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Test Bank for Principles of Information Systems

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Test Bank for Principles of Information Systems
When the AIS provides information in a timely and accurate manner, it stands as an example of



A) improved decision making.



B) improving the quality and reducing the costs of products or services.



C) improving efficiency.



D) All of these - ANSWERSD



The value chain concept is composed of two types of activities known as



A) primary and support.



B) primary and secondary.



C) support and value.



D) technology and support. - ANSWERSA



Before a firm can identify the information needed to effectively manage a process, the firm
must



A) understand the process.

,B) hire programmers.



C) purchase computers and/or workstations.



D) obtain internet access. - ANSWERSA



An AIS provides value by



A) improving products or services through information that increases quality and reduces costs.



B) providing timely and reliable information to decision makers.



C) creating new products.



D) both improving products or services through information that increases quality and reduces
costs and providing timely and reliable information to decision makers - ANSWERSD



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



A) the Certified Information Auditor.



B) the Certified Internal Auditor.



C) the Certified Information Technology Professional.

, D) the Certified Data Processing Professional. - ANSWERSC



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?



A) relevant



B) reliable



C) complete



D) timely



E) understandable



F) verifiable



G) accessible - ANSWERSF



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

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