6

6
Student: ___________________________________________________________________________
1. Which kind of flowchart shows the logic associated with instructions given to a computer?
A. Systems
B. Program
C. Document
D. Hardware
2. Which kind of flowchart shows relationships between computers, printers, monitors and similar devices?
A. Systems
B. Program
C. Document
D. Hardware
3. Which of the following is most likely to be seen in a hardware flowchart?
A. Scanner
B. Web browser
C. Textbook
D. None of these
4. Which of the following would best be depicted with a systems flowchart: (i) steps in the accounting
cycle, (ii) development of an internal control plan?
A. I only
B. II only
C. Both I and II
D. Neither I nor II
5. In which of the following situations would a systems flowchart be appropriate?
A. Documenting the steps in a financial statement audit
B. Evaluating an organization's employee training programs
C. Both documenting the steps in a financial statement audit and evaluating an organization's employee
training programs
D. Neither documenting the steps in a financial statement audit nor evaluating an organization's employee
training programs
6. In which of the following situations would a document flowchart be appropriate?
B. Tracing the flow of a bank deposit slip
C. Both documenting the steps in a financial statement audit and tracing the flow of a bank deposit slip
D. Neither documenting the steps in a financial statement audit nor tracing the flow of a bank deposit slip
7. Consider the following as you answer the question: Jon is an information systems consultant with a
diverse client base. Some of his clients recently posed the questions listed below; Jon is considering
which type of flowchart would best be used to answer each question.
i. What happens to a federal tax return once it is received by the IRS?
ii. How should a company calculate payroll withholding taxes?
iii. What kind of computer network is in place at a local IRS office?
iv. What process does an organization employ to determine how to invest money in a pension fund?
v. What steps must be completed to write and publish an accounting textbook?
Which of the preceding questions would best be answered by preparing a systems flowchart?
A. I, II and III
B. II, III and IV
C. II, IV and V
D. All of these
The chapter discussed four types of flowcharts. Which of the preceding questions would be answered by
two different types?
A. I and III
B. II and IV
C. II and V
D. IV and V
9. Consider the following as you answer the question:
Jon is an information systems consultant with a diverse client base. Some of his clients recently posed
the questions listed below; Jon is considering which type of flowchart would best be used to answer each
question.
Which of the preceding questions would best be answered by the type of flowchart indicated below?
A. I and II, document flowchart
B. II and IV, systems flowchart
C. I and II, systems flowchart
D. II and IV, document flowchart
the questions listed below; Jon is considering which type of flowchart would best be used to answer each
question.
How many of the preceding questions would best be answered by preparing a program flowchart?
A. Zero
B. One
C. Three
D. Five
11. Flowcharts should be read:
A. From top to bottom and from left to right
B. From bottom to top and from left to right
C. From top to bottom and from right to left
D. From bottom to top and right to left
12. Documents in a flowchart should have:
A. A clear origin, but not a clear termination
B. A clear termination, but not a clear origin
C. Both a clear origin and a clear termination
D. Neither a clear origin nor a clear termination
13. Flowcharts should have plenty of white space. Which of the following statements is most true?
A. To ensure a flowchart has plenty of white space, it must have no more than three columns per page.
B. To ensure a flowchart has plenty of white space, it must have no more than three symbols per column.
CBoth to ensure a flowchart has plenty of white space, it must have no more than three columns per
. page and to ensure a flowchart has plenty of white space, it must have no more than three symbols per
column.
DNeither to ensure a flowchart has plenty of white space, it must have no more than three columns per
. page nor to ensure a flowchart has plenty of white space, it must have no more than three symbols per
column.
14. All of the following would be used as column headings in a systems flowchart except:
A. Cash receipts department
B. Bank deposit slip
C. Payroll clerk
D. Customer
15. Documents involved in a business process should have a clear termination. Which of the following best
applies that principle?
A. An arrow connecting a document with a filing symbol
B. A document moving between columns in a flowchart
C. Both an arrow connecting a document with a filing symbol and a document moving between columns
in a flowchart
D. Neither an arrow connecting a document with a filing symbol nor a document moving between
columns in a flowchart
16. After drawing a rough draft of a flowchart by hand, Sue should:
A. Determine which computer program she wants to use to prepare a final copy.
B. Ask for feedback on the flowchart from her supervisor.
C Both determine which computer program she wants to use to prepare a final copy and ask for feedback
. on the flowchart from her supervisor.
D Neither determine which computer program she wants to use to prepare a final copy nor ask for
. feedback on the flowchart from her supervisor.
17. Which of the following should be placed at the top of each page of a systems flowchart: (i) the number of
columns in the flowchart, (ii) the number of pages in the flowchart, (iii) the name of the process depicted?
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
18. Which of the following statements about white space in a flowchart is most true?
A. "Adequate white space" is a matter of judgment.
B. A flowchart should not span more than three pages.
C. Both "adequate white space" is a matter of judgment and a flowchart should not span more than three
pages.
D. Neither "adequate white space" is a matter of judgment nor a flowchart should not span more than
three pages.
19. Ralph was preparing a systems flowchart that explained how to reconcile a bank statement. Which of the
following should he include as column headings: (i) bank statement, (ii) accounting clerk, (iii) bank.
A. I and II only
B. II and III only
C. I and III only
D. I, II and III
20. The title of a systems flowchart included the following information: "Systems flowchart of the inventory
purchasing process. Page 1 of 2." Which of the following would you expect to see as column headings in
the flowchart: (i) supplier, (ii) Page 1, (iii) purchasing agent.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
21. Consider the following flowchart symbols as necessary as you respond to the remaining questions in this
chapter:
Symbol A depicts:
A. A decision.
B. A terminator.
C. A document.
D. A predefined process.
chapter:
Symbol C depicts:
A. An off-page connector.
B. An on-page connector.
C. A manual process.
D. A database.
chapter:
Which of the following labels would you expect to find inside Symbol J?
A. By date
B. By name
C. Either by date or by name
D. Neither by date nor by name
chapter:
"Prepare purchase order" could be represented in a systems flowchart with any of the following
except:
A. Symbol A
B. Symbol F
C. Symbol G
D. Symbol I
chapter:
One of the basic design principles of flowcharts states that documents should have a clear point of
termination. Which symbol would apply that principle?
A. Symbol B
B. Symbol D
C. Symbol F
D. Symbol J
chapter:
Which of the following symbols should always appear in a pair on the same page of a systems flowchart?
A. Symbol B
B. Symbol C
C. Symbol D
D. Symbol H
chapter:
According to ANSI, flowchart symbols can be divided into four main groups. Which of the following
symbols belong to the same group?
A. Symbols C and E
B. Symbols A and F
C. Symbols A and C
D. Symbols E and F
chapter:
symbols belong to different groups?
A. Symbols C and D
B. Symbols C and E
C. Symbols A and I
D. Symbols G and I
chapter:
According to ANSI, flowchart symbols can be divided into four main groups. Which symbols belong to
the "data" group?
A. Symbols C and H
B. Symbols A and H
C. Symbols A and C
D. None of these. "Data" is not one of the groups.
chapter:
According to ANSI, flowchart symbols can be divided into four main groups. Which symbols belong to
the "file" group?
A. Symbols H and J
B. Symbols A and H
C. Symbols A and J
D. None of these. "File" is not one of the groups.
31. A properly prepared systems flowchart can be used to:
A. Evaluate internal controls in the AIS.
B. Determine which processes are completed manually in the AIS.
C. Both evaluate internal controls in the AIS and determine which processes are completed manually in
the AIS.
D. Neither evaluate internal controls in the AIS nor determine which processes are completed manually in
the AIS.
A. Make recommendations on improving business processes.
B. Identify some of a company's risk exposures.
C. Both make recommendations on improving business processes and identify some of a company's risk
exposures.
D. Neither make recommendations on improving business processes nor identify some of a company's
risk exposures.
A. Describe an organization's method of collecting cash from its clients.
B. Train new employees in an organization's method of collecting cash from its clients.
C Both describe an organization's method of collecting cash from its clients and train new employees in
. an organization's method of collecting cash from its clients.
D Neither describe an organization's method of collecting cash from its clients nor train new employees in
. an organization's method of collecting cash from its clients.
34. Which of the following documents can be used to assess risk and recommend internal controls?
A. Systems flowchart
B. Risk/control matrix
C. Both systems flowchart and risk/control matrix
D. Neither systems flowchart nor risk/control matrix
35. Consider the flowchart below as you respond to the question:
Systems flowcharts can be used in AIS work to evaluate internal controls. Which of the following
statements is most true based on the systems flowchart above?
A. Allowing the salesperson to approve customer credit weakens internal control.
B. Using an electronic database for customer data weakens internal control.
C Both allowing the salesperson to approve customer credit weakens internal control and using an
. electronic database for customer data weakens internal control.
D Neither allowing the salesperson to approve customer credit weakens internal control nor using an
Systems flowcharts can be used in AIS work to recommend process improvements. Which of the
following statements is most true based on the systems flowchart above?
A. The company may benefit from implementing online order taking.
B. The company may benefit from implementing a lockbox system.
C Both the company may benefit from implementing online order taking and the company may benefit
. from implementing a lockbox system.
D Neither the company may benefit from implementing online order taking nor the company may benefit
. from implementing a lockbox system.
Which of the following statements is most true based on the systems flowchart above?
A. The credit approval process is completely automated.
B. The type and nature of documents used in the system should be clearer.
C Both the credit approval process is completely automated and the type and nature of documents used in
. the system should be clearer.
D Neither the credit approval process is completely automated nor the type and nature of documents used
. in the system should be clearer.
Flowcharts should be organized in columns based on areas of responsibility. The process depicted would
benefit from reorganization into __ departments within the company.
A. Two
B. Three or four
C. Five or six
D. More than six
Refer to the previously presented set of flowcharting symbols labeled Symbol A through Symbol J.
Which of the following statements about the systems flowchart above is most true?
A. Symbol A should be inserted after "remit payment."
B. Symbol A should be inserted before "take order."
C. Both symbol A should be inserted after "remit payment" and symbol A should be inserted before "take
order" are true.
D. Neither symbol A should be inserted after "remit payment" nor symbol A should be inserted
before "take order" is true.
A. Symbol B may be inserted between "approve credit" and "deliver goods."
B. Symbol B may be inserted between "start" and "take order."
C Both symbol B may be inserted between "approve credit" and "deliver goods" and symbol B may be
. inserted between "start" and "take order" are true.
D Neither symbol B may be inserted between "approve credit" and "deliver goods" nor symbol B may be
. inserted between "start" and "take order" is true.
41. Refer to the following case as you respond to the question:
The Celebration Theatre is a small, independent theatre that puts on 12 plays per year. 30 days before the
start of each calendar quarter, Celebration prepares advertising for the productions in the upcoming
quarter. They advertise on their web site, via e-mail to their season subscribers and via direct mail and
brochures to others.
Patrons can buy tickets for a single play; alternatively, they can subscribe to all three plays each quarter.
Quarterly subscriptions offer a 25% discount from the prices of single tickets. Patrons may purchase
tickets over the phone, at the box office or via the theatre's web site. All tickets are held at the box office
where they can be picked up as early as one week prior to the performance. The theatre has an "open
seating" plan, so patrons do not reserve a specific seat at any performance.
If tickets are purchased in person at the box office, non-subscribers may pay with cash or a major credit
card; subscribers can pay with cash, major credit card or check. All tickets purchased over the phone or
via the web site must be paid for with a major credit card. Celebration maintains an electronic database to
track all ticket sales; paper tickets are printed at least ten days prior to a performance.
Any paid tickets that are not claimed at least thirty minutes prior to the performance are sold on a "first-
come, first-serve" basis at a 50% discount.
Which symbol would represent the ticket sales database?
A. Symbol C
B. Symbol F
C. Symbol H
D. Symbol J
Which symbol would represent the tickets?
A. Symbol A
B. Symbol B
C. Symbol F
D. Symbol I
Which of the following is most likely to be represented with Symbol I?
A. Open seating plan

B. Discounted tickets
C. Creating advertising for the web site
D. None of these
Which of the following is most likely to be represented with Symbol B?
A. A patron's decision to purchase tickets

B. The theatre management's decision about which plays to produce
C. Determining whether a patron is a subscriber
D. All of these
The Celebration Theatre is a small, independent theatre that puts on 12 plays per year. 30 days before
the start of each calendar quarter, Celebration prepares advertising for the productions in the upcoming
Which of the following statements would be most true in a systems flowchart of the Celebration Theatre
case?
A. One of the flowchart columns would have "patrons" as its heading.
B. One of the flowchart columns would have "theatre personnel" as its heading.
C Both one of the flowchart columns would have "patrons" as its heading and one of the flowchart
. columns would have "theatre personnel" as its heading are true.
D Neither one of the flowchart columns would have "patrons" as its heading nor one of the flowchart
. columns would have "theatre personnel" as its heading is true.
The first step in creating a flowchart is to define the system boundary. Which of the following is most
likely to be outside the system boundary?
A. Patrons
B. Theatre personnel
C. Box office
D. Advertising firm
Refer to the previously presented set of flowcharting symbols labeled Symbol A through Symbol J. The
process of selling tickets at the box office could be represented with any of the following symbols except:
A. Symbol F
B. Symbol G
C. Symbol I
D. Symbol J
Which of the following would best determine whether to use Symbol G or Symbol I to represent the
process of selling tickets at the box office?
A. Whether the process is completed manually or with information technology

B. Whether the flowchart will be read by someone who understands the process of selling tickets
C. Whether the tickets are sold to a subscriber or a non-subscriber
D. Any of these could be used to make that determination.
Refer to the previously presented set of flowcharting symbols labeled Symbol A through Symbol J. In a
systems flowchart of the Celebration Theatre case, which of the following is most likely to appear
immediately after "start?"
A. Symbol A
B. Symbol I
C. Either Symbol A or Symbol I
D. Some other symbol
Refer to the previously presented set of flowcharting symbols labeled Symbol A through Symbol J. In a
systems flowchart of the Celebration Theatre case, Symbol H is most likely to appear in which column?
A. Patron
C. Subscriber database
D. Patron database
51. Consider the following partially completed flowchart as you respond to the questions:
Which type of flowchart is depicted?

A. document
B. systems
C. hardware
D. program
Which of the following phrases would appear in the title of the flowchart: (i) systems flowchart, (ii)
interview committee flowchart, (iii) prepared by.
A. i and ii only
B. i and iii only
C. ii and iii only
D. i, ii and iii
In the partial flowchart, "A" should be replaced with:

A. human resources department
B. applicant
C. human resources process
D. Any of these
In the partial flowchart, "B" should be replaced with:

A. Qualified
B. Position open
C. Materials received
D. Choose candidates to reject
In the partial flowchart, "C" should be replaced with:

A. applicant name
B. position description
C. rejection letter
D. file application materials
Consider the symbol labeled "C." Including the symbols before and after it, which of the following
principles is illustrated?
A. Every document should have a clear point of origin.
B. Every document should have a clear point of termination.
C. Both every document should have a clear point of origin and every document should have a clear point
of termination.
D. Neither every document should have a clear point of origin nor every document should have a clear
point of termination.
In the partial flowchart, "D" could be replaced with:

A. a generic or predefined process symbol.
B. a predefined process or document symbol.
C. a generic process or decision symbol.
D. a decision or document symbol.
In the partial flowchart, the "list of finalists" would best be depicted with a ___ symbol.
A. predefined process
B. manual file
C. decision
D. document
In the partial flowchart, "E" should be replaced with a ___ symbol labeled ___.
A. predefined process; interview finalists
B. predefined process; choose finalists to interview
C. decision; interview finalists
D. decision; choose finalists to interview
In the partial flowchart, the most appropriate label for "F" is:
A. to new employee
B. end
C. outside system boundary
D. some other label
61. Fill in the blanks in each statement below based on the flowchart design considerations discussed in the
text.
a. Flowcharts should be read from _____ and ______.
b. Flowcharts should have plenty of ______.
c. Flowcharts should have a ______.
d. Flowcharts should be organized in columns that depict ______.
e. Documents involved in a business process should have a clear ___ and a clear ___.
62. Fill in the blanks in each statement below based on the flowchart design steps discussed in the chapter.
a. Establish the ______.
b. Determine ______.
c. List ______ performed within each ______.
d. Select appropriate ______.
e. Prepare a ______.
f. ______ the flowchart with others.
g. ______ as needed.
63. The chapter discussed four types of flowcharts. Which one would be most appropriately used in each of
the following independent situations?
a. Demonstrating how to create a procedures manual
b. Explaining what happens in a financial statement audit
c. Illustrating the steps in the accounting cycle
d. Showing the relationship between computers and printers within an office building
e. Tracing the path of a check from the time it is written until it is paid by the bank
f. Writing computer code that will generate general purpose financial statements
64. Flowcharts can impact the design, implementation and evaluation of an accounting information system.
Determine whether each statement below is: (i) always true, (ii) sometimes true or (iii) never true.
a. Accounting information systems have five generic elements; a flowchart can be an example of at least
one of the elements.
b. All aspects of an AIS should always be represented in a single flowchart of no more than three pages.
c. Flowcharts are required if a company wants to use the COSO internal control framework.
d. Flowcharts are useful to auditors.
e. Flowcharts can be used as part of a business process management project for an AIS.
65.
Which symbol would be used in a systems flowchart to represent each of the following items?
1) A bank statement
2) Completing the steps in the accounting cycle
3) Creating an enterprise risk management plan
4) Determining if a customer should be granted credit
5) Electronic records of sales transactions
6) Moving a document from the first column of a page to the third column of the same page
7) Reconciling a bank statement in a flowchart to be read by experienced accountants
8) Sending a sales invoice outside the system boundary
9) Storing copies of purchase orders in a box
10) The statement of cash flows
66. The chapter discussed four types of flowcharts; flowcharts can impact the design, implementation and
evaluation of an accounting information system. Determine whether each statement below is: (i) always
true, (ii) sometimes true or (iii) never true.
a. A document flowchart should be used as part of developing an enterprise risk management plan based
on the COSO framework.
b. A hardware flowchart can be a guide in recommending technology-related internal controls.
c. Because the "S" in AIS stands for "system," only systems flowcharts are useful in AIS work.
d. Program flowcharts are never relevant in accounting information systems.
e. Since most documents in an AIS are electronic, document flowcharts are rarely relevant in designing,
implementing and evaluating accounting information systems.
67. Analyze the flowchart below and the statements which follow. Determine which statements are true based
on the flowchart.
a. All customers have a credit limit.

b. Because the customer is outside the company, the customer is also outside the system boundary.
c. Customers can place orders in person or over the phone.
d. Flowcharting symbols are used appropriately.
e. Internal control in the process depicted would be strengthened by introducing a filing system.
f. Journal entries associated with the process depicted would include debits to cost of goods sold and
credits to inventory.
g. The company does not use any form of information technology in the process depicted.
h. The company has weak separation of duties in the process depicted.
i. The company is not exposed to credit risk.
j. The flowchart could be appropriately titled "Document flowchart of the sales/collection process."
68. Please refer to the following flowchart as you respond to the next problem:
According to ANSI, flowchart symbols can be divided into four main groups. Analyze the symbols in the
flowchart above; sort them into the four groups.
69. Prepare a systems flowchart based on the following case: The Celebration Theatre is a small, independent
theatre that puts on 12 plays per year. 30 days before the start of each calendar quarter, Celebration
prepares advertising for the productions in the upcoming quarter. They advertise on their web site, via e-
mail to their season subscribers and via direct mail and brochures to others. Patrons can buy tickets for
a single play; alternatively, they can subscribe to all three plays each quarter. Quarterly subscriptions
offer a 25% discount from the prices of single tickets. Patrons may purchase tickets over the phone, at
the box office or via the theatre's web site. All tickets are held at the box office where they can be picked
up as early as one week prior to the performance. The theatre has an "open seating" plan, so patrons do
not reserve a specific seat at any performance. If tickets are purchased in person at the box office, non-
subscribers may pay with cash or a major credit card; subscribers can pay with cash, major credit card or
check. All tickets purchased over the phone or via the web site must be paid for with a major credit card.
Celebration maintains an electronic database to track all ticket sales; paper tickets are printed at least ten
days prior to a performance.
70. Explain, in no more than ten sentences, the process depicted in the following flowchart:
71. List the six design principles associated with flowcharting discussed in the text.
72. Consider the process you use to register for courses and pay your fees each term. Referring to the
previously presented set of flowcharting symbols labeled Symbol A through Symbol J., give one specific
example of Symbols A, B, F, G, H, and I within the context of that process.
73. The chapter suggested a seven-step process for creating a systems flowchart. Consider how you register
for courses and pay your fees each term; complete the first four steps (and only the first four steps) of the
seven-step process within that context.
74. The chapter discussed four kinds of flowcharts. Differentiate them based on their purpose, use and
relationship to accounting information systems.
75. The systems development life cycle comprises seven steps: initiation/planning, requirements analysis,
design, build, test, implementation, and operations and maintenance. In which phases of the SDLC would
a systems flowchart be useful? Justify your response.
6 Key
1. Which kind of flowchart shows the logic associated with instructions given to a computer?
A. Systems
B. Program
C. Document
D. Hardware
AACSB: Technology
AICPA: FN Leveraging Technology
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Hurt - Chapter 06 #1
Learning Objective: 06-01 List and discuss the purpose and use of systems flowcharts, document flowcharts, program flowcharts, and hardware flowcharts.
Topic: Flowchart types and conventions
2. Which kind of flowchart shows relationships between computers, printers, monitors and similar
devices?
A. Systems
B. Program
C. Document
D. Hardware
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
3. Which of the following is most likely to be seen in a hardware flowchart?
A. Scanner
B. Web browser
C. Textbook
D. None of these
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
4. Which of the following would best be depicted with a systems flowchart: (i) steps in the accounting
cycle, (ii) development of an internal control plan?
A. I only
B. II only
C. Both I and II
D. Neither I nor II
AACSB: Technology
Blooms: Understand
Difficulty: 2 Medium
5. In which of the following situations would a systems flowchart be appropriate?
B. Evaluating an organization's employee training programs
C. Both documenting the steps in a financial statement audit and evaluating an organization's
employee training programs
D. Neither documenting the steps in a financial statement audit nor evaluating an organization's
employee training programs
AACSB: Technology
Blooms: Understand
6. In which of the following situations would a document flowchart be appropriate?
B. Tracing the flow of a bank deposit slip
C. Both documenting the steps in a financial statement audit and tracing the flow of a bank deposit
slip
D. Neither documenting the steps in a financial statement audit nor tracing the flow of a bank deposit
slip
AACSB: Technology
Blooms: Understand
Which of the preceding questions would best be answered by preparing a systems flowchart?
A. I, II and III
B. II, III and IV
C. II, IV and V
D. All of these
I, document flowchart. II, IV and V, systems. III, hardware.
AACSB: Technology
Blooms: Understand
The chapter discussed four types of flowcharts. Which of the preceding questions would be answered
by two different types?
A. I and III
B. II and IV
C. II and V
D. IV and V
AACSB: Technology
Blooms: Understand
the questions listed below; Jon is considering which type of flowchart would best be used to answer
each question.
Which of the preceding questions would best be answered by the type of flowchart indicated below?
A. I and II, document flowchart

B. II and IV, systems flowchart
C. I and II, systems flowchart
D. II and IV, document flowchart
AACSB: Technology
Blooms: Understand
the questions listed below; Jon is considering which type of flowchart would best be used to answer
each question.
How many of the preceding questions would best be answered by preparing a program flowchart?
A. Zero
B. One
C. Three
D. Five
AACSB: Technology
Blooms: Understand
11. Flowcharts should be read:
A. From top to bottom and from left to right
B. From bottom to top and from left to right
C. From top to bottom and from right to left
D. From bottom to top and right to left
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-02 Explain the basic parts of and design considerations common to all types of flowcharts.
12. Documents in a flowchart should have:
A. A clear origin, but not a clear termination
B. A clear termination, but not a clear origin
C. Both a clear origin and a clear termination
D. Neither a clear origin nor a clear termination
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
13. Flowcharts should have plenty of white space. Which of the following statements is most true?
A. To ensure a flowchart has plenty of white space, it must have no more than three columns per page.
B. To ensure a flowchart has plenty of white space, it must have no more than three symbols per
column.
CBoth to ensure a flowchart has plenty of white space, it must have no more than three columns per
. page and to ensure a flowchart has plenty of white space, it must have no more than three symbols
per column.
DNeither to ensure a flowchart has plenty of white space, it must have no more than three columns per
. page nor to ensure a flowchart has plenty of white space, it must have no more than three symbols
per column.
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
14. All of the following would be used as column headings in a systems flowchart except:
A. Cash receipts department
B. Bank deposit slip
C. Payroll clerk
D. Customer
AACSB: Technology
Blooms: Understand
15. Documents involved in a business process should have a clear termination. Which of the following
best applies that principle?
A. An arrow connecting a document with a filing symbol
B. A document moving between columns in a flowchart
C. Both an arrow connecting a document with a filing symbol and a document moving between
D. Neither an arrow connecting a document with a filing symbol nor a document moving between
AACSB: Technology
Blooms: Understand
16. After drawing a rough draft of a flowchart by hand, Sue should:
A. Determine which computer program she wants to use to prepare a final copy.
B. Ask for feedback on the flowchart from her supervisor.
C.Both determine which computer program she wants to use to prepare a final copy and ask for
feedback on the flowchart from her supervisor.
D Neither determine which computer program she wants to use to prepare a final copy nor ask for
. feedback on the flowchart from her supervisor.
AACSB: Technology
Blooms: Understand
Learning Objective: 06-05 Create and interpret systems flowcharts.
Topic: Flowchart design steps
17. Which of the following should be placed at the top of each page of a systems flowchart: (i) the number
of columns in the flowchart, (ii) the number of pages in the flowchart, (iii) the name of the process
depicted?
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
18. Which of the following statements about white space in a flowchart is most true?
A. "Adequate white space" is a matter of judgment.
B. A flowchart should not span more than three pages.
C. Both "adequate white space" is a matter of judgment and a flowchart should not span more than
three pages.
D. Neither "adequate white space" is a matter of judgment nor a flowchart should not span more than
three pages.
AACSB: Technology
Blooms: Understand
19. Ralph was preparing a systems flowchart that explained how to reconcile a bank statement. Which
of the following should he include as column headings: (i) bank statement, (ii) accounting clerk, (iii)
bank.
A. I and II only
B. II and III only
C. I and III only
D. I, II and III
AACSB: Technology
Blooms: Understand
20. The title of a systems flowchart included the following information: "Systems flowchart of the
inventory purchasing process. Page 1 of 2." Which of the following would you expect to see as
column headings in the flowchart: (i) supplier, (ii) Page 1, (iii) purchasing agent.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
21. Consider the following flowchart symbols as necessary as you respond to the remaining questions in
this chapter:
Symbol A depicts:
A. A decision.
B. A terminator.
C. A document.
D. A predefined process.
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 06-03 Identify and describe common symbols and information technology tools used in flowcharting.
Topic: Flowchart symbols
this chapter:
Symbol C depicts:
A. An off-page connector.
B. An on-page connector.
C. A manual process.
D. A database.
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
this chapter:
Which of the following labels would you expect to find inside Symbol J?
A. By date
B. By name
C. Either by date or by name
D. Neither by date nor by name
AACSB: Technology
Blooms: Understand
this chapter:
"Prepare purchase order" could be represented in a systems flowchart with any of the following
except:
A. Symbol A
B. Symbol F
C. Symbol G
D. Symbol I
AACSB: Technology
Blooms: Understand
this chapter:
One of the basic design principles of flowcharts states that documents should have a clear point of
termination. Which symbol would apply that principle?
A. Symbol B
B. Symbol D
C. Symbol F
D. Symbol J
AACSB: Technology
Blooms: Understand
this chapter:
Which of the following symbols should always appear in a pair on the same page of a systems
flowchart?
A. Symbol B
B. Symbol C
C. Symbol D
D. Symbol H
AACSB: Technology
Blooms: Understand
this chapter:
symbols belong to the same group?
A. Symbols C and E
B. Symbols A and F
C. Symbols A and C
D. Symbols E and F
Data symbols: A and H. Process symbols: B, F, G, I, and J. Special symbols: C, D and E. The fourth
group is the line symbol, which is not depicted.
AACSB: Technology
Blooms: Understand
this chapter:
symbols belong to different groups?
A. Symbols C and D
B. Symbols C and E
C. Symbols A and I
D. Symbols G and I
AACSB: Technology
Blooms: Understand
this chapter:
According to ANSI, flowchart symbols can be divided into four main groups. Which symbols belong
to the "data" group?
A. Symbols C and H
B. Symbols A and H
C. Symbols A and C
D. None of these. "Data" is not one of the groups.
AACSB: Technology
Blooms: Understand
this chapter:
According to ANSI, flowchart symbols can be divided into four main groups. Which symbols belong
to the "file" group?
A. Symbols H and J
B. Symbols A and H
C. Symbols A and J
D. None of these. "File" is not one of the groups.
AACSB: Technology
Blooms: Understand
A. Evaluate internal controls in the AIS.
B. Determine which processes are completed manually in the AIS.
C. Both evaluate internal controls in the AIS and determine which processes are completed manually
in the AIS.
D. Neither evaluate internal controls in the AIS nor determine which processes are completed
manually in the AIS.
AACSB: Technology
Blooms: Understand
Learning Objective: 06-04 Discuss ways flowcharts impact the design, implementation, and evaluation of accounting information systems.
Topic: Flowcharting and AIS
A. Make recommendations on improving business processes.
B. Identify some of a company's risk exposures.
C. Both make recommendations on improving business processes and identify some of a company's
risk exposures.
D. Neither make recommendations on improving business processes nor identify some of a company's
risk exposures.
AACSB: Technology
Blooms: Understand
A. Describe an organization's method of collecting cash from its clients.
B. Train new employees in an organization's method of collecting cash from its clients.
C Both describe an organization's method of collecting cash from its clients and train new employees
. in an organization's method of collecting cash from its clients.
D Neither describe an organization's method of collecting cash from its clients nor train new
. employees in an organization's method of collecting cash from its clients.
AACSB: Technology
Blooms: Understand
34. Which of the following documents can be used to assess risk and recommend internal controls?
A. Systems flowchart
B. Risk/control matrix
C. Both systems flowchart and risk/control matrix
D. Neither systems flowchart nor risk/control matrix
AACSB: Technology
Blooms: Understand
Systems flowcharts can be used in AIS work to evaluate internal controls. Which of the following
statements is most true based on the systems flowchart above?
A. Allowing the salesperson to approve customer credit weakens internal control.
B. Using an electronic database for customer data weakens internal control.
C Both allowing the salesperson to approve customer credit weakens internal control and using an
D Neither allowing the salesperson to approve customer credit weakens internal control nor using an
AACSB: Technology
Blooms: Understand
Systems flowcharts can be used in AIS work to recommend process improvements. Which of the
following statements is most true based on the systems flowchart above?
A. The company may benefit from implementing online order taking.
B. The company may benefit from implementing a lockbox system.
C Both the company may benefit from implementing online order taking and the company may
. benefit from implementing a lockbox system.
D Neither the company may benefit from implementing online order taking nor the company may
. benefit from implementing a lockbox system.
AACSB: Technology
Blooms: Understand
Which of the following statements is most true based on the systems flowchart above?
A. The credit approval process is completely automated.
B. The type and nature of documents used in the system should be clearer.
C. Both the credit approval process is completely automated and the type and nature of documents
used in the system should be clearer.
D Neither the credit approval process is completely automated nor the type and nature of documents
. used in the system should be clearer.
AACSB: Technology
Blooms: Understand
Flowcharts should be organized in columns based on areas of responsibility. The process depicted
would benefit from reorganization into __ departments within the company.
A. Two
B. Three or four
C. Five or six
D. More than six
The question asks about columns within the company; the "customer" column should remain, but is
not within the company. The "company columns" should include: salesperson, credit department and
delivery department. They may also include "warehouse."
AACSB: Technology
Blooms: Understand
A. Symbol A should be inserted after "remit payment."
B. Symbol A should be inserted before "take order."
C. Both symbol A should be inserted after "remit payment" and symbol A should be inserted
before "take order" are true.
D. Neither symbol A should be inserted after "remit payment" nor symbol A should be inserted
before "take order" is true.
AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
A. Symbol B may be inserted between "approve credit" and "deliver goods."
B. Symbol B may be inserted between "start" and "take order."
C Both symbol B may be inserted between "approve credit" and "deliver goods" and symbol B may be
. inserted between "start" and "take order" are true.
D Neither symbol B may be inserted between "approve credit" and "deliver goods" nor symbol B may
. be inserted between "start" and "take order" is true.
AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
Patrons can buy tickets for a single play; alternatively, they can subscribe to all three plays each
quarter. Quarterly subscriptions offer a 25% discount from the prices of single tickets. Patrons may
purchase tickets over the phone, at the box office or via the theatre's web site. All tickets are held at the
box office where they can be picked up as early as one week prior to the performance. The theatre has
an "open seating" plan, so patrons do not reserve a specific seat at any performance.
If tickets are purchased in person at the box office, non-subscribers may pay with cash or a major
credit card; subscribers can pay with cash, major credit card or check. All tickets purchased over the
phone or via the web site must be paid for with a major credit card. Celebration maintains an electronic
database to track all ticket sales; paper tickets are printed at least ten days prior to a performance.
Which symbol would represent the ticket sales database?
A. Symbol C
B. Symbol F
C. Symbol H
D. Symbol J
AACSB: Technology
Blooms: Understand
Which symbol would represent the tickets?
A. Symbol A
B. Symbol B
C. Symbol F
D. Symbol I
AACSB: Technology
Blooms: Understand
Which of the following is most likely to be represented with Symbol I?
A. Open seating plan

B. Discounted tickets
C. Creating advertising for the web site
D. None of these
AACSB: Technology
Blooms: Understand
Which of the following is most likely to be represented with Symbol B?
A. A patron's decision to purchase tickets

B. The theatre management's decision about which plays to produce
C. Determining whether a patron is a subscriber
D. All of these
AACSB: Technology
Blooms: Understand
The Celebration Theatre is a small, independent theatre that puts on 12 plays per year. 30 days
before the start of each calendar quarter, Celebration prepares advertising for the productions in the
upcoming quarter. They advertise on their web site, via e-mail to their season subscribers and via
direct mail and brochures to others.
purchase tickets over the phone, at the box office or via the theatre's web site. All tickets are held at
the box office where they can be picked up as early as one week prior to the performance. The theatre
has an "open seating" plan, so patrons do not reserve a specific seat at any performance.
credit card; subscribers can pay with cash, major credit card or check. All tickets purchased over
the phone or via the web site must be paid for with a major credit card. Celebration maintains an
electronic database to track all ticket sales; paper tickets are printed at least ten days prior to a
performance.
Any paid tickets that are not claimed at least thirty minutes prior to the performance are sold on
a "first-come, first-serve" basis at a 50% discount.
Which of the following statements would be most true in a systems flowchart of the Celebration
Theatre case?
A. One of the flowchart columns would have "patrons" as its heading.
B. One of the flowchart columns would have "theatre personnel" as its heading.
C Both one of the flowchart columns would have "patrons" as its heading and one of the flowchart
. columns would have "theatre personnel" as its heading are true.
D Neither one of the flowchart columns would have "patrons" as its heading nor one of the flowchart
. columns would have "theatre personnel" as its heading is true.
AACSB: Technology
Blooms: Understand
The Celebration Theatre is a small, independent theatre that puts on 12 plays per year. 30 days
before the start of each calendar quarter, Celebration prepares advertising for the productions in the
upcoming quarter. They advertise on their web site, via e-mail to their season subscribers and via
direct mail and brochures to others.
purchase tickets over the phone, at the box office or via the theatre's web site. All tickets are held at
the box office where they can be picked up as early as one week prior to the performance. The theatre
has an "open seating" plan, so patrons do not reserve a specific seat at any performance.
credit card; subscribers can pay with cash, major credit card or check. All tickets purchased over
the phone or via the web site must be paid for with a major credit card. Celebration maintains an
electronic database to track all ticket sales; paper tickets are printed at least ten days prior to a
performance.
Any paid tickets that are not claimed at least thirty minutes prior to the performance are sold on
a "first-come, first-serve" basis at a 50% discount.
The first step in creating a flowchart is to define the system boundary. Which of the following is most
likely to be outside the system boundary?
A. Patrons
C. Box office
D. Advertising firm
AACSB: Technology
Blooms: Understand
The process of selling tickets at the box office could be represented with any of the following symbols
except:
A. Symbol F
B. Symbol G
C. Symbol I
D. Symbol J
AACSB: Technology
Blooms: Understand
Which of the following would best determine whether to use Symbol G or Symbol I to represent the
process of selling tickets at the box office?
A. Whether the process is completed manually or with information technology

B. Whether the flowchart will be read by someone who understands the process of selling tickets
C. Whether the tickets are sold to a subscriber or a non-subscriber
D. Any of these could be used to make that determination.
AACSB: Technology
Blooms: Understand
Refer to the previously presented set of flowcharting symbols labeled Symbol A through Symbol J. In
a systems flowchart of the Celebration Theatre case, which of the following is most likely to appear
immediately after "start?"
A. Symbol A
B. Symbol I
C. Either Symbol A or Symbol I
D. Some other symbol
AACSB: Technology
Blooms: Understand
Refer to the previously presented set of flowcharting symbols labeled Symbol A through Symbol J. In
a systems flowchart of the Celebration Theatre case, Symbol H is most likely to appear in which
column?
A. Patron
C. Subscriber database
D. Patron database
AACSB: Technology
Blooms: Understand
Which type of flowchart is depicted?

A. document
B. systems
C. hardware
D. program
AACSB: Technology
Blooms: Understand
Which of the following phrases would appear in the title of the flowchart: (i) systems flowchart, (ii)
interview committee flowchart, (iii) prepared by.
A. i and ii only
B. i and iii only
C. ii and iii only
D. i, ii and iii
AACSB: Technology
Blooms: Understand
In the partial flowchart, "A" should be replaced with:

A. human resources department
B. applicant
C. human resources process
D. Any of these
AACSB: Technology
Blooms: Understand
In the partial flowchart, "B" should be replaced with:

A. Qualified
B. Position open
C. Materials received
D. Choose candidates to reject
AACSB: Technology
Blooms: Understand
In the partial flowchart, "C" should be replaced with:

A. applicant name
B. position description
C. rejection letter
D. file application materials
AACSB: Technology
Blooms: Understand
Consider the symbol labeled "C." Including the symbols before and after it, which of the following
principles is illustrated?
A. Every document should have a clear point of origin.
B. Every document should have a clear point of termination.
C. Both every document should have a clear point of origin and every document should have a clear
D. Neither every document should have a clear point of origin nor every document should have a clear
AACSB: Technology
Blooms: Understand
In the partial flowchart, "D" could be replaced with:

A. a generic or predefined process symbol.
B. a predefined process or document symbol.
C. a generic process or decision symbol.
D. a decision or document symbol.
AACSB: Technology
Blooms: Understand
In the partial flowchart, the "list of finalists" would best be depicted with a ___ symbol.
A. predefined process
B. manual file
C. decision
D. document
AACSB: Technology
Blooms: Understand
In the partial flowchart, "E" should be replaced with a ___ symbol labeled ___.
A. predefined process; interview finalists
B. predefined process; choose finalists to interview
C. decision; interview finalists
D. decision; choose finalists to interview
AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
In the partial flowchart, the most appropriate label for "F" is:
A. to new employee
B. end
C. outside system boundary
D. some other label
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
61. Fill in the blanks in each statement below based on the flowchart design considerations discussed in
the text.
a. Flowcharts should be read from _____ and ______.
b. Flowcharts should have plenty of ______.
c. Flowcharts should have a ______.
d. Flowcharts should be organized in columns that depict ______.
e. Documents involved in a business process should have a clear ___ and a clear ___.
a. Left; right
b. White space
c. Title
d. Areas of responsibility
e. Origin; termination
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
62. Fill in the blanks in each statement below based on the flowchart design steps discussed in the chapter.
a. Establish the ______.
b. Determine ______.
c. List ______ performed within each ______.
d. Select appropriate ______.
e. Prepare a ______.
f. ______ the flowchart with others.
g. ______ as needed.
a. System boundary
b. Column headings
c. Actions; column
d. Symbols
e. First draft
f. Discuss
g. Revise
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy
63. The chapter discussed four types of flowcharts. Which one would be most appropriately used in each
of the following independent situations?
a. Demonstrating how to create a procedures manual
b. Explaining what happens in a financial statement audit
c. Illustrating the steps in the accounting cycle
d. Showing the relationship between computers and printers within an office building
e. Tracing the path of a check from the time it is written until it is paid by the bank
f. Writing computer code that will generate general purpose financial statements
a. Systems
b. Systems
c. Systems
d. Hardware
e. Document
f. Program
AACSB: Technology
Blooms: Understand
64. Flowcharts can impact the design, implementation and evaluation of an accounting information
system. Determine whether each statement below is: (i) always true, (ii) sometimes true or (iii) never
true.
a. Accounting information systems have five generic elements; a flowchart can be an example of at
least one of the elements.
b. All aspects of an AIS should always be represented in a single flowchart of no more than three
pages.
c. Flowcharts are required if a company wants to use the COSO internal control framework.
d. Flowcharts are useful to auditors.
e. Flowcharts can be used as part of a business process management project for an AIS.
a. Always true
b. Never true
c. Never true
d. Sometimes true
e. Sometimes true
AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
65.
Which symbol would be used in a systems flowchart to represent each of the following items?
1) A bank statement
2) Completing the steps in the accounting cycle
3) Creating an enterprise risk management plan
4) Determining if a customer should be granted credit
5) Electronic records of sales transactions
6) Moving a document from the first column of a page to the third column of the same page
7) Reconciling a bank statement in a flowchart to be read by experienced accountants
8) Sending a sales invoice outside the system boundary
9) Storing copies of purchase orders in a box
10) The statement of cash flows
1) A
2) G
3) G
4) B
5) H
6) C
7) I
8) E
9) J
10) A
AACSB: Technology
Blooms: Understand
66. The chapter discussed four types of flowcharts; flowcharts can impact the design, implementation
and evaluation of an accounting information system. Determine whether each statement below is: (i)
always true, (ii) sometimes true or (iii) never true.
a. A document flowchart should be used as part of developing an enterprise risk management plan
based on the COSO framework.
b. A hardware flowchart can be a guide in recommending technology-related internal controls.
c. Because the "S" in AIS stands for "system," only systems flowcharts are useful in AIS work.
d. Program flowcharts are never relevant in accounting information systems.
e. Since most documents in an AIS are electronic, document flowcharts are rarely relevant in
designing, implementing and evaluating accounting information systems.
a. Sometimes true
b. Sometimes true
c. Never true
d. Never true
e. Never true
AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
67. Analyze the flowchart below and the statements which follow. Determine which statements are true
based on the flowchart.
a. All customers have a credit limit.

b. Because the customer is outside the company, the customer is also outside the system boundary.
c. Customers can place orders in person or over the phone.
d. Flowcharting symbols are used appropriately.
e. Internal control in the process depicted would be strengthened by introducing a filing system.
f. Journal entries associated with the process depicted would include debits to cost of goods sold and
credits to inventory.
g. The company does not use any form of information technology in the process depicted.
h. The company has weak separation of duties in the process depicted.
i. The company is not exposed to credit risk.
j. The flowchart could be appropriately titled "Document flowchart of the sales/collection
process."
True statements are: D, E, J, H
AACSB: Technology
Blooms: Analyze
Difficulty: 3 Hard
68. Please refer to the following flowchart as you respond to the next problem:
According to ANSI, flowchart symbols can be divided into four main groups. Analyze the symbols in
the flowchart above; sort them into the four groups.
Data symbols: Order. Process symbols: Place order, cash or credit?, evaluate credit, approved?,
deliver goods. Special symbols: Start, end. Line symbols: all lines.
AACSB: Technology
Blooms: Remember
Difficulty: 1 Easy

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A. Open seating plan

A. A patron's decision to purchase tickets

A. Whether the process is completed manually or with information technology

Which type of flowchart is depicted?

In the partial flowchart, "A" should be replaced with:

In the partial flowchart, "B" should be replaced with:

In the partial flowchart, "C" should be replaced with:

In the partial flowchart, "D" could be replaced with:

a. All customers have a credit limit.

I, document flowchart. II, IV and V, systems. III, hardware.

I, document flowchart. II, IV and V, systems. III, hardware.

A. I and II, document flowchart

I, document flowchart. II, IV and V, systems. III, hardware.

I, document flowchart. II, IV and V, systems. III, hardware.

A. Open seating plan

A. A patron's decision to purchase tickets

A. Whether the process is completed manually or with information technology

Which type of flowchart is depicted?

In the partial flowchart, "A" should be replaced with:

In the partial flowchart, "B" should be replaced with:

In the partial flowchart, "C" should be replaced with:

In the partial flowchart, "D" could be replaced with:

a. All customers have a credit limit.

True statements are: D, E, J, H

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