MAC570 Accounting Information Systems – The database approach to data management is sometimes called

Exam Two

MAC570
Accounting Information Systems

Fontbonne
University

Summer
2013

Student Name:

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How You Will Be Graded:

10 True-False (0.5 points
each): 5 pts

30 Multiple Choice (1
points each): 30 pts

9 Short Answer (5 points
each) 45 pts

8 Take-Home Essays (15
points each): 120 pts

Total: 200 pts

True / False Questions (1
point each)

1.
The database approach to data
management is sometimes called the flat file approach.

2.
A lockout is a software control that prevents
multiple users from simultaneous access to data.

3.
According to the REA
philosophy, information systems should support only the needs of accounting
professionals.

4.
Modern managers need both
financial and nonfinancial information that traditional GAAP-based accounting
systems are incapable of providing.

5.
The primary goal of installing an ERP system
is achieving business process reengineering to improve customer service, reduce
production time, increase productivity, and improve decision-making.

6.
Organizations using ERP systems employ an
internal control tool called a role.

7.
The network paradox is that networks exist to
provide user access to shared resources while one of its most important
objectives is to control access.

8.
The rules that make it possible for users of
networks to communicate are called protocols.

9.
All of the steps in the Systems
Development Life Cycle apply to software that is developed in-house and to
commercial software.

10. A qualified opinion on management’s assessment of internal controls
over the financial reporting system necessitates a qualified opinion on the
financial statements?

Multiple Choice Questions
(2 points each)

1. Which
of the following is not a problem usually associated with the flat-file
approach to data management?

a.	data redundancy
b.	restricting access to data to the primary user
c.	data storage
d.	currency of information

2. The
deletion anomaly in unnormalized databases

a.	is easily detected by users
b.	may result in the loss of important data
c.	complicates adding records to the database
d.	requires the user to perform excessive updates

3. Data
currency is preserved in a centralized database by

a.	partitioning the database
b.	using a lockout procedure
c.	replicating the database
d.	implementing concurrency controls

4. Which
procedure will prevent two end users from accessing the same data element at
the same time?

a.	data redundancy
b.	data replication
c.	data lockout
d.	none of the above

5. A
replicated database is appropriate when

a.	there is minimal data sharing among information processing units
b.	there exists a high degree of data sharing and no primary user
c.	there is no risk of the deadlock phenomenon
d.	most data sharing consists of read-write transactions

6. Which
statement is NOT true? REA resources
are:

a.	assets
b.	affected by support events
c.	scarce
d.	under the control of agents

7. The ‘R’
in REA stands for

a.	ratios
b.	relationships
c.	resources
d.	reserves

8. The ‘E’
in REA stands for

a.	events
b.	estimates
c.	economics
d.	entities

9. The ‘A’
in REA stands for

a.	assets
b.	apportionment
c.	allocation
d.	agents

10. In an
REA model, events are described from the perspective of

a.	the organization
b.	the designer
c.	the user
d.	the customer

11.
Goals of ERP include all of the
following except

a.	improved customer service
b.	improvements of legacy systems
c.	reduced production time
d.	increased production

12. Which of the following statements is not
true?

a.	In a typical two-tier client server system, the server handles both application and database duties.
b.	Client computers are responsible for presenting data to the user and passing user input back to the server.
c.	In three-tier client server architecture, one tier is for user presentations, one is for database and applications, and the third is for Internet access.
d.	The database and application functions are separate in the three-tier model.

13. Auditors of ERP systems

a.	need not worry about segregation of duties.
b.	may feel that the data warehouse is too clean and free from errors.
c.	find independent verification easy.
d.	need not worry about system access since the ERP determines it.

14. Legacy systems are

a.	old manual systems that are still in place.
b.	flat file mainframe systems developed before client-server computing became standard.
c.	stable database systems after debugging.
d.	advanced systems without a data warehouse.

15. The setup of a data warehouse includes

a.	modeling the data
b.	extracting data from operational databases
c.	cleansing the data
d.	all of the above

16. What do you call a system of computers that
connects the internal users of an organization that is distributed over a wide
geographic area?

a.	LAN
b.	decentralized network
c.	multidrop network
d.	Intranet

17.
Network protocols fulfill all of the
following objectives except

a.	facilitate physical connection between network devices
b.	provide a basis for error checking and measuring network performance
c.	promote compatibility among network devices
d.	result in inflexible standards

18. The primary difference between a LAN and a
WAN is

a.	the geographical area covered by the network
b.	the transmission technology used
c.	the type of workstation used
d.	the size of the company

19. FTP

a.	is the document format used to produce Web pages.
b.	controls Web browsers that access the Web.
c.	is used to connect to Usenet groups on the Internet
d.	is used to transfer text files, programs, spreadsheets, and databases across the Internet.
e.	is a low-level encryption scheme used to secure transmissions in higher-level () format.

20. An IP Address:

a.	defines the path to a facility or file on the web.
b.	is the unique address that every computer node and host attached to the Internet must have.
c.	is represented by a 64-bit data packet.
d.	is the address of the protocol rules and standards that governing the design of internet hardware and software.
e.	none of the above is true.

21. Examples of one-time costs include all of the
following except

a.	hardware acquisition
b.	insurance
c.	site preparation
d.	programming

22. Examples of recurring costs include

a.	software acquisition
b.	data conversion
c.	personnel costs
d.	systems design

23. A tangible benefit

a.	can be measured and expressed in financial terms
b.	might increase revenues
c.	might decrease costs
d.	all of the above

24. The systems steering committee is responsible
for all of the following except

a.	assigning priorities
b.	determining whether and when to terminate systems projects
c.	analyzing the technical feasibility of the project
d.	budgeting funds for systems development

25. The accountant’s role in systems analysis
includes all of the following except

a.	specify audit trail requirements
b.	prepare data gathering questionnaires
c.	suggest inclusion of advanced audit features
d.	ensure mandated procedures are part of the design

26. Which of the following is not an advantage of
commercial software? Commercial software

a.	can be installed faster than a custom system
b.	can be easily modified to the user’s exact specifications
c.	is significantly less expensive than a system developed in-house
d.	is less likely to have errors than an equivalent system developed in-house

27. Which step is least likely to occur when
choosing a commercial software package?

a.	a detailed review of the source code
b.	contact with user groups
c.	preparation of a request for proposal
d.	comparison of the results of a benchmark problem

28. The output of the detailed design phase of
the Systems Development Life Cycle (SDLC) is a

a.	fully documented system report
b.	systems selection report
c.	detailed system design report
d.	systems analysis report

29. There is often a conflict between the
attributes of

a.	timeliness and conciseness
b.	accuracy and timeliness
c.	relevance and summarization
d.	completeness and exceptions orientation

30. Which is not true of direct data input forms?

a.	errors caused by transcription are reduced
b.	calculations are automatically performed on intelligent forms
c.	many data entry errors are detected and corrected immediately
d.	workers who use direct data input forms must be highly trained and skilled

Short Answer Questions (5
points each)

Instructions

Please answer each question fully. These are short answer questions that require
a few sentences to one paragraph to fully answer. Each response is worth 15 points.

1. How does the database approach solve the
problem of data redundancy?

2. Define resources, economic events, and agents.

3. Define
ERP.

4. Describe the three-tier client server
model.

5. What is a ping?

6. Explain
why accountants are interested in the legal feasibility of a new systems
project.

7. List
three advantages and one disadvantage of commercial software.

8. What
is the purpose of the Request for Proposal (RFP)?

9. Why should the tasks of systems
development and maintenance be segregated from operations?

Exam
Two Essays

Instructions

Please answer each question fully. These are essays and meant to be written in
several paragraphs. Each response is
worth 15 points.

1.
One purpose of a database
system is the easy sharing of data. But this ease of sharing can also
jeopardize security. Discuss at least three forms of access control designed to
reduce this risk.

2.
Discuss the key features of
Section 404 of the Sarbanes-Oxley Act.

3.
Does a qualified opinion on
management’s assessment of internal controls over the financial reporting
system necessitate a qualified opinion on the financial statements? Explain.

4.
Discuss the appropriate steps
to take when selecting a commercial software package.

5.
What are network protocols?
What functions do they perform?

6.
What is the fundamental concept
behind the rule of least access? Explain why this is a potential problem in an
ERP environment.

7.
Explain a database lockout and
the deadlock phenomenon. Contrast that to concurrency control and the
timestamping technique. Describe the importance of these items in relation to
database integrity.

8.
Explain how the one-time
password approach works.