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

Complete Test Bank With Answers

 

 

Sample Questions 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 offline 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. 

• Process maps are a special kind of flowchart.

• 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.

•  

• 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. 

• 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:

a) All flowcharts, narratives, and other written communications associated with the information system 

b) All written communications associated with an accounting information system except flowcharts and data flow diagrams 

c) All flowcharts, narratives, and other written communications associated with an accounting information system, except for program flowcharts or decision tables 

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?

• Depicting how the system works
• Training users
• Designing new systems
• 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? 

• SAS 1
• SAS 55
• The Securities and Exchange Act of 1939
• SOX Act of 2002

44. AIS documentation is useful for accomplishing all of the following except: 

• Standardizing communications with others
• Auditing AISs
• Helping businesses comply with the Sarbanes Oxley Act
• Saving businesses money
• Documentation helps in all of the above

45. The AIS documentation discussed in the textbook enables businesses to document all of the following except: 

• Accounts receivable processes
• Inventory management processes
• Management decision processes
• Payroll deduction logic
• Documentation tools can represent the logic for all of these processes

46. Data flow diagrams:

a) Accomplish the same purpose as system flowcharts

b) Are different from system flowcharts since they focus on a logical view of the information system

c) Are useless for planning a new system

d) Are never used in analyzing an existing system

47. The basic symbols used in data flow diagrams are:

a) A circle, square, diamond, and rectangle

b) A triangle, circle, square, and openended rectangle

c) An openended rectangle, line and arrow, diamond, and square 

d) An openended rectangle, line and arrow, circle, and square 

48. In a data flow diagram, an openended rectangle is used to represent:

a) A process

b) A data stream

c) A data source or destination

d) A data store 

 

49. All of these are levels of a data flow diagram except: 

a) Physical data flow diagram

b) Process diagram

c) Context diagram

d) Logical data flow diagram

 

 

50. All of these are terms normally associated with data flow diagrams except:

• • Context diagram
  • Physical DFD
  • Logical DFD
  • Pseudo DFD

• 51. The task of providing greater detail in successive levels of data flow diagrams is called:

• • Contexting
  • Detailing
  • Decomposition
  • Pyramiding

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

• Show the most detail in the highest-level DFD
• Each logical DFD should contain between 5 and 7 processing bubbles
• Even if a file is temporary, include it in your DFD
• 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)?

a)   Context diagram

b)  Physical DFD

c)  Logical DFD

d)   Systems flowchart

54. Which type of data flow diagram illustrates the internal and external entities who
are participating in a given system?

a)   Context diagram

b)   Physical DFD

c)   Logical DFD

d)   Systems flowchart

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

 

a.    b. c. d.

a)   External entity

b)   Internal entity

c)   Communication link (e.g., a satellite connection)

d)   Data store (file)

 

56. Which type of data flow diagram presents a high-level view of a system process?

a)   Context diagram

b)   Physical DFD

c)   Logical DFD

d)   Systems flowchart

57. Document flowcharts organize documents and activities by:

a)   People

b)   Departments

c)   Monetary value

d)   Complexity

• 58. Which of the following are most likely to be used by accountants as documentation?

a) Program flowcharts

b) Document flowcharts

• c) Decision tables

d) System flowcharts

• 59. Which of the following professionals would use a document flowchart?

a)Accountants 

b)Auditors

c)System designers

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:

a) Logic

b) Arrows 

c) Column 

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:

a) Along the righthand margin of the flowchart

b) Along the lefthand margin of the flowchart

c) In the title of the flowchart

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: 

a) b) c) d)

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

a) b) c) d)

64. This is the document flowcharting symbol used to represent an online file:

a) b) c) d)

65. A system flowchart is a block diagram that:

a) Is used only by auditors

b) Is used primarily when document flowcharts cannot be used

c) Depicts the flow of computer systems in an organization 

d) Depicts the flow of data through a computerized accounting information system 

66. Most system flowcharting symbols:

a) Have not been standardized 

b) Have been standardized by the Society of System Analysts

c) Have been standardized by the National Bureau of Standards

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? 

a) b) c) d)

 

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

a) b) c) d)

 

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

a) b) c) d)

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

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)? 

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):

a) Remote input system

b) Online job entry system

c) Remote site input system

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:

a) Processing rule

b) Input/output rule

c) Sandwich rule

d) Cycle rule

 

74. In most process maps, an arrow represents:  

a) The direction for reading the chart 

b) The tasks to perform in an accounting task 

c) The flow of data 

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?

a) The condition stub

b) Condition entries 

c) Decision symbols

d) Action entries

76. Which of the following is not an advantage of decision tables?

a) They document the logic of the computer program

b) They show the order in which data conditions are tested and/or processing actions are taken

c) They increase computer programmer productivity

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:

a) Reducing system failures

b) Increasing time spent correcting errors

c) Increasing time spent modifying programs

d) Increasing time spent by auditors following data flows

78. Document flowcharts use the following symbol to show movement of goods:

a) Pickup truck

b) Wheelbarrow

c) Hand truck

d) any of the above

79. A decision tree comes closest to which of the following alternate documentation aides? 

• Document flowchart
• System flowchart
• Context diagram
• Decision table

80. Decision trees normally flow from: 

• Top to bottom
• Left to right
• Right to left
• Inside outwards

81. Which of these is not an important guideline to follow when drawing decision trees? 

• Capture all possible conditions
• Show all details in one decision tree
• Identify all nodes without branches as errors
• Start on the left and draw branches to the right

82. Most CASE tools:

a) Generate modifications with difficulty

b) Can detect inconsistencies in system designs

c) Rarely generate computer code

d) Need word processors to finish the documentation

83. An example of end-user documentation would most likely be:

• • Pseudocode
  • Decision tables
  • A document drawn with a CASE tool
  • Instructions for using a spreadsheet

 

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

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

• 85. Frequent use of process maps is for:

• Designing new AISs
• Documenting the logic in a computer program

c)   Reengineering business processes

d)   Training aids 

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

a.    b.     c.     d.

a)   Process

b)   Document

c)   Decision

d)   Display

87. End-user computing is common in firms because:

a)   It is free

b)   It is well-documented

c)   It allows employees to rapidly develop applications

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

•       ______  context diagram
•       ______  data flow diagrams
•       ______  decision table
•       ______  document flowchart
•       ______  documentation
•       ______  end user computing
•       ______  graphical documentation software
•       ______  logical data flow diagram
•       ______  object-oriented software
•       ______  physical data flow diagram
•       ______  process map
• ______  program flowcharts
• ______  system flowchart

Definitions:

• Traces the physical flow of documents through an organization 
• A high-level data flow diagram
• Concentrates on the computerized data flows of AISs 
• Document business processes in easy-to-follow diagrams 
• Programs that contain modular, reusable code 
• IT professionals create these to help them plan the logic for each processing routine in large programs  
• 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 
• A DFD that shows what participants do in a given system
• Describes the logical flow of data within a computer system and the procedures that employees must follow to accomplish application tasks 
• Used as an alternative to program flowcharts 
• A context diagram that has been decomposed into the first level of detail
• Examples include Microsoft PowerPoint, Word, and Excel
• Refers to the ability of non-IT employees to create computer applications of their own
• 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?