Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Challenging
AACSB: Reflective Thinking
19) Which of the following is not an example of how an AIS adds value to an organization?
A) Patient information at a hospital is encrypted and made only available on the hospital's network to the patient with an access code.
B) Patient billing information at a hospital is encrypted and made only available on the hospital's network to insurance companies with an access code.
C) Patient information at a hospital is encrypted and made only available on the hospital's webpage to anyone with access to a search engine.
D) Patient information at a hospital is encrypted and made only available on the hospital's network to healthcare professional with an access code.
Answer: C
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Challenging
AACSB: Reflective Thinking
20) What is the CITP designation and why is it important to AIS?
Answer: The CITP designation stands for "Certified Information Technology Professional." It is awarded to CPAs who have demonstrated a broad range of knowledge and skill sets in the areas of accounting and information systems and technology. The AICPA (American Institute of CPAs) has acknowledged the importance and close relationship that accounting and information systems share in creating this specialty designation for accounting information system professionals.
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Easy
AACSB: Analytical Thinking
21) Differentiate between an AIS course and other accounting courses.
Answer: Other accounting courses assume the preparation or reporting of accounting information is for external or internal users. However, the AIS course focuses on the flow of accounting information in the organization from a systems perspective. The AIS course traces the origin, processing, storing, and ultimate disposal of information. An AIS course also focuses on business processes, organization structure, information systems, and corporate planning and goals.
Concept: Accounting information systems
Objective: Learning Objective 3
Difficulty: Challenging
AACSB: Reflective Thinking
22) How can an AIS add value to the organization?
Answer: An AIS can increase the efficiency and effectiveness of the value chain by improving the quality and lowering costs of products or services, improving efficiency of operations, improving decision making, enhancing the sharing of knowledge, improving the efficiency and effectiveness of its supply chain and improving the internal control structure.
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Information Technology
23) How can an AIS become part of the firm's value chain and add value to the business?
Answer: The AIS can add value by: helping to improve products and services an organization offers for sale; increasing the quality of products and services; creating greater efficiency by reducing costs and saving time; and improving the overall efficiency of the organization. Decision making is enhanced by the better availability of timely, complete, reliable, verifiable, and relevant information. A firm can enjoy a competitive advantage with better customer ordering, billing, and customer service made possible by an improved AIS. The AIS can also enhance overall communication and use of knowledge in a business by making the knowledge readily available to interested parties.
Concept: The value of accounting information systems
Objective: Learning Objective 3
Difficulty: Moderate
AACSB: Information Technology
24) How can the value of the information produced by an accounting information system be determined? What would a measurement and verification expert think about quantification and verification of such information?