Questions and Answers of Introduction To Accounting Information Systems

Which statement about ERP implementations is the least accurate?(a) For the ERP to be successful, process re-engineering must occur.(b) ERP fails because some important business process is not
Which statement is true?(a) ERP system costs include hardware, software and implementation.(b) ERP systems are scalable.(c) Performance problems are usually technical rather than process related.(d)
Which of the following is not an advantage of single-source ERP systems?(a) Features and functionality for highly specialised operations and business processes.(b) Decreased integration costs.(c)
Which of the following is a quantifiable benefit of ERP systems?(a) Sales growth from access to real-time information.(b) Cost reductions from more productive and happier organisation staff. (c)
Which of the following statements about the software framework is false?(a) The framework does not imply that any category is superior to another.(b) Moving to the right along the framework does not
The student table has no attributes in this problem. However, as discussed in the chapter, when forming the enterprise model for the business it is likely that in combining tables the student table
ERP systems should be evaluated on:(a)(b)(c)(d)price.the risks to the organisation, culture and operation.benefits.all of the above.
Goals of ERP systems include all of the following except:a)b))(((c(d)improved customer service.improvements of legacy systems.increased production.reduced production time.
The case narrative below (AB Hi-Fi) will be used to complete problems 13.1-13.13.Make sure you read and understand the activities and the case thoroughly before you commence work on the
Prepare a level O logical DFD for the general ledger and financial reporting cycle at AB Hi-Fi.
Table 13.2 (page 591) identifies two risks typically encountered when preparing a budget.Required(a) Analyse the degree of exposure to each of these risks for the prepare budgets process at AB
Table 13.3 (page 596) identifies three risks typically encountered when updating the general ledger.Required (a) Analyse the degree of exposure to each of these risks for the update the general
Table 13.4 (page 598) identifies two risks typically encountered when adjusting the general ledger.Required(a) Analyse the degree of exposure to each of these risks for the adjust the general ledger
Table 13.5 (page 605) identifies three risks typically encountered when producing reports.Required(a) Analyse the degree of exposure to each of these risks for the produce reports process at AB
(a) AB Hi-Fi has adopted a cost leadership strategy. Its overall plan is to undercut competitors on pricing and so gain market share. How well does its current prepare budgets process align with this
(a) Identify and describe the technologies that AB Hi-Fi uses in its general ledger and financial reporting cycle activities. (b) For each of those technologies you identified in part (a), how well
During process 1.0 Prepare budgets at AB Hi-Fi a budget clerk has to decide whether an adjusted budget submitted by a manager looks reasonable. Take a moment to review this section of the narrative
Explain how you would measure performance of the general ledger and financial reporting cycle at AB HI-Fi, specifically:(a) What metrics would you would use to measure performance?(b) For each
Explain the relationship between strategy and systems development. (LO1)
Describe the key activities that occur in the investigation stage of the systems development lifecycle.
Describe the key activities that occur in the analysis stage of the systems development lifecycle.
Describe the key activities that occur in the design stage of the systems development lifecycle.
Describe the key activities that occur in the implementation stage of the systems development lifecycle.
Describe the key activities that occur in the maintenance stage of the systems development lifecycle.
Discuss the advantages and disadvantages of a phased-in and direct switch-over implementation strategy.
What is the role of the steering committee in a systems development project?
What is the role of a feasibility analysis within systems development projects?
Describe each type of feasibility that is considered as part of a feasibility analysis.
Critically evaluate how much end-users are actively involved in the systems development lifecycle approach to systems development.
What are some of the advantages of using an SP?
What are some of the disadvantages of using an SP?
Describe alternative methods to the systems development lifecycle.
Critically evaluate the usefulness of prototyping as a systems development approach.
Summarise the five typical problems associated with systems development.
For each of the typical systems development problems identified in the chapter, suggest a solution that could potentially overcome the problem.
Describe how a PERT chart and a Gantt chart can be used to manage and control systems development projects.
Critically evaluate the usefulness of Gantt and PERT charts in managing systems development projects.
Describe how CASE tools can be used to manage and control systems development projects.
The systems development lifecycle commences with the stage of:(a) implementation.(b) investigation.(c) analysis.(d) design.
The. REP:(a) details the requests of users to be included in the system.(b) lists the requirements identified in the requirements investigation stage.(c) details requirements for potential vendors to
Prototyping has the advantage of:(a) providing a structured development process.(b) providing thorough documentation.(c) strongly involving users in the development process.(d) ensuring users and
SPs are an attractive option because:(a) all SPs are reliable.(b) businesses avoid having to invest large amounts in applications.(c) they give the organisation control over application
Which of the following is nota level of testing?(a) Stub level testing(b) Unit level testing(c) System level testing(d) Enterprise level testing
After the completion of activity 3, the project is progressing:(a) ahead of schedule.(b) behind schedule.(c) on schedule.(d) cannot be determined based on information available.
Activity 2 was completed:(a) on time.(b) ahead of time.(c) behind time.(d) cannot be determined from the information available.
The time taken to complete activity 2:(a) was more than expected.(b) was less than expected.(c) was as expected.(d) cannot be determined from the information available.
The critical path for the project is:(a) A-B-D-G—H—I—K-L-M.(b) A-B-D-—G—H-J—M.(c) A-C-E-F—H-I—K-L-M.(d) A-C-E-F—H-J—M.
The critical path takes:(a) 29 days to complete.(b) 31 days to complete.(c) 35 days to complete.(d) 37 days to complete.
If activity C is delayed by two days, the critical path is:(a) not affected.(b) increased by two days.(c) possibly increased, depending on slack in subsequent activities.(d) unable to be determined.
The amount of slack in activity D is:(a) no days.b) one day.c) two days.d) three days.
Encosta Memories is a small family photography business. The business has a good reputation for high-quality photos and enjoys long-standing arrangements with many schools for the provision of school
As a result of the strained system, Encosta Memories is considering the possibility of an upgrade. However, it is concerned that should it go ahead with an upgrade, it would have to employ a
One of the things particularly troubling Mr De Lago, the part owner of Encosta Memories, is the possibility of investing capital now and having to do so again ina couple of years’ time as
In light of the details you have about Encosta Memories, prepare a discussion in relation to the following questions.(a) How correct is De Lago’s statement that: ‘Once the system is acquired then
A software development project has been identified as having six stages, these being (1) design the logical plan for the software operation, (ii) select a programming language, (ill) write source
The data contained in table 14.4 refer to a project that contains 13 activities.Based on the details of the activity, precedent activities and time estimates you Activity TB=l G required to:Construct
Explain how an accounting information systems audit is related to the statutory audit required of a publicly listed company.
What is ‘best practice’? With reference to an accounting information systems audit, why do auditors aim to comply with best practice?
‘Neither Australia nor New Zealand is subject to US legislation, so the Sarbanes—Oxley Act does not concern us.’ Discuss this comment.
The Sarbanes-Oxley Act requires, the appointment of an audit committee. Who does this comprise and what is its function?
List and briefly describe the steps required to perform an information systems audit.
Why do auditors use generalised audit software?
Explain why it is no longer always possible to follow an audit trail in a sales system processing transactions online in real time.
Explain the use of an integrated test facility (ITF).
Airline and hotel pricing practices are discussed in the chapter (page 683). What other unique industry-specific accounting practices are you aware of?
Why do auditors concern themselves with the attitudes of senior management?
What do you consider to be the principal advantage of using an internal control questionnaire?
Explain the use of a systems control and review file (SCARF).
Why is check digit verification a more useful control when the number does not originate from the organisation entering it, than it is for locally generated numbers?
Why is control strengthened if the database administrator is not allowed to perform any transaction processing?
If there are no problems with the system, why should staff spend time and effort restoring the system from backup files?
Why is it more desirable to run test data through the ‘live’ system than the ‘dead’system?
What is the prime purpose of maintaining a list of unresolved problems during the testing phase of an audit?
Explain why many accounting firms use a ‘master audit program’.
During fieldwork auditors conduct interviews with client staff at many levels. Why do they not simply interview the person in charge of the relevant section?
Why is there often tension between the auditor and the client over what is to be included in the final report and accompanying management letter?
Explain why it is necessary for the auditor to conduct post-audit monitoring.
List and briefly describe the other types of AIS audits discussed in the chapter.
Which of the following is not an advantage of using a master audit program?(a) It will typically shorten the audit program preparation time.(b) It will curb the urge to follow up on ideas outside the
Which of the following is not a feature of using a generalised audit software package?(a) It can be used to produce reports in any required format.(b) It can be used to generate a random sample of
Which of the following is not likely to increase the inherent risk?(a) Directors and senior management inexperience(b) Worsening general economic conditions(c) Improving foreign exchange rates(d)
In a company with fewer than 200 employees, client personnel procedures require that for all new employees earning over $60000 per annum the new employee authorisation form is approved by the
Which of the following are classed as application controls?(a) e-Commerce controls(b) Processing controls(c) Database controls(d) All of the above are classed as application controls.
Which of the following is not an access control?(a) Disabling terminated employees’ accounts promptly(b) Storing backup files off-site(c) Logging inactive users out automatically(d) Reviewing the
Which of the following is not a test to detect schemes to fraudulently increase profit?(a) Looking for an abnormal number of credits issued in the last month of a financial year(b) Over-valuing or
An analytical review may involve identifying relationships:(a) by comparing this client’s data for the current year with industry norms.(b) within the same client database for the current year.(c)
Sarbanes-Oxley Act requirements include:(a) a prohibition on the audit firm carrying out non-audit services.(b) mandatory rotation of lead audit partners.(c) an internal control report including a
The chapter gives a list of possible questions that might be found in an internal control questionnaire (ICQ) for a retail cash sales process. Prepare a list of the ten most important questions that
Traditionally, auditors followed a paper ‘audit trail’ from source documents to final accounts and vice versa. With the advent of computerised business systems, auditors modified their approach
Explain, with reference to the revenue cycle, how auditors have adapted the audit process to use the computer as an aid in performing an audit.
The Blue Chip Bank is a major trading bank with branches and ATMs throughout Australia and New Zealand. Blue Chip issues its customers debit cards, termed BlueCards, for them to use in ATMs and for
Within Blue Chip’s credit card department there is a card control subunit that deals with a range of problems. These include:reviewing ATM transaction logs and identifying and investigating
The bank automatically mails out new cards to customers every two years. The returned card process involves making every possible attempt to contact the customer, using mobile phone numbers,
Michael Brook, the head of the card control subunit, was recently arrested and charged with fraud. Brook found a returned card for which he was unable to locate the customer. The account was not in
As the new head of internal audit for Blue Chip Bank, identify the control weaknesses that Brook exploited and explain the changes in procedure that you recommend to prevent a repetition.
You are a member of the team of a ‘Big 4’ audit firm that is auditing Boomerang, a retail clothing chain with stores in major shopping malls throughout Australia and New Zealand. You have been
You are a manager in the team of a ‘Big 4’ audit firm that is auditing Boomerang, a retail clothing chain with stores in major shopping malls throughout Australia and New Zealand. You have been
Discuss how some of the ethical considerations faced by professional sports players(for example, cricketers ‘walking’) might transiate to other private and work-related situations. Consider the
Discuss some of the ways in which a person's privacy is threatened through AIS and e-commerce.
What strategies can firms employ to promote ethical behaviour among staff?

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