TBChap001

Chapter 01 Accounting Information Systems and Firm Value True / False Questions 1. Accounti Accounting ng and Finan Finance ce is a primary primary activit activity y in the value value chain. chain. True True

False

2. Accounti Accounting ng Informatio Information n Systems Systems at this date are are all computeri computeried. ed. True True

False

!. "usiness value includes includes all all those items# items# events events and interactions interactions that that determine determine the $nancial health and %ell&'eing of the $rm. True True

False

(. The Certi$ed Certi$ed Information Technology )rofessional )rofessional *CIT)+ is a professional professional designation designation for those %ith 'road range of technology ,no%ledge and does not re-uire a C)A. C)A. True True

False

. The Certi$ed Certi$ed Informatio Information n Systems Systems Auditor *CISA+ *CISA+ is a professi professional onal designa designation tion generally sought 'y those performing IT audits. True True

False

/. Information is de$ned as 'eing data organied organied in a meaningful meaningful %ay to 'e useful useful to the user use r. True True

False

. ata is de$ned as 'eing information information organied organied in a meaningful meaningful %ay to 'e useful useful to the user use r. True True

False

. A systems analyst analyes a 'usiness 'usiness pro'lem that might 'e addressed addressed 'y an information system and recommends soft%are soft%are or systems to address that pro'lem. True True

False

3. A value chain is de$ned as as the 4o% of materials# materials# information# information# payments# payments# and services from customer to supplier. True True

False

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10. 5elevant 5elevant information is that information that is free from 'ias and error. error. True True

False

11. The characteristics of relevant relevant information include predictive value# value# feed'ac, value and timeliness. True True

False

12. The characteristics of relia'le relia'le information are that the information is veri$a'le# %ithout 'ias and timely. True True

False

1!. Information overload is de$ned de$ned as the di6culty a person faces in understanding understanding a pro'lem and ma,ing a decision as a conse-uence of too much information. True True

False

1(. The main $nancial 'ene$t of Customer 5elationship 5elationship 7anagement practices reduces reduces the cost of goods sold. True True

False

1. An e6cient 8nterprise System System can signi$cantly lo%er lo%er the cost of support processes included in sales# general# and administrative administrative e9penses. True True

False

1/. An accounting information information system *AIS+ is de$ned as 'eing an information information system that records# processes and reports on transactions to provide $nancial information information for decision ma,ing and control. True True

False

1. An enterprise system is a centralied centralied data'ase that collects collects data from throughout the $rm. This includes data from orders# customers# sales# inventory and employees True True

False

1. :ut'ound logistics are the activities associated associated %ith receiving and storing ra% materials and other partially completed materials# and distri'uting those materials to manufacturing %hen and %here they are needed. True True

False

13. Service Activities Activities as de$ned in the value chain are those activities that provide the support of customers after the products and services are sold to them *e.g. %arranty repairs# parts# instruction manuals# etc.+. True True

False


20. A %ell&designed and %ell&functioning %ell&functioning AIS can 'e e9pected to create value 'y providing relevant information helpful to management to increase revenues and reduce e9penses. True True

False

21. )roduction of a 10(0 ta9 form from the AIS to 'e delivered to the Internal Internal 5evenue 5evenue Service is an e9ample of discretionary discretionary information. True True

False

22. An enterprise system is primarily primarily used to manage and nurture a $rm;s interactions interactions %ith its current and potential clients. True True

False

2!. The Sar'anes&:9ley Act of 2002 is a federal la% in the
False

2(. C57 soft%are often often includes the use of data'ase mar,eting tools to learn more a'out the customers and to develop strong $rm&to&customer relationships. relationships. True True

False

2. The Certi$ed Information Informatio n Technology echnolog y )rofessional is the position created 'y the AIC)A AIC)A to recognie C)As %ho have the a'ility to provide s,illed professional services on Information Informatio n Technology. True True

False

Multiple Choice Questions 2/. Accounting information information systems are= are=

A. Al%ays computeried. ". 5eport 5eport only accounting information. C. 5ecords# processes and reports . Are Are for computer games

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2. >hich of the follo%ing are not a characteristic of useful information? information?

A. 8asy to understand ". Feed'ac, value. C. Timel y . 5epresentatio 5epresentational nal Faithfulness 2. >hich of the follo%ing are considered considered to 'e mandatory information re-uired re-uired 'y a regulatory 'ody?

A. Financial reports for the Securities and 89change Commission ". The amount of ta9es saved 'y a merger C. The total dollar value of $re%or,s that are sold on @uly (. . The cost to 'uild an all&ne% Star'uc,s restaurant in A'u ha'i. 23. The correct order of eects in the value chain chain are=

A. In'ound In'ound Bogistics  :perations  Service ". In'ound In'ound Bogistics  :ut'ound Bogistics  7ar,eting 7ar,eting D Sales C. In'ound Bogistics  :perations  :ut'ound Bogistics . In'ound Bogistics  :perations  Shipping !0. >hich designation %ould %ould most appropriate for those professionals professionals possessing an IT audit# control and security s,ills?

A. Certi$ed Internal Auditor *CIA+ ". Certi$ed )u'lic Accountant *C)A+ C. Certi$ed Information Technology )rofessional *CIT)+ . Certi$ed Certi$ed Information Systems Auditors *CISA+


!1. >hich designation is for C)As C)As %ith a 'road range of technology ,no%ledge ,no%ledge and e9perience?

A. Certi$ed Internal Auditor *CIA+ ". Certi$ed )u'lic Accountant *C)A+ C. Certi$ed Information Technology )rofessional *CIT)+ . Certi$ed Certi$ed Information Systems Auditors *CISA+ !2. A supply chain= chain=

A. 5efers to the supplies needed to 'uild products ". 5efers 5efers to the 4o% of materials# information# payments and services. C. Is similar in function and purpose to the value chain . oes not apply to a service $rm li,e an accounting $rm. !!. A supply chain system system does not include information information a'out

A. Current customers ". )rospective customers C. Availa'ility of inventory . Current suppliers !(. The income statement line item most most li,ely aected aected 'y an AIS investment in enterprise systems %ould 'e=

A. 5evenue s ". Cost of Eoods Sold C. Selling# Eeneral and Administrative Administrative 89penses .
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!. The income statement line item most most li,ely aected aected 'y an AIS investment in supply chain that %ould interface %ith suppliers %ould 'e=

A. 5evenue s ". Cost of Eoods Sold C. Selling# Eeneral and Administrative Administrative 89penses . 5esearch and evelopment 89penses !/. The IT strategic roles of AIS investments investments are classi$ed classi$ed as=

A. Automate# Informate# Transform Transform ". Value creation# Value estruction# Value eutral C. igitie# 5eport# Transform Transform . Automate# igitie# Transport Transport !. According to a recent recent study# the transform IT strategic role is de$ned de$ned as systems that=

A. replacing replacing human la'or in automating 'usiness processes ". provides provides information a'out 'usiness activities to all employees C. provide information a'out 'usiness activities to senior management . fundamentally rede$ne 'usiness processes and relationships !. According to a recent study# the informate&up IT strategic role is de$ned as systems that=

A. replacing replacing human la'or in automating 'usiness processes ". provides provides information a'out 'usiness activities to all employees C. provide information a'out 'usiness activities to senior management . fundamentally rede$ne 'usiness processes and relationships

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!3. The income statement account account most li,ely aected 'y an AIS investment investment in customer relationship relationship management *C57+ %ould 'e=

A. 5evenue s ". Cost of Eoods Sold C. Selling# Eeneral and Administrative Administrative 89penses .
A. Automa te ". Informate & up C. Transfor m . Informate Informate & do%n (1. 8"ay uses information information technology to sell goods on the internet. This %ould 'e an e9ample of the GGGGGGGGGGG strategic role.

A. Automa te ". Informate & up C. Transfor m . Informate Informate & do%n (2. The Information Value Value Chain is de$ned as=

A. The 4o% of materials# information# payments# and services ". The The use of computer technology to provide information a'out 'usiness activities to employees across the $rm. C. The overall transformation transformation of data from a 'usiness need to the ultimate decision. . A centralied data'ase that collects data from throughout the $rm.

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(!. "usiness Value Value is de$ned as=

A. The monetary value of a 'usiness. ". Items# Items# events and interactions that determine the $nancial health and %ell& 'eing of the $rm C. The cost to ac-uire a 'usiness 'y an outsider. . The overall value of ta,ing data and transforming it in to information needed for decision ma,ing. ((. Customer 5elationship 5elationship 7anagement 7anagement is de$ned as=

A. A system used to manage and nurture a $rm;s interactions %ith its current and potential customers ". A system used to trac, a customer;s past purchases C. A system used to connect a $rm;s suppliers %ith a $rm;s customers. . A system used to advertise current current items on sale to customers. (. Support activities in the value chain chain does not include=

A. Firm Infrastructure ". Human 5esource 7anagement C. )rocureme nt . Accounting and Finance (/. The role of accountants in accounting accounting information systems include include all e9cept=

A.
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(. A simple information system system includes all 'ut the follo%ing elements elements e9cept=

A. )rocessin g ". Storag e C. Inpu t . 5eportin g (. Activity&'ased Activity&'ased costing is an e9ample e9ample of=

A. Information overload ". 7andatory information C. iscretionary iscretionary information . 8nterprise System (3. An e9ample of an AIS that primarily addresses internal 'usiness 'usiness processes includes=

A. Supply chain soft%are ". Customer relationship management soft%are C. "2" transaction soft%are . 8nterprise systems

Essay Questions

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0. After a college foot'all game# a 'o9 score is produced detailing detailing the num'er of yards passing and running# receptions made and the num'er of interceptions interceptions and fum'les lost *among other statistics+.
1. Bist and e9plain three three %ays that AIS aects the income statement statement and the $rm;s pro$ta'ility.

2. Some %ould argue that the role of accounting is simply as an information provider. provider. :thers suggest that accountants serve the role of 'usiness analyst. >hich role produces more value for a company li,e Star'uc,s? In the area of accounting information systems# %hat speci$cally speci$cally can the accountant do to serve as a 'usiness analyst to help address 'usiness opportunities?


!. 89plain the types of discretionary information a company li,e li,e Eoogle %ould collect from its accounting information system.

(. >hy %ould the transform IT strategic role 'e more more impactful on stoc, price than the automate IT strategic role?

. Stephen Eillett# Star'uc,s Star'uc,s CI:# argues that his most crucial duty is to enhance enhance Star'uc,s; a'ility to mine its customer data to help reignite our passion %ith our customers. Star'uc,s used loyalty cards *Star'uc,s; 5e%ard 5e%ard cards+ and surveys to trac, its customers; purchases and 'uild pro$les of their customers as mentioned in the opening chapter vignette. >hy is this a good e9ample of customer relationship relationship management *C57+?


/. 7ichael ell ell of ell Computer e9plained= e9plained= >e tell our suppliers e9actly %hat our daily production re-uirements re-uirements are so it is not# >ell# >ell# every t%o %ee,s deliver #000 to this %arehouse# and %e;ll put them on the shelf# and then %e;ll ta,e them o the shelf. It is# Tomorro% morning %e need #/2# and deliver them to door num'er seven 'y  am. Ho% does the supply chain management soft%are allo% this to happen? And ho% does it save ell money?

. Amaon.com is one of the 'est at fostering its interaction %ith their their customers 'y ,eeping a record of their past purchases and product searches and using that information to recommend other similar products for the customer to consider. consider. Ho% can they use that information to help them in their mar,eting eorts?

. The Certi$ed Information Systems Systems Auditors *CISA+ designation identi$es identi$es those professionals professionals possessing IT audit# control and security s,ills. Ho% do you thin, a professional professional designation is helpful for IT auditors?


3. The American Institute of Certi$ed )u'lic Accountants Accountants *AIC)A+ *AIC)A+ and International Federation of Accountants *IFAC+ assumes that# at a minimum# all accountants %ill 'e pro$cient in the AIS user role and at least one ot her role listed a'ove *manager or designer or evaluator+. >hy %ould the AIC)A and IFAC e9pect this pro$ciency?

/0. The International Federation Federation of Accountants says= IT has gro%n *and %ill continue to gro%+ in importance at such a rapid pace and %ith such far reaching eects that it can no longer 'e considered a discipline discipline peripheral to accounting. 5ather# 5ather# professional accounting has merged and developed %ith IT to such an e9tent that one can hardly conceive of accounting independent from IT. In your opinion# %hy is accounting no% interdependent %ith IT?

/1. >a >al&7art;s l&7art;s 5etail 5etail Bin, data'ase is one of the %orld;s largest data'ases and allo%s allo%s many of their suppliers to vie% real&time sales data of their products for each store. This allo%s suppliers to assess assess the demand demand for their products products and to optimie optimie their o%n level of inventory and related logistics costs. Ho% is this cost savings ultimately passed on to >a >al&7art l&7art and its customers?

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/2. "usiness value is de$ned as all items# events and interactions that determine determine the $nancial health and %ell&'eing of the $rm. This value may come from suppliers# customers or employees or even information systems. Ho% %ould a not&for&pro$t not&for&pro$t group li,e the International 5ed Cross de$ne 'usiness value for its group?


Chapter 01 Accounting Information Systems and Firm Value Ans%er Jey True / False Questions 1.

Accou Accounti nting ng and Finance inance is a prim primary ary activ activity ity in the value value chain. chain. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)+ Descri"e ho, "usiness -rocesses a.ect the /r!0s vaue chain1 Source: 'rigina To-ic: 2aue Chain

2.

Accou Accounti nting ng Inform Informati ation on Syst Systems ems at this this dat date e are are all comput computeri eried ed.. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)3 Distinguish "et,een data4 in5or!ation and an in5or!ation syste!1 Source: 'rigina To-ic: Accounting In5or!ation Syste!s

!.

"usine "usiness ss valu value e includ includes es all all those those item items# s# even events ts and and intera interacti ctions ons that that dete determ rmine ine the the $nancial health and %ell&'eing of the $rm. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)+ Descri"e ho, "usiness -rocesses a.ect the /r!0s vaue chain1 Source: 'rigina To-ic: Accounting In5or!ation Syste!s

(.

The Cert Certi$ i$ed ed Infor Informat mation ion Technol echnology ogy )ro )rofes fessio sional nal *CIT *CIT)+ )+ is a profe profess ssion ional al designation for those %ith 'road range of technology ,no%ledge and does not re-uire a C)A. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)6 Distinguish the roes o5 accountants in -roviding in5or!ation and e7-ain 1-1% Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

certi/cations reated to accounting in5or!ation syste!s1 Source: 'rigina To-ic: AIS Pro5essiona Designations

.

The Cer Certi$ ti$ed ed Infor Informat mation ion System Systems s Audit Auditor or *CISA *CISA++ is a profe professi ssiona onall desig designat nation ion generally sought 'y those performing IT audits. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)6 Distinguish the roes o5 accountants in -roviding in5or!ation and e7-ain certi/cations reated to accounting in5or!ation syste!s1 Source: 'rigina To-ic: AIS Pro5essiona Designations

/.

Inform Informati ation on is is de$ne de$ned d as 'eing 'eing data data organi organied ed in a mean meaning ingful ful %ay %ay to to 'e usef useful ul to to the user. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)3 Distinguish "et,een data4 in5or!ation and an in5or!ation syste!1 Source: 'rigina To-ic: In5or!ation 8uaities

.

ata ata is is de$ne de$ned d as 'ein 'eing g inform informati ation on orga organi nied ed in in a mean meaning ingful ful %ay %ay to to 'e usef useful ul to to the user. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)3 Distinguish "et,een data4 in5or!ation and an in5or!ation syste!1 Source: 'rigina To-ic: In5or!ation 8uaities

.

A syste systems ms anal analys ystt anal analye yes s a 'usi 'usines ness s pro'l pro'lem em that that might might 'e 'e addr address essed ed 'y 'y an information system and recommends soft%are soft%are or systems to address that pro'lem. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)+ Descri"e ho, "usiness -rocesses a.ect the /r!0s vaue chain1 Source: 'rigina To-ic: Syste!s Anayst

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3.

A value value chain chain is is de$n de$ned ed as as the the 4o% 4o% of materi material als# s# info informa rmatio tion# n# paym payment ents# s# and and services from customer to supplier. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)+ Descri"e ho, "usiness -rocesses a.ect the /r!0s vaue chain1 Source: 'rigina To-ic: 2aue Chain

10.

5elevant elevant inform information ation is that that informa information tion that is free free from from 'ias 'ias and and error error.. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)$ De/ne an accounting in5or!ation syste! and e7-ain characteristics o5 use5u in5or!ation1 Source: 'rigina To-ic: In5or!ation 8uaities

11.

The chara characteri cteristic stics s of relev relevant ant infor informati mation on include include predictiv predictive e value# value# feed' feed'ac, ac, value and timeliness. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)$ De/ne an accounting in5or!ation syste! and e7-ain characteristics o5 use5u in5or!ation1 Source: 'rigina To-ic: In5or!ation 8uaities

12.

The charac characteris teristics tics of of relia' relia'le le informa information tion are are that that the informati information on is veri$ veri$a'le a'le## %ithout 'ias and timely. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)$ De/ne an accounting in5or!ation syste! and e7-ain characteristics o5 use5u in5or!ation1 Source: 'rigina To-ic: In5or!ation 8uaities

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1!.

Informati Information on overloa overload d is de$ned de$ned as as the di6culty di6culty a person person faces faces in in underst understandi anding ng a pro'lem and ma,ing a decision as a conse-uence of too much information. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)3 Distinguish "et,een data4 in5or!ation and an in5or!ation syste!1 Source: 'rigina To-ic: In5or!ation 8uaities

1(.

The main $nancial $nancial 'ene$t 'ene$t of Customer Customer 5elationsh elationship ip 7anage 7anagement ment practices practices reduces the cost of goods sold. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)9 Assess the i!-act o5 AIS on /r! -ro/ta"iity and stock -rices1 Source: 'rigina To-ic: Custo!er Reationshi- Manage!ent

1.

An e6cie e6cient nt 8nterpr 8nterprise ise System System can can signi$c signi$cantl antly y lo%er lo%er the cost of of support support proc processe esses s included in sales# general# and administrative e9penses. e9penses. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)9 Assess the i!-act o5 AIS on /r! -ro/ta"iity and stock -rices1 Source: 'rigina To-ic: %nter-rise Syste!s

1/.

An accoun accounting ting informati information on system system *AIS+ *AIS+ is de$ned de$ned as 'eing 'eing an inform informatio ation n system system that records# processes and reports on transactions to provide $nancial information for decision ma,ing and control. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)$ De/ne an accounting in5or!ation syste! and e7-ain characteristics o5 use5u in5or!ation1 Source: 'rigina To-ic: Accounting In5or!ation Syste!s

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1.

An enterp enterprise rise system system is a central centralied ied data'ase data'ase that collects collects data from throughou throughoutt the $rm. This includes data from orders# customers# sales# inventory and employees TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*) Descri"e ho, AIS assists the /r!0s interna "usiness -rocesses1 Source: 'rigina To-ic: %nter-rise Syste!s

1.

:ut'ound :ut'ound logis logistics tics are the activ activities ities associa associated ted %ith %ith recei receiving ving and storing storing ra% materials and other partially completed materials# and distri'uting those materials to manufacturing %hen and %here they are needed. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)+ Descri"e ho, "usiness -rocesses a.ect the /r!0s vaue chain1 Source: 'rigina To-ic: 2aue Chain

13.

Service Service Activi Activities ties as as de$ned de$ned in the value value chain chain are are those those activiti activities es that that provide provide the the support of customers after the products and services are sold to them *e.g. %arranty repairs# parts# instruction manuals# etc.+. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)+ Descri"e ho, "usiness -rocesses a.ect the /r!0s vaue chain1 Source: 'rigina To-ic: 2aue Chain

20.

A %ell&d %ell&desig esigned ned and and %ell&f %ell&functi unctioning oning AIS can can 'e e9pected e9pected to create create value value 'y providing relevant relevant information helpful to management to increase revenues revenues and reduce e9penses. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)9 Assess the i!-act o5 AIS on /r! -ro/ta"iity and stock -rices1 Source: 'rigina To-ic: Business Bu siness 2aue

1-1) Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

21.

)roduct )roduction ion of a 10(0 10(0 ta9 form from the AIS AIS to 'e delive delivered red to the Internal Internal 5evenu 5evenue e Service is an e9ample of discretionary discretionary information. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)3 Distinguish "et,een data4 in5or!ation and an in5or!ation syste!1 Source: 'rigina To-ic: In5or!ation 8uaities

22.

An enterp enterprise rise system system is primarily primarily used to manage manage and nurtur nurture e a $rm;s $rm;s interacti interactions ons %ith its current and potential clients. FALSE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*) Descri"e ho, AIS assists the /r!0s interna "usiness -rocesses1 Source: 'rigina To-ic: %nter-rise Syste!s

2!.

The Sar'a Sar'anes&:9 nes&:9ley ley Act Act of 2002 is is a federa federall la% in the the
2(.

C57 soft%ar soft%are e often often includ includes es the the use of data'as data'ase e mar,e mar,eting ting tools to learn learn more more a'out the customers and to develop strong $rm&to&customer relationships. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*); Assess ho, AIS 5aciitates the /r!0s e7terna "usiness -rocesses1 Source: 'rigina To-ic: Custo!er Reationshi- Manage!ent


2.

The Certi$ Certi$ed ed Informa Information tion Technology echnology )rofess )rofessiona ionall is the the position position create created d 'y the the AIC)A to recognie C)As %ho have the a'ility to provide s,illed professional services on Information Technology. TRUE AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Re!e!"er Di#cuty: $ %asy &earning '"(ective: )$*)6 Distinguish the roes o5 accountants in -roviding in5or!ation and e7-ain certi/cations reated to accounting in5or!ation syste!s1 Source: 'rigina To-ic: AIS Pro5essiona Designations

Multiple Choice Questions 2/. 2/.

Accou ccount ntin ing g info inform rmat ation ion syst system ems s are= are=

A. Al%ays A. computeried. ". 5eport only accounting accounting information. C. 5ecords# processes and reports . Are . Are for computer games AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
2.

>hich >hich of the follo%ing follo%ing are not a characte characteristi ristic c of useful useful informati information? on?

A. 8asy to understand ". Feed'ac, ". value. C. Timel C. y . 5epresentational . Faithfulness AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making 1-21 Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

Boo!s:
2.

>hich >hich of the the follo%i follo%ing ng are are conside considered red to 'e mandatory mandatory infor informati mation on re-uir re-uired ed 'y a regulatory 'ody?

A. Financial reports for the Securities and 89change Commission ". The amount of ta9es saved 'y a merger C. The total dollar value value of $re%or,s that are are sold on @uly (. . The cost to 'uild an all&ne% Star'uc,s restaurant restaurant in A'u ha'i. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
23.

The corre correct ct ord order er of eects eects in the the valu value e chain chain are= are=

A. In'ound Bogistics Bogistics  :perations  Service ". In'ound Bogistics  :ut'ound :ut'ound Bogistics  7ar,eting 7ar,eting D Sales C. In'ound Bogistics  :perations  :ut'ound Bogistics . In'ound Bogistics  :perations  Shipping AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:

!0.

>hich >hich designa designation tion %ould most appropria appropriate te for those those profess professiona ionals ls possess possessing ing an an IT audit# control and security s,ills?

A. Certi$ed Internal Auditor *CIA+ ". Certi$ed )u'lic )u'lic Accountant Accountant *C)A+ C. Certi$ed Information Technology Technology )rofessional *CIT)+ D. Certi$ed Information Systems Auditors *CISA+ AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
!1.

>hich >hich designa designation tion is for C)As C)As %ith %ith a 'road 'road range range of technolog technology y ,no%led ,no%ledge ge and and e9perience?

A. Certi$ed Internal Auditor *CIA+ ". Certi$ed )u'lic )u'lic Accountant Accountant *C)A+ C. Certi$ed Information Technology )rofessional *CIT)+ . Certi$ed Information Systems Systems Auditors *CISA+ AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
1-2$ Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

!2.

A supply chain=

A. 5efers to to the supplies needed needed to 'uild products B. 5efers to the 4o% of materials# information# payments and services. C. Is similar in function function and purpose to the value chain . oes not apply to a service $rm li,e an accounting $rm. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
!!.

A suppl supply y chai chain n system system does does not inc includ lude e inform informati ation on a'out a'out

A. Current A. customers B. )rospective customers C. Availa'ility of C. inventory . Current . suppliers AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
!(.

The income income statem statement ent line item most li,ely li,ely aected aected 'y 'y an AIS investme investment nt in enterprise systems %ould 'e=

A. 5evenue A. s ". Cost of Eoods Sold C. Selling# Eeneral and Administrative 89penses .
Boo!s:
!.

The income income statem statement ent line item most li,ely li,ely aected aected 'y 'y an AIS investme investment nt in supply chain that %ould interface %ith suppliers %ould 'e=

A. 5evenue A. s B. Cost of Eoods Sold C. Selling# Eeneral and Administrative 89penses . 5esearch . 5esearch and evelopment 89penses AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
!/.

The IT IT strate strategic gic role roles s of AIS AIS invest investmen ments ts are are class classi$e i$ed d as= as=

A. Automate# Informate# Transform Transform ". Value creation# Value estruction# estruc tion# Value eutral C. igitie# 5eport# C. Transform Transform . Automate# igitie# igitie# Transport Transport AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
1-2% Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

!.

Accordin According g to a recent recent study# study# the trans transform form IT IT strategic strategic role role is de$ned de$ned as as systems systems that=

A. replacing human human la'or in automating 'usiness 'usiness processes ". provides information information a'out 'usiness activities activities to all employees C. provide information a'out a'out 'usiness activities activities to senior management D. fundamentally rede$ne 'usiness processes and relationships AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
!.

Accordin According g to a recent recent study# study# the infor informate mate&up &up IT IT strategic strategic role role is de$ned de$ned as as systems that=

A. replacing human human la'or in automating 'usiness 'usiness processes ". provides information information a'out 'usiness activities activities to all employees activities to senior C. provide information a'out 'usiness activities management . fundamentally rede$ne rede$ne 'usiness processes and relationships AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
!3.

The income income statem statement ent account account most most li, li,ely ely aected aected 'y an an AIS investme investment nt in in customer relationship management *C57+ %ould 'e=

A. 5evenue s ". Cost of Eoods Sold C. Selling# Eeneral and Administrative 89penses .
AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
(0.

7any 7any hospitals hospitals and doctor; doctor;s s o6ces o6ces are are 'eginni 'eginning ng to digit digitie ie the the medical medical records records of their patients. This is an e9ample of the GGGGGGGGGGGG strategic role.

A. Automa te ". Informate ". Informate & up C. Transfor C. m . Informate . Informate & do%n AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
(1.

8"ay uses informatio information n technolo technology gy to sell sell goods goods on on the internet internet.. This This %ould %ould 'e an e9ample of the GGGGGGGGGGG strategic role.

A. Automa A. te ". Informate ". Informate & up C. Transfor m . Informate . Informate & do%n AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
1-2' Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

(2. (2.

The The Info Inform rmat atio ion n Val Value ue Cha Chain in is is de$n de$ned ed as= as=

A. The 4o% of materials# information# information# payments# payments# and services ". The use of computer technology technology to provide information information a'out 'usiness activities to employees across the $rm. transformation of data from a 'usiness need to the C. The overall transformation ultimate decision. . A centralied data'ase that collects data from throughout the $rm. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
(!. (!.

"usi "usine ness ss Value alue is de$n de$ned ed as= as=

A. The monetary value of a 'usiness. $nancial health and %ell& B. Items# events and interactions that determine the $nancial 'eing of the $rm C. The cost to ac-uire a 'usiness 'y an outsider. . The overall value of ta,ing data and transforming transforming it in to information needed for decision ma,ing. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
((.

Custom Customer er 5ela 5elatio tions nship hip 7a 7anag nageme ement nt is is de$n de$ned ed as= as=

A. A system used to manage and nurture a $rm;s interactions %ith its current and potential customers ". A system used to trac, a customer;s customer;s past purchases C. A system used to connect connect a $rm;s suppliers suppliers %ith a $rm;s customers. . A system used to advertise current current items on sale to customers. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
Di#cuty: 3 Mediu! &earning '"(ective: )$*); Assess ho, AIS 5aciitates the /r!0s e7terna "usiness -rocesses1 Source: 'rigina To-ic: Custo!er Reationshi- Manage!ent

(.

Suppor Supportt activ activiti ities es in in the the value value chain chain does does not not incl include ude==

A. Firm A. Infrastructure ". Human 5esource ". 7anagement C. )rocureme C. nt D. Accounting and Finance AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
(/.

The role role of accounta accountants nts in in accounti accounting ng inform information ation systems systems inclu include de all all e9cept= e9cept=

A.
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(.

A simple simple informat information ion system system includ includes es all all 'ut 'ut the the follo% follo%ing ing elements elements e9ce e9cept= pt=

A. )rocessin A. g ". Storag ". e C. Inpu C. t D. 5eportin g AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
(.

Activ Activity ity&'a &'ased sed costin costing g is an e9amp e9ample le of= of=

A. Information A. overload ". 7andatory ". information C. iscretionary information . 8nterprise . 8nterprise System AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s:
(3.

An e9amp e9ample le of an AIS AIS that that primaril primarily y addres addresses ses inter internal nal 'usiness 'usiness processe processes s includes=

A. Supply A. Supply chain soft%are ". Customer relationship relationship management management soft%are C. "2" C. "2" transaction soft%are D. 8nterprise systems AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making 1-$0 Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

Boo!s:
Essay Questions 0.

After After a college college foot'a foot'all ll game# game# a 'o9 'o9 score score is is produce produced d detaili detailing ng the the num'er num'er of of yards passing and running# receptions made and the num'er of interceptions and fum'les lost *among other statistics+.
Ans%ers %ill vary# especially %ith respect to their ,no%ledge of American Foot'allK Foot'allK The instructor may may %ish to include include other sports or other activities activities %here a 'o9 score might 'e produced. In American Foot'all# Foot'all# yards per carry# turnover margin# interceptions# interceptions# fum'les# run vs. pass plays# ! rd do%n plays and success# yards per catch# yards after catch# num'er of tac,les# etc. %ould all 'e useful AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*)$ De/ne an accounting in5or!ation syste! and e7-ain characteristics o5 use5u in5or!ation1 Source: 'rigina To-ic: 8uaities o5 In5or!ation

1-$1 Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

1.

Bist and e9pla e9plain in three three %ays that AIS aect aects s the income income statemen statementt and the $rm;s $rm;s pro$ta'ility.

Ans%ers %ill vary 'ut could include some of these items.

AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*)9 Assess the i!-act o5 AIS on /r! -ro/ta"iity and stock -rices1 Source: 'rigina To-ic: Business Bu siness 2aue


2.

Some %ould %ould argue argue that the the role role of accoun accounting ting is is simply simply as as an inform information ation provider provider.. :thers suggest that accountants serve the role of 'usiness analyst. >hich role produces more value for a company li,e Star'uc,s? In the area of accounting information systems# %hat speci$cally speci$cally can the accountant do to serve as a 'usiness analyst to help address 'usiness opportunities?

Ans%ers %ill varyK Accountants carry out an important function 'y providing information. Ho%ever# it is argua'le that accountants can add value to a company 'y serving as a 'usiness analystL that is# understand %hat information needs to 'e collected and then help in its interpretation. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*)6 Distinguish the roes o5 accountants in -roviding in5or!ation and e7-ain certi/cations reated to accounting in5or!ation syste!s1 Source: 'rigina To-ic: Roe o5 Accountants in AIS

!.

89plain 89plain the the types types of of discre discretiona tionary ry informa information tion a company company li,e li,e Eoogle Eoogle %ould %ould collec collectt from its accounting information system.

Ans%ers %ill varyK Eoogle might %ant some managerial accounting information a'out ho% various products have done# the cost of production various advertising advertising products# the cost of employee incentives *stoc, options# etc.+ that %ould all 'e useful in helping it manage its 'usiness. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*) Descri"e ho, AIS assists the /r!0s interna "usiness -rocesses1 Source: 'rigina To-ic: %nter-rise Syste!s

(.

>hy %ould %ould the transf transform orm IT IT strategi strategic c role role 'e more impactful impactful on stoc, stoc, price price than the automate IT strategic role?

Ans%ers %ill varyK A potential ans%er might include that automate IT strategic role Must automates automates something that that %as done 'efore 'y hand. hand. The transform transform IT strategic is using technology to esta'lish a ne% 'usiness model. e% 'usiness models# %hile fraught %ith ris,# often suggest ne% %ays to ma,e money that %ere not envisioned 'efore and thus might encourage shareholders to pay more for a company;s stoc,. AACSB: Refective Refective Thinking Thinking 1-$$ Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*)9 Assess the i!-act o5 AIS on /r! -ro/ta"iity and stock -rices1 Source: 'rigina To-ic: Business Bu siness 2aue

.

Stephen Stephen Eille Eillett# tt# Star'u Star'uc,s c,s CI:# CI:# argue argues s that that his most crucial crucial duty duty is is to enhan enhance ce Star'uc,s; a'ility to mine its customer data to help reignite our passion %ith our customers. Star'uc,s used loyalty cards *Star'uc,s; 5e%ard 5e%ard cards+ and surveys to trac, its customers; purchases and 'uild pro$les of their customers as mentioned in the opening chapter vignette. >hy is this a good e9ample of customer relationship relationship management *C57+?

Ans%ers %ill vary. ard &earning '"(ective: )$*); Assess ho, AIS 5aciitates the /r!0s e7terna "usiness -rocesses1 Source: 'rigina To-ic: Custo!er Reationshi- Manage!ent

/. /.

7ich 7ichae aell ell ell of of ell ell Com Compu pute terr e9pl e9plai aine ned= d= >e tell our suppliers e9actly %hat our daily production re-uirements are so it is not# >ell# every t%o %ee,s deliver #000 to this %arehouse# and %e;ll put them on the shelf# and then %e;ll ta,e them o the shelf. It is# Tomorro% morning %e need #/2# and deliver them to door num'er seven 'y  am. Ho% does the supply chain management soft%are allo% this to happen? And ho% does it save ell money?

Ans%ers %ill vary. The supply chain allo%s ell to forecast demand for its various products and share that demand %ith its suppliers. Suppliers %ill ,no% the long& term plan and thus not 'e surprised %hen an actual order arrives. ell saves money 'y not having to hold inventory too long saving investment dollars and %arehouse space AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*); Assess ho, AIS 5aciitates the /r!0s e7terna "usiness -rocesses1 Source: 'rigina To-ic: Su--y Chain


.

Amaon.c Amaon.com om is one of of the 'est at fosteri fostering ng its its interac interaction tion %ith %ith their their customers customers 'y ,eeping a record of their past purchases and product searches and using that information to recommend other similar products for the customer to consider. consider. Ho% can they use that information to help them in their mar,eting eorts?

Ans%ers %ill vary. "y getting this information# Amaon understand its customersL that is# %hat they 'uy# %hen they 'uy it# in %hat -uantities# etc. and can use it to encourage its customers to 'uy more products that computer models suggest they might 'e interested. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*); Assess ho, AIS 5aciitates the /r!0s e7terna "usiness -rocesses1 Source: 'rigina To-ic: Custo!er Reationshi- Manage!ent

.

The Certi$ed Certi$ed Informati Information on Systems Systems Auditors Auditors *CISA+ *CISA+ designa designation tion identi$e identi$es s those those professionals professionals possessing IT audit# control and security s,ills. Ho% do you thin, a professional professional designation is helpful for IT auditors?

Ans%ers %ill vary. A potential ans%er might include the ac,no%ledgement of a specialiation in IT audit and recognition of the special s,ills an IT auditor has. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*)6 Distinguish the roes o5 accountants in -roviding in5or!ation and e7-ain certi/cations reated to accounting in5or!ation syste!s1 Source: 'rigina To-ic: AIS Pro5essiona Designations

3.

The Americ American an Instit Institute ute of Certi$ Certi$ed ed )u'lic )u'lic Accounta Accountants nts *AIC) *AIC)A+ A+ and and Interna Internationa tionall Federation of Accountants *IFAC+ assumes that# at a minimum# all accountants %ill 'e pro$cient in the AIS user role and at least one other role listed a'ove *manager or designer or evaluator+. >hy %ould the AIC)A and IFAC e9pect this pro$ciency?

Ans%ers %ill vary. A potential ans%er might re4ect information presented in the class or te9t'oo, a'out the IT nature of accounting and the importance of accountants 'eing pro$cient in roles associated %ith IT. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard 1-$% Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

&earning '"(ective: )$*)6 Distinguish the roes o5 accountants in -roviding in5or!ation and e7-ain certi/cations reated to accounting in5or!ation syste!s1 Source: 'rigina To-ic: AIS Pro5essiona Designations

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The Inter Internat nation ional al Fede Federat ration ion of Acco Account untant ants s says= says= IT has gro%n *and %ill continue to gro%+ in importance at such a rapid pace and %ith such far reaching eects that it can no longer 'e considered a discipline discipline peripheral to accounting. 5ather# professional accounting has merged and developed %ith IT to such an e9tent that one can hardly conceive of accounting independent from IT. In your opinion# %hy is accounting no% interdependent %ith IT?

Ans%ers %ill vary. A potential ans%er might re4ect information presented in the class or te9t'oo, a'out the IT nature of accounting and the importance of accountants 'eing pro$cient in roles associated %ith IT. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*)6 Distinguish the roes o5 accountants in -roviding in5or!ation and e7-ain certi/cations reated to accounting in5or!ation syste!s1 Source: 'rigina To-ic: AIS Roes in In5or!ation Syste!s

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>al&7art;s al&7art;s 5etai 5etaill Bin, Bin, data'ase data'ase is one one of the %orld;s %orld;s largest largest data'ase data'ases s and allo%s allo%s many of their suppliers to vie% real&time sales data of their products for each store. This allo%s suppliers to assess the demand for their products and to optimie their o%n level of inventory and related logistics costs. Ho% is this cost savings ultimately passed on to >al&7art and its customers?

Ans%ers %ill vary. A potential ans%er might re4ect that 5etail Bin, saves >al&7art and its supplier;s money due to its assessment of %hat sells and %hat does not sell. This helps suppliers to save money and >al&7art thus re-uires that this savings 'e shared 'et%een suppliers# >al&7art# and >al&7art suppliers. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*); Assess ho, AIS 5aciitates the /r!0s e7terna "usiness -rocesses1 Source: 'rigina To-ic: Su--y Chain

1-$& Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

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"usiness "usiness value value is de$ned de$ned as all items items## events events and and intera interaction ctions s that that determi determine ne the the $nancial health and %ell&'eing of the $rm. This value may come from suppliers# customers or employees or even information systems. Ho% %ould a not&for&pro$t group li,e the International 5ed Cross de$ne 'usiness value for its group?

Ans%ers %ill vary. A not&for&pro$t group li,e the International 5ed Cross might de$ne value 'y the num'er of lives saved# the num'er of liters of 'lood in storage# its a'ility to react to a disasters# etc. AACSB: Refective Refective Thinking Thinking AICPA AICPA BB: Industry Industry AICPA AICPA FN: Decision Decision Making Making Boo!s: Anay=e Di#cuty: 6 >ard &earning '"(ective: )$*)+ Descri"e ho, "usiness -rocesses a.ect the /r!0s vaue chain1 Source: 'rigina To-ic: Business Bu siness 2aue

1-$' Copyright © 2014 McGraw-Hill Education. All rights resered. !o reproduction or distri"ution without the prior written consent o# McGraw-Hill Education.

TBChap001

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