Hall 5e Reviewer Chp1
Chapter 1—The Information System: An Accountant’s Perspective
TRUE/FALSE
1. Information is a business resource.
ANS: T
2. An information system is an example of a natural system.
ANS: F
3. Transaction processing systems convert non-financial transactions into financial transactions.
ANS: F
4. Information lacking reliability may still have value.
ANS: F
5. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting.
ANS: F
6. The Management Reporting System provides the internal financial information needed to manage a business.
ANS: T
7. Most of the inputs to the General Ledger System come from the Financial Reporting System.
ANS: F
8. When preparing discretionary reports, organizations can choose what information to report and how to present it.
ANS: T
9. Retrieval is the task of permanently removing obsolete or redundant records from the database.
ANS: F
10. Systems development represents 80 to 90 percent of the total cost of a computer system.
ANS: F
11. The database administrator is responsible for the security and integrity of the database.
ANS: T
12. A backbone system is completely finished, tested, and ready for implementation.
ANS: F
13. The internal auditor represents the interests of third-party outsiders.
ANS: F
14. Information Technology (IT) audits can be performed by both internal and external auditors.
ANS: T
15. The single largest user of computer services is the personnel function.
ANS: F
16. Increased control is one of the key advantages of distributed data processing.
ANS: F
17. The flat-file approach is most often associated with so-called legacy systems.
ANS: T
18. In a flat-file system, files are easily shared by users.
ANS: F
19. Legacy systems were eliminated in the effort to make systems Y2K compliant.
ANS: F
20. One of the greatest disadvantages of database systems is that all data is always available to all users.
ANS: F
21. Under SOX legislation
TRUE/FALSE
1. Information is a business resource.
ANS: T
2. An information system is an example of a natural system.
ANS: F
3. Transaction processing systems convert non-financial transactions into financial transactions.
ANS: F
4. Information lacking reliability may still have value.
ANS: F
5. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting.
ANS: F
6. The Management Reporting System provides the internal financial information needed to manage a business.
ANS: T
7. Most of the inputs to the General Ledger System come from the Financial Reporting System.
ANS: F
8. When preparing discretionary reports, organizations can choose what information to report and how to present it.
ANS: T
9. Retrieval is the task of permanently removing obsolete or redundant records from the database.
ANS: F
10. Systems development represents 80 to 90 percent of the total cost of a computer system.
ANS: F
11. The database administrator is responsible for the security and integrity of the database.
ANS: T
12. A backbone system is completely finished, tested, and ready for implementation.
ANS: F
13. The internal auditor represents the interests of third-party outsiders.
ANS: F
14. Information Technology (IT) audits can be performed by both internal and external auditors.
ANS: T
15. The single largest user of computer services is the personnel function.
ANS: F
16. Increased control is one of the key advantages of distributed data processing.
ANS: F
17. The flat-file approach is most often associated with so-called legacy systems.
ANS: T
18. In a flat-file system, files are easily shared by users.
ANS: F
19. Legacy systems were eliminated in the effort to make systems Y2K compliant.
ANS: F
20. One of the greatest disadvantages of database systems is that all data is always available to all users.
ANS: F
21. Under SOX legislation