Deck 12: Documenting Accounting Information Systems

Question 1

A circle or bubble symbol in a data flow diagram represents a "transformation process or an "internal entity."

Answer 1

True

Question 2

Document flowcharts are mainly an educational aid and are seldom used in the business world.

Answer 2

False

Question 3

Documentation can help businesses save money-for example, by saving on training costs.

Answer 3

True

Question 4

Data flow diagrams use more symbols than system flowcharts.

Question 5

The task of creating more detailed data flow diagrams is called "decomposition."

Question 6

The first level of detail in a data flow diagram is called a "physical data flow diagram."

Question 7

Documentation includes everything except narrative descriptions.

Question 8

The direction of information flow in a document flowchart is represented by arrows.

Question 9

Despite its name, a document flowchart does not show the physical flow of documents through an accounting information system.

Question 10

Data flow diagrams are only used to audit an AIS.

Question 11

A data flow diagram is an important tool in the systems development process.

Question 12

An important guideline to follow when creating data flow diagrams is to avoid including temporary files in them.

Question 13

Like system flowcharts, data flow diagrams have levels which show varying amounts of detail.

Question 14

An important guideline to follow when creating data flow diagrams is to avoid user feedback because employees rarely understand data flow diagrams.

Question 15

A document flowchart is a particular kind of system flowchart-it is a subset of a systems flowchart.

Question 16

Flowcharting is best viewed as a science, with strict rules and procedures.

Question 17

The highest level of a data flow diagram is called a "context diagram."

Question 18

Documentation can help train new users of an accounting information system.

Question 19

Documentation describes how an accounting information system operates.

Question 20

An important guideline to follow when creating data flow diagrams is to show only one system entity even when several of them perform the same tasks.

Question 21

A system flowchart typically depicts the electronic flow of data and processing steps in an AIS.

Question 22

Decision tables are useful when a data processing task includes a large number of conditions and subsequent courses of action.

Question 23

Companies should create documentation standards that apply to end-user programs as well as applications created by the IT department.

Question 24

Decision tables use most of the same symbols as process maps.

Question 25

Process maps document processes and are not as easy to draw or follow as system flowcharts.

Question 26

A system flowchart represents a flow or job stream of accounting data through the various processing phases of the accounting system.

Question 27

You can draw documentation charts of various types using Microsoft Word or Excel.

Question 28

When drawing a process map, a good idea is to meet with employees to solicit ideas, suggestions, and comments.

Question 29

A major disadvantage of decision tables is that they are unable to summarize data processing tasks associated with a large number of data conditions into any kind of compact or easily understood format.

Question 30

It is better to use connector symbols in flowcharts than to cross lines.

Question 31

The highest level program flowchart is called a "macro program flowchart."

Question 32

A useful guideline for drawing decision trees is to begin on the right and draw branches to the left.

Question 33

The maximum number of rules for a decision table is 2ⁿ, where n is the number of conditions.

Question 34

Documentation is not important when end users create their own computer programs or applications.

Question 35

Good documentation to include when creating spreadsheets is the name of the original developer and important assumptions made in the model.

Question 36

Programs such as allClear and Visio are examples of CASE tools.

Question 37

When drawing a decision tree, a node can represent an entire subset of conditions, which can be drawn later in a separate tree.

Question 38

An example of a system flowcharting symbol is a rectangle, which represents "processing."

Question 39

Program flowcharts are used primarily by systems analysts and programmers.

Question 40

Process maps use circles and arrows as their primary symbols.

Question 41

Which of the following professionals would find a document flowchart useful?

A)Accountants
B)Auditors
C)System designers
D)all of the above

Question 42

Document flowcharts organize documents and activities by:

A)People
B)Departments
C)Monetary value
D)Complexity

Question 43

The textbook identified 10 reasons why documentation of an AIS is important.For which of the following reasons would the user guides, procedure manuals and operating instructions be most important?

A)Depicting how the system works
B)Training users
C)Designing new systems
D)Standardizing communications with others

Question 44

When an individual prepares a document flowchart, the names of the various organizational departments involved in the accounting information system should be listed:

A)Along the right?hand margin of the flowchart
B)Along the left?hand margin of the flowchart
C)In the title of the flowchart
D)In the column headings of the flowchart

Question 45

Which type of data flow diagram presents a high-level view of a system process?

A)Context diagram
B)Physical DFD
C)Logical DFD
D)Systems flowchart

Question 46

All of these are guidelines for creating good data flow diagrams except:

A)Show the most detail in the highest-level DFD
B)Each logical DFD should contain between 5 and 7 processing bubbles
C)Even if a file is temporary, include it in your DFD
D)Classify most of the final recipients of processed data as external entities

Question 47

Which of these requires external auditors to understand a client's system of internal controls before conducting an audit-an understanding aided by documentation?

A)SAS 1
B)AS 2201
C)The Securities and Exchange Act of 1939
D)SOX Act of 2002

Question 48

Logical data flow diagrams:

A)Accomplish the same purpose as system flowcharts
B)Are different from system flowcharts since they focus on a logical view of the information system
C)Are useless for planning a new system
D)Are never used in analyzing an existing system

Question 49

Which of the following are most likely to be used by accountants as documentation?

A)Program flowcharts
B)Document flowcharts
C)Decision tables
D)System flowcharts

Question 50

The task of providing greater detail in successive levels of data flow diagrams is called:

A)Contexting
B)Detailing
C)Decomposition
D)Pyramiding

Question 51

All of these are terms normally associated with data flow diagrams except:

A)Context diagram
B)Physical DFD
C)Logical DFD
D)Pseudo DFD

Question 52

All of these are levels of a data flow diagram except:

A)Physical data flow diagram
B)Process diagram
C)Context diagram
D)Logical data flow diagram

Question 53

Which type of data flow diagram illustrates the internal and external entities who are participating in a given system?

A)Context diagram
B)Physical DFD
C)Logical DFD
D)Systems flowchart

Question 54

AIS documentation is useful for accomplishing all of the following except:

A)Standardizing communications with others
B)Auditing AISs
C)Helping businesses comply with the Sarbanes Oxley Act
D)Saving businesses money
E)Documentation helps in all of the above

Question 55

Documentation includes:

A)All flowcharts, narratives, and other written communications associated with the information system
B)All written communications associated with an accounting information system except flowcharts and data flow diagrams
C)All flowcharts, narratives, and other written communications associated with an accounting information system, except for program flowcharts or decision tables
D)Flowcharts and data flow diagrams only

Question 56

Which type of data flow diagram depicts what the participants are doing in a system (i.e., what the system is doing)?

A)Context diagram
B)Physical DFD
C)Logical DFD
D)Systems flowchart

Question 57

The basic symbols used in data flow diagrams are:

A)A circle, square, diamond, and rectangle
B)A triangle, circle, square, and open?ended rectangle
C)An open?ended rectangle, line and arrow, diamond, and square
D)An open?ended rectangle, line and arrow, circle, and square

Question 58

In a data flow diagram, an open?ended rectangle is used to represent:

A)A process
B)A data stream
C)A data source or destination
D)A data store

Question 59

A reader of a document flowchart is able to distinguish between the preparation of a document in one department and its receipt in another department by:

A)Logic
B)Arrows or/and connectors
C)Column
D)Narratives

Question 60

The AIS documentation discussed in the textbook enables businesses to document all of the following except:

A)Accounts receivable processes
B)Inventory management processes
C)How to file a reimbursement claim
D)Payroll deduction logic
E)Documentation tools can represent the logic for all of these processes

Question 61

When creating system flowcharts, the requirement that a processing symbol should always be placed between an input symbol and an output symbol is known as the:

A)Processing rule
B)Input/output rule
C)Sandwich rule
D)Cycle rule

Question 62

A system flowchart is a block diagram that:

A)Is used only by auditors
B)Is used primarily when document flowcharts cannot be used
C)Depicts the flow of computer systems in an organization
D)Depicts the flow of data through a computerized accounting information system

Question 63

Most system flowcharting symbols:

A)Have not been standardized
B)Have been standardized by the Society of System Analysts
C)Have been standardized by the National Bureau of Standards
D)Are unique to the organization that uses them

Question 64

In most process maps, an arrow represents:

A)The direction for reading the chart
B)The tasks to perform in an accounting task
C)The flow of data
D)The flow of money through a cash register

Question 65

Well written documentation plays a key role in:

A)Reducing system failures
B)Increasing time spent correcting errors
C)Increasing time spent modifying programs
D)Increasing time spent by auditors following data flows

Question 66

Decision trees normally flow from:

A)Top to bottom
B)Left to right
C)Right to left
D)Inside outwards

Question 67

Which of the following is not one of the four parts of a decision table?

A)The condition stub
B)Condition entries
C)Decision symbols
D)Action entries

Question 68

End-user computing is common in firms because:

A)It is free
B)It is well-documented
C)It allows employees to rapidly develop applications
D)It prevents employees from altering systems