9/9 Chapter 2

Question 1

data

Answer 1

more relative to the eye of the beholder

Question 2

context

Answer 2

data is different in different situation

Question 3

purpose

Answer 3

what are things for

Question 4

interrelatioships

Answer 4

cause/effect, we will find out what is causing the problem and what process it is coming from

Question 5

risks

Answer 5

see what could happen if there are not proper controls

Question 6

get down into detail

Answer 6

people who make the info for the different departments

Question 7

CEO

Answer 7

wants to see what the sale is doing for the company

Question 8

become the expert

Answer 8

we need to know how things work and if amounts are material

Question 9

fraud

Answer 9

1. misstatement, cooking the books, manipulation

2. misappropriation - embezzling money, collusion, overwrite

Question 10

material

Answer 10

we only care about things if they are material

Question 11

polychotomous relationships

Answer 11

there are a lot of different processes and procedures within something that work together

Question 12

systems

Answer 12

we have to break it down and get down to the detail

Question 13

information system

Answer 13

input process store record update report any info

Question 14

accounting information system

Answer 14

input process store record update report accounting info

1. source documents
2. journals
3. ledger
4. trial balance
5. Financial statements

Question 15

enterprise resource planning

Answer 15

sales
inventory control
payroll
purchasing
shipping
accounting

Question 16

Sarbanes Oxley

Answer 16

act that puts regulations on accounting systems