My Questions For Systems Final

Front 1

Each function has its own system to support their operations is what kind of systems?

Back 1

Flat-file systems

Front 2

-Deals with duplication problem
-Sophisticated software and hardware have made this possible
-Single system will support all functions

Back 2

Database system

Front 3

Advantages of Distributed IT functions

Back 3

-lower hardware requirement
-improved cost control responsibility
-improved user satisfaction since control is closer to the user level
-Backup of data can be improved through the use of multiple data storage sites

Front 4

Dis-advantages of Distributed IT functions

Back 4

-lots of controls at the top (security issues)
-hardware and software incompatibility (data doesn't talk to each other)
-redundant tasks and data
-difficult to attract qualified personnel

Front 5

4 sub-systems in the expenditure cycle?

Back 5

1. Purchase system
2. Payroll system
3. Fixed asset system
4. Cash disbursement system

Front 6

2 sub-systems in the conversion cycle?

Back 6

1. production system
2. cost accounting system

Front 7

2 sub-systems of Revenue Cycle?

Back 7

1. sales order processing -physical
2. cash receipt-financial

Front 8

____ is used to record similar operating events with large volume

Back 8

Special Journal
(sales, purchases, cash receipt, disbursement)

Front 9

_____ is used to record adjusting entries

Back 9

General Journal

Front 10

____ shows chronological activities for each account listed on the chart of accounts

Back 10

General Ledger

Front 11

____ provides more detailed information about individual accounts than a general ledger.

Back 11

Subsidiary Ledger
(inventory, accounts payable, payroll, and accounts receivable)

Front 12

Periodically reconcile subsidiary ledger to General ledger

Back 12

A subsidiary ledger

Front 13

Operating activities are recorded in_____.

Back 13

Special Journal

Front 14

A lower level diagram ignores____.

Back 14

Physical aspects

Front 15

Context diagram includes:

Back 15

-summary level view of a system
-it depicts one process and the external entities that give inputs and receive outputs from this process [rectangle-->circle-->rectangle]

Front 16

Lower level data flow diagram (DFD) includes:

Back 16

-[rectangle-->circle-->rectangle]
but also data storage
-ignores physical aspects (internal agents/whether done by human or machine)
-ignores segregation of functions
-ignores type of data storage medium

Front 17

Stealing cash before it is recorded in the book
a.check tempering
b. cash larceny/lapping
c. billing scheme
d. payroll fraud
e. skimming

Back 17

e. skimming

Front 18

Cash receipts are stolen after they have been recorded:
a.check tempering
b. cash larceny/lapping
c. billing scheme
d. payroll fraud
e. skimming

Back 18

b. lapping

Front 19

Forging or changing in material way a check written to a legitimate payee:
a.check tempering
b. cash larceny
c. billing scheme
d. payroll fraud
e. skimming

Back 19

a. check tempering

Front 20

Mislead an employer to issue a payment to a false supplier by submitting fictitious goods, inflated invoices, or invoices for person purchases:
a.check tempering
b. cash larceny
c. billing scheme
d. payroll fraud
e. skimming

Back 20

c. billing scheme

Front 21

SAS78 looks at the___.

Back 21

internal controls through the system

Front 22

Five internal control components

Back 22

CRIME
C-Control Acitivies
R-Risk and assessment
I-Information and Communication
M-Monitoring
E- Control Environment

Front 23

Which control component?
-integrity and ethics management
-role of B.O.D. and audit committee
-performance evaluation measures
-managements policies
-delegation of responsibility and authority

Back 23

Control Environment "E"

Front 24

Which control component?
Identify and analyze
-changes in external environment
-significant and rapid growth that strain internal control
-new productlines
-restructuring
-changes in accounting principles

Back 24

Risk Assessment "R"

Front 25

Which control component?
-AIS should produce high quality information so managers can carry out their responsibilities
-IS are developed on overall business strategies
-Management explicitly conveys employees duties and control responsibilities in a effective manner

Back 25

Information and Communication"I"

Front 26

Which control component?
-The process for assessing the quality of internal control design and operation

Back 26

Monitoring "M"

Front 27

Which control component?
-Policies and procedures to ensure that the appropriate actions are taken place in response to identified risks
-2 categories-IT and physical

Back 27

Control Activities "C"

Front 28

Six types of physical controls?

Back 28

1. authorization
2. segregation of duties
3. supervision
4. accounting records
5. access control
6. independent verification

Front 29

- used to ensure that employees are carrying out only authorized transactions

Back 29

Authorization

Front 30

- In manual systems a different employee authorizing the transaction, custody of assets and record keeping of the assets

Back 30

Segregation of Duties

Front 31

-Managers monitor the employee's actions.
-Used when you have a lack of___?

Back 31

Supervision
-(Lack of seg. of duties)

Front 32

-Provide and adequate audit trail

Back 32

Accounting Records

Front 33

- Help safeguard assets by restricting physical access to them

Back 33

Access Controls

Front 34

- Reviewing and reconciling subsidiary act with control act on GL
- Reconciling accounting records and external statements
-Comparing physical assets with accounting records

Back 34

Independent Verification

Front 35

Tasks in Rev cycle
1. Sales Clerk
2. Credit clerk
3. WH Clerk
4. Shipping Clerk
5. Billing Function
6. A/R Function
7. Inventory control Function
8. GL Function

Back 35

1. Sales Clerk-authorization
2. Credit clerk-authorization
3. WH Clerk-custody
4. Shipping Clerk-custody
5. Billing Function- Recording
6. A/R Function-Recording
7. Inventory control Function-Recording
8. GL Function-Recording

Front 36

Who receives the customer order in Rev Cycle?

Back 36

Sales Clerk-authorization [who makes it into a sales order]

Front 37

Document that authorizes releasing inventory items in Rev Cycle? Made by who?

Back 37

Stock Release
Sales Clerk

Front 38

Who receives sales order in Rev Cycle?

Back 38

Billing Function [from sales clerk]

Front 39

Who receives stock release in Rev Cycle?

Back 39

WH Clerk-Custody [from sales clerk]

Front 40

Who receives packing slip in Rev Cycle?

Back 40

Shipping Clerk-custody

Front 41

Who prepares the BOL in Rev Cycle?

Back 41

Shipping Clerk-Custody

Front 42

Who prepares shipping notice in Rev Cycle?

Back 42

Shipping Clerk-Custody

Front 43

Who prepares the invoice in Rev Cycle?

Back 43

Billing Function-Recording

Front 44

Who gets the BOL & Packing slip in Rev Cycle?

Back 44

Carrier [sent from shipping clerk]

Front 45

Checking stock release with packing slip is what kind of control?

Back 45

Independent Verification

Front 46

Sale made on credit is what kind of control?

Back 46

Authorization- making sure that transactions should occur so that only valid ones get processed

Front 47

Who creates R.A. in the cash receipts cycle?

Back 47

Mailroom clerk

Front 48

Who creates the deposit slip in the cash receipts cycle?

Back 48

Cash Receipt Clerk

Front 49

Who updates the A/R Sub Ledger in the cash receipts cycle?

Back 49

A/R Clerk

Front 50

Who gets the returned deposit slip from the bank in the cash receipts cycle?

Back 50

Controller

Front 51

Five tasks in the Expenditure Cycle:
1. Purchasing
2. WH/Receiving Clerk
3. A/P Function
4. Inventory control Function
5. General Ledger Function

Back 51

1. Purchasing (authorizing)
2. WH/Receiving Clerk (custody)
3. A/P Function (Recording)
4. Inventory control Function (Recording)
5. General Ledger Function (Recording)

Front 52

Who creates the receiving report in the Exp Cycle?

Back 52

WH Clerk (Custody)

Front 53

Who prepares the Purchase order in the Exp Cycle?

Back 53

Purchasing Manager (Authorizing)

Front 54

IT replaces the ___ function.
a. authorizing
b. recording
c. custody

Back 54

b. Recording

Front 55

Who receives the receiving report after the WH clerk creates it in the Exp Cycle??

Back 55

Purchasing [ to update inventory]

Front 56

Who receives the purchase order in the Exp Cycle?

Back 56

WH Clerk (Custody)

Front 57

Who creates the cash disbursement voucher in the Exp Cycle?

Back 57

A/P Function (Recording)

Front 58

Who records the liability after receiving P.O., receiving report, and suppliers invoice?

Back 58

A/P Function (Recording)

Front 59

Payroll imprest account is ?

Back 59

A separate account that is set up to be a control -can't overdraw the company's account