Chapter 1- Exam 1

Question 1

a system that records, processes, and reports on transactions to provide financial and nonfinancial information to make decisions and have appropriate levels of internal controls for those transactions

Answer 1

accounting information system (AIS)

4

Question 2

the use of technology to replace human labor in automating business processes

Answer 2

automate

17

Question 3

items, events, and interactions that determine the financial health and well-being of the firm

Answer 3

business value

10

Question 4

the CITP designation identifies accountants (CPAs) with a broad range of technology knowledge and experience

Answer 4

Certified Information Technology Professional (CITP)

9

Question 5

the CISA designation identifies those professionals possessing IT audit, control, and security skills. Generally, CISAs will perform IT audits to evaluate the accounting information system’s internal control design and effectiveness

Answer 5

Certified Information Systems Auditor (CISA)

9

Question 6

The CIA designation is the certification for internal auditors and is the standard to demonstrate competency and professionalism in the internal audit field

Answer 6

Certified Internal Auditor (CIA)

9

Question 7

software used to manage and nurture a firm’s interactions with its current and potential clients. CRM software often includes the use of database marketing tools to learn more about the customers and to develop strong firm-to-customer relationships

Answer 7

customer relationship management (CRM)

15

Question 8

raw facts or statistics that, absent a context, may have little meaning

Answer 8

data

6

Question 9

information that is generated according to one’s own judgment

Answer 9

discretionary information

6

Question 10

a centralized database that collects data from throughout the firm

Answer 10

enterprise system (ES)

12

Question 11

activities needed to support the firm, including the CEO and the finance, accounting, and legal departments

Answer 11

firm infrastructure

11

Question 12

activities include recruiting, hiring, training, and compensating employees

Answer 12

human resource management

11

Question 13

activities associated with receiving and storing raw materials and other partially completed materials and distributing those materials to manufacturing when and where they are needed

Answer 13

inbound logistics

10

Question 14

the use of computer technology to provide information about business activities to employees across the firm

Answer 14

informate-down

17

Question 15

the use of computer technology to provide information about business activities to senior management

Answer 15

informate-up

17

Question 16

data organized in a meaningful way to the user

Answer 16

information

6

Question 17

the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information

Answer 17

information overload

6

Question 18

the overall transformation from a business need and business event to the collection of data and information to an ultimate decision

Answer 18

information value chain

6

Question 19

information that is required to be generated or provided by law or regulation

Answer 19

mandatory information

7

Question 20

activities that identify the needs and wants of their customers to help attract them to the firm’s products and buy them

Answer 20

marketing and sales activities

10

Question 21

activities that transform inputs into finished goods and services

Answer 21

operations

10

Question 22

activities that warehouse and distribute the finished goods to the customers

Answer 22

outbound logistics

10

Question 23

activities involve purchasing inputs such as raw materials, supplies, and equipment

Answer 23

procurement

11

Question 24

information that is capable of making a difference in a decision

Answer 24

relevance

5

Question 25

information that is free from bias and error

Answer 25

reliability

5

Question 26

a federal law in the United States that set new and enhanced standards for all U.S. public companies, management, and public accounting firms

Answer 26

Sarbanes-Oxley Act of 2002 (SOX)

8

Question 27

activities that provide the support of customers after the products and services are sold to them (e.g. warranty repairs, parts, instruction manuals, etc.)

Answer 27

service activities

10

Question 28

the flow of materials, information, payments, and services from raw materials suppliers, through factories and warehouses, all the way to the final customers of the firm’s products

Answer 28

supply chain

13

Question 29

software that connects the local firms with its suppliers. It generally addresses segments of the supply chain, including manufacturing, inventory control, and transportation

Answer 29

supply chain management (SCM) software

14

Question 30

person responsible for both determining the information needs of the business and designing a system to meet those needs

Answer 30

systems analyst

8

Question 31

supports value-creating activities in the value change. These technologies also include research and development to develop new products or determine ways to produce products at a cheaper price

Answer 31

technology

11

Question 32

the use of computer technology to fundamentally redefine business processes and relationships

Answer 32

transform

17

Question 33

a chain of critical business processes at a company that creates value

Answer 33

value chain

10