Tuesday, April 28, 2015

Compare and contrast the management information systems (MIS) in place in 2 distinctly different organizations.

Compare and contrast the management information systems (MIS) in place in 2 distinctly different organizations.
Compare each organization's use of information systems to help manage internal operations and to make decisions.
Assess how these two organizations use information technology for competitive advantage.
Appraise the individual and organizational consequences of the use of information technology, and recognize potential security breaches and computer crimes.
Present your findings in a Word document of 5–6 body pages formatted in APA style.
Please submit your assignment.
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title page: Remember the running head. The title should be in all capitals.
Abstract: A summary of your paper, not an introduction. Begin writing in third-person voice.
Body: The body of your paper begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The type face should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 5-6 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper- and lowercase usage as appropriate for the type of resource used. Remember, the Reference Page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.









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Matthew Company reported $350000 in income before income tax for financial reporting(book) purposes in Year

1.       Matthew Company reported $350000 in income before income tax for financial reporting(book) purposes in Year 3, its first year of operation.  The tax depreciation exceeded its book depreciation of $30000.  The tax income rate for Year 3 and all future years is 40%.  What amount of deferred income tax should Matthew report in its December 31, Year 3, balance sheet?
a)      $8000 deferred tax asset
b)      $9000 deferred tax liability
c)       $10000 deferred tax asset
d)      $12000 deferred tax liability

2.       Matthew Company reported $350000 in income before income tax for financial reporting(book) purposes in Year 3, its first year of operation.  The tax depreciation exceeded its book depreciation of $30000.  The tax income rate for Year 3 and all future years is 40%.  If Matthew paid no estimated taxes, what amount of income taxes payable should be reported in its December 31, Year 3, balance sheet?
a)      $100000
b)      $120000
c)       $128000
d)      $140000
3.       Matthew Company reported $350000 in income before income tax for financial reporting(book) purposes in Year 3, its first year of operation.  The tax depreciation exceeded its book depreciation of $30000.  The tax income rate for Year 3 and all future years is 40%.  What would the income tax expense reported on Matthew’s income statement for Year 3 be?
a)      $120000
b)      $128000
c)       $140000
d)      $152000

4.       Matthew Company reported $350000 in income before income tax for financial reporting(book) purposes in Year 3, its first year of operation.  The tax depreciation exceeded its book depreciation of $30000.  The tax income rate for Year 3 and all future years is 40%.  The journal entry to record the taxes for Matthew Company at December 31, Year 3, would be which one of the following?
a)      DR Income tax expense                        140000
CR Deferred income tax payable      12000
CR Income tax payable                          128000
b)      DR Income tax expense                        128000
CR Cash                                                        128000
c)       DR Income tax expense                        140000
CR Cash                                                        140000
d)      DR Income tax expense                        152000
CR Deferred income tax payable      140000
CR Income tax payable                          12000

5.       William Company reported $550000 in financial (book) income before taxes in Year 3.  Tax depreciation for the year exceeded book depreciation by $50000.  The tax rate for Year 3 was 30% and Congress enacted a tax rate of 40% for years after Year 3.  What is the deferred tax reported on William’s December 31, Year 3, balance sheet?
a)      $15000 deferred tax asset
b)      $15000 deferred tax liability
c)       $20000 deferred tax asset
d)      $20000 deferred tax liability

6.       William Company reported $550000 in financial (book) income before taxes in Year 3.  Tax depreciation for the year exceeded book depreciation by $50000.  The tax rate for Year 3 was 30% and Congress enacted a tax rate of 40% for years after Year 3.  How much is the income tax expense reported on William’s income statement for Year 3?
a)      $120000
b)      $125000
c)       $150000
d)      $170000


7.       William Company reported $550000 in financial (book) income before taxes in Year 3.  Tax depreciation for the year exceeded book depreciation by $50000.  The tax rate for Year 3 was 30% and Congress enacted a tax rate of 40% for years after Year 3.  If William paid no estimated taxes, what is the amount of income tax payable reported on William’s balance sheet at December 31, Year 3?
a)      $120000
b)      $122500
c)       $150000
d)      $170000

8.       Amanda Company began manufacturing operations on January 2, Year 4.  In Year 4, Amanda earned a pretax book income of $300000 and taxable income of $400000.  The difference related to accrued product warranty costs are expected to be paid out as follows: Year 5: $60000; Year 6: $30000 and Year 7: $10000.  The enacted tax rates are 30% for Years 4 and 5 and 40% for Years 6 and 7.  The deferred tax to be reported on Amanda’s December 31, Year 4, balance sheet is a:
a)      $30000 deferred tax asset
b)      $30000 deferred tax liability
c)       $34000 deferred tax asset
d)      $34000 deferred tax liability

9.       Amanda Company began manufacturing operations on January 2, Year 4.  In Year 4, Amanda earned a pretax book income of $300000 and taxable income of $400000.  The difference related to accrued product warranty costs are expected to be paid out as follows: Year 5: $60000; Year 6: $30000 and Year 7: $10000.  The enacted tax rates are 30% for Years 4 and 5 and 40% for Years 6 and 7.  If Amanda paid no estimated taxes, what is the income tax payable to be reported at the end of Year 4?
a)      $120000
b)      $125000
c)       $130000
d)      $134000
10.   Amanda Company began manufacturing operations on January 2, Year 4.  In Year 4, Amanda earned a pretax book income of $300000 and taxable income of $400000.  The difference related to accrued product warranty costs are expected to be paid out as follows: Year 5: $60000; Year 6: $30000 and Year 7: $10000.  The enacted tax rates are 30% for Years 4 and 5 and 40% for Years 6 and 7.  What is the income tax expense to be reported by Amanda on the Year 4 income statement?
a)      $86000
b)      $90000
c)       $130000
d)      $134000

11.    At the beginning of Year 1, Kellan Company purchases a machine costing $6000 with a 3 year estimated service life and no salvage value.  For financial reporting(book) purposes, Kellan uses straight line depreciation with a 3 year life.  For income tax reporting, the machine is depreciated with a 2 year life.  The machine is used to manufacture a product that will generate annual revenue of $5000 for 3 years.  Warranty expenses are estimated at 10% of revenues each year; all repairs are provided in Year 3.  The tax rate is 40% in all 3 years.  What is the balance at the end of Year 2 of Kellan’s deferred tax asset and deferred tax liability?
a)      $200 asset; $400 liability
b)      $400 asset; $800 liability
c)       $800 asset; $800 liability
d)      $1000 asset; $800 liability

12.   A corporation that incurs a pretax operating loss must:
a)      Carryback the loss for tax purposes
b)      Carryforward the loss for tax purposes
c)       Choose to both carryback and carryforward the loss or to only carryback the loss
d)      Choose to both carryback and carryforward the loss or to only carryforward the loss

13.   What circumstances lead to the recording of a deferred tax asset?
a)      A deferred tax asset results when a transaction results in a difference that causes financial income to be less than taxable income.
b)      A deferred tax asset results when a transaction results in a difference that causes financial income to be less than financial income.
c)       A deferred tax asset results when a transaction reverses a difference, causing financial income to be less than taxable income.
d)      A deferred tax asset results when a transaction reverses a difference, causing financial income to be less than financial income.

14.   The balance in the deferred tax asset valuation allowance was $23 million in Year 5 and $16 million in Year 6.  What effect did the change in this allowance have on the Year 6 income statement?
a)      Decreases in the allowance suggest that the firm does not expect to realize future sources of taxable income.
b)      The decline in the valuation allowance is recognized as nonoperating income on the income statement.
c)       The decline in the valuation allowance is recognized as an increase in income from continuing operations because of lower income tax expense.
d)      The decline in the valuation allowance does not affect the income statement since it is offset by a lower deferred tax asset amount.

15.   The ratio of pretax book income to taxable income per tax return is the ______ ratio.
a)      Acid-test
b)      Earnings conservatism
c)       Income
d)      Times taxes earned





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Non sampling risk is the fact that the sample is not representative of the population

1. Nonsampling risk is the fact that the sample is not representative of the population.
True
False
Question 2
1. Auditing sampling is:
the selection of a sample of items from a population so that the auditor expects the sample and evaluation to be representative of the population.
the selection and evaluation of a sample of items from an account so that the auditor expects the sample to be representative of the account.
the selection and evaluation of a sample of items from a population so that the auditor expects the sample to be representative of the population.
the selection and observation of a sample of items from a population so that the auditor expects the sample to be representative of the population.
Question 3
1. With nonstatistical sampling, sampling risk is controlled by
quantifying sampling risk to keep the risk to an acceptable number
quantifying control risk to keep the risk to an acceptable number
selecting smaller sample sizes
taking a random sample so the sample is representative of the population
evaluating sample results to consider control risk in the evaluation of the results
Question 4
1. The auditor should consider which of the following factors in selecting the correct sample size?
A. More testing will be required for manual controls than automated controls because manual controls are more prone to human error. IT controls that have been tested should continue to be reliable.
B. The more transactions in a system, the more items need to be tested.
C. The more assurance we receive from other audit procedures, the less the control is tested.
D. The less susceptible the control is to management override, the more the control is tested.
E. The more frequently a control is performed, the less items are tested. More internal control tests are performed for controls that are performed monthly than for controls performed daily.
F. both A and C
G. both B and D
Question 5
1. A control deviation occurs when
the control has been performed but not efficiently
there is no indication that the control has been performed
the control has been performed but not effectively
there is no indication that the control exists
Question 6
1. To determine the sample size for tests of controls, the auditor needs to estimate the following information based on his professional judgment
the relative rate of deviation for the population to be tested
the realizable rate of deviation for the population to be tested
the desired level of assurance that the actual rate of deviation is not exceeded by the tolerable rate of deviation
the number of sampling units in the population if the population is very small, less than 500
Question 7
1. Systematic random sampling can only be used when
internal controls are present
the sampling units are prenumbered
internal controls are operating
random sampling can be used under any circumstances
Question 8
1. If the sample deviation rate is lower than the tolerable deviation rate, the auditor will
A. reduce the amount of control testing
B. assume controls are not working
C. assume the controls are working
D. reduce the amount of substantive testing
E. increase the amount of substantive testing
F. both A and C
G. both C and D
Question 9
1. The auditor uses professional judgment to estimate
the risk of underreliance
the sample interval
the desired control risk
the expected deviation rate
the actual deviation rate
Question 10
1. The auditor uses sampling for substantive tests of balances and for substantive tests of transactions to determine
whether the financial statements accounts associated with the account balance or class of transactions are materially misstated
whether the financial statements are materially misstated
whether the balance sheet accounts associated with the account balance or class of transactions are materially misstated
whether the income statement accounts associated with the account balance or class of transactions are materially misstated
Question 11
1. The risk of incorrect acceptance of the account balance or class of transactinos is an error that affects
the efficiency of the audit
the effectiveness of the audit
the reliability of the audit
the relevance of the audit
Question 12
1. The auditor must define the sampling unit in a way that is
consistent with the assertion being tested
consistent with the account balance being tested
consistent with the transaction being tested
consistent with the population being tested
Question 13
1. Which of the following is a statistical audit sampling technique that the auditor may decide to use?
A. judgmental sampling
B. haphazard sampling
C. monetary unit sampling
D. classical variables sampling
E. non random number sampling
F. both A and C
G. both C and D
Question 14
1. The auditor makes the decision about whether the misstatements found in a substantive test of balances sample are material after
determining if the misstatements are within the tolerance level
determining if the misstatements are within the assurance level
extrapolating misstatements from the sample to the population
projecting misstatements from the sample to the population
Question 15
1. With monetary unit sampling
each individual interval in the population has an equal chance of being selected
each individual dollar in the population has an equal chance of being selected
each interval of dollars in the population has an equal chance of being selected
each dollar within the interval in the population has an equal chance of being selected
Question 16
1. Tolerable misstatement is
A. A matter of professional judgment
B. amount of misstatement, on the basis of the auditor's professional judgment, that should be present in the account balance or class of transactions
C. often stated as 50-75% of materiality level
D. the level of audit risk the auditor is willing to accept
E. both A and C
F. both B and E
Question 17
1. To obtain the likely misstatements for the account balance or class of transactions, auditors
divide the known misstatement by the likely misstatement
subtract the likely misstatement from the known misstatement
add the known misstatement to the likely misstatement
subtract the known misstatement from the likely misstatement
subtract the known misstatement from the projected misstatement
Question 18
1. Variables sampling is used to determine the accuracy of the recorded amount in the population from the evidence in a sample of the population.
True
False





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1. (Monthly compounding) If you bought a $1,000 face value CD that matured in nine months, and which was advertised as payin

1. (Monthly compounding) If you bought a $1,000 face value CD that matured in nine months, and which was advertised as paying 9% annual interest, compounded monthly, how much would you receive when you cashed in your CD at maturity?


2. (Annualizing a monthly rate) You credit card statement says that you will be charged 1.05% interest a month on unpaid balances. What is the Effective Annual Rate (EAR) being charged?


3. (FV of annuity due) To finance your newborn daughter’s education you deposit $1,200 a year at the beginning of each of the next 18 years in an account paying 8% annual interest. How much will be in the account at the end of the 18th year?


4. (Rate of return of an annuity) Paul's Perfect Peugeot says they'll sell you a brand new Italian“Iron Man” motor scooter for $1,699. Financing is available, and the terms are 10% down and payments of $46.57 a month for 40 months. What annual interest rate is Paul charging you?


5. (Rate of return of an annuity) You would like to have $1,000,000 40 years from now, but the most you can afford to invest each year is $1,200. What annual rate of return will you have to earn to reach your goal?


6. (Monthly loan payment) Best Buy has a flat-screen HDTV on sale for $1,995. If you could borrow that amount from Carl's Credit Union at 12% for 1 year, what would be your monthly loan payments?


7. (Solving for an annuity payment) You would like to have $1,000,000 accumulated by the time you turn 65, which will be 40 years from now. How much would you have to put away each year to reach your goal, assuming you're starting from zero now and you earn 10% annual interest on your investment?


8. (PV of a perpetuity) If your required rate of return was 12% a year, how much would you pay today for $100 a month forever? (that is, the stream of $100 monthly payments goes on forever, continuing to be paid to your heirs after your death)





9. (PV of an uneven cash flow stream) what is the PV of the following project?

(Assume r = 10%)

Year Cash Flow

1 $10,000

2 $10,000

3 $10,000

4 $20,000


10. (FV of an uneven cash flow stream) what is the FV at the end of year 4 of the following project?

(Assume r = 10%)

Year Cash Flow

1 $10,000

2 $10,000

3 $10,000

4 $20,000




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