discussion question
CHAPTER 1
Discussion Questions
1 Discuss the differences between internal and external users of information and their needs and demands on an information system. Historically, which type of user has the firm catered to most?
4. An information system must meet three fundamental objectives. Discuss why these objectives cannot effectively be met by a common set of information.
9. Discuss what is meant by the statement, “The accounting system is a conceptual flow of information that represents physical personnel, machinery, and flows of raw materials and cash through the organization.”
11. Discuss why it is crucial that internal auditors report solely to the audit committee of the board of directors and answer to no other group.
13. Discuss how conceptual and physical systems differ and which functions are responsible for each of these systems.
CHAPTER 2
Discussion Questions
1. Discuss the flow of cash through the transaction cycles. Include in your discussion the relevant subsystems and any time lags that may occur.
2. Explain whether the cost accounting system primarily supports internal or external reporting.
7. Discuss the relationship between the balance in the accounts payable general ledger control account and what is found in the accounts payable subsidiary ledger
8. What role does the audit trail play in the task of confirmation?
12. If an organization processes large numbers of transactions that use common data records, what type of system would work best (all else being equal)?
CHAPTER 3
Discussion Questions
4. When a company has a strong internal control structure, stockholders can expect the elimination of fraud. Comment on the soundness of this statement.
5. Distinguish between employee fraud and management fraud
7. How has the Sarbanes-Oxley Act had a significant impact on corporate governance?
8. Discuss the concept of exposure and explain why firms may tolerate some exposure.
10. Discuss the non-accounting services that
Discussion Questions
1 Discuss the differences between internal and external users of information and their needs and demands on an information system. Historically, which type of user has the firm catered to most?
4. An information system must meet three fundamental objectives. Discuss why these objectives cannot effectively be met by a common set of information.
9. Discuss what is meant by the statement, “The accounting system is a conceptual flow of information that represents physical personnel, machinery, and flows of raw materials and cash through the organization.”
11. Discuss why it is crucial that internal auditors report solely to the audit committee of the board of directors and answer to no other group.
13. Discuss how conceptual and physical systems differ and which functions are responsible for each of these systems.
CHAPTER 2
Discussion Questions
1. Discuss the flow of cash through the transaction cycles. Include in your discussion the relevant subsystems and any time lags that may occur.
2. Explain whether the cost accounting system primarily supports internal or external reporting.
7. Discuss the relationship between the balance in the accounts payable general ledger control account and what is found in the accounts payable subsidiary ledger
8. What role does the audit trail play in the task of confirmation?
12. If an organization processes large numbers of transactions that use common data records, what type of system would work best (all else being equal)?
CHAPTER 3
Discussion Questions
4. When a company has a strong internal control structure, stockholders can expect the elimination of fraud. Comment on the soundness of this statement.
5. Distinguish between employee fraud and management fraud
7. How has the Sarbanes-Oxley Act had a significant impact on corporate governance?
8. Discuss the concept of exposure and explain why firms may tolerate some exposure.
10. Discuss the non-accounting services that