America Online’s corporate Web site (http://corp.aol.com) states: “At AOL, we’re in the business of making the Internet better—period. Through innovation and creativity, we’ve raised the bar and set the standard for what we believe high quality content is on the Internet.” AOL’s competitors include companies like Google and Yahoo. a. Use COSO’s enterprise risk management framework to develop an ERM plan for AOL. For “event identification,” include two events that have a “moderate” or “high” risk assessment. For the first event, suggest a control activity that will reduce the risk; for the second, suggest a control activity that will share the risk. b. AOL uses an electronic funds transfer system (EFTS) to process employee expense reimbursements and vendor invoices. Respond to the following questions based on some of the steps in the generalized model of business process management: i. Suggest two pieces of process-related data AOL might collect if it wants to revise the process of reimbursing employee expenses. ii. Explain what tools and techniques you would use to analyze the data you collect. i ii. Give one example of how AOL might improve its employee expense reimbursement process. c. Use the elements of expectancy theory to develop a brief summary you could use to present your ideas to AOL’s corporate officers and motivate them to accept your ideas.
> Use the adjusted trial balance from Problem 7 to prepare an income statement for the quarter ended 30 September 20x4 and a balance sheet as of 30 September 20x4 for GLP Corporation. Data from Problem 7: The unadjusted trial balance for GLP Corporation
> Point your Web browser to www.xbrl .squarespace.com. Summarize the information you find there, and evaluate it using the UMUC criteria discussed in Chapter 1.
> Your old friend, Bumble Beasley, just completed his accounting degree at Dewey, Cheatham and Howe University. Although he studied XBRL in several of his accounting and information systems courses, he’s not really sure he has mastered the topic. In talkin
> a. What is XBRL? How is it related to XML? b. Define the following terms related to XBRL: specification, taxonomy, instance document. c. How can XBRL benefit organizations? d. Will most accountants need to learn to write “code” in XBRL? If not, how can t
> Create database specifications for the following tables: create new community, community hero, create new community / community organizer.
> The Big Marker narrative explains the process used for starting and monitoring communities. Using the technique(s) specified by your AIS instructor, document that process.
> Consider the database specifications you created in Question 2. Suggest three queries Big Marker could create to inform decision making about obtaining corporate sponsors. For each query, indicate its name, its purpose and the fields you would use to cre
> The Big Marker narrative discusses the relationship between corporate sponsors and communities. Consider the REA model below; create specifications for all indicated database tables. Obtain (0,") (1,1) Big Marker community corporate sponsors (1,") (
> Using the technique(s) specified by your AIS instructor, document the process Big Marker uses to purchase new servers.
> Consider the following Excel spreadsheet Import the Excel data into an Access table. Then, create a query that shows the number of transactions processed by each employee. Transaction ID Transaction date Employee ID Customer ID 1 2/3/2014 178 5071
> Please indicate whether each of the following statements is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. “Choose AIS software” would be included as an event in a
> The unadjusted trial balance for GLP Corporation appears on the next page. End-of-period analysis revealed the following: a. The market value of equipment had decreased by 30 percent of its original cost. Depreciation for the quarter totaled $1,000. b. T
> In each independent case situation below, construct a REA model and a database structure. a. Tom’s Trailers. Tom owns a small recreational trailer business in a suburban community located close to the mountains. The community is relatively small but grow
> Most major airlines have “frequent flyer” programs. A customer creates a new account, and earns miles in a variety of ways such as purchasing goods and services through a credit card linked to the account, taking paid flights on the airline, and celebrat
> a. What are the similarities and differences between view-driven and event-driven accounting information systems? b. What does the acronym REA stand for? Give examples of each element. c. List the six steps for creating a REA model. d. Explain how to est
> a. What is a data flow diagram? How are data flow diagrams used in accounting information systems? b. List and discuss the four symbols used in the development of data flow diagrams. Give an example of each symbol in an AIS context. c. What rules/convent
> In this problem, you’ll be creating a drop-down list in Excel. a. Consider the following list of items you might find in a data flow diagram: Starting in Cell A1, enter the list of items in the first tab of a blank Excel spreadsheet.
> Specify whether each statement below is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. A context diagram does not include data stores. b. A database table in 2NF i
> a. Create at least two database tables for each Level One data fl ow diagram you created in Problem 6 (data flow diagram creation). b. In most states, the Department of Motor Vehicles keeps records of individual driver’s licenses and vehicle license plat
> Several independent flat files are shown below. From the fields listed, create the tables indicated. (Not all fields will be used in creating the indicated tables.) a. Tables to create: purchase inventory table, purchase inventory/inventory table b. Ta
> a. The Geek Squad ( www.geeksquad.com ) offers a variety of telephone, in-office, and in-home computer services. When a call for assistance comes into their 800 number, the Geek Squad determines its geographical origin and routes the call to an agent in
> Bumble Beasley is a recently enrolled accounting major at your university. In a conversation about accounting information systems, he said: “I don’t know why we have to learn about flowcharts and data flow diagrams. One documentation technique should be
> Record each of the following transactions in general journal format. a. Issued 50,000 shares of $1 par capital stock for $35 each. b. Billed customers for services provided, $10,000. c. Purchased supplies on account, $3,000. d. Paid monthly utility bill,
> Most major airlines have “frequent flyer” programs. A customer creates a new account, then earns miles in a variety of ways such as purchasing goods and services through a credit card linked to the account, taking paid
> a. What is a flowchart? Describe four different kinds of flowcharts and explain the most often used in an accounting information system. b. Summarize the rules and conventions commonly observed in the preparation of flowcharts. c. List and explain the me
> TNG Corporation has 25 employees in its Accounting department. Based on the results of a standardized exam, TNG has ranked each employee’s flowcharting skill as shown in the array below: The most skilled employee is ranked 1; the leas
> Indicate whether each statement below is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. Columns in a systems flowchart denote areas of responsibility. b. Flowchart
> a. Consider the Richards Furniture Company flowchart again. Describe at least two strengths and at least two weaknesses of the flowchart itself. Then, identify and describe at least two strengths and at least two weaknesses of the process it depicts. For
> Narrative preparation from a flowchart. a. Consider the Richards Furniture Company flowchart presented in Figure 6.3 . Write a narrative description of the business process it depicts. b. Consider the Price Right Electronics Inc. flowchart presented in F
> Create a flowchart based on each of the following independent situations (one flowchart per situation). a. Cori’s Catering Services. Cori is the owner and manager of a catering company. CCS provides complete meals (breakfast, lunch, and dinner), as well
> Compare and contrast Smart Draw and Microsoft Visio. Prepare a paper and/or PowerPoint presentation that includes a recommendation regarding your preferred flowcharting software; justify your recommendation.
> This chapter’s AIS in the Business World presented a partial flowchart for the sales/ collection process at Barnes & Noble; later in the chapter, Figure 6.2 presented a partial flowchart of the acquisition/payment process for the sa
> Big Marker uses the standard chart of accounts in QuickBooks to maintain its financial records. a. Suggest specific account titles and account numbers for at least three accounts in each of the following categories: current assets, plant assets, current
> Richie’s Diner is a 1950s style restaurant chain with locations throughout southern California; you can learn more about them at www. richiesdiner .com/. Richie’s has a fairly standard process for serving food that goes something like this: 1. Seat custo
> Accounting information systems have five generic parts. Based on the preceding narrative, information on the Big Marker web site and your own critical thinking, provide two examples of each of the five generic parts.
> How would you describe Big Marker’s business processes using the Capability Maturity Model? Explain your classification.
> Create a risk / control matrix for Big Marker using some combination of the internal controls discussed in the narrative and any you created in the previous question.
> Use the relevant COSO frameworks to develop internal control and enterprise risk management plans for Big Marker. For both plans, suggest control activities that are not mentioned in the narrative.
> Consider the list of internal controls presented in the narrative. For each one, discuss: a. Whether it is primarily preventive / detective / corrective in nature. b. Which of the four purposes of internal control it is designed to achieve.
> AGN Corporation uses the systems development life cycle to develop/ select new forms of information technology for its operations; its technology acquisition process is considered “managed” based on the capability maturity model. AGN is considering purch
> Indicate whether each of the following statements is (i) always true, (ii) sometimes true, or (iii) never true. For those that are (ii) sometimes true, explain when the statement is true. a. The systems development life cycle is the best way to develop n
> Do a Google search for the AICPA Top Ten Technologies. Investigate the most recent list; describe the process used to develop the list. Work with a group of students to investigate one or more of the technologies, summarizing your work in a form specifie
> a. Jeff is the warehouse manager for Alta Pasa Unified School District; he wants an online inventory tracking system for computers and other technology resources in the warehouse. List and discuss at least five questions you would ask Jeff and his staff
> Which phase of the SDLC is described by each independent case below? a. Dolores used design specifications to create database tables for employee records. b. Eric works at a “help desk” answering questions about patching issues in World of Warcraft. c. E
> a. Which of the following would be recordable transactions in an accounting information system? For each item that would not be a recordable transaction, explain why not. i. Purchasing land with a down payment and a note payable. ii. Verifying an increas
> Several business processes are described below. Which CMM level best characterizes each one? a. Alastor owns a lawn care business. Each time he mows a client’s lawn, he sets a goal for how long it should take. b. Big State University was engaged in three
> a. Business professionals have debated whether or not an organization should strive to ensure that all its processes are “optimized” according to the CMM. What do you think? Regardless of your response, what benefits might an organization realize at the
> This chapter’s “AIS in the Business World” focused on Google. But, Google is not “the only game in town” when it comes to information technology. According to &acir
> a. What are the steps in the systems development life cycle? What activities does each step involve? b. What are the costs and benefits of using the SDLC? c. How can the SDLC be useful in accounting information systems? d. What are the levels in the capa
> For better or worse, McDonald’s locations can be found all over the world. The corporate Web site (www.aboutmcdonalds.com) states: “At McDonald’s, we strive to be more than just a restaurant—we’re a first job for many, a community partner, a model for ot
> a. What are the elements of COSO’s enterprise risk management framework? b. What is business process management? List and discuss the steps managers often use to change a business process. c. List and discuss seven principles of business process manageme
> THN Corporation wants to reorganize the process of issuing purchase orders to make it more efficient. As part of collecting process-related data, the purchasing manager generated the following: Use Excel to prepare a pivot chart and pivot table that sh
> Please indicate whether each of the following statements is (i) always true, (ii) sometimes true or (iii) never true. For those that are sometimes true, explain when/under what circumstances they are. a. Accountants are in the best position to determine
> In Chapter 3, Exercise 8, you developed a risk/control matrix for two of the Fortune 100 companies. Develop a full enterprise risk management plan for one of them; use the COSO framework to structure your plan. Data from Exercise 8: Do a Google search
> According to the investor relations section of its Web site (www.regmovies.com), Regal Entertainment Group “operates the largest and most geographically diverse theatre circuit in the United States, consisting of 7,342 screens in 576 theatres in 42 state
> Which of Eppele’s seven principles is violated in each of the following independent cases? Justify your responses. (Each case may violate more than one principle.) a. Amanda objected to her company’s new approach to training because they had never used i
> In the previous problem, you identified one relevant element of expectancy theory. Consider each scenario again; “fill in” the other two elements. Here’s an example: Expectancy: Anh studied hard and took a review course that enabled her to pass the CPA e
> Which element of expectancy theory is described in each of the following independent scenarios? a. Anh completed the steps for licensure as a Certified Public Accountant and received a pay raise. b. Claudia completed a BPM project early; her boss said sh
> a. What is internal control? Why is internal control important in organizations? b. What are the four basic purposes of internal control? Give an example of each one. c. List and discuss four broad categories of organizational risk exposures. For each br
> Price Right Electronics Inc. (PEI) is a wholesale discount supplier of a wide variety of electronic instruments and parts to regional retailers. PEI commenced operations a year ago, and its records processing has been on a manual basis except for stand-a
> Richards Furniture Company is a 15-store chain, concentrated in the southwest, that sells living room and bedroom furniture. Each store has a full-time manager and an assistant manager, who are paid on a salary basis. The cashiers and sales personnel typ
> MailMed Inc. (MMI), a pharmaceutical firm, provides discounted prescription drugs through direct mail. MMI has a small systems staff that designs and writes MMI’s customized software. Until recently, MMI’s transaction data were transmitted to a third par
> In each of the following independent situations, identify internal control deficiencies and make suggestions regarding their correction/ improvement. a. Many employees of a firm that manufactures small tools pocket some of these tools for their personal
> One of the steps in a financial statement audit is to review the company’s internal control system. What internal controls would you recommend for a zero-based budgeting process?
> Which of the 10 standards is violated in each of the following independent situations? Some situations may violate more than one. a. A team of auditors, each with varying levels of experience, divided up the audit tasks and completed them independently b
> What type of audit is indicated in each of the following situations? a. Checking internal controls over the sales/collection process. b. Determining how an employee embezzled cash. c. Establishing whether an audit conformed to all provisions of Sarbanes-
> 1. An ERP system could be associated with ___ audits. a. Systems b. Financial c. Investigative d. All of the above . 2. In an investigative audit, coconspirators are interviewed before the target a. Because the information they can provide is more impor
> Match each item on the left with the most appropriate item on the right. 1. Assesses whether a company's processes and procedures are followed a. Systems audit b. SOX Section 802 c. Reporting standards d. Professional care 2. Compliance testing 3. C
> Please match each item on the left with the most appropriate item on the right. 1. Autonomy of practice 2. Considering audience characteristics 3. Determining whether goodwill has been impaired 4. Finance, management, information systems 5. Holland'
> Consider the following case as you respond to the questions below: Alberto and Cristina were partners in a travel agency that specialized in arranging corporate travel. Because the partnership was on the verge of bankruptcy, they invited Alberto’s cousin
> The chapter discussed five types of Big Data. Indicate which category best fits each of the following examples; if an example fits more than one category, explain why. a. Airline ticket reservations b. Blood type c. Cell phone tower usage d. Daily credit
> Please refer to the following short case as you answer these questions: After earning both her accounting degree and her CPA license, Barb opened her own public accounting practice. One of her clients was looking for a way to make transaction processing
> Do a Google search for the Fortune 100 companies. Choose two of the companies from the list and prepare a risk/control matrix similar to the one illustrated in the chapter. Include five to seven risks for each company you choose. (You’ll find an example
> Please match each item on the left with the most appropriate item on the right. 1. Behaviors, values, and assumptions a. Type of Big Data b. Parts of "identifying" in Steps for Better Thinking c. Information overload countermeasure d. Goal of knowle
> Several data items that might be included on a payroll form are listed below on the left. The standard payroll forms discussed in the chapter are listed below on the right. For each data item, indicate the form(s) on which you’d find it
> Which business process (conversion, financing, or human resources) is most closely associated with each transaction listed below? f. Retained earnings Capital stock g. Work in process Manufacturing overhead h. Interest expense Premium on bonds payab
> 1. A company that reproduces fine works of art, such as the Mona Lisa, would most likely use what kind of production process? a. Hybrid b. Conversion c. Job d. Process 2. A journal entry in a company’s accounting information system debited retained earn
> Please match each item on the left with the most appropriate item on the right. 1. Custom-made bicycles a. Associated with dividend payments b. Human resource process internal control c. Internal control for missed payments d. Job costing product e.
> The documents discussed in this chapter are listed below on the right. Various information items that might appear in them are listed on the left. For each information item listed on the left, indicate the document(s) in which it would most likely appear
> The steps in the sales/collection and acquisition/payment processes are listed below, but they are out of order. Put the statements in the proper order based on how they occur in organizations. a. An operating department in the buying organization reques
> 1. PLP Corporation maintains an electronic database fi le for all its vendors and purchases. Which of the following amounts would you be least likely to find in the “vendor” table? a. Total amount owed b. Vendor name c. Part numbers commonly purchased d.
> Please match each item on the left with the most appropriate item on the right. 1. Authorize a purchase a. A way to monitor inventory needs b. Audit trail components c. Internal control to manage the risk of embezzlement d. One reason for consolidat
> Several risks are paired with potential internal controls in the list below. Place an “X” in the appropriate column to indicate if the internal control addresses the risk with which it is paired. Be prepared to explain
> Visit the Web site of the Wild Cat Zoo in southern California (www.cathouse-fcc.org). Classify each of the following risks using Brown’s taxonomy. Also suggest one or more internal controls to address each risk. For each internal control you suggest, spe
> These questions will help you assess your understanding of the text readings. If you’ve studied the chapter thoroughly, you should be able to answer them without reference to the text itself. Although these questions appear first, you may find them easie
> Please refer to the case in Problem 12 as you respond to these questions. 1. In a systems flowchart, which of the following is most likely to be depicted with a predefined process symbol? a. Browse catalog b. Make bank deposit c. E-mail client d. None o
> Match each item on the left with the most appropriate item on the right. 1. Bill of lading 2. Face-to-face, Internet, mail, phone 3. For deposit only 4. Independent order checking 5. Information technology 6. Outbound logistics 7. Picking list a. Su
> Please match each item on the right to the most appropriate item on the left. 1. Confidentiality 2. Creating fake refunds to a. Computers used to carry out a crime b. Crime classification that does not necessarily benefit a friend require a computer
> Which type(s) of business risks/threats described in the chapter best applies to each situation below? If more than one applies, explain why. a. Blackmail based on stolen information. b. Concurrent attacks against a determined target. c. Digital graffiti
> Consider the following short case in responding to these questions: Tim was upset with his accounting instructor because of the grade he earned in her class. As an act of revenge, Tim used a computer program he downloaded from the Internet to discover th
> 1. The Web site www.sco.ca.gov/upd.html is an example of which form of e-business? a. B2C b. G2C c. G2B d. C2C 2. Web Trust and Sys Trust are forms of: a. Internal control. b. E-business. c. Systems documentation. d. Transaction processing software. 3.
> Please match each item on the left with the best item on the right. 1. Brick-and-mortar 2. Computer network 3. Financial management 4. Hershey 5. Human resource management a. A well-known ERP system b. Another name for “old economy" organizations c.
> Please match each item on the left with the most appropriate item on the right. 1. Context a. The quality of XBRL that allows users to add tags as 2. Cost savings and improved investor relations needed b. The relationship between XBRL and the Extens
> This series of questions deals with XBRL’s Global Ledger taxonomy. Before attempting to answer them, point your Web browser to the 4 February 2014 post in my AIS blog on XBRL. Use the link provided to access the presentation titled “Key Features of XBRL-
> Consider the following REA model in responding to the questions below; it represents the system by which members of the accounting club at Big State University are reimbursed when they incur expenses on the club’s behalf. 1. Which of
> Internal control has four basic purposes: safeguarding assets, ensuring financial statement reliability, promoting operational efficiency, and encouraging compliance with management’s directives. Consider each of the internal control procedures described
> Match each item on the left with the most appropriate item on the right. 1. Cardinality a. Unique record identifier in a database table 2. Decision/management event b. Supports the preparation of financial statements c. Purchasing supplies d. Prepar
> Consider the REA model presented below. Write a narrative description of the business process it depicts. (1,*), (1,") (1,1) Schedule grooming appointment Pet owner (0,") (1,1) (1,1) Pet (1,1) (1,1) (1,1) (0,") (1,") Grooming staff (1,1) Groom pet
> Please match each item on the left with the most appropriate item on the right. 1. Data flow a. A compilation of fields in a database b. A primary key posted to another table c. Accounts receivable file 2. Data store 3. External entity 4. Field d. C
> Consider the following narrative in responding to the questions that follow: The Rancho Cucamonga Humane Society (RCHS) is open from 7 a.m. to 7 p.m., seven days a week. It maintains a computerized inventory of animals available for adoption, which inclu
