UNIVERSITY OF TORONTO. Faculty of Arts and Science & Rotman School of Management ‘APRIL/MAY 2011 FINAL EXAMINATIONS RSM427H1S — Auditing and Information Systems Duration -2 hours Examination Aids: Non-Programmable Calculators First Name: Last Name: Student #: ‘Question Grade 1 160 2 160 Total: | 120 RSM 427HIS Final Exam Page 1 of 16QUESTION 1 (60 marks) a _ ‘REQUIRED: Please answer the following questions by choosing the best answer (1.5 marks each) 1. Ageneral ledger: a) sa chronological listing of an organization's transactions b)_ Isa listing of an organization's transactions, organized by account ©) Does not include every account in an organization's chart of accounts 4) Is the same thing as a transaction listing ) 'snot important to accountants, 2. Which of the following is not an example of a source document? a) Receiving report b) Purchase order ©) Sales order 6) Aging report @) Allof the answers are examples of source documents, 3. The sales process begins with: a). Placing an order with a vendor b) Acustomer order for goods or services ©) _ Production of goods or services d) Delivery of goods or services fe) Hiring of sales management. 4, The primary objective in processing revenues i to: a) Sell as many goods as possible b) Achieve timely and efficient cash collection Maximize an organization's sales orders d) Only sell goods to customers who can pay their bills fe) Maximize revenue recognition in the period. ‘5, Which of the following is not an objective of the purchasing process? a) Inventory control b) Fastest possible processing of payments to vendors ) Maintaining vendor records 4d) Forecasting cash outflows e) All of the answers represent objectives of the purchasing process. 6. Which source document is used to request goods? a) Purchase order b) Shipping notice ©) Purchase requisition 4d) Sales order e) RFID 7. Inputs to transaction processing systems: a) Are always in hard copy bb) Are best when input in a graphical format ©) May be in an electronic format when an EDI system is used 6) May never be audio e) None of the above RSM 427H1S Final Exam Page 2 of 168. Allof the following are inputs (source documents) to the purchasing process except a) Purchase order b)_ Vendor listing, ©) Bill of lading 4) _allofthe above are source documents to the purchasing process fe) none of the above are source documents to the purchasing process 9. Which of the following statements best describes business process outsourcing? 2) company focuses on its core business processes and contracts with another firm to do the other processes b) Companies frequently outsource core business processes c) Due to networked enterprises and advanced technology, more employees may work from their homes or alternate locations 4) Initially, companies engaged in business process outsourcing to offer employees more ‘opportunities to travel and more career choices for advancement e) Business process outsourcing is not allowed under World Trade Organization rules. 10. Which of the following Business Process Management (BPM) software solutions is most often associated with the sales process? a) Enterprise resource management b) Integrated management {6} Customer relationship management 4) Supply chain management @) None of the above 411. The primary objective of a manufacturing organization's production process i to: a) Maintain inventories at a zero level b) Convert raw materials into finished goods as efficiently as possible ©) Make sure that there are no product defects 4) Maintain the documentation and report on an organization's manufacturing process @). None of the above 12, Much of the input and output related to business processes is now electronic. Which of the following technologies is becoming increasingly popular to manage inventory? a) EDI b) RFID tags )_ Magnetic ink characters that can be quickly and easily scanned 4) Bluetooth and wireless-enabied laptop computers fe) Amazon.com 13. The largest expense item on a manufacturing organization's income statement is most likely to be: 2) Salaries for production workers b) The depreciation associated with manufacturing equipment c) The cost of direct materials 4) Cost of goods sold e) Other 44, Time and billing systems are most often used by: a) Health care organizations b) Professional service organizations ©) Retail organizations 4) Not-for-profit organizations e) Research universities RSM 427H1S Final Exam Page 3 of 16