Finance

Q: The client/server model is a form of network topology in which user computers, called clients, access ERP programs and data via a host computer called a server.

Q: Core applications are also called OLAP.

Q: If a chosen ERP cannot handle a specific company process bolt-on software may be available.

Q: Companies are more likely to modify an ERP to accommodate the company than to modify company processes to accommodate the ERP.

Q: Data mining typically focuses on the operational databases.

Q: Day-to-day transactions are stored in the operational database.

Q: Almost all ERP implementations involve an outside consultant.

Q: OLAP stands for on-line application processing.

Q: ERP systems support a smooth and seamless flow of information across organizations.

Q: A closed database architecture shares data easily.

Q: The recommended data architecture for an ERP includes separate operational and data warehouse databases.

Q: The primary goal of installing an ERP system is reducing system maintenance costs.

Q: What is the fundamental concept behind the rule of least access? Explain why this is a potential problem in an ERP environment.

Q: Explain the risks associated with the creation of unnecessary roles and why it can happen.

Q: ERP implementations are at risk to extensive cost overruns. Discuss three of the more commonly experienced problems area.

Q: This chapter stressed the importance of data normalization when constructing a relational database. Why then is it important to de-normalize data in a data warehouse?

Q: Data in a data warehouse are in a stable state. Explain how this can hamper data mining analysis? What can an organization do to alleviate this problem?

Q: Distinguish between the two-tier and three-tier client server model. Describe when each would be used?

Q: Scalability has several dimensions. What are they? What do they mean for ERP installation?

Q: Why must an organization expect the implementation of an ERP to disrupt operations?

Q: If an auditor suspected an "unusual" relationship between a purchasing agent and certain suppliers, how could "drill-down" be used to collect data?

Q: Why does the data warehouse need to be separate from the operational databases?

Q: How are OLTP and OLAP different? Give examples of their use.

Q: What is the purpose of role- based governance systems?

Q: Why are data in a data warehouse stored in unnormalized tables?

Q: Internal efficiency is cited as one reason for separating the data warehouse from the operational database. Explain.

Q: What should management do to assess the potential benefits from implementing an ERP?

Q: What is meant by the OLAP term "slicing and dicing"?

Q: What is meant by the OLAP term "drill-down"?

Q: What is meant by the OLAP term "consolidation"?

Q: What is the closed database architecture?

Q: Why must a data warehouse include both detail and summary data?

Q: Describe the three-tier client server model.

Q: What are the basic stages of the data warehousing process?

Q: Why does data need to be "cleansed"?

Q: How can a firm acquire bolt-on software? What are the options?

Q: Why do ERP systems need bolt-on software? Give an example.

Q: What is data mining?

Q: What is scalability?

Q: What is the client-server model?

Q: Describe the two-tier client server model.

Q: What is the "Big-Bang" approach?

Q: What is a data warehouse?

Q: What is SCM software?

Q: What is "bolt-on" software?

Q: Define OLAP and give some examples.

Q: Define the term "core applications" and give some examples.

Q: Define ERP.

Q: Auditors of ERP systems a. need not be concerned about segregation of duties because these systems possess strong computer controls. b. focus on output controls such as independent verification to reconcile batch totals. c. are concerned that managers fail to exercise adequate care in assigning permissions. d. do not view the data warehouse as an audit or control issue at all because financial records are not stored there. e. need not review access levels granted to users because these are determined when the system is configured and never change.

Q: Auditors of ERP systems a. are concerned about segregation of duties just as they would be in traditional systems. b. focus on output controls such as independent verification because internal processing controls are known to be correct since best practices are used.. c. routinely audit data in the data warehouse because it is know to be clean and free from errors. d. need not review access levels granted to users since these are determined when the system is configured and never change.

Q: Which statement is LEAST accurate? a. Implementing an ERP system has as much to do with changing the way an organization does business than it does with technology. b. The big-bang approach to ERP implementation is generally riskier than the phased in approach. c. To take full advantage of the ERP process, reengineering will need to occur. d. A common reason for ERP failure is that the ERP does not support one or more important business processes of the organization

Q: Which of the following is NOT as a risk associated with ERP implementation? a. A drop in firm performance after implementation because the firm looks and works differently than it did while using a legacy system. b. Implementing companies have found that staff members, employed by ERP consulting firms, do not have sufficient experience in implementing new systems. c. Implementing firms fail to select systems that properly support their business activities. d. The selected system does not adequately meet the adopting firm's economic growth. e. ERP's are too large, complex, and generic for them to be well integrated into most company cultures.

Q: Closed database architecture is a. a control technique intended to prevent unauthorized access from trading partners. b. a limitation inherent in traditional information systems that prevents data sharing. c. a data warehouse control that prevents unclean data from entering the warehouse. d. a technique used to restrict access to data marts. e. a database structure that many of the leading ERPs use to support OLTP applications.

Q: Separating the data warehouse from the operations databases occurs for all of the following reasons except a. to make the management of the databases more economical b. to increase the efficiency of data mining processes c. to integrate legacy system data into a form that permits entity-wide analysis d. to permit the integration of data from diverse sources

Q: Why does the payroll process lend itself to batch processing?

Q: The Golf Club Company makes custom golf clubs. The manufacturing supervisor interviews people who have specialized manufacturing skills, and he informs payroll when an employee is hired. The employees use a time clock to record the hours they work. The employees are also required to keep a record of the time they spend working on each order. The supervisor approves all time cards. The accountant analyzes the job tickets and prepares a labor distribution summary. Payroll prepares the payroll register and paychecks. The supervisor distributes the paychecks to the employees. Payroll informs cash disbursement of the funds required to cover the entire payroll amount. The cash disbursements clerk ensures that there are adequate funds in the company's regular checking account to cover the payroll. Describe at least three internal control weaknesses; for each weakness suggest an improvement to internal control.

Q: Outline the key steps taken in the purchasing system.

Q: How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

Q: What are the steps taken in the cash disbursement system?

Q: How does a voucher payable system work? What documents are reconciled? Who prepares the voucher? How is the A/P balance determined? How does the voucher payable system improve control over cash?

Q: The Soap Manufacturing Company has three employees who work in the warehouse. All of the warehouse workers are authorized to order inventory when it falls below the reorder level. The workers complete a purchase order and mail it to the supplier of their choice. The inventory is delivered directly to the warehouse. The workers send a memo to accounts payable reporting the receipt of inventory. Accounts payable compares the warehouse memo to the supplier's invoice. Accounts payable prepares a check which the treasurer signs. Describe at least five needed internal control improvements.

Q: Differentiate between a purchase requisition and a purchase order.

Q: Explain the purpose of each of the following documents used in the payroll system: the personnel action form, the job ticket, the time card.

Q: In a manufacturing firm, employees typically fill out two different documents regarding their time worked. What are they? Why are there two?

Q: Why should employee paychecks be drawn against a special checking account?

Q: Describe internal control procedures that would (1) prevent an employee from punching the time clock for another, absent employee and (2) prevent a supervisor from stealing the unclaimed paychecks of employees who have been terminated.

Q: What is a vouchers payable system and why is it used?

Q: What is the principle objective of the cash disbursement system?

Q: What is the purpose of the suppliers invoice?

Q: What is the purpose of a receiving report?

Q: Name the key tasks associated with purchases procedures.

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