Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Question
Chapter 12, Problem 2SP
a)
Summary Introduction
To determine: The risk for the given functions.
Introduction:
b)
Summary Introduction
To determine: The controls and technologies for the given functions.
Introduction:
Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.
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Students have asked these similar questions
Using the following table as a guide, describe for each function (see Figure 11.1):
A risk (an event or action that will cause the organization to fail to meet its goals/objectives).
A control/process or use of technology that will address the risk.
Function
Risks
Controls and Technology
Marketing
Finance
Billing
AR (debit)
Sales (credit)
Collections
Cash (debit)
AR (credit)
Which of the following assets require the strongest of internal controls?A. inventoryB. credit cardsC. computer equipmentD. cash
Which of the following assets require the strongest of internal controls?
Group of answer choices
inventory
credit cards
computer equipment
cash
Chapter 12 Solutions
Accounting Information Systems
Ch. 12 - Prob. 1RQCh. 12 - What primary functions does the purchasing process...Ch. 12 - Prob. 3RQCh. 12 - What are the fundamental responsibilities of each...Ch. 12 - Describe supply chain management (SCM).Ch. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - What types of frauds are typically found in the...Ch. 12 - What are the typical effectiveness goals of the...Ch. 12 - What characterizes a valid PO input? What...Ch. 12 - Prob. 15RQCh. 12 - Describe the impact that entity-level controls...Ch. 12 - Refer to the operations process (effectiveness)...Ch. 12 - Explain why ambiguities and conflicts exist among...Ch. 12 - Prob. 3DQCh. 12 - Without redrawing the figures, discuss how Figure...Ch. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 1SPCh. 12 - Prob. 2SPCh. 12 - Prob. 3SPCh. 12 - Prob. 4SPCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6P
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- Which of the following assets require the strongest of internal controls? A. inventory B. credit cards C. computer equipment D. casharrow_forwardWhich of the following is false about accounting information systems? A. They provide reports that people analyze. B. They prevent errors and stop employees from stealing inventory. C. They are designed to gather data about the companys transactions. D. They consist of processes that involve input of data from source documents, processing, output, and storage.arrow_forwardWhat category of control procedures best describes a reconciliation account, such as Accounts Payable? 1)Group of answer choices 2)Detective 3)Application 4)Systems 5)Preventivearrow_forward
- 1.Discuss the difference between internal and external users of information and their needs and demands on the information system. 2.Comment on the level of detail necessary for operations management, middle management and stakeholders. 3.Examine the General Model for AIS Table 1-4, discuss where and how problems will arise that can cause the resulting information to be bad or ineffective. 4.Why is it important to organizationally separate the accounting function from the other functions of the organization? 5.Contrast centralized data processing with distributed data processing. How do the roles of the different end users differs between the two approacharrow_forwardQuestion 1 Which of these would be a reason for adopting a predominantly substantive approach? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Accounts are affected by more than one transaction class Detection risk has been assessed as high C There are no significant control procedures that pertain to the assertion Control risk has been assessed as low b darrow_forwardWhich of the following benefits of an effective accounting information system provides safeguards for a business’s assets and reduces the likelihood of fraud and errors? a. Flexibility b. Relevance c. Control d. Compatibilityarrow_forward
- Revenue Cycle. Discuss how the nature of the necessary internal control features is affected by switching from a manual system to a large-scale computer-based accounting system. а.arrow_forward1. Which of the following is an example of an input control in the expenditure cycle? a. Physical controls over inventory b. Reconciling the bank statement c. Document sequencing d. Access controls over the purchasing system 2. A control procedure that helps prevent duplicate payments is: a. Performing physical inventory counts b. Matching purchase orders, receiving reports, and vendor invoices c. Reconciling bank statements d. Conducting vendor audits 3.Which of the following is an example of an independent verification control in the expenditure cycle? a. Document sequencing b. Reconciling the bank statement c. Segregation of duties d. Physical controls over inventoryarrow_forwardAn element of internal control is a. risk assessment b. controlling accounts c. journals d. subsidiary ledgersarrow_forward
- 3. Risk registers would normally detail which of the following: (Select all that apply.) A. Risk level before controls are implemented B. Risk lével after controls are implemented C. Responsibility for managing risks D. The total cost of a control being implemented Answer: Page 3 of 11 ted States) E Focus МacВook Proarrow_forward1. _____ are controls that do not rely on the client's information technology (IT) environment for their operation. a. IT general controls (ITGCs) b. Automated controls c. Computer application controls d. Manual controls 2. Assessing control risk begins with understanding entity-level controls. a. True b. Falsearrow_forward
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