Podcast
Questions and Answers
Which cycle involves planning, scheduling, and control of the physical product through the manufacturing process?
Which cycle involves planning, scheduling, and control of the physical product through the manufacturing process?
- Expenditure cycle
- Conversion cycle (correct)
- Revenue cycle
- None of the above
What type of transaction is reflected in the accounts and is measured in monetary terms?
What type of transaction is reflected in the accounts and is measured in monetary terms?
- Monetary transaction (correct)
- Non-monetary transaction
- Asset transaction
- Economic transaction
Which type of journal records specific classes of transactions that occur in high frequency?
Which type of journal records specific classes of transactions that occur in high frequency?
- Special journals (correct)
- Subsidiary ledger
- Ledger
- General journal
What is the time lag between the two components in the revenue cycle due to?
What is the time lag between the two components in the revenue cycle due to?
Which type of accounting records is used to capture and formalize transaction data needed for transaction processing?
Which type of accounting records is used to capture and formalize transaction data needed for transaction processing?
Which subsystem of the expenditure cycle involves the acquisition of goods?
Which subsystem of the expenditure cycle involves the acquisition of goods?
What does the cost accounting system monitor in the conversion cycle?
What does the cost accounting system monitor in the conversion cycle?
Which type of ledger shows activity for each account listed on the chart of accounts?
Which type of ledger shows activity for each account listed on the chart of accounts?
What are product documents the result of?
What are product documents the result of?
Which type of system uses journals, ledgers, and source documents as accounting records?
Which type of system uses journals, ledgers, and source documents as accounting records?
What type of databases were used in later legacy systems?
What type of databases were used in later legacy systems?
What does batch processing involve?
What does batch processing involve?
What is the purpose of a recovery program in database backup procedures?
What is the purpose of a recovery program in database backup procedures?
What is the advantage of batch processing?
What is the advantage of batch processing?
Why do many AIS use batch processing?
Why do many AIS use batch processing?
What is the primary function of the Sort Run in batch processing?
What is the primary function of the Sort Run in batch processing?
What is the characteristic of real-time systems in terms of processing transactions?
What is the characteristic of real-time systems in terms of processing transactions?
What is the main reason why batch processing may be done using real-time data?
What is the main reason why batch processing may be done using real-time data?
What does the Edit Run do in batch processing?
What does the Edit Run do in batch processing?
What type of environment did data storage systems in legacy systems promote?
What type of environment did data storage systems in legacy systems promote?
Which documentation technique represents the relationship between entities in a system using the REA model?
Which documentation technique represents the relationship between entities in a system using the REA model?
Which documentation technique uses symbols to represent the processes, data sources, data flows, and entities in a system and does not represent the physical system?
Which documentation technique uses symbols to represent the processes, data sources, data flows, and entities in a system and does not represent the physical system?
Which type of flowchart is used to illustrate the relationship among processes and the documents that flow between them and contains more details than data flow diagrams?
Which type of flowchart is used to illustrate the relationship among processes and the documents that flow between them and contains more details than data flow diagrams?
Which flowchart type is used to represent the relationship between the key elements of computer systems, depicting the type of media being used?
Which flowchart type is used to represent the relationship between the key elements of computer systems, depicting the type of media being used?
When auditing a computer-based system, what serves as the physical trail due to the less observability of the audit trail?
When auditing a computer-based system, what serves as the physical trail due to the less observability of the audit trail?
Which technique is commonly used for tracing an audit trail in accounting and involves verifying details with a third party?
Which technique is commonly used for tracing an audit trail in accounting and involves verifying details with a third party?
In auditing, what does the AR control figure need to be reconciled with?
In auditing, what does the AR control figure need to be reconciled with?
What do modern accounting systems use for data storage and what do they consist of?
What do modern accounting systems use for data storage and what do they consist of?
What are legacy systems still used for in some firms' data processing?
What are legacy systems still used for in some firms' data processing?
What are the five common documentation techniques essential in a computer-based environment?
What are the five common documentation techniques essential in a computer-based environment?
Study Notes
Audit Trail and Documentation Techniques in Accounting Information Systems
- The AR balance in the balance sheet should be compared with the master file AR control account balance during an audit.
- The AR control figure needs to be reconciled with the AR subsidiary account total.
- Sampling and confirmation are common techniques used for tracing an audit trail in accounting.
- In a computer-based system, the audit trail is less observable, and the data entry and computer programs serve as the physical trail.
- Computer-based systems store data in magnetic files and consist of master files, transaction files, reference files, and archive files.
- Documentation in a computer-based environment is essential for various reasons, and five common documentation techniques are Entity Relationship Diagrams, Data Flow Diagrams, Document Flowcharts, System Flowcharts, and Program Flowcharts.
- The Entity Relationship Diagram (ERD) is a widely used documentation technique that represents the relationship between entities in a system using the REA model.
- Data Flow Diagrams (DFD) use symbols to represent the processes, data sources, data flows, and entities in a system and do not represent the physical system.
- Document Flowcharts illustrate the relationship among processes and the documents that flow between them and contain more details than data flow diagrams.
- System Flowcharts are used to represent the relationship between the key elements of computer systems, depicting the type of media being used.
- Program Flowcharts illustrate the logic used in programs and use symbols to represent the logical process.
- Modern accounting systems are client-server based, process transactions in real time, use relational database tables, and have a high degree of process integration and data sharing. However, some firms still use legacy systems for certain aspects of their data processing, and accountants need to understand these legacy systems.
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Description
Test your knowledge of audit trail and documentation techniques in accounting information systems with this quiz. Explore concepts such as reconciliation, sampling, documentation techniques like Entity Relationship Diagrams and Data Flow Diagrams, and the impact of computer-based systems on auditing practices.
