AE20-ACCOUNTING

INFORMATION SYSTEM
AE20-QZ-001
TEST I. TRUE OR FALSE

1. One of the greatest disadvantages of

database systems is that all data is always
available to all users.
2. Systems maintenance consumes the majority
of a system’s total costs.
TEST I. TRUE OR FALSE

3. One of the greatest disadvantages of

database systems is that all data is always
available to all users.
4. The internal auditor represents the interests
of third-party outsiders.
TEST I. TRUE OR FALSE

3. One of the greatest disadvantages of

database systems is that all data is always
available to all users.
4. The internal auditor represents the interests
of third-party outsiders.
TEST I. TRUE OR FALSE

5. Transaction processing systems convert non-

financial transactions into financial
transactions.
6. Information lacking reliability may still have
value.
TEST I. TRUE OR FALSE

7. The management reporting system provides

the internal financial information needed to
manage a business.
8. Retrieval is the task of permanently
removing obsolete or redundant records from
the database.
TEST I. TRUE OR FALSE

9. Information technology (IT) audits can be

performed by both internal and external
auditors.
10. Information is a business resource.
TEST II. FILL IN THE BLANKS
1-3
The transaction processing
system is comprised of three
cycles:
__________________________,
__________________________,
and
__________________________.
4-6
The three major subsystems of
the accounting information
system are
____________________________
___,
___________________________,
and
____________________________
___.
TEST II. FILL IN THE BLANKS
7-9
The most common audit types
are ____________________,
____________________, and
____________________
auditors.
10-11
• Two distinct ways to structure
the data processing function
are ____________________
and ____________________.
TEST II. FILL IN THE BLANKS
12
The task of locating and
transferring an existing record
from the database for
processing is called data
____________________
13
A practice in which an
organization sells its IT
resources and leases them back
is called
____________________________
_______.
TEST II. FILL IN THE BLANKS
14
• Entities outside the
organization with a direct or
indirect interest in the firm,
such as stockholders, financial
institutions, and government
agencies, are called
____________________.
15
Sales of products to customers,
purchases of inventory from
vendors, and cash disbursements
are all examples of
__________________________.
TEST III. ESSAY (Copy-Pasted answers will be
scored ZERO)

1.Contrast the responsibilities of

operations management, middle
management, and top management.
Explain the different information needs
for each level of management. (20
points)
TEST III. ESSAY (Copy-Pasted answers will be
scored ZERO)

Explain the difference between

2.
data and information. (10 points)
TEST III. ESSAY (Copy-Pasted answers will be
scored ZERO)

What are the similarities and

3.
differences between external
auditors and internal auditors? (30
points)