D217 Accounting Information Systems - Set 5 - Part 2

Correct Answer: To serve as the central repository for financial data

The general ledger is the core of the accounting system, summarizing all financial transactions for the organization.

Correct Answer: That all required fields are filled in

Completeness tests ensure that no required fields are missing from a transaction, preventing incomplete records.

Correct Answer: Limiting system access to authorized users

Preventive controls, like limiting access, are designed to prevent errors or fraud before they occur by restricting access to systems and data.

Correct Answer: Payroll system

The payroll system calculates employee gross pay, deductions such as taxes, and net pay to ensure accurate payments.

Correct Answer: To prevent one person from controlling all parts of a transaction

Segregation of duties ensures that no single person can complete a transaction alone, which reduces the risk of fraud.

Correct Answer: Archive file

Archive files store historical transaction records for future reference or audit purposes.

Correct Answer: COSO framework

The COSO framework is a widely used framework for internal controls and financial reporting systems like GL/FRS.

Correct Answer: Integrates various business processes into one system

ERP systems integrate multiple business functions such as finance, procurement, and manufacturing into a single system for efficient data flow.

Correct Answer: Inverted file

Inverted files allow data to be accessed through multiple indexes, providing flexibility in data retrieval.

Correct Answer: To trace the history of each transaction through the system

An audit trail provides a record of the path a transaction takes from input through processing and output, ensuring transparency and accuracy.

Correct Answer: Mnemonic code

Mnemonic codes use recognizable acronyms or abbreviations to simplify and convey information, such as course codes at a university.

Correct Answer: Data redundancy

The flat-file approach often leads to data redundancy, where the same data is stored in multiple files, increasing the risk of errors.

Correct Answer: Records are stored and accessed in numerical order

Sequential files are organized in a specific order, such as by date or number, making them easier to process sequentially.

Correct Answer: It provides controlled access to the database

A DBMS ensures that only authorized users can access and modify data, providing security and control over the information stored in the database.

Correct Answer: Integration of multiple business processes into one system

ERP systems integrate various business processes, allowing for better communication and real-time data sharing across departments.

Correct Answer: Master file

Master files store permanent data like payroll records, which are updated with each pay period and retained over time.

Correct Answer: Correcting data entry errors after they are detected

Corrective controls are designed to fix problems once they have been detected, such as correcting data entry errors.

Correct Answer: Customer purchase order

The customer purchase order triggers the revenue cycle by initiating the process of fulfilling and billing a customer's order.

Correct Answer: It is pre-designed, tested, and ready for implementation

Turnkey systems are ready-to-implement solutions that can be quickly deployed with limited customization options.

Correct Answer: Reference file

Reference files store data used to process transactions, such as tax tables for payroll calculations.