Read the article at https://xbrl.us/wp- content/uploads/2013/12/20131023-RobertHurt. pdf. Briefly describe what this article says about how XBRL has affected financial reporting.
> Explain the kinds of information that must be maintained in fixed asset records during the asset continuance phase.
> Describe how the use of prenumbered forms for debit memos can help a company ascertain that purchase return transactions have not been omitted from the accounting records.
> Explain the relationship between computer hacking and industrial espionage. Give a few additional examples of how hacking could cause damage in a business.
> Explain why standards of fieldwork for GAAS are not particularly helpful to an auditor who is trying to determine the types of testing to be used on an audit engagement.
> Identify which of the cardinal relationships apply, from the following: a. Component part–product b. Customer–product c. Employee ID badge–employee d. Employee–supervisor e. Vendor–check
> Arrange the following database models in order from earliest development to most recent: network databases, hierarchical databases, flat file databases, and relational databases.
> Identify whether the following reports would be categorized as trading partner documents, internal documents, internal reports, or external reports: a. Daily cash receipts listing b. Accounts receivable aging c. Wire transfer of funds to a vendor d.
> Debate the logic used in the following statement: “The person responsible for approving cash disbursements should also prepare the bank reconciliation because he is most familiar with the checks that have been written on that bank account.”
> How might a company use both an operational database and a data warehouse in the preparation of its annual report?
> Describe how the matching of key information on supporting documents can help a company determine that its revenue transactions have not been duplicated.
> Suppose that a company wants to upgrade its legacy system, but cannot afford to completely replace it. Describe two approaches that can be used.
> Distinguish between general and specific authorization.
> Much of the e-business and e-commerce conducted by companies uses the Internet as the form of electronic communication. Describe other electronic means to conduct e-business or e-commerce.
> Discuss whether any of the following can be examples of customer fraud: • An employee billed a customer twice for the same transaction. • A customer remitted payment in the wrong amount. • A customer received merchandise in error, but failed to return
> Arrange the following data storage concepts in order from smallest to largest, in terms of their size: file, record, database, character, and field.
> Describe how IT performance reports are important in IT governance.
> Operation and maintenance is the longest and costliest part of the SDLC. Explain why this is true.
> What are some examples of outputs generated for trading partners?
> How would real time processing provide a benefit to managers overseeing business processes?
> What roles do accountants have in relation to the accounting information system?
> In what way is a code of ethics beneficial to an organization?
> In general, what types of transactions are well suited to batch processing?
> Describe why enterprise risk management is important.
> Name the objectives of an effective account‑ ing system.
> What possible motivation might a business manager have for perpetrating fraud?
> Prepare a list of the types of businesses that you have been involved in that use point of sale systems.
> Why does a company need to be concerned with controlling access to its records?
> If an employee made a mistake that resulted in loss of company funds and misstated financial reports, would the employee be guilty of fraud? Discuss.
> Why do real‐time systems require direct access files?
> Why do you think there are different market segments for accounting software?
> If your personal data was stored on a server in cloud computing, would you have any concerns about it?
> What two kinds of efficiency improvements result from business process reengineering in conjunction with IT systems?
> Why do you think the client computer may be a better computer platform for presentation of data?
> Describe any IT enablement that you have noticed at a large retail store such as Wal‐Mart or Target.
> Management is held accountable to various parties, both internal and external to the business organization. To whom does management have a stewardship obligation and to whom does it have reporting responsibilities?
> Using IT systems to input accounting data can reduce costs, time, and errors. Give an example showing how you think IT systems can lead to these reductions (cost, time, and errors).
> When a company evaluates a supplier of materials, what kinds of characteristics might be evaluated?
> What types of businesses are in the supply chain of an automobile manufacturer?
> What are the differences between internal reports and external reports generated by the accounting information system?
> What occurs in an accounting information system that classifies accounting transactions?
> What is the purpose of source documents?
> Are manual systems and processes completely outdated?
> Why is it important that IT systems be aligned with the business strategy?
> What is the relationship between business processes and the accounting information system?
> How do other processes (revenue, expenditures, conversion) affect the general ledger?
> Millennium Tech Stop is a regional retailer of consumer electronics, with warehouses and stores located in several large cities in California. The board and top management of Millennium are considering updating their accounting, inventory, and retail sal
> Consider the real‐world example of Cole Haan presented in this chapter. a. Use Exhibits 2‑3 and 2‑4 to help you determine the approximate range of Cole Haan’s annual revenues. b. What are the advantages Cole Haan likely realized as a result of having r
> Middleton Corporation just became a public corporation when shares of its stock were sold to the public three months ago. A new board of directors has been appointed to govern the corporation. Assume that you will be giving a presentation to the board me
> Describe the ethical obligations of companies to their online customers.
> EDIPipeline is an Internet EDI solution for small to mid-size companies. View the Web page at http://www.edipipeline.com. Click on the link called “Trading Partners.” Examine two or three company names you recognize. Describe how this EDI system might be
> Enter the website of a popular retail company that sells a large volume of goods or services on the Internet. Search for the company’s “Privacy Policies” on that website. If you do not find any privacy policies, continue visiting other company websites u
> Visit the website www.cpawebtrust.org and answer the following questions: a. What is a WebTrust seal? b. Which organization sanctions the WebTrust seal? c. What kind of professional can provide a WebTrust seal to a company? d. What must this professi
> Using a search website, enter the term “privacy seal” and search. Answer the following questions: a. What is the purpose of a Web privacy seal? b. Which organizations provide Web privacy seals to Web-based companies? c. What are the advantages to a co
> Sweet Susanna’s is a local chain of bakeries in Austin, Texas. The chain has 18 locations throughout the city and its suburbs. The management is considering opening a website to conduct e-commerce with customers. Describe any benefits that might be deriv
> Explain the hardware and technology standards that were developed during the ARPANET that were an important foundation for the Internet of today.
> List and describe the ten privacy practices recommended by the AICPA Trust Services Principles Privacy Framework. If you have ever made a purchase online, you have likely seen these practices in use. Provide any examples from your own personal experience
> Both Gmail and iCloud for iTunes were mentioned as examples of cloud computing. Can you describe any other examples of cloud computing?
> Are there business processes that do not in some way affect accounting records or financial statements?
> Using a Internet search engine, search using the terms Spanner and “distributed database.” Describe how and why Google uses a distributed database. What problems is Google encountering related to its distributed database?
> Read the article at http://www.eweek .com/c/a/Enterprise‐Networking/IBM‐moves‐ customers‐to‐SmartCloud‐for‐Collaboration‐147563. Explain how the IBM customers mentioned in the article are using IBM’s Smart Cloud.
> Describe the ethical obligations of companies to their online customers.
> What are some benefits and outcomes that can result from examining Big Data with regard to a firm’s inventory processing?
> Consider how auditing has changed by comparing auditing techniques prior to the 1980s when many firms prepared manual accounting records and there were manual audits, versus audits today that use computerized techniques to analyze data.
> Explain how CPA firms are using Big Data and data analytics in the audits of their clients.
> Explain how a healthcare organization, such as a hospital or medical clinic, may use Big Data and data analytics as compared to a manufacturing firm.
> Big Data is increasingly important to companies and to accountants. Using a web search on Google or other search sites, find an article within the last 12 months on “Big Data” and accounting. Summarize how the article describes the use of Big Data in an
> Read the online article at http://www. xconomy.com/boston/2010/09/20/netezza‐sold‐to‐ ibm‐for‐1‐7b‐will‐help‐big‐blue‐tackle‐big‐data/. Describe the services that Netezza offered and why IBM desired to purchase this company.
> Describe the advantages and disadvantages of using a distributed database and distributed data processing. Do you think the advantages are worthwhile? Explain your answer.
> Describe the purpose of each of the following parts of a manual system: a. Source document b. Turnaround document c. General ledger d. General journal e. Special journal f. Subsidiary ledger
> List and describe the steps involved in building a data warehouse.
> Arminello, Inc. does not use a database system; rather, it maintains separate data files in each of its departments. Accordingly, when a sale occurs, the transaction is initially recorded in the sales department. Next, documentation is forwarded from the
> Differentiate between batch processing and real‐time processing. What are the advantages and disadvantages of each form of data processing? Which form is more likely to be used by a doctor’s office in preparing the monthly patient bills?
> Exhibit 12‑9 shows a screen capture from Microsoft Dynamics GP accounting/ERP software. The following modules in Dynamics GP are shown: • Financial • Sales • Purchasing • Inventory • Payroll • Manufacturing • Fixed Assets For each of the following
> Compare investment processes with sales processes in terms of a. the frequency of transactions b. the volume of transactions c. the magnitude in dollars of a single transaction d. the manner of authorization
> Compare source of capital processes with sales processes in terms of a. the frequency of transactions b. the volume of transactions c. the magnitude in dollars of a single transaction d. the manner of authorization
> Using an Internet search engine, locate a publication called “RFID Journal.” Find a recent article that describes the use of RFID in manufacturing. Briefly describe the example(s) discussed in the article.
> Price discounts are commonly used in the business world as incentives for customers. How may this practice (or its misuse) be deemed unethical?
> Explain how the over‐production of inventories can be seen as unethical in an absorption costing environment.
> Using an Internet search engine, search for the terms “just in time” + “automotive.” From the results you find, explain why just‐in‐time inventory systems are such an important factor in the competitive automotive industry.
> Which type of accounting information system reports would likely be prepared most frequently by financial accountants? By managerial accountants?
> Using an Internet search engine, search for the terms “CAD” + “industrial robots.” Identify a company (name and location) that provides manufacturing automation by using robotics. Describe some of the robotic operations that are featured on the company’s
> Suppose a company is experiencing problems with omitted transactions in the conversion process— i.e., inventory transactions are not always being recorded as they occur. Refer to Exhibit 7‑7 to describe at least three internal controls that should be in
> Using an Internet search engine, search for the terms “Patti Dale” and “theft.” (Be sure to include the quotation marks around the name.) Explain the unethical behavior that occurred. Also, explain any internal controls that you believe were missing or n
> Read the article at this link: www.offthe gridnews.com/privacy/how‑car‑insurance‑ companies‑are‑tracking‑your‑every‑move/. Describe any ethical considerations in using such technology. Consider both the company and employee perspectives. Also discuss whe
> Using an Internet search engine, search for the phrase “fixed asset software.” (Be sure to include the quotation marks.) Examine the results to find companies that sell fixed asset software. List and explain some of the features of fixed asset software t
> Using an Internet search engine, search for the phrase “biometric time clock.” (Be sure to include the quotation marks.) From your search results, describe a biometric time recording system and its advantages.
> Explain the process of approval of purchases for fixed assets. How does this process differ from that of purchasing raw materials?
> Suppose you are an accounts payable clerk for a small home‐improvements contractor. This morning one of the site supervisors submitted an invoice requesting immediate payment to a new vendor for items he claims were delivered directly to a work site. The
> Using a search engine, search the Internet for an article titled “The advantages of customer self-service for B2B Electronic Invoice Presentment and Payment (EIPP)” Briefly explain what the article describes as the advantages of adopting EIPP.
> Using a search engine, search the Internet for information about electronic invoice presentment and payment. You may have more success searching for the terms “EIPP” and “invoices” together in one search. On some websites, it may be called EIP rather tha
> Think about your most recent appointment at the dentist’s office. Describe the business processes that affected you as the patient/customer. In addition, describe the administrative and accounting processes that are likely to support this business.
> Koler Manufacturing Company operates two plants that manufacture shelves and display units for retail stores. To manufacture these items, the purchasing agents purchase raw materials such as steel, aluminum, plastic, lexan, and miscellaneous screws, rubb
> Using a search engine, search the Internet for information about evaluated receipt settlement, or ERS. You may have more success searching for the terms “ERS” and “invoices” together in one search. From what you read about ERS on the Web, what do you thi
> Kittner, Inc., is a small company with three people working in the expenditures processes. One of the three employees is the supervisor of the other two. Some tasks that must be accomplished within the expenditures processes are the following: a. Account
> Since the accounts payable system of matching POs, invoices, and receiving reports can often be complex, organizations must routinely check to ensure that they are not making a duplicate payment. The textbook website contains a spreadsheet titled “invoic
> The following list presents statements regarding the expenditures processes. Each statement is separate and should be considered to be from a separate company. Determine whether each statement is an internal control strength or weakness; then describe wh
> Holsten Company is considering a business process reengineering (BPR) project whereby its current (mostly manual) expenditures processing would be converted to an automated system. Brainstorm ideas for this project. Specifically, what processes could be
> Joy Tucker started a new business: a coffee and pastry cart located at the local library. Joy hired her brother, Eric, as her assistant. Joy and Eric personally make all the purchases of items needed to stock the cart, using procurement cards issued in t
> Compare how a company with a manual process of matching a PO, receiving report and vendor invoice would differ from a company that uses Microsoft Dynamics GP or other integrated ERP solution where automated (electronic) matching of a PO, receiving report
> Identify an internal control procedure that would reduce the following risks in automated fully integrated ERP system such as Microsoft Dynamics GP: a. The purchasing department may not be notified when goods need to be purchased. b. Accounts payable m
