D217 Accounting Information Systems - Set 4 - Part 1

Correct Answer: To identify employees authorized to receive a paycheck

Personnel action forms document changes in employee pay rates, deductions, and job classifications, authorizing paycheck issuance.

Correct Answer: A single deposit for the entire payroll amount

Payroll imprest accounts ensure that a single check for the total payroll amount is deposited into the account for disbursement to employees.

Correct Answer: To ensure transactions are approved before processing

Transaction authorization ensures that only valid and authorized transactions are processed, reducing the risk of fraud or errors.

Correct Answer: Physical control

Physical controls involve segregation of duties to reduce the risk of fraud by ensuring that different individuals are responsible for different aspects of a transaction.

Correct Answer: Comparing the purchase order, receiving report, and supplier’s invoice

A three-way match helps verify that the goods or services received match what was ordered and invoiced, ensuring payment accuracy.

Correct Answer: Supplier’s invoice, receiving report, purchase order

The three-way match compares these three documents to verify the legitimacy of the payment to vendors.

Correct Answer: Segregation of duties

Segregation of duties ensures that no single individual can control the entire transaction process, reducing the risk of errors or fraud.

Correct Answer: To serve as a standard for processing transactions

Reference files contain data, such as tax tables, used as a standard to process various transactions.

Correct Answer: A document showing gross pay, deductions, overtime, and net pay

Payroll registers summarize employee wages, hours worked, deductions, and net pay.

Correct Answer: To retain records of past transactions for future reference

Archive files store historical transaction data that may be required for audits, legal purposes, or future analysis.

Correct Answer: To provide a description of every data element in the database

A data dictionary lists and describes all data elements, helping maintain consistency and control over database information.

Correct Answer: Cost accounting system

Cost accounting systems monitor and record the flow of costs such as labor, overhead, and materials during production.

Correct Answer: To identify and expose undesirable events that elude preventive controls

Detective controls are used to identify and report any issues or discrepancies that occur, even after preventive measures have failed.

Correct Answer: Sales and distribution

Core ERP applications support essential business functions, such as sales, distribution, and production planning.

Correct Answer: Adjusting journal entry

Adjusting journal entries are used to correct financial records for unrecorded transactions, such as accrued expenses or depreciation.

Correct Answer: Management Reporting System (MRS)

The MRS provides specialized financial reports and information used for internal decision-making by managers.

Correct Answer: Firewall security from external hackers

ICSA certification focuses on firewall security to prevent unauthorized access to sensitive data from external threats.

Correct Answer: Physical control

Physical controls include safeguarding physical assets, such as inventory and equipment, from unauthorized access or theft.

Correct Answer: Ethical business practices and customer protection

The BBB Online seal signifies that a business complies with ethical standards, including honesty and transparency, in its dealings with customers.

Correct Answer: To prevent duplicate data entries

Data redundancy tests check to ensure that each transaction or record is processed only once, avoiding duplication.