1What is an Accounting Information System (AIS)?
A system that records, processes, and reports transactions and provides information for decision-making while ensuring internal controls
2What is data?
Raw facts that describe events
3What is information?
Data that has been processed and organized to be meaningful
4What is the difference between data and information?
Information is data plus context and meaning
5What does AIS help protect?
Sensitive data through internal controls
6What is mandatory information?
Information required by law
7What is discretionary information?
Information not required by law that managers choose to produce
8Give an example of mandatory information
Financial reports for the SEC
9What are the main attributes of useful information?
Relevance and faithful representation
10What makes information relevant?
Predictive value, feedback value, and materiality
11What does faithful representation mean?
Information is complete, neutral, and free from error
12Which is NOT an attribute of useful information?
Bias
13What is information overload?
Too much information that makes decision-making harder
14What role does CRM software most affect?
Revenues
15What role does supply chain management software most affect?
Inventory and cost of goods sold
16What does “automate” mean in AIS strategy?
Using technology to replace manual labor
17What does “informate” mean in AIS strategy?
Using technology to provide better information
18What does “transform” mean in AIS strategy?
Using technology to fundamentally change business processes
19Which AIS strategy has the biggest impact on firm value?
Transform
20What shape represents an activity in BPMN?
A rectangle
21What shape represents an event in BPMN?
A circle
22What shape represents a gateway in BPMN?
A diamond
23What does a sequence flow show?
The order of activities within a process
24What does a message flow show?
Communication between different pools
25What is a pool in BPMN?
An organization or participant
26What is a swimlane in BPMN?
A role or job within a pool
27What do swimlanes show?
Who is responsible for each activity
28What does an intermediate timer event represent?
A delay in the process
29What is a UML class?
A collection of things about which data is stored
30In a database, what does a class become?
A table
31What does an attribute become in a database?
A column
32What is a primary key?
A field that uniquely identifies each record
33Can a primary key be null?
No
34What makes a good primary key?
Unique, stable, and controlled by the organization
35What is a foreign key?
A primary key from another table used to link tables
36What does a foreign key always reference?
A primary key in another table
37What does the multiplicity 0..* mean?
Zero or many
38What does the multiplicity 1..* mean?
One or many
39What does the multiplicity 1..1 mean?
Exactly one
40What does the multiplicity 0..1 mean?
Zero or one
41In a one-to-many relationship, where do you place the foreign key?
On the “many” side
42How do you implement a many-to-many relationship?
Create a linking table
43What are the basic SQL clauses in order?
SELECT, FROM, WHERE, JOIN, GROUP BY
44What does SELECT do?
Chooses which columns to display
45What does WHERE do?
Filters rows before grouping
46What does GROUP BY do?
Groups rows for aggregate functions
47What does HAVING do?
Filters groups after aggregation
48Name common SQL aggregate functions
SUM, AVG, COUNT, MAX, MIN
49What are access controls?
Controls that limit who can use or change data
50What are application controls?
Controls that ensure data accuracy and an audit trail
51What are business rules?
Constraints that control how processes operate
52What are the three types of business rules?
Obligatory, prohibited, and allowed
53What is an obligatory business rule?
Something that must occur
54What is a prohibited business rule?
Something that is not allowed
55What is an allowed business rule?
Something permitted under conditions
56What are internal controls?
Processes that provide assurance over operations, reporting, and compliance
57What are the three main types of internal controls?
Preventive, detective, and corrective
58What do preventive controls do?
Stop problems before they occur
59What do detective controls do?
Identify problems after they occur
60What do corrective controls do?
Fix problems that have been identified
61What law requires management to report on internal controls?
Sarbanes-Oxley Act (SOX)
62Which SOX section focuses on internal controls?
Section 404
63What framework do most companies use for internal controls?
COSO
64How many objectives does COSO have?
Three
65What are COSO’s three objectives?
Operations, reporting, and compliance
66How many components does COSO have?
Five
67What are the five COSO components?
Control environment, risk assessment, control activities, information and communication, monitoring activities
68What is the control environment?
The tone at the top and foundation of internal control
69What is risk assessment?
Identifying and analyzing risks
70What are control activities?
Policies and procedures that help ensure objectives are met
71What is information and communication?
Sharing relevant information internally and externally
72What are monitoring activities?
Evaluating internal controls over time
73Why is Dr. Franklin not a class in the UML example?
There is only one Dr. Franklin
74What are the main classes in the Dr. Franklin scenario?
Patients, patient visits, and tests
75In the Dr. Franklin scenario, can a patient have many visits?
Yes
76In the Dr. Franklin scenario, can a visit have many tests?
Yes
77In the Dr. Franklin scenario, can tests exist without being used?
Yes
78If each patient has one insurance provider, insurance should be associated with which class?
Patients