In the information value chain presented in the book, what precedes the receipt of information?

Chapter 1 (new version)

MULTIPLE CHOICE

1.A set of two or more interrelated components that interact to achieve a goal is:

a) A system

b)An accounting information system

c) Data

d)Mandatory information

2.This results when a subsystem achieves its goals while contributing to the

organization's overall goal.

a) Goal conflict

b)Goal congruence

c) Value of information

d)Systems congruence

3.Goal conflict may result when

a) A decision or action of a subsystem is inconsistent with the system as a whole.

b)A subsystem achieves its goals while contributing to the organization's overall

goal.

c) Duplicate recording, storage and processes are eliminated.

d)The data exceeds the amount the human mind can absorb and process.

4.Facts that are collected, recorded, stored and processed by an information system

a) Information

b)Data

c) Systems

d)Mandatory information

5.Information is

a) What happens when the data exceeds the amount the human mind can absorb.

b)The benefit produced by the information minus the cost of producing it.

c) Facts that are collected, recorded, stored, and processed by an information system.

d)Data that have been organized and processed to provide meaning to a user.

6.Data are

a) facts entered, stored, and processed by an information system.

b)processed output that is useful to decision makers.

c) another word for information.

d)quantitative facts that are not qualitative by nature.

7.Which of the following statements below shows the contrast between data and

information?

a) Data is the output of an AIS.

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5731Chapter 1.Accounting Information systems is like a treasure map ie ( QuickBooks)over the counter programsStores data and informationData are simply facts that describe an event and have little meaning on their own. (Sales)Information is defined as data organized in a meaningful way to be useful to the user. Data serves as aninput.Value chain: data information knowledge decisionWhat is a 10k: Audited set of financial statements that were required SEC EDGAR2 opinions: auditing from auditors AND PCAOBTheUnited States Public Company Accounting OversightBoard(PCAOB). Its a private-sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002.SEC watches out for corporationsRole of Accountants in AISDesigner: Systems AnalystImplementer: DataUser:Record journal entriesEvaluator: AuditorManager: CFO ControllerOf the many information systems that are used in a firm, one type of information system is used in everyfirm: anaccounting information system (AIS). An AIS is defined as a system that records, processes,summarizes, reports and communicates the results of business transactions to provide financial andnonfinancial information to facilitate decision making. In addition, an AIS is designed to ensureappropriate levels of internal controls (important security measures to protect the integrity of sensitivedata) for those transactions.An AIS, just like any system, can be explained using a general systems approach (as inFigure 1.1) withinput, storage, processing, and output activities. We cover these activities in subsequent chapters, butthe input may come in the form of sales recorded on aStarbuckscash register or point-of-sale terminal.To be most useful for decision makers, information from an AIS must be both relevant and be a faithfulrepresentation by having these attributes:

Would generally be considered the first primary activity in the value chain?

What process refers to the flow of materials information payments and services from raw materials suppliers to the final customer?

Which designation is for CPAs with a broad range of technology knowledge and experience?

What would be the most appropriate designation for a professional who serves as an IT auditor?