Question: Several risks are paired with potential internal

> 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

> Please refer to the following short case as you answer these questions: After earning both her accounting degree and her CPA license, Barb opened her own public accounting practice. One of her clients was looking for a way to make transaction processing

> Do a Google search for the Fortune 100 companies. Choose two of the companies from the list and prepare a risk/control matrix similar to the one illustrated in the chapter. Include five to seven risks for each company you choose. (You’ll find an example

> Please match each item on the left with the most appropriate item on the right. 1. Behaviors, values, and assumptions a. Type of Big Data b. Parts of "identifying" in Steps for Better Thinking c. Information overload countermeasure d. Goal of knowle

> Several data items that might be included on a payroll form are listed below on the left. The standard payroll forms discussed in the chapter are listed below on the right. For each data item, indicate the form(s) on which you’d find it

> Which business process (conversion, financing, or human resources) is most closely associated with each transaction listed below? f. Retained earnings Capital stock g. Work in process Manufacturing overhead h. Interest expense Premium on bonds payab

> 1. A company that reproduces fine works of art, such as the Mona Lisa, would most likely use what kind of production process? a. Hybrid b. Conversion c. Job d. Process 2. A journal entry in a company’s accounting information system debited retained earn

> Please match each item on the left with the most appropriate item on the right. 1. Custom-made bicycles a. Associated with dividend payments b. Human resource process internal control c. Internal control for missed payments d. Job costing product e.

> The documents discussed in this chapter are listed below on the right. Various information items that might appear in them are listed on the left. For each information item listed on the left, indicate the document(s) in which it would most likely appear

> The steps in the sales/collection and acquisition/payment processes are listed below, but they are out of order. Put the statements in the proper order based on how they occur in organizations. a. An operating department in the buying organization reques

> 1. PLP Corporation maintains an electronic database fi le for all its vendors and purchases. Which of the following amounts would you be least likely to find in the “vendor” table? a. Total amount owed b. Vendor name c. Part numbers commonly purchased d.

> Please match each item on the left with the most appropriate item on the right. 1. Authorize a purchase a. A way to monitor inventory needs b. Audit trail components c. Internal control to manage the risk of embezzlement d. One reason for consolidat

> Visit the Web site of the Wild Cat Zoo in southern California (www.cathouse-fcc.org). Classify each of the following risks using Brown’s taxonomy. Also suggest one or more internal controls to address each risk. For each internal control you suggest, spe

> These questions will help you assess your understanding of the text readings. If you’ve studied the chapter thoroughly, you should be able to answer them without reference to the text itself. Although these questions appear first, you may find them easie

> Please refer to the case in Problem 12 as you respond to these questions. 1. In a systems flowchart, which of the following is most likely to be depicted with a predefined process symbol? a. Browse catalog b. Make bank deposit c. E-mail client d. None o

> Match each item on the left with the most appropriate item on the right. 1. Bill of lading 2. Face-to-face, Internet, mail, phone 3. For deposit only 4. Independent order checking 5. Information technology 6. Outbound logistics 7. Picking list a. Su

> Please match each item on the right to the most appropriate item on the left. 1. Confidentiality 2. Creating fake refunds to a. Computers used to carry out a crime b. Crime classification that does not necessarily benefit a friend require a computer

> Which type(s) of business risks/threats described in the chapter best applies to each situation below? If more than one applies, explain why. a. Blackmail based on stolen information. b. Concurrent attacks against a determined target. c. Digital graffiti

> Consider the following short case in responding to these questions: Tim was upset with his accounting instructor because of the grade he earned in her class. As an act of revenge, Tim used a computer program he downloaded from the Internet to discover th

> 1. The Web site www.sco.ca.gov/upd.html is an example of which form of e-business? a. B2C b. G2C c. G2B d. C2C 2. Web Trust and Sys Trust are forms of: a. Internal control. b. E-business. c. Systems documentation. d. Transaction processing software. 3.

> Please match each item on the left with the best item on the right. 1. Brick-and-mortar 2. Computer network 3. Financial management 4. Hershey 5. Human resource management a. A well-known ERP system b. Another name for “old economy" organizations c.

> Please match each item on the left with the most appropriate item on the right. 1. Context a. The quality of XBRL that allows users to add tags as 2. Cost savings and improved investor relations needed b. The relationship between XBRL and the Extens

> This series of questions deals with XBRL’s Global Ledger taxonomy. Before attempting to answer them, point your Web browser to the 4 February 2014 post in my AIS blog on XBRL. Use the link provided to access the presentation titled “Key Features of XBRL-

> Consider the following REA model in responding to the questions below; it represents the system by which members of the accounting club at Big State University are reimbursed when they incur expenses on the club’s behalf. 1. Which of

> Internal control has four basic purposes: safeguarding assets, ensuring financial statement reliability, promoting operational efficiency, and encouraging compliance with management’s directives. Consider each of the internal control procedures described

> Match each item on the left with the most appropriate item on the right. 1. Cardinality a. Unique record identifier in a database table 2. Decision/management event b. Supports the preparation of financial statements c. Purchasing supplies d. Prepar

> Consider the REA model presented below. Write a narrative description of the business process it depicts. (1,*), (1,") (1,1) Schedule grooming appointment Pet owner (0,") (1,1) (1,1) Pet (1,1) (1,1) (1,1) (0,") (1,") Grooming staff (1,1) Groom pet

> Please match each item on the left with the most appropriate item on the right. 1. Data flow a. A compilation of fields in a database b. A primary key posted to another table c. Accounts receivable file 2. Data store 3. External entity 4. Field d. C

> Consider the following narrative in responding to the questions that follow: The Rancho Cucamonga Humane Society (RCHS) is open from 7 a.m. to 7 p.m., seven days a week. It maintains a computerized inventory of animals available for adoption, which inclu

> Please match each item on the left with the best item on the right 1. Areas of responsibility a. A flowchart depicting the process of buying a car b. Based on lines of computer code c. Can trace remittance advices and invoices 2. Document flowchart

> Consider the following narrative as you respond to these questions: When staff at IGV Corporation need to travel on company business, they first submit a travel request to their immediate supervisor. The travel request includes the employeeâ€&

> 1. As a future accounting professional, which phase of the SDLC are you least likely to be involved in? a. Build b. Requirements analysis c. Operations/maintenance d. Test 2. If a system does poorly during the testing phase of the SDLC, it may be due to

> Match each item on the left with the most appropriate item on the right. 1. “Ad hoc" processes a. Test (SDLC) 2. Business rules b. Risk of SDLC c. Repeatable (CMM) d. Optimized (CMM) e. Managed (CMM) f. Initiation/planning (SDLC) g. Design (SDLC) h.

> Which element of the COSO ERM framework is most closely associated with each of the following? a. ALG Corporation bonds key employees. b. Based on previous experience, TRG Corporation’s management believes the risk of inventory shortages is moderate. c.

> 1. In business process management, decision makers must collect and analyze data. Which of the following tools would best be used to collect useful data? a. Journal entries b. Interviews c. Financial statements d. Expectancy theory 2. Employees of BRN C

> a. Consider the four vignettes presented in the last section of the chapter. For each one, suggest one additional internal control procedure. Discuss whether the procedure you suggest is preventive, detective, or corrective; also identify the type of ris

> Match each item on the left with the most appropriate item on the right. 1. Behavioral issues a. First step in BPM b. Fraud & resistance to change c. Key idea when using consultants d. Reduce, accept, avoid, share e. Second step in BPM f. Specific a

> 1. Which of the following best explains the relationship between “monitoring” and “information and communication” as the terms are used in the COSO Internal Control framework? a. Monitoring must be done by an individual, while information and communicati

> Please match each item on the right with the best item on the left. 1. Business strategy risk 2. Foreign Corrupt Practices Act a. 1977 legislation b. 2002 legislation c. A section of the COSO framework d. Internal control example 3. Information and

> A well-designed accounting information system can help an organization’s financial reporting fulfill many parts of the conceptual framework of accounting. Please complete each statement below with an appropriate word/phrase from the conceptual framework.

> 1. BRN Corporation has two divisions: California and Nevada. Both divisions have the same basic chart of accounts, which numbers current assets in the 100s, plant assets in the 200s, and so on. BRN differentiates them with an appended “

> Please match each item on the right with the most appropriate item on the left. 1. Accrued revenue a. Book of original entry b. Cash is received before service is provided c. Decreases to revenue d. Increases to liabilities e. Purchase orders, invoi

> Which type of coding system is indicated in each of the following independent situations? Be prepared to explain your reasoning. a. Airport codes (LAX, OGG) b. Automatically assigned transaction numbers in a cash register c. Consecutively numbered purcha

> The multiple choice questions presented in Question 2 are “low context.” You should be able to answer them simply by a careful reading of the chapter. These questions, on the other hand, are “high context.” They will require critical thinking and reasoni

> Each chapter in the book includes a problem like this one; beyond helping you master each chapter’s vocabulary, you may encounter similar problems on your class exams and on accounting professional exams (like the CPA exam). Please matc

> Which characteristics of a professional is Alex demonstrating by preparing for and presenting the webinar?

> Enron was one of the most publicized fraud cases of the late 20th century; it was so serious that it not only led to its own demise, but to the dissolution of Arthur Andersen, one of the (then) “Big Five” CPA firms. Enron and related cases led to the mos

> Could Big Marker be considered an application service provider? Justify your response. If Big Marker is an ASP, which category (e.g., enterprise, specialist) best describes it?

> Most observers would agree that Big Marker is engaged in e-business. a. Which e-business categories apply to Big Marker? (e.g., B2B) b. Which benefits of e-business does Big Marker provide to its customers? Which costs apply?

> One ethical issue related to budgeting is “padding” the budget; that is, deliberately overstating resources needed. How would an ethical egoist view the practice of padding the budget? A utilitarian? A deontologist? A virtue ethicist?

> Use Steps for Better Thinking to help Alex decide whether to present the webinar.

> Complete the partial knowledge map below by suggesting connections between the four elements. Technical elements of zero-based budgeting Behavioral issues in zero-based budgeting Strategic advantages of zero-based budgeting Information technology to

> In preparing for the webinar, what causes of information overload is Alex likely to experience? Why? For each cause, discuss at least one countermeasure Alex can use.

> John C. Beale was a senior policy advisor with the U.S. Environmental Protection Agency. In late 2013, however, he was sentenced to prison for stealing close to $900,000 in taxpayer funds. According to Marimow and Bernstein (2013): Beale had skipped out

> a. List and discuss the seven types of audits described in the chapter. b. Explain the 10 generally accepted auditing standards that guide financial audits. c. Describe the common steps associated with an audit. d. Prepare a response to the questions for

> In this exercise, we’ll use Excel’s “sampling” function to create a random sample. Random samples of transactions are often used in financial statement audits. a. Access the Excel da

> a. Consider the five generic AIS elements discussed in Chapter 1. A financial statement auditor might examine input documents like purchase orders for mathematical accuracy, complete information, and proper recording in the AIS. How might a financial sta

> The internal audit department of JTJ Corporation set up an anonymous hotline for reporting suspected internal control breaches. After receiving several tips through the hotline alleging breaches in JTJ’s purchasing department, internal

> Determine 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. A disclaimed audit opinion means the financial statements cont

> For each independent case presented below, use as a guide in explaining the steps you would take to uncover fraud. Also suggest at least two internal controls that could have prevented the fraud described. a. KC Group is basically a high-integrity compan

> Fill in the blanks below based on the ideas in the Audit Clarity Project. a. As structured under the ACP, each standard concludes with ___. b. Audit reports prepared under the ACP must have a ___ at the start of each paragraph. c. Auditors must obtain ma

> Barb is an auditor for Vicenti, Lloyd and Stutzman (VLS), a regional CPA firm; she earned her CPA license three years ago and is supervising the audit team for CDR Corporation, a company that manufactures blank CDs. Last year’s audit resulted in a qualif

> Olympus Corporation (www.olympus-global.com) is a Japan-based company that makes digital cameras, accessories, and other devices. In April 2011, Michael Woodford was appointed president of the corporation; he was the first non-Japanese president of Olymp