AIS Chapter 1 Questions and Correct Answers |
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When the AIS provides information in a timely and accurate manner, it
stands as an example of
Question options:
A) improved decision making.
B) improving the quality and reducing the costs of products or services.
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C) improving efficiency.
D) All of these
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Ans: D
The value chain concept is composed of two types of activities known as
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Question options:
A) primary and support.
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B) primary and secondary.
C) support and value.
D) technology and support.
Ans: A
Before a firm can identify the information needed to effectively manage a
process, the firm must
Question options:
A) understand the process.
B) hire programmers.
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C) purchase computers and/or workstations.
D) obtain internet access.
Ans: A
An AIS provides value by
Question options:
A) improving products or services through information that increases
quality and reduces costs.
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B) providing timely and reliable information to decision makers.
C) creating new products.
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D) both improving products or services through information that
increases quality and reduces costs and providing timely and reliable
information to decision makers
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Ans: D
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The American Institute of Certified Public Accountants (AICPA) has
recognized the importance of AIS and the major impact information
technology has on the area of accounting. To recognize individual CPAs
who have met educational and experiential requirements in this area, the
group formally created the designation known as
Question options:
A) the Certified Information Auditor.
B) the Certified Internal Auditor.
C) the Certified Information Technology Professional.
D) the Certified Data Processing Professional.
Ans: C
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Cheryl Metrejean has been the controller of Downtown Tires for 25 years.
Ownership of the firm recently changed hands and the new owners are
conducting an audit of the financial records. The audit has been unable
to reproduce financial reports that were prepared by Ms. Metrejean. While
there is no evidence of wrongdoing, the auditors are concerned that the
discrepancies might contribute to poor decisions. Which of the following
characteristics of useful information is absent in the situation described
above?
Question options:
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A) relevant
B) reliable
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C) complete
D) timely
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E) understandable
F) verifiable
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G) accessible
Ans: F
Data must be converted into information to be considered useful and
meaningful for decision making. There are six characteristics that make
information both useful and meaningful. If information is free from error
or bias and accurately represents the events or activities of the
organization, it is representative of the characteristic of
Question options:
A) relevancy.
B) timeliness.