Accounting Information Systems Controls and Processes 3e Leslie l l l l l l l
l Turner Andrea Weickgenannt Mary Kay Copeland (Solutions Manual All
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Chapters, 100% Original Verified, A+ Grade) All Chapters Solutions
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Manual Supplement files download link at the end of this file.
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Solutions Manual l l
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Discussion Questions l
11.(SO 1) How might the sales and cash collection processes at a Wal-Mart store differfrom
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the sales and cash collection processes at McDonald’s? Wal-Mart sells items that are
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pre-priced and bar coded with that price. Therefore the cash registers at Wal-Mart use
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bar code scanners. However, McDonalds sells fast foods that are notbar coded. The
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cash registers at McDonalds use touch screen systems that requirea cashier to indicate
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the items purchased. The cash collection processes are not different. In both cases, the
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employee collects the cash or credit card, and returns any change.
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12. (SO 1) Can you think of any procedures in place at McDonald’s that are intended to
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ensure the accuracy of your order? Student responses may vary, however, following
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are a few examples: Often, at either the drive-through or the inside cash register, the
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customer can see a screen that displays the items ordered. In addition,a fast food
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restaurant uses pre-designed slots to hold certain types of menu items. When a
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customer orders a particular sandwich, the person filling the order knows exactly which
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slot to pull the sandwich from. Each customer receives a printed receipt with the items
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listed and the customer can verify the accuracy.
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13.(SO 1) How might the sales and cash collection processes at Boeing Co. (maker of
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commercial passenger jets) differ from the sales and cash collection processes at
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McDonald’s? Boeing does not sell to end-user consumers; rather, it sells to companies l l l l l l l l l l l l
such as airlines. Therefore Boeing does not have stores, nor inventoryin stores, nor
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cash registers to process sales. Boeing is more likely to maintain a sales force that visits
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potential customers to solicit sales. Those sales may be entered by the salesperson
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into a laptop computer connected to Boeing’s network. McDonald’s, on the other hand,
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sells to consumers, uses order input touch screensat each location, and maintains
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supplies of perishable food products.
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14. (SO 1) Are there business processes that do not in some way affect accounting records
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or financial statements? There may be processes that do not directly affectaccounting
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records (such as recruiting and hiring a new employee), but all processes have a direct
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or indirect affect on accounting records. All processes useresources such as material or
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employee time. Therefore, all processes have expenses related to those processes that
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will affect the accounting records.
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15.(SO 2) Briefly describe the five components of an accounting information system.
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1. Work steps within a business process that capture accounting data as the l l l l l l l l l l l
business process occurs. l l l
2. Manual or computer-based records that capture the accounting data from l l l l l l l l l
the business processes. l l l
3. Internal controls within the business process that safeguard assets and l l l l l l l l l
ensure accuracy and completeness of the data. l l l l l l l
4. Work steps that process, classify, summarize, and consolidate the raw l l l l l l l l l
accounting data. l l
5. Work steps that generate both internal and external reports. l l l l l l l l
16. (SO 2) Describe how sales data are captured and recorded at a restaurant such as
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Applebee’s. At most Applebee’s restaurants, a server writes the order on a pad and
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carries that pad to a cash register. The server enters the order on a touch screen
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terminal. The order information is then displayed on a terminal in the kitchen. Whenthe
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customer has finished the meal, the server prints a check and delivers the checkto the
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table. The customer pays the server by using cash or a credit card. The server
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processes the payment on the touch screen register and returns the change or credit
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card slip to the customer.
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17.(SO 2) What occurs in an accounting information system that classifies accounting
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transactions? For each business process that affects accounting records, the
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accounting information system must capture any resulting accounting data, recordthe
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data, process it through classification, summarization, and consolidation, and generate
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appropriate reports.
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18. (SO 2) What are the differences between internal reports and external reports generated
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by the accounting information system? Internal reports are used by management to
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oversee and direct processes within the organization. Externalreports are the financial
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statements used by investors and creditors to make
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decisions about investing or extending credit to the organization. l l l l l l l l
19. (SO 3) What types of businesses are in the supply chain of an automobile manufacturer?
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The types of businesses in an automaker’s supply chain are oftenmanufacturers of
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parts used in cars. This would include manufacturers of tires, batteries, steel, plastic,
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vinyl and leather, as well as many other manufacturers making the thousands of parts in
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a car. l l
20. (SO 3) When a company evaluates a supplier of materials, what kinds of characteristics
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might be evaluated? The supplier’s characteristics that are likely to be evaluated include
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price and payment terms, quality, reliability of the materials, aswell as whether the
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supplier can deliver materials when needed.
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21. (SO 3) How do you think a company may be able to influence a supplier to meet its
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business processing requirements? A company may be able to influence a supplierby
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choosing only suppliers that meet expectations regarding the terms of price, quality,
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and delivery timing. Those suppliers that do not meet these expectations may not be
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used in the future. This exerts some influence over suppliers, as the suppliers will lose
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business if they do not meet the buyer’s requirements.
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22.(SO 4) Describe any IT enablement that you have noticed at a large retail store suchas
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Wal-Mart or Target. The most noticeable IT enablement is the use of bar coded systems
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on the products and how they are read by the cash registers.
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23. (SO 4) How do you think the World Wide Web (WWW) has led to business process
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reengineering at companies such as Lands End or J.Crew? Prior to the World WideWeb,
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customers placed orders either on the phone or by mail. Both phone and mail orders
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require employees to take the order and enter it into the computer system. Using online
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sales, customers enter their own orders and no company personnel areneeded to key
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orders into the computer system. Therefore, there was a major change in the number of
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people employed to key orders.
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24. (SO 4) What two kinds of efficiency improvement result from business process
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reengineering in conjunction with IT systems? The use of IT systems usually leadsto two
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kinds of efficiency improvements. First, the underlying processes are reengineered
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(through rethinking and redesign) to be conducted more efficiently. Second, the IT
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systems improve the efficiency of the underlying processes.
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25.(SO 5) Explain the differences between a field, a record, and a file. A field is one setof
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characters that make up a single data item. For example, last name would be a field in a
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customer database. A record is a collection of related fields for a single entity. For
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example, last name, first name, address, phone number, and credit card number fields
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might make up a single customer record. A file is a collection of similar records. For
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example, all customer records together make up a customer file.
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26. (SO 5) Explain why random access files would be preferable to sequential access files
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when payroll personnel are changing a pay rate for a single employee. When the desired
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action is to access a single record, random access is preferable. If sequential access
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storage is used, all records must be read in sequence until the desired record is reached.
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On the other hand, random access allows a single recordto be accessed without the
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necessity of reading other records. This makes it more efficient to access a particular
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employee record to change the pay rate.
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27. (SO 5) Why do real-time systems require direct access files? If transactions are to be
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processed online and in real-time, it is necessary that the computer access a single
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record immediately. Thus, direct access files are required so the records canbe
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accessed in real-time.
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28. (SO 5) Why is data contained in the data warehouse called nonvolatile? Each timea new
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transaction is completed, parts of the operational data must be updated. Therefore, the
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operational database is volatile – with constantly changing information. However, the
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data warehouse does not change with each transaction.The data warehouse is only
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changed when periodic updates occur. The data in thedata warehouse are nonvolatile
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because they do not change constantly.
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29.(SO 5) How is an extranet different from the Internet? The extranet allows accessonly to
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selected outsiders, while the Internet is open to an unlimited number of outsiders
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(essentially anyone having access to the Internet). On the other hand, extranets are
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typically used by companies to interact with specific suppliers and customers who have
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been granted access to a company’s network.
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30.(SO 6) Prepare a list of the types of businesses that you have been in that use pointof sale
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systems. Student responses may vary, but would likely include department stores,
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grocery stores, specialty stores, restaurants, gas stations, and car washes.
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31.(SO 6) What do you think would be the advantages of an e-payables system over a
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traditional system that uses paper purchase orders and invoices? An e-payables
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system should be faster and more efficient than a paper-based system. In addition,
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fewer processing errors should be expected from an e-payables system.
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32. (SO 7) Describe why enterprise risk management is important. All organizations face
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risks and Enterprise Risk Management (ERM) assists managers in reducing and
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controlling risk. ERM also involves personnel across the entire business organization,
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as they implement strategies to achieve the organization’s objectives.
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33. (SO 7) What is the difference between general controls and application controls?
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General controls apply overall to the IT accounting system. They are controls that are
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not restricted to any particular accounting application. An example of a general control is
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the use of passwords to allow only authorized users to log into an IT-basedaccounting
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system. Application controls are used specifically in accounting applications to control
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inputs, processing, and output. Application controls are
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