Concept explainers
a)
To determine: The argument for and against the process of sending a copy of the PO from the purchasing department to the receiving department.
Introduction:
b)
To determine: The argument for and against the process of having the quantity ordered field “blinded” on the receiving department copy of the PO.
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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Chapter 12 Solutions
Accounting Information Systems
- Reliability means that data are reasonably complete and accurate. Accuracy refers to the extent that recorded data reflect the actual underlying information. In this regard which of the following is the suitable example of reliability of the data? O a. Information may be more reliable when it is obtained from dependent sources outside the entity O b. Information may be more reliable when it is obtained from independent sources outside the entity O c Information may be more reliable when it is obtained from the management of the entity O d. Information may be more reliable when it is obtained from engagement team membersarrow_forwardThe computer processing portion of a sales order system is represented by the flowchart. Answer the following questions.a. What type of data processing system is this? Explain, and be specific.b. The auditor suggests that this system can be greatly simplified by changing to direct access files. Explain the major operational changes that would occur in the system if this were done.c. The auditor warns of control implications from this change that must be considered. Explain the nature of the control implications.d. Sketch a flowchart (the computerized portion only) of the proposed new system. Use correct symbols and label the diagram.arrow_forwardWhat are tests of controls? What is the audit team’s goal in performing them in an attributessampling applicationarrow_forward
- What are the advantages and disadvantages of documenting internal control by using (1) an internalcontrol questionnaire, (2) a narrative memorandum, and (3) a flowchart?arrow_forwardDiscuss the importance of supervision controls in the receiving department and the reasons behind blinf fields on the receiving reportarrow_forwardWhich of the following is typically NOT part of an ERP’s OLAP applications? a. decision support systems b. information retrieval c. ad hoc reporting/analysis d. logistics e. what-if analysisarrow_forward
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