2 The interim audit requires some type of substantive testing.

1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Accounting Information Systems, 11e (Bodnar/Hopwood) Chapter 2 Systems Techniques and Documentation

1) Tools used in the analysis, design, and documentation of system and subsystem relationships are known as system techniques.

Answer: TRUE

Diff: 2

Learning Obj.: 1

2) The interim audit requires some type of substantive testing.

Answer: FALSE

Diff: 1

Learning Obj.: 1

3) Substantive testing involves direct verification of financial statement figures.

Answer: TRUE

Diff: 2

Learning Obj.: 1

4) When evaluating internal controls, auditors are usually not concerned with the flow of processing and distribution of documents within an application system.

Answer: FALSE

Diff: 2

Learning Obj.: 1, 2

5) Auditors undertake compliance testing to determine the degree of reliance of existing internal controls.

Answer: TRUE

Diff: 2

Learning Obj.: 1

6) It is desirable for auditors to have a basic understanding of systems techniques.

Answer: TRUE

Diff: 1

Learning Obj.: 1

7) The usual focus of an audit is to review an existing system rather than design a new system.

Answer: TRUE

Diff: 2

Learning Obj.: 1

8) Analytic and system flowcharts are seldom found in the working papers of auditors.

Answer: FALSE

Diff: 1

Learning Obj.: 1

Accounting Information Systems 11th Edition Bodnar Test Bank Visit TestBankDeal.com to get complete for all chapters

2 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 9) A systems development project generally consists of three main phases.

Answer: TRUE

Diff: 2

Learning Obj.: 1

10) Systems techniques assist the analyst in the collection and organization of facts.

Answer: TRUE

Diff: 2

Learning Obj.: 1

11) Systems analysis involves formulating a blueprint for a completed system.

Answer: FALSE

Diff: 2

Learning Obj.: 1

12) Auditors primarily use IPO and HIPO charts.

Answer: FALSE

Diff: 1

Learning Obj.: 1

13) Section 404 of the Sarbanes-Oxley Act requires that annual filings of publicly traded companies include a statement of management's responsibility for establishing and maintaining adequate internal control as well as an assessment of the effectiveness of that internal control.

Answer: TRUE

Diff: 1

Learning Obj.: 1

14) Section 404 of the Sarbanes-Oxley Act requires that monthly filings of publicly traded companies include a statement of management's responsibility for establishing and maintaining adequate internal control as well as an assessment of the effectiveness of that internal control.

Answer: FALSE

Diff: 1

Learning Obj.: 1

15) Manual input/output and connector symbols are among the basic flowchart symbols.

Answer: FALSE

Diff: 2

Learning Obj.: 2

16) In the United States, the AICPA is responsible for establishing standard flowchart symbols.

Answer: FALSE

Diff: 1

Learning Obj.: 2

3 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 17) The four basic symbols corresponding to basic data processing functions are the input/output symbol, the process symbol, the flowline symbol, and the annotation or comment symbol.

Answer: TRUE

Diff: 2

Learning Obj.: 2

18) If no special symbol exists to depict a function, verbal descriptions are used in the flowchart.

Answer: FALSE

Diff: 3

Learning Obj.: 2

19) The decision symbol represents a named procedure consisting of one or more operations or program steps that are not specified within the set of flowcharts.

Answer: FALSE

Diff: 3

Learning Obj.: 2

20) The decision symbol represents a decision or switching type of operation that determines which of a number of alternative paths is to be followed.

Answer: TRUE

Diff: 3

Learning Obj.: 2

21) The normal flow direction of a flowchart is from left to right and top to bottom.

Answer: TRUE

Diff: 1

Learning Obj.: 2

22) The triangle is a specialized symbol representing a decision process.

Answer: FALSE

Diff: 3

Learning Obj.: 2

23) When the flow is bidirectional, it can only be shown by double lines.

Answer: FALSE

Diff: 3

Learning Obj.: 2

24) An IPO chart provides a narrative description of the inputs needed to generate desired system outputs.

Answer: TRUE

Diff: 2

Learning Obj.: 4

4 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 25) A HIPO chart contains two segments: a hierarchy chart and one or more IPO charts.

Answer: TRUE

Diff: 1

Learning Obj.: 4

26) An IPO chart can provide much detail concerning the processing function.

Answer: FALSE

Diff: 1

Learning Obj.: 4

27) HIPO structures a "bottom-up" strategy in structured systems analysis and design.

Answer: FALSE

Diff: 2

Learning Obj.: 4

28) A program flowchart is also known as a block flowchart.

Answer: TRUE

Diff: 1

Learning Obj.: 2

29) A systems flowchart is more detailed concerning individual processing functions than a program flowchart.

Answer: FALSE

Diff: 1

Learning Obj.: 2

30) The intent of using DFDs is to clearly separate the logical process of systems analysis from the physical process of systems design.

Answer: TRUE

Diff: 2

Learning Obj.: 2

31) A DFD may consist of either DFD or ANSI flowchart symbols.

Answer: FALSE

Diff: 2

Learning Obj.: 2

32) A document flowchart is similar to a systems flowchart.

Answer: FALSE

Diff: 3

Learning Obj.: 2

33) The forms distribution chart is closely related to the document flowchart.

Answer: TRUE

Diff: 1

Learning Obj.: 2