AIS Exam 2 - Systems Documentations

Question 1

Graphical representations of information are often supplemented by

A) narrative descriptions.
B) relevant e-mail communications.
C) logic charts.
D) oral descriptions from management.

Answer 1

narrative descriptions.

Question 2

All of the following are guidelines for preparing data flow diagrams except

A) show the most detail in the highest-level DFD.
B) include all storage files, even if they are only temporary.
C) uniquely name all data flows.
D) sequentially number process bubbles.

Answer 2

A) show the most detail in the highest-level DFD.

Question 3

The Sarbanes-Oxley Act requires independent auditors to

A) create flowcharts to document business processes.
B) understand a client’s system of internal controls.
C) establish effective internal controls.
D) prepare and understand all types of system documentation.

Answer 3

understand a client’s system of internal controls.

Question 4

Which of the following is not a true statement?

A) Documentation tools save an organization both time and money.
B) Documentation tools are used extensively in the systems development process.
C) Data flow diagrams and flowcharts are the two most frequently used systems development documentation tools.
D) Data flow diagrams and flowcharts are difficult to prepare and revise using software packages.

Answer 4

Data flow diagrams and flowcharts are difficult to prepare and revise using software packages.

Question 5

A data flow diagram

A) is a graphical description of the source and destination of data that shows how data flow
within an organization.
B) is a graphical description of the flow of documents and information between departments or
areas of responsibility.
C) is a graphical description of the relationship among the input, processing, and output in an
information system.
D) is a graphical description of the sequence of logical operations that a computer performs as it
executes a program.

Answer 5

is a graphical description of the source and destination of data that shows how data flow within an organization.

Question 6

7) In a DFD, a “data sink” is also known as a

A) data store.
B) transformation process.
C) data flow.
D) data destination.

Answer 6

D) data destination.

Question 7

In preparing a DFD, when data are transformed through a process, the symbol used should be

A) a circle.
B) an arrow.
C) a square.
D) two horizontal lines.

Answer 7

A) a circle.

Question 8

In general, a data destination will be shown by

A) an arrow pointing away.
B) an arrow pointing in.
C) arrows pointing both ways.
D) no arrows, only two horizontal lines.

Answer 8

B) an arrow pointing in.

Question 9

Most processes on a DFD can be identified by

A) data in-flows only.
B) data out-flows only.
C) data flows both into or out of a process.
D) always being followed by a data store.

Answer 9

data flows both into or out of a process.

Question 10

More than one arrow is needed between symbols on a DFD if

A) data elements always flow together.
B) data elements flow at different times.
C) data elements flow to different locations.
D) there is no guideline on use of single or multiple arrows.

Answer 10

data elements flow at different times.

Question 11

A DFD created at the highest-level or summary view is referred to as a

A DFD created at the highest-level or summary view is referred to as a 
A) process diagram. 
B) overview diagram. 
C) content diagram. 
D) context diagram.

Answer 11

context diagram.

Question 12

In a payroll processing DFD, the “prepare reports” activity will be represented by ________, the “employee payroll file” will be represented by ________, and the “management” will be represented by ________.

A) a circle; two horizontal lines; a square
B) a circle; two horizontal lines; two horizontal lines
C) a rectangle; a square; a circle
D) a square; two horizontal lines; a circle

Answer 12

a circle; two horizontal lines; a square

Question 13

Know what the following symbols: square box, circle, one sided arrow, two lines

Answer 13

Square: departments
Circle: process
One sided arrow: flow of data
Two lines: storage

Question 14

Chas Mulligan has been hired by Yardley Security as an assistant to the internal auditor. He has been asked to document the existing accounting information system, and focus on the activities and flow of data between activities. He decides to begin with a summary description of the sources and uses of data in the organization and how they are processed by the system. The documentation tool that he should employ for this purpose is a

A) data flow diagram.
B) document flowchart.
C) system flowchart.
D) program flowchart.

Answer 14

data flow diagram.

Question 15

A well-planned and drawn level 0 data flow diagram for the expenditure cycle would show which of the following processes?

A) 1.0 Order Goods; 2.0 Receive and Store Goods; 3.0 Pay for Goods
B) 1.0 Order Goods; 1.1 Receive and Store Goods; 1.2 Pay for Goods
C) 0.1 Order Goods; 0.2 Receive and Store Goods; 0.3 Pay for Goods
D) 0.1 Order Goods; 0.12 Receive and Store Goods; 0.13 Pay for Goods

Answer 15

1. 0 Order Goods;
2. 0 Receive and Store Goods;
3. 0 Pay for Goods

Question 16

A well-planned and drawn context data flow diagram will include how many processes?

A) one
B) between 5 and 7
C) between 2 and 7, but no more than 7
D) as many as are needed to accurately depict the process being documented

Answer 16

one

Question 17

Data flow diagrams depict

A) processes, but not who is performing the processes.
B) processes, but not the data that flows between processes.
C) who is performing processes, but not how they perform the process.
D) who is performing processes, but not the data that flows between processes.

Answer 17

processes, but not who is performing the processes.

Question 18

Which is the correct label for the blank transformation process circle in the data flow diagram below? (sorry thought pic pasted)

A) 1.2 Check Credit
B) 1.2 Enter Order in Sales Journal
C) 1.2 Does Customer Have Credit?
D) 1.2 Salesperson Approves

Answer 18

A) 1.2 Check Credit

Question 19

In the data flow diagram below, inventory is a

A) data store.
B) data source.
C) data flow.
D) data source and destination.

Answer 19

A) data store.

Question 20

True or False: The Sarbanes-Oxley Act requires auditors to create flowcharts to document business processes.

Answer 20

FALSE

Question 21

In a data flow diagram of the vendor payment process, what symbol would most appropriately reflect an update of the payables account?

A) a square
B) a circle
C) two horizontal lines
D) none of the above

Answer 21

B) a circle

Question 22

In a data flow diagram of the vendor payment process, “Vendor” will appear above or in

A) a square.
B) a circle.
C) two horizontal lines.
D) none of the above

Answer 22

a square

Question 23

In a data flow diagram, an inverted triangle represents

A) an internal control.
B) document filing.
C) on page connection.
D) document processing.

Answer 23

A) an internal control.

Question 24

In a data flow diagram that depicts a company’s internal controls, where is each internal control typically explained in detail?

A) in an annotation on the same page as the internal control
B) inside the symbol used to represent the internal control
C) on a table that accompanies the internal control data flow diagram
D) Internal controls are not typically explained in detail in an internal control data flow diagram.

Answer 24

C) on a table that accompanies the internal control data flow diagram

Question 25

Which documentation technique would not depict the type of storage medium used (such as a flash drive or a hard drive) to physically store data?

A) system flowchart
B) data flow diagram
C) business process diagram
D) internal control flowchart

Answer 25

B) data flow diagram

Question 26

In a data flow diagram of the order shipping process, what symbol would most appropriately denote a “Bill of Lading” used in the process?

A) a square
B) a circle
C) two horizontal lines
D) an arrow

Answer 26

D) an arrow

Question 27

The correct label for Shape 1 in the flowchart below is

A) Purchase Order 3
B) Purchase Requisition 1
C) Accounts Payable Trial Balance
D) Purchase Order 2

Answer 27

D) Purchase Order 2

Question 28

When preparing a document flowchart, the names of organizational departments or job functions should appear in the
A) column headings.
B) right-hand margin.
C) written narrative accompanying the flowchart.
D) title of the flowchart.

Answer 28

A) column headings.

Question 29

Flowchart symbols
A) are divided into four categories.
B) are unique to the organization creating the flowchart.
C) are normally drawn using a flowcharting template.
D) eliminate the need for narrative descriptions or explanations.

Answer 29

A) are divided into four categories.

Question 30

Which is a true statement regarding the use of the manual processing symbol in a flowchart?
A) If a document is moved from one column to another, show the document only in the last column.
B) Each manual processing symbol should have an input and an output.
C) Do not connect two documents when moving from one column to another.
D) Use a manual processing symbol to indicate a document being filed.

Answer 30

B) Each manual processing symbol should have an input and an output.

Question 31

Which is a true statement regarding a document flowchart?
A) A document flowchart illustrates the sequence of logical operations performed by a computer.
B) A document flowchart is particularly useful in analyzing the adequacy of internal control procedures.
C) A document flowchart is more useful than a data flow diagram.
D) A document flowchart is not normally used in evaluating internal control procedures.

Answer 31

B) A document flowchart is particularly useful in analyzing the adequacy of internal control procedures.

Question 32

In a document flowchart of a manual payroll processing system, "update customer file" will be shown by a(n) \_\_\_\_\_\_\_\_ symbol, and "prepare vendor check" will be shown by a(n) \_\_\_\_\_\_\_\_ symbol. 
A) input; output 
B) input; manual operation 
C) manual operation; output 
D) manual operation; manual operation

Answer 32

D) manual operation; manual operation

Question 33

A flowchart that depicts the relationships among the input, processing, and output of an AIS is 
A) an internal control flowchart.
B) a document flowchart. 
C) a system flowchart. 
D) a program flowchart.

Answer 33

C) a system flowchart.

Question 34

In a program flowchart, branching to alternative paths is represented by 
A) a terminal. 
B) data/information flow. 
C) computer operation. 
D) decision diamond.

Answer 34

D) decision diamond.

Question 35

Nishant Kumar has been hired by American Manufacturing as a staff accountant in the internal audit department. He has been asked to thoroughly document the existing accounting information system in preparation for making recommendations for improvements to internal controls. He decides to begin with a description of the information stored in paper records, their sources, and their destinations. The documentation tool that he should employ for this purpose is a 
A) data flow diagram.
B) document flowchart.
C) system flowchart.
D) program flowchart.

Answer 35

B) document flowchart.

Question 36

Nishant Kumar has been hired by American Manufacturing as a staff accountant in the internal audit department. He has been asked to thoroughly document the existing accounting information system in preparation for making recommendations for improvements. He decides to begin by meeting with the information technology staff in order to develop an understanding of the overall operation of the AIS, including data entry, storage, and output. The documentation tool that he should employ for this purpose is a
A) data flow diagram.
B) document flowchart.
C) system flowchart.
D) program flowchart.

Answer 36

C) system flowchart.

Question 37

Which of the following is not true about program flowcharts?
A) Program flowcharts are a high-level overview of all business processes.
B) Program flowcharts document the processing logic of computer programs.
C) A program flowchart will exist for every computer process symbol on a system flowchart.
D) Program flowcharts increase computer programmer productivity.

Answer 37

A) Program flowcharts are a high-level overview of all business processes.

Question 38

Carly Jackson is a staff auditor for KPMG. She has been asked to document the client's existing accounting information system so the engagement team can assess the client's adequacy of controls around financial reporting. She decides to begin by creating a flowchart to describe, analyze, and evaluate internal controls. What documentation tool should she use for this purpose?
A) internal control flowchart
B) document flowchart
C) system flowchart
D) dataflow diagram

Answer 38

A) internal control flowchart

Question 39

Carly Jackson is a staff auditor for KPMG. She has been asked to document the client’s existing accounting information system so the engagement team can assess the client’s adequacy of controls around financial reporting. She decides to begin by examining the client’s key software applications, examining a flowchart that illustrates the sequence of logical operations performed by the system in executing the application. To do this, Carly should ask the client for what type of flowchart?

A) internal control flowchart
B) document flowchart
C) system flowchart
D) program flowchart

Answer 39

D) program flowchart

Question 40

) To create a good business process flowchart, one should emphasize ________ and put less emphasis on ________.
A) meeting with top management; meeting with staff employees
B) following rigid rules on how to prepare a business process flowchart; clearly communicating the activities involved in the process
C) clearly communicating the activities involved in the process; following rigid rules on how to prepare a business process flowchart
D) meeting with staff employees; meeting with top management

Answer 40

C) clearly communicating the activities involved in the process; following rigid rules on how to prepare a business process flowchart