Question 1

Which of the following professionals would find a document flowchart useful?
A)Accountants
B)Auditors
C)System designers
D)all of the above

Accepted Answer

All of the listed professionals—accountants, auditors, and system designers—can find document flowcharts useful for understanding and analyzing the flow of documents and information within a system.

Question 2

Document flowcharts organize documents and activities by:
A)People
B)Departments
C)Monetary value
D)Complexity

Accepted Answer

Document flowcharts organize documents and activities by departments, showing how documents move through different parts of an organization.

Question 3

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

Accepted Answer

User guides, procedure manuals, and operating instructions are most important for training users as they provide the necessary information on how to use the system effectively.

Question 4

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

Accepted Answer

The names of the various organizational departments involved in the accounting information system should be listed in the column headings of the flowchart to clearly indicate which department is responsible for each part of the process.

Question 5

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

Accepted Answer

A Context diagram is a high-level, simplified view of an entire system or process, showing the system's boundaries and how it interacts with external entities. It provides a broad overview without detailing the internal processes.

Question 6

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

Accepted Answer

The correct guideline for creating good data flow diagrams is to show the least, not the most, detail in the highest-level DFD (also known as a context diagram). This level should provide a summary view of the system.

Question 7

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

Accepted Answer

AS 2201 (Auditing Standard No. 2201) requires auditors to understand and evaluate a client's internal control over financial reporting as part of the audit process. This understanding is crucial for planning the audit and determining the nature, timing, and extent of audit procedures.

Question 8

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

Accepted Answer

Logical data flow diagrams focus on the logical view of the information system, unlike system flowcharts which also consider physical aspects.

Question 9

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

Accepted Answer

Document flowcharts are specifically designed to showcase the flow of documents and data through a system, which is crucial for accountants to understand and audit the internal controls and processes within an organization.

Question 10

The task of providing greater detail in successive levels of data flow diagrams is called:
A)Contexting
B)Detailing
C)Decomposition
D)Pyramiding

Accepted Answer

Decomposition is the process of breaking down the system into smaller parts to provide a more detailed view of the data flow, which is exactly what is described in the question.

Question 11

All of these are terms normally associated with data flow diagrams except:
A)Context diagram
B)Physical DFD
C)Logical DFD
D)Pseudo DFD

Accepted Answer

Pseudo DFD is not a term normally associated with data flow diagrams. Data flow diagrams typically include context diagrams, physical DFDs, and logical DFDs to represent the flow of information within a system. Pseudo DFD does not represent a standard category or type of data flow diagram.

Question 12

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

Accepted Answer

A data flow diagram (DFD) is a graphical representation of the flow of data through an information system. It can be used to visualize data processing (structured design). The levels of DFD include Context Diagrams, which show the system’s boundary and external entities, Logical Data Flow Diagrams, which detail the system without any technical implementations, and Physical Data Flow Diagrams, which specify where data are stored and how the processes are implemented. A Process Diagram is not a level of a data flow diagram; it is a more general term that can refer to various types of diagrams related to processes, not specifically to data flow.

Question 13

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

Accepted Answer

Physical Data Flow Diagrams (DFDs) illustrate the actual entities, processes, and data stores involved in a system, including the internal and external entities that participate in the system.

Question 14

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

Accepted Answer

Documentation in Accounting Information Systems (AIS) is crucial for standardizing communications, facilitating audits, ensuring compliance with regulations such as the Sarbanes-Oxley Act, and can lead to cost savings by improving efficiency and accuracy. Therefore, documentation helps in all of the areas mentioned.

Question 15

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

Accepted Answer

Documentation in the context of an accounting information system includes all flowcharts, narratives, and other written communications associated with the system. This encompasses a wide range of materials that describe, explain, or detail the processes and procedures of the system.

Question 16

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

Accepted Answer

Physical Data Flow Diagrams (DFDs) depict the system from a physical perspective, including how tasks are carried out, by whom, and what tools or technologies are used. This contrasts with Logical DFDs, which focus on what happens in the system rather than how it's done.

Question 17

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

Accepted Answer

Data flow diagrams (DFDs) use specific symbols to represent different entities and their flow. The correct symbols include an open-ended rectangle for external entities, lines and arrows for data flow, circles for processes, and squares for data stores.

Question 18

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

Accepted Answer

An open-ended rectangle in a data flow diagram is used to represent a data source or destination, indicating where data is coming from or going to.

Question 19

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

Accepted Answer

Arrows or/and connectors indicate the flow of documents between departments, allowing the reader to distinguish between preparation and receipt.

Question 20

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

Accepted Answer

Documentation tools in an Accounting Information System (AIS) are designed to represent the logic and processes for a wide range of accounting and business activities, including accounts receivable, inventory management, reimbursement claims, and payroll deductions. Therefore, there is no exception among the options given; documentation tools can indeed represent the logic for all these processes.

Quiz 12: Documenting Accounting Information Systems

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

Document flowcharts organize documents and activities by:

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?

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

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

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

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

Logical data flow diagrams:

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

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

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

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

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

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

Documentation includes:

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

The basic symbols used in data flow diagrams are:

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

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:

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