a. The Geek Squad ( www.geeksquad.com ) offers a variety of telephone, in-office, and in-home computer services. When a call for assistance comes into their 800 number, the Geek Squad determines its geographical origin and routes the call to an agent in the area. The agent confers with the customer by phone, determining the nature of the problem and the type of service desired. The agent also will find out if the customer has previously done business with Geek Squad. The agent will respond to the customer’s request and report the problem’s resolution to the corporate office. The corporate office bills the customer and collects payment; a fixed fee is remitted to the local agent based on the type and nature of the service call. Point your Web browser to the Geek Squad Web site to get more information about their operations. Then, prepare a context diagram, Level Zero diagram, and one Level One diagram for Geek Squad. b. E very year, the Institute of Management Accountants sponsors a student case competition to help students build their technical, analytical, and communication skills. In the student case competition, the IMA solicits cases from accounting faculty; an IMA committee chooses the best case and publishes it in an issue of Strategic Finance. Teams of students prepare videotaped responses to the case and submit them to the IMA. The videotaped presentations are evaluated and the team with the best presentation in each geographic region presents their case “in person” to a panel of judges at the IMA annual meeting. The team with the best presentation receives an award; all teams presenting at the annual meeting receive an engraved plaque with the members’ names on it. The IMA maintains a database of case topics and authors; it also keeps a record of the name and university affiliation of all teams submitting videotapes as well as the status of those submissions. (For more information about the IMA student case competition, point your Web browser to www.imanet.org. ) Consider the preceding narrative, and prepare a leveled set of data flow diagrams (context, Level Zero, and Level One). c. Consider the narratives presented in Problem 6 of Chapter 6 for Cori’s Catering Services and University Bookstore. Use those narratives to prepare a leveled set of data flow diagrams.
> In 2013, an employee was suspected of falsifying time records, so the state employer installed a GPS device on the employee’s personal vehicle, which the employee used for work activities. However the GPS device was left on during both work and non-work
> An employee submitted an expense report that included costs from a cell phone issued by his company. The company wanted to check the phone to verify information that the employee had provided and, because the employee was in the hospital, they obtained a
> Robert Sumien worked as an emergency care technician (EMT) for Careflite. Jan Roberts, his ambulance partner, commented on the Facebook wall of a third Careflite employee that she wanted to “slap” a patient that she had recently transported. This comment
> An employee obtains permission to take a leave of absence to attend to a personal matter. A co-worker asks the manager why the employee is on leave. What information may the manager properly share with the co-worker?
> A gay employee files a claim of invasion of privacy against his employer who shared with co-workers the fact that the employee’s male partner was listed on his insurance policy and pension plan as his beneficiary. Does he have a claim?
> In May 2015, a woman sued her employer after she was fired for uninstalling a GPS tracking app from a company-issued smartphone. Does she have a case for wrongful termination? What about a violation of privacy? Does it matter if the employer requires tha
> 1. Are you surprised by this outcome? Why or why not? 2. Does the outcome make sense to you? Explain. 3. What would you have done if you were the employer in this situation?
> 1. What do you think of the way in which Ali was approached by Dr. Shields about her violation of the dress code? Does this seem advisable to you? 2. How much of a role do you think different cultural values played in this situation? Explain. 3. What can
> Classify each of the following controls as physical, technical, or administrative. Then, describe each control in your own words. a. Access control software b. Adequate supervision of employees c. Badges d. Encryption e. Firewalls f. Internal audits g. I
> Which element(s) of Carter’s taxonomy apply to each of the following situations? If more than one category applies, explain why. a. A bookkeeper steals cash as it comes into the company. The bookkeeper later falsifies accounting entries using general led
> The Payment Card Industry Security Standards Council (PCI DSS) has suggested standards to address cases similar to the Target data breach discussed in this chapter’s AIS in the Business World; the Council’s Web site is
> This chapter’s AIS in the Business World focused on Amazon, but many other companies are also involved in e-business. Consider one of the following as the basis for answering the questions below: Google, Dell, Best Buy. a. What forms of e-business does y
> a. What is the distinguishing characteristic of e-business that makes it different from traditional brick-and-mortar businesses? b. The chapter discusses five basic types of e-business arrangements. Identify and describe each one; give an example for eac
> Use the indicated Excel formulas to respond to the following independent situations. a. Formula: PMT. BBT Corporation wants to lease an ERP system for a period of three years. If the total lease price is $50,000, and the ERP vendor charges an interest ra
> a. When an organization implements an ERP system or enters into the e-business arena, it is exposed to a variety of risks. Use the COSO ERM framework discussed in Chapter 4 to design a generic risk management plan for one of those two situations. b. A sm
> Indicate whether each of the following statements is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. Companies involved in e-business report higher profit margins t
> a. Companies considering utilizing an ASP might start the process by identifying a need to lower costs and increase flexibility. What other steps would a manager likely take in selecting an ASP? Who should be involved in such a decision? b. Refer to www.
> Choose one of the Fortune 100 companies; investigate it on the Internet and through your university’s library. Work with a group of students to prepare a PowerPoint presentation to fulfill the first three of Umble and Umble’s six conditions for promoting
> As you learned in the chapter, designing and implementing accounting information systems requires judgment and critical thinking. Each chapter will include an exercise like this one to help you develop those skills. Several statements related to the mate
> Which category of e-business (B2B, B2C, G2B, or G2C) best describes each of the following items? a. Buying materials for professional practice from www.aicpa.org b. Electronic reporting of state unemployment taxes c. Filing personal income taxes with Tax
> As you read in the chapter, the presence of a computer network is the defining characteristic of e-business. Research the topic and define each of the following terms related to networks and networking. a. Local area network b. Network architecture c. Ne
> The chapter mentioned three potential internal controls for an e-business environment: encryption, segregation of duties, and access restrictions. Consider your study of internal controls throughout this text; suggest five additional internal controls fo
> a. Point your Web browser to www.baselinemag.com. Locate and read “Hershey’s Sweet Victory” by David F. Carr. In the blinding light of hindsight, which of the common causes of ERP failure did Hershey experience? What could management have done to avoid t
> Consider the following data from BNF Corporation’s statement of cash flows for the quarter ended 31 March 2014: Cash received from issuance of capital stock ………………………..$ 9,499 Cash received from customers …………………………………………………9,215 Cash received from sale
> You’ll see a problem of this type in every chapter from here through the end of the text. In these problems, you’ll be considering the relationship between the current chapter’s material (XBRL in this case) and material discussed in earlier chapters (suc
> Indicate whether each of the following statements is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true; explain when the statement is true. a. All necessary XBRL tags were developed by the XBRL Consortium.
> Fill in the blanks below with terminology that describes the benefits of XBRL for organizations and accountants. a. Consolidate results across ___ with much greater speed and reliability. b. Focus effort on ___ , rather than on laborious tasks in ___ dat
> Read “Six Steps to XBRL” by Phillips, Bahmanziari, and Colvard in the February 2008 issue of Journal of Accountancy. a. Is XBRL relevant to companies that don’t file with the SEC? Justify your response. b. List the six steps the authors recommend for cre
> The purpose of XBRL is to provide a context for understanding financial information. Several contextual categories associated with financial information are listed below; for each category listed, give at least two examples of how it might vary across or
> Use the adjusted trial balance from Problem 7 to prepare an income statement for the quarter ended 30 September 20x4 and a balance sheet as of 30 September 20x4 for GLP Corporation. Data from Problem 7: The unadjusted trial balance for GLP Corporation
> Point your Web browser to www.xbrl .squarespace.com. Summarize the information you find there, and evaluate it using the UMUC criteria discussed in Chapter 1.
> Your old friend, Bumble Beasley, just completed his accounting degree at Dewey, Cheatham and Howe University. Although he studied XBRL in several of his accounting and information systems courses, he’s not really sure he has mastered the topic. In talkin
> a. What is XBRL? How is it related to XML? b. Define the following terms related to XBRL: specification, taxonomy, instance document. c. How can XBRL benefit organizations? d. Will most accountants need to learn to write “code” in XBRL? If not, how can t
> Create database specifications for the following tables: create new community, community hero, create new community / community organizer.
> The Big Marker narrative explains the process used for starting and monitoring communities. Using the technique(s) specified by your AIS instructor, document that process.
> Consider the database specifications you created in Question 2. Suggest three queries Big Marker could create to inform decision making about obtaining corporate sponsors. For each query, indicate its name, its purpose and the fields you would use to cre
> The Big Marker narrative discusses the relationship between corporate sponsors and communities. Consider the REA model below; create specifications for all indicated database tables. Obtain (0,") (1,1) Big Marker community corporate sponsors (1,") (
> Using the technique(s) specified by your AIS instructor, document the process Big Marker uses to purchase new servers.
> Consider the following Excel spreadsheet Import the Excel data into an Access table. Then, create a query that shows the number of transactions processed by each employee. Transaction ID Transaction date Employee ID Customer ID 1 2/3/2014 178 5071
> Please indicate whether each of the following statements is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. “Choose AIS software” would be included as an event in a
> The unadjusted trial balance for GLP Corporation appears on the next page. End-of-period analysis revealed the following: a. The market value of equipment had decreased by 30 percent of its original cost. Depreciation for the quarter totaled $1,000. b. T
> In each independent case situation below, construct a REA model and a database structure. a. Tom’s Trailers. Tom owns a small recreational trailer business in a suburban community located close to the mountains. The community is relatively small but grow
> Most major airlines have “frequent flyer” programs. A customer creates a new account, and earns miles in a variety of ways such as purchasing goods and services through a credit card linked to the account, taking paid flights on the airline, and celebrat
> a. What are the similarities and differences between view-driven and event-driven accounting information systems? b. What does the acronym REA stand for? Give examples of each element. c. List the six steps for creating a REA model. d. Explain how to est
> a. What is a data flow diagram? How are data flow diagrams used in accounting information systems? b. List and discuss the four symbols used in the development of data flow diagrams. Give an example of each symbol in an AIS context. c. What rules/convent
> In this problem, you’ll be creating a drop-down list in Excel. a. Consider the following list of items you might find in a data flow diagram: Starting in Cell A1, enter the list of items in the first tab of a blank Excel spreadsheet.
> Specify whether each statement below is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. A context diagram does not include data stores. b. A database table in 2NF i
> a. Create at least two database tables for each Level One data fl ow diagram you created in Problem 6 (data flow diagram creation). b. In most states, the Department of Motor Vehicles keeps records of individual driver’s licenses and vehicle license plat
> Several independent flat files are shown below. From the fields listed, create the tables indicated. (Not all fields will be used in creating the indicated tables.) a. Tables to create: purchase inventory table, purchase inventory/inventory table b. Ta
> Bumble Beasley is a recently enrolled accounting major at your university. In a conversation about accounting information systems, he said: “I don’t know why we have to learn about flowcharts and data flow diagrams. One documentation technique should be
> Record each of the following transactions in general journal format. a. Issued 50,000 shares of $1 par capital stock for $35 each. b. Billed customers for services provided, $10,000. c. Purchased supplies on account, $3,000. d. Paid monthly utility bill,
> Most major airlines have “frequent flyer” programs. A customer creates a new account, then earns miles in a variety of ways such as purchasing goods and services through a credit card linked to the account, taking paid
> a. What is a flowchart? Describe four different kinds of flowcharts and explain the most often used in an accounting information system. b. Summarize the rules and conventions commonly observed in the preparation of flowcharts. c. List and explain the me
> TNG Corporation has 25 employees in its Accounting department. Based on the results of a standardized exam, TNG has ranked each employee’s flowcharting skill as shown in the array below: The most skilled employee is ranked 1; the leas
> Indicate whether each statement below is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. Columns in a systems flowchart denote areas of responsibility. b. Flowchart
> a. Consider the Richards Furniture Company flowchart again. Describe at least two strengths and at least two weaknesses of the flowchart itself. Then, identify and describe at least two strengths and at least two weaknesses of the process it depicts. For
> Narrative preparation from a flowchart. a. Consider the Richards Furniture Company flowchart presented in Figure 6.3 . Write a narrative description of the business process it depicts. b. Consider the Price Right Electronics Inc. flowchart presented in F
> Create a flowchart based on each of the following independent situations (one flowchart per situation). a. Cori’s Catering Services. Cori is the owner and manager of a catering company. CCS provides complete meals (breakfast, lunch, and dinner), as well
> Compare and contrast Smart Draw and Microsoft Visio. Prepare a paper and/or PowerPoint presentation that includes a recommendation regarding your preferred flowcharting software; justify your recommendation.
> This chapter’s AIS in the Business World presented a partial flowchart for the sales/ collection process at Barnes & Noble; later in the chapter, Figure 6.2 presented a partial flowchart of the acquisition/payment process for the sa
> Big Marker uses the standard chart of accounts in QuickBooks to maintain its financial records. a. Suggest specific account titles and account numbers for at least three accounts in each of the following categories: current assets, plant assets, current
> Richie’s Diner is a 1950s style restaurant chain with locations throughout southern California; you can learn more about them at www. richiesdiner .com/. Richie’s has a fairly standard process for serving food that goes something like this: 1. Seat custo
> Accounting information systems have five generic parts. Based on the preceding narrative, information on the Big Marker web site and your own critical thinking, provide two examples of each of the five generic parts.
> How would you describe Big Marker’s business processes using the Capability Maturity Model? Explain your classification.
> Create a risk / control matrix for Big Marker using some combination of the internal controls discussed in the narrative and any you created in the previous question.
> Use the relevant COSO frameworks to develop internal control and enterprise risk management plans for Big Marker. For both plans, suggest control activities that are not mentioned in the narrative.
> Consider the list of internal controls presented in the narrative. For each one, discuss: a. Whether it is primarily preventive / detective / corrective in nature. b. Which of the four purposes of internal control it is designed to achieve.
> AGN Corporation uses the systems development life cycle to develop/ select new forms of information technology for its operations; its technology acquisition process is considered “managed” based on the capability maturity model. AGN is considering purch
> Indicate whether each of the following statements is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. The systems development life cycle is the best way to develop n
> Do a Google search for the AICPA Top Ten Technologies. Investigate the most recent list; describe the process used to develop the list. Work with a group of students to investigate one or more of the technologies, summarizing your work in a form specifie
> a. Jeff is the warehouse manager for Alta Pasa Unified School District; he wants an online inventory tracking system for computers and other technology resources in the warehouse. List and discuss at least five questions you would ask Jeff and his staff
> Which phase of the SDLC is described by each independent case below? a. Dolores used design specifications to create database tables for employee records. b. Eric works at a “help desk” answering questions about patching issues in World of Warcraft. c. E
> a. Which of the following would be recordable transactions in an accounting information system? For each item that would not be a recordable transaction, explain why not. i. Purchasing land with a down payment and a note payable. ii. Verifying an increas
> Several business processes are described below. Which CMM level best characterizes each one? a. Alastor owns a lawn care business. Each time he mows a client’s lawn, he sets a goal for how long it should take. b. Big State University was engaged in three
> a. Business professionals have debated whether or not an organization should strive to ensure that all its processes are “optimized” according to the CMM. What do you think? Regardless of your response, what benefits might an organization realize at the
> This chapter’s “AIS in the Business World” focused on Google. But, Google is not “the only game in town” when it comes to information technology. According to &acir
> a. What are the steps in the systems development life cycle? What activities does each step involve? b. What are the costs and benefits of using the SDLC? c. How can the SDLC be useful in accounting information systems? d. What are the levels in the capa
> America Online’s corporate Web site (http://corp.aol.com) states: “At AOL, we’re in the business of making the Internet better—period. Through innovation and creativity, we’ve raised the bar and set the standard for what we believe high quality content i
> For better or worse, McDonald’s locations can be found all over the world. The corporate Web site (www.aboutmcdonalds.com) states: “At McDonald’s, we strive to be more than just a restaurant—we’re a first job for many, a community partner, a model for ot
> a. What are the elements of COSO’s enterprise risk management framework? b. What is business process management? List and discuss the steps managers often use to change a business process. c. List and discuss seven principles of business process manageme
> THN Corporation wants to reorganize the process of issuing purchase orders to make it more efficient. As part of collecting process-related data, the purchasing manager generated the following: Use Excel to prepare a pivot chart and pivot table that sh
> Please indicate whether each of the following statements is (i) always true, (ii) sometimes true or (iii) never true. For those that are sometimes true, explain when/under what circumstances they are. a. Accountants are in the best position to determine
> In Chapter 3, Exercise 8, you developed a risk/control matrix for two of the Fortune 100 companies. Develop a full enterprise risk management plan for one of them; use the COSO framework to structure your plan. Data from Exercise 8: Do a Google search
> According to the investor relations section of its Web site (www.regmovies.com), Regal Entertainment Group “operates the largest and most geographically diverse theatre circuit in the United States, consisting of 7,342 screens in 576 theatres in 42 state
> Which of Eppele’s seven principles is violated in each of the following independent cases? Justify your responses. (Each case may violate more than one principle.) a. Amanda objected to her company’s new approach to training because they had never used i
> In the previous problem, you identified one relevant element of expectancy theory. Consider each scenario again; “fill in” the other two elements. Here’s an example: Expectancy: Anh studied hard and took a review course that enabled her to pass the CPA e
> Which element of expectancy theory is described in each of the following independent scenarios? a. Anh completed the steps for licensure as a Certified Public Accountant and received a pay raise. b. Claudia completed a BPM project early; her boss said sh
> a. What is internal control? Why is internal control important in organizations? b. What are the four basic purposes of internal control? Give an example of each one. c. List and discuss four broad categories of organizational risk exposures. For each br
> Price Right Electronics Inc. (PEI) is a wholesale discount supplier of a wide variety of electronic instruments and parts to regional retailers. PEI commenced operations a year ago, and its records processing has been on a manual basis except for stand-a
> Richards Furniture Company is a 15-store chain, concentrated in the southwest, that sells living room and bedroom furniture. Each store has a full-time manager and an assistant manager, who are paid on a salary basis. The cashiers and sales personnel typ
> MailMed Inc. (MMI), a pharmaceutical firm, provides discounted prescription drugs through direct mail. MMI has a small systems staff that designs and writes MMI’s customized software. Until recently, MMI’s transaction data were transmitted to a third par
> In each of the following independent situations, identify internal control deficiencies and make suggestions regarding their correction/ improvement. a. Many employees of a firm that manufactures small tools pocket some of these tools for their personal
> One of the steps in a financial statement audit is to review the company’s internal control system. What internal controls would you recommend for a zero-based budgeting process?
> Which of the 10 standards is violated in each of the following independent situations? Some situations may violate more than one. a. A team of auditors, each with varying levels of experience, divided up the audit tasks and completed them independently b
> What type of audit is indicated in each of the following situations? a. Checking internal controls over the sales/collection process. b. Determining how an employee embezzled cash. c. Establishing whether an audit conformed to all provisions of Sarbanes-
> 1. An ERP system could be associated with ___ audits. a. Systems b. Financial c. Investigative d. All of the above . 2. In an investigative audit, coconspirators are interviewed before the target a. Because the information they can provide is more impor
> Match each item on the left with the most appropriate item on the right. 1. Assesses whether a company's processes and procedures are followed a. Systems audit b. SOX Section 802 c. Reporting standards d. Professional care 2. Compliance testing 3. C
> Please match each item on the left with the most appropriate item on the right. 1. Autonomy of practice 2. Considering audience characteristics 3. Determining whether goodwill has been impaired 4. Finance, management, information systems 5. Holland'
> Consider the following case as you respond to the questions below: Alberto and Cristina were partners in a travel agency that specialized in arranging corporate travel. Because the partnership was on the verge of bankruptcy, they invited Alberto’s cousin
> The chapter discussed five types of Big Data. Indicate which category best fits each of the following examples; if an example fits more than one category, explain why. a. Airline ticket reservations b. Blood type c. Cell phone tower usage d. Daily credit
