Essay on Quiz for Accounting Information System
1. What is data? What is information? (p.10)
Data are facts, which may or may not be processed and have no direct effect on a user’s actions.
Information causes the user to take an action that he or she otherwise could not, or would not have taken.
2. List tasks of database management. (p.12)
Three database management tasks are data storage, data retrieval, and data deletion.
3. What services could not public accountings provide with their audit clients? (p.22)
Bookkeeping or other services related to the accounting records or financial statements of the audit client;
Financial information systems design and implementation;
Appraisal or valuation services, fairness opinions, or contribution-in-kind …show more content…
Audit trial is used to trace account balances contained in the financial statements back to source documents and the economic events that created them. It is of utmost importance in the conduct of a financial audit.
4. What’s the purpose of source documents? (p.34)
Source documents are used to capture and formalize transaction data that the transaction cycle uses for processing.
5. What’s the difference between master file and transaction file? (p.41)
A master file contains account data.
A transaction file is a temporary file of transaction records used to update data in a master file.
Quiz Chapter 3
1. What is management fraud? What is employee fraud? (p.98)
Management fraud is perpetrated at levels of management above the one to which internal control structures generally relate, involves using financial statements to make an entity healthier and more prosperous, and involves misappropriation of assets.
Employee fraud is generally designed to directly convert cash or other assets to the employee’s personal benefit.
2. What are the components of COSO framework? (p.112)
They are: the control environment, risk assessment, information and communication, monitoring, and control activities.
3. What are the objectives of segregation of duties? (p.116)
Objective 1: Authorization for a transaction is separate from the processing of the transaction.