ACCOUNTING INFORMATION SYSTEMS GLOBAL EDITION 14TH ED BY MARSHALL B – TEST BANK

Chapter 3   Approaches for Documenting Strategies

1   Prepare and utilize knowledge flow diagrams to comprehend, assess, and record information systems.

1) Visual representations of information are frequently complemented by 

A) textual descriptions.

B) relevant electronic mail exchanges.

C) logical charts. 

D) verbal explanations from management. 

Response:  A

Concept:  Data flow diagrams

Purpose:  Learning Objective 1

Difficulty:  Straightforward

AACSB:  Analytical Thinking

2) Every one of the following are recommendations for preparing data flow diagrams except

A) provide the most detail in the highest-level DFD.

B) include all storage files, even if they are only temporary.

C) assign unique names to all data flows.

D) sequentially number process bubbles.

Response:  A

Concept:  Data flow diagrams

Purpose:  Learning Objective 1

Difficulty:  Moderate

AACSB:  Analytical Thinking

3) The Sarbanes-Oxley Act mandates independent auditors to

A) construct flowcharts to document business processes.

B) grasp a client’s system of internal controls.

C) establish effective internal controls.

D) prepare and understand various types of system documentation. 

Response:  B

Concept:  Data flow diagrams

Purpose:  Learning Objective 1

Difficulty:  Moderate

AACSB:  Analytical Thinking

4) The enactment of the Sarbanes Oxley Act 

A) heightened the significance of documentation skills.

B) necessitates publicly traded companies to prepare an annual internal control report.

C) mandates that auditors must be able to prepare, evaluate and interpret documentation tools such as flowcharts.

D) All of the above.

Response:  D

Concept:  Data flow diagrams

Purpose:  Learning Objective 1

Difficulty:  Straightforward

AACSB:  Analytical Thinking

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