Questions and Answers of Introduction To Accounting Information Systems

What are some of the organisational concerns with spam?
Can hacking be ‘good’? Explain.
Deindividuation, if it is not reduced, is likely to lead to:(a) ethical behaviour because employees know they are being observed.(b) unethical behaviour because employees can collude and overcome
The relevant use principle of the Privacy Act 1988 (Cwlth) says that:(a) information shall only be used for the purpose for which it was gathered.(b) information can only be gathered in lawful
Which of the factors below were not mentioned as having an influence on access to technology?(a) Age(b) Geography(c) Income(d) Religion
The CPO:(a) represents consumers in issues about privacy and data gathering.(b) prosecutes organisations charged for breaches of the Privacy Act 1988(Cwith).(c) acts as an advocate for all companies
Spam Is:(a) sending unsolicited emails.(b) acquiring personal details by means of deception.(c) gaining unauthorised access to a system.(d) pretending to be someone else in an online transaction.
Which of the following is not normally a responsibility of the audit committee under the Sarbanes-Oxley Act ?(a) Oversight of internal control procedures(b) Appointment of external auditors(c)
A company discovers that an employee has created a fictitious vendor on the vendor master file and the company has paid a total of $250000 to this vendor through fake invoices. This is an example of
For each of Coles, David Jones, Telstra and Bunnings, (or, in New Zealand:Progressive Enterprises (Foodtown), Farmers, Telecom and Placemakers) go to the company’s website and answer the following
SellltNow is an online company that sells hardware products for new houses to both industrial clients and individual consumers. As a result of its very competitive price schemes, SellltNow has
Refer to AIS focus 16.1 (page 711), which discussed the use of microchipping technology in humans. Analyse this case and identify the ethical issues involved from the point of view of the individual
For each of the examples of fraud mentioned in the chapter (see page 729), discuss:(a) what fraud is occurring(b) why this is a problem(c) some control plans that may help reduce the likelihood of
You work as the credit manager for Broad Sounds, a music store that supplies recording equipment and performance apparatus to bands and DJs. Your job is to ensure that data on customer credit
Mollie, a new young DJ in the area, has recently purchased a large amount of equipment from your company and has almost used up all of her credit limit.Because she is a new customer to the
Focus Ltd has always had a strategy of product differentiation; that is, providing high-quality products and extracting a price premium from the market. During the recent economic downturn, Focus Ltd
Progressive Ltd has decided to introduce integrated computer aided design/computer aided manufacture (CAD/CAM) software to automate the design and planning of new products.(a) What controls would you
Prepared Ltd has just realised that it has a problem with its inventory data as its inventory management system does not record lead times required to procure raw materials.(a) What decisions made
Agree Ltd has a cost allocation problem. The total direct labour costs allocated to products produced in the previous month does not seem to match the total amount recorded in the labour costs data
Better Ltd has a new CEO who is keen on improving process efficiency. She has reviewed the process documentation for the production cycle and has asked you to replace the current system of bar code
A firm should manufacture its own products in-house when:(a) it has designed a new product.(b) it is faster to manufacture in-house.(c) the number of products being sold increases.(d) it is less
Production planning involves balancing the supply and demand for:(a) raw materials.(b) finished goods.(c) both (a) and (b).(d) neither (a) nor (b).
Computer aided manufacturing (CAM) systems cannot help to:(a) automate production machinery.(b) improve machine throughput. -(c) design new products.(d) improve manufacturing consistency.
Planning a production schedule involves knowledge of:(a) product demand.(b) manufacturing constraints.(c) stock on hand.(d) all of the above.
The production cycle interacts externally with:(a) no other entities; production is internal only.(b) customers.(c) suppliers.(d) the bank.
Primary risks of the production cycle include:(a) producing too many/too few products.(b) slow production cycles.(c) bad product design.(d) all of the above.
A bill of materials is produced:(a) for each day's production schedule.(b) for each product.(c) for each piece of machinery used.(d) for each production staff member.
It is necessary to adjust production schedules when:(a) product demand changes.(b) raw materials are readily available.(c) excess labour is a problem.(d) one product is cheaper to manufacture than
Not using appropriate overhead costing algorithms increases the risk of:(a) losing control of total production costs.(b) incorrectly pricing products for sale.(c) making errors in production
The production cycle generates cost data related to:(a) labour costs.(b) material costs.(c) manufacturing overheads.(d) all of the above.
Prepare a context diagram for the production cycle at AB Hi-Fi.
Prepare a level O logical DFD for the production cycle at AB Hi-Fi.
Table 11.3 (page 509) identifies three risks typically encountered when determining product production requirements.Required(a) Analyse the degree of exposure to each of these risks for the determine
Table 11.4 (page 516) identifies three risks typically encountered when planning the production schedule.Required(a) Analyse the degree of exposure to each of these risks in the plan production
Table 11.5 (page 519) identifies two risks typically encountered when producing products.Required(a) Analyse the degree of exposure to each of these risks for the produce the product process at AB
Table 11.6 (page 524) identifies a risk typically encountered when costing products.Required(a) Analyse the degree of exposure to each of these risks for the costing products process at AB Hi-Fi.(b)
(a) AB Hi-Fi has adopted a differentiation strategy. Its overall plan is to establish highly distinctive brand awareness and so gain market share through customer loyalty.How well does the current
(a) Identify and describe the technologies that AB Hi-Fi uses in its production cycle activities. (b) For each of these technologies you identified in part (a), how well does AB Hi-Fi use the
During process 2.0 plan production schedule at AB Hi-Fi a production planning clerk decides how many of each product should be produced during the upcoming month. Take a moment to review this section
Explain how you would measure performance of the production cycle at AB Hi-Fi:specifically:(a) What metrics would you would use to measure performance?(b) For each metric, explain where you would
Would the HR management and payroll cycle differ between a manufacturing firm and a service-oriented firm?
‘Controls in a HR management and payroll cycle can be easily enforced through a HR management system. Hence, there is no need to closely monitor the controls with the HR management and payroll
Are these documents necessary in a HR management and payroll cycle? Comment by looking at the purpose of the following documents:(a) Employee details amendment form(b) Timesheets(c) Payslips
Discuss the controls that will be appropriate in the following instances.(a) An employee submits a duplicate timesheet inadvertently.(b) An employee spends 15 hours extra on a job than what has been
Zahir has been promoted and assumes the position of a manager of the logistics department at Kiyer Limited. Zahir wants to streamline the human resource procedures at Kiyer. He advises employees to
Gundawana Continental Café is a new café located in Surrey Hills. The café has recently hired three employees. The manager of the café has asked you how she should divide up the various jobs so
Which of the following personnel is responsible for authorising timesheet changes?(a) Personne! officer(b) Manager or supervisor of an employee(c) Payroll clerk
What logical process does the HR management and payroll cycle not perform?(a) Receiving employee amendment forms from employees.(b) Receiving request for new employees from the requisition
Which of the following statements is, incorrect about roles and responsibilities of the employees involved in the HR management and payroll cycle?(a) The HR clerk automatically alters the rates of
Which of the following procedures, noted by an auditor during a preliminary survey of the payroll function, indicates inadequate control?(a) All changes to payroll data are documented by the
An accountant has been engaged to review a company’s payroll procedures. For which of the following would the accountant advise the company of internal control inadequacies if the HR clerk was
The case narrative below (AB Hi-Fi) will be used to complete problems 12.1-12.10.Make sure you read and understand the activities and:the case thoroughly before you commence work on the problems. AB
Prepare a context diagram for the HR and payroll cycle at AB Hi-Fi.
Prepare a level O logical DFD for the HR and payroll cycle at AB Hi-Fi.
Prepare a physical DFD for the HR and payroll cycle at AB Hi-Fi.
Prepare a systems flowchart for the HR and payroll cycle at AB Hi-Fi.
Table 12.3 (page 554) identifies two risks typically encountered when calculating the payroll.Required(a) Analyse the degree of exposure to each of these risks for the payroll process at AB Hi-Fi.(b)
Table 12.4 (page 557) identifies five risks typically encountered when updating the pay records.Required(a) Analyse the degree of exposure to each of these risks for the update pay records process at
(a) AB Hi-Fi has adopted a HR strategy; its overall plan is to hire the best and most flexible employees. How well does their current HR and payroll cycle align with this business strategy? (b)'Are
(a) Identify and describe the technologies that AB Hi-Fi uses in its HR and payroll cycle activities (b) For each of those technologies you identified in part (a)how well does AB Hi-Fi use the
During process 3.0 Calculate payroll at AB Hi-Fi, before the salary is deposited into the employees’ bank accounts by electronic funds transfer, the approval of the departmental manager is sought.
Explain how you would measure performance of the HR and payroll cycle at AB Hi-Fi, specifically:(a) What metrics would you would use to measure performance?(b) For each metric, explain where you
Read the narrative below and answer the following questions.Required (a) Based on the narrative above, what are the weaknesses in the system of internal control?(b) What enquiries should be made with
Monash Ltd has always had a strategy of product differentiation; that is, providing high-quality products and extracting a price premium from the market. During the recent economic downturn, Monash
Flinders Ltd has decided to devolve responsibility for creating new financial reports from the central IT division to the operational and central finance areas.(a) What controls would you expect to
Griffith Ltd has just realised that it has a problem with its general ledger data. It posts daily transactional data from subsidiary systems to the general ledger at 10 pm each evening. The resulting
Curtin Ltd has a reconciliation problem. The bank reconciliation clerk is unable to reconcile the cash at bank value recorded in the general ledger account with the cash at bank balance disclosed on
Macquarie Ltd has a new CEO who is keen on improving process efficiency. She has reviewed the process documentation for the prepare budgets process and has asked you to remove the requirement for
The general ledger and financial reporting cycle:(a) creates, adjusts and reports data.(b) summarises, adjusts and reports data.(c) creates, summarises and adjusts data.(d) creates, summarises,
Preparing a budget involves estimating the level of future:(a) activities.(b) revenues.(c) expenditures.(d) all of the above.
Adjusting entries are used to:(a) manipulate profit levels.(b) reduce reported variances.(c) improve report readability.(d) bring raw transaction data into line with accounting standards.
Management reports are often more detailed than general purpose financial statements because:(a) accounting standards prohibit reporting of details.(b) managers need lots of data to make decisions;
The general ledger and financial reporting cycle interacts internally with:(a) the production, expenditure, and HR management and payroll cycles.(b) the revenue and expenditure cycles.(c) the
Primary risks of the general ledger and financial reporting cycle include:(a) erroneous budget estimates.(b) inappropriate journal entry adjustments.(c) data entry errors.(d) all of the above.
A bank reconciliation should be performed:(a) regularly.(b) if there is a problem in the cash account balance.(c) by the finance manager.(d) if you don’t use online banking facilities.
It is not useful to base your budget on prior year results when:(a) operational managers want to prepare their own estimates.(b) predictable change in the business environment will affect the coming
Keeping detailed supporting documentation for all adjusting journal entries helps to:(a) pass an audit.(a) ensure that all accounting standards have been considered.(c) provide an audit trail to
Risks encountered when extracting and validating transactional data typically include:(a) incomplete data.(b) inaccurate data.(c) neither (a) nor (b).(d) both (a) and (b).
Variance analysis reporting is used to monitor:(a) whether adjusting journal entries were accurate.(b) organisational and/or process performance.(c) compliance with accounting standards.(d) future
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