important assumptions made in the model.

 

40. Companies should create documentation standards that apply to end-user programs as well as applications created by the IT department.

 

Multiple-Choice Questions

 

41. Documentation includes:
42. a) All flowcharts, narratives, and other written communications associated with the information system
43. b) All written communications associated with an accounting information system except flowcharts and data flow diagrams
44. c) All flowcharts, narratives, and other written communications associated with an accounting information system, except for program flowcharts or decision tables
45. d) Flowcharts and data flow diagrams only

 

42. The textbook identified seven reasons why documentation of an AIS is important. For which of the following reasons would the user guides, procedure manuals and operating instructions be most important?
43. a) Depicting how the system works
44. b) Training users
45. c) Designing new systems
46. d) Standardizing communications with others

 

43. Which of these requires auditors to understand a client’s system of internal controls before conducting an audit—an understanding aided by documentation?
44. SAS 1
45. SAS 55
46. The Securities and Exchange Act of 1939
47. SOX Act of 2002
48. AIS documentation is useful for accomplishing all of the following except:
49. Standardizing communications with others
50. Auditing AISs
51. Helping businesses comply with the Sarbanes Oxley Act
52. Saving businesses money
53. Documentation helps in all of the above
54. The AIS documentation discussed in the textbook enables businesses to document all of the following except:
55. Accounts receivable processes
56. Inventory management processes
57. Management decision processes
58. Payroll deduction logic
59. Documentation tools can represent the logic for all of these processes
60. Data flow diagrams:
61. a) Accomplish the same purpose as system flowcharts
62. b) Are different from system flowcharts since they focus on a logical view of the information system
63. c) Are useless for planning a new system
64. d) Are never used in analyzing an existing system

 

47. The basic symbols used in data flow diagrams are:
48. a) A circle, square, diamond, and rectangle
49. b) A triangle, circle, square, and open‑ended rectangle
50. c) An open‑ended rectangle, line and arrow, diamond, and square
51. d) An open‑ended rectangle, line and arrow, circle, and square

 

48. In a data flow diagram, an open‑ended rectangle is used to represent:
49. a) A process
50. b) A data stream
51. c) A data source or destination
52. d) A data store

 

49. All of these are levels of a data flow diagram except:
50. a) Physical data flow diagram
51. b) Process diagram
52. c) Context diagram
53. d) Logical data flow diagram

 

 

 

50. All of these are terms normally associated with data flow diagrams except:
    1. Context diagram
    2. Physical DFD
    3. Logical DFD
    4. Pseudo DFD

 

51. The task of providing greater detail in successive levels of data flow diagrams is called:
52. Contexting
53. Detailing
54. Decomposition
55. Pyramiding

 

52. All of these are guidelines for creating good data flow diagrams except:

1. Show the most detail in the highest-level DFD
2. Each logical DFD should contain between 5 and 7 processing bubbles
3. Even if a file is temporary, include it in your DFD
4. Classify most of the final recipients of processed data as external entities

 

53. Which type of data flow diagram depicts what the participants are doing in a system
    (i.e., what the system is doing)?
54. a) Context diagram
55. b) Physical DFD
56. c) Logical DFD
57. d) Systems flowchart

 

54. Which type of data flow diagram illustrates the internal and external entities who
    are participating in a given system?
55. a) Context diagram
56. b) Physical DFD
57. c) Logical DFD
58. d) Systems flowchart

 

55. Which of the following data flow diagram symbols is correctly identified?

 

 

 

 

 

 

1.      b.                                        c.                                 d.

 

1. a) External entity
2. b)       Internal entity
3. c)       Communication link (e.g., a satellite connection)
4. d)       Data store (file)

 

 

 

56. Which type of data flow diagram presents a high-level view of a system process?
57. a) Context diagram
58. b) Physical DFD
59. c) Logical DFD
60. d) Systems flowchart

 

57. Document flowcharts organize documents and activities by:
58. a) People
59. b) Departments
60. c) Monetary value
61. d) Complexity

 

58. Which of the following are most likely to be used by accountants as documentation?
59. a) Program flowcharts
60. b) Document flowcharts
61. c) Decision tables
62. d) System flowcharts

 

59. Which of the following professionals would use a document flowchart?
60. a) Accountants
61. b) Auditors
62. c) System designers
63. d) all of the above

 

60. A reader of a document flowchart is able to distinguish between the preparation of a document in one department and its receipt in another department by:
61. a) Logic
62. b) Arrows
63. c) Column
64. d) Narratives

 

61. When an individual prepares a document flowchart, the names of the various organizational departments involved in the accounting information system should be listed:
62. a) Along the right‑hand margin of the flowchart
63. b) Along the left‑hand margin of the flowchart
64. c) In the title of the flowchart
65. d) In the column headings of the flowchart

 

 

 

62. The document flowchart symbol for a manual file (such as a file cabinet of accounts receivable invoices) is:

 

1. a) b) c)                                d)

 

63. This is the document flowcharting symbol for a source document such as a purchase order:

 

1. a) b) c)                                d)
2. This is the document flowcharting symbol used to represent an online file:

 

1. a) b) c)                                d)
2. A system flowchart is a block diagram that:
3. a) Is used only by auditors
4. b) Is used primarily when document flowcharts cannot be used
5. c) Depicts the flow of computer systems in an organization
6. d) Depicts the flow of data through a computerized accounting information system

 

66. Most system flowcharting symbols:
67. a) Have not been standardized
68. b) Have been standardized by the Society of System Analysts
69. c) Have been standardized by the National Bureau of Standards
70. d) Are unique to the organization that uses them

 

 

 

67. Which of the following symbols represents the standard systems flowcharting symbol for an input/output process?

 

1. a) b) c)                                d)

 

 

68. Which of the following symbols represents the standard system flowcharting symbol for a screen display?

 

1. a) b) c)                                d)

 

 

69. Which of the following symbols represents the standard system flowcharting symbol for a processing operation?

 

1. a) b) c)                                d)

 

70. Which of the following symbols represents the standard system flowcharting symbol for a computer‑generated document?

 

1. a) b) c)                                d)

 

 

 

71. Which of the following symbols represents the standard system flowcharting

symbol for manual input (such as on a computer terminal)?

 

1. a) b) c)                                d)

 

72. A system that enables users to input data directly into a computer, typically from a remote site, is conventionally called a(n):
73. a) Remote input system
74. b) On‑line job entry system
75. c) Remote site input system
76. d) none of these

 

73. When creating system flowcharts, the requirement that a processing symbol should always be placed between an input symbol and an output symbol is known as the:
74. a) Processing rule
75. b) Input/output rule
76. c) Sandwich rule
77. d) Cycle rule

 

74. In most process maps, an arrow represents:
75. a) The direction for reading the chart
76. b) The tasks to perform in an accounting task
77. c) The flow of data
78. d) The flow of money through a cash register

 

75. Which of the following is not one of the four parts of a decision table?
76. a) The condition stub
77. b) Condition entries
78. c) Decision symbols
79. d) Action entries

 

76. Which of the following is not an advantage of decision tables?
77. a) They document the logic of the computer program
78. b) They show the order in which data conditions are tested and/or processing actions are taken
79. c) They increase computer programmer productivity
80. d) They summarize the data processing tasks to be performed for a large number of data conditions in a compact format

 

 

 

77. Well written documentation plays a key role in:
78. a) Reducing system failures
79. b) Increasing time spent correcting errors
80. c) Increasing time spent modifying programs
81. d) Increasing time spent by auditors following data flows

 

78. Document flowcharts use the following symbol to show movement of goods:
79. a) Pickup truck
80. b) Wheelbarrow
81. c) Hand truck
82. d) any of the above

 

79. A decision tree comes closest to which of the following alternate documentation aides?
80. Document flowchart
81. System flowchart
82. Context diagram
83. Decision table
84. Decision trees normally flow from:
85. Top to bottom
86. Left to right
87. Right to left
88. Inside outwards
89. Which of these is not an important guideline to follow when drawing decision trees?
90. Capture all possible conditions
91. Show all details in one decision tree
92. Identify all nodes without branches as errors
93. Start on the left and draw branches to the right
94. Most CASE tools:
95. a) Generate modifications with difficulty
96. b) Can detect inconsistencies in system designs
97. c) Rarely generate computer code
98. d) Need word processors to finish the documentation

 

83. An example of end-user documentation would most likely be:
    1. Pseudocode
    2. Decision tables
    3. A document drawn with a CASE tool
    4. Instructions for using a spreadsheet

 

 

 

84. All of the following are controls for end-user computing except:

1. Formally evaluate large projects
2. Formalize documentation standards
3. Limit the number of employees authorized to create end-user applications
4. all of the above are important controls

 

85. Frequent use of process maps is for:
86. Designing new AISs
87. Documenting the logic in a computer program
88. c) Reengineering business processes
89. d) Training aids

 

86. Which of the following flowcharting symbols is correctly identified?

 

1.                                                                                                                                                                                                                                                              b.                                  c.                                d.

 

1. a)       Process
2. b)       Document
3. c)       Decision
4. d)       Display

 

87. End-user computing is common in firms because:
88. a) It is free
89. b) It is well-documented
90. c) It allows employees to rapidly develop applications
91. d) It prevents employees from altering systems

 

 

Matching Questions

 

For the following terms find the correct definition below and place the letter of that response in the blank space next to the term.  Each definition is used only once.

 

88. ______ CASE (computer-assisted software engineering) tools
89. ______  context diagram
90. ______  data flow diagrams
91. ______  decision table
92. ______  document flowchart
93. ______  documentation
94. ______  end user computing
95. ______  graphical documentation software
96. ______  logical data flow diagram
97. ______  object-oriented software
98. ______  physical data flow diagram
99. ______  process map
100. ______ program flowcharts
101. ______ system flowchart

 

Definitions:

1. Traces the physical flow of documents through an organization
2. A high-level data flow diagram
3. Concentrates on the computerized data flows of AISs
4. Document business processes in easy-to-follow diagrams
5. Programs that contain modular, reusable code
6. IT professionals create these to help them plan the logic for each processing routine in large programs
7. Allows users to automate documentation tasks such as drawing or modifying flowcharts, drawing graphics and screen designs, developing reports, and even generating code from documentation
8. A DFD that shows what participants do in a given system
9. Describes the logical flow of data within a computer system and the procedures that employees must follow to accomplish application tasks
10. Used as an alternative to program flowcharts
11. A context diagram that has been decomposed into the first level of detail
12. Examples include Microsoft PowerPoint, Word, and Excel
13. Refers to the ability of non-IT employees to create computer applications of their own
14. Used primarily in the systems development process (i.e., as a tool for analyzing an existing system or as a planning aid for creating a new system)

 

 

 

 

Short Answer Questions

 

102. What are the four symbols used in a data flow diagram, and what does each of the symbols mean?

 

103. What is the purpose of a decision table?

 

104. What are process maps? Are they useful to accountants?  If so, how?

 

105. What is end user documentation? Who creates it?  Why is it important?