Questions and Answers of Introduction To Accounting Information Systems

Top Quality Fence Manufacturers manufacture iron, steel and wooden materials that are used in fencing. Their operations produce small items from nails to large poles and pickets used in fences. At
Sporty Car Maker runs a legacy file system. It has heard of ERP systems and their benefits. Some of these benefits revolve around ERP systems’ using databases that are managed by DBMS. As a
Network Books runs eight bookstores around Australia. It sells books from fiction to nonfiction, to academic and technical titles. Network Books has decided on an ERP system but to operate
Fabulous Furniture is a large manufacturing company with an ERP system that sells a variety of furniture to many customers. Its customers often purchase separate pieces of furniture over several
Imagine that you are conducting a case study research project for your accounting information systems class in a small business that is local. Assume that the business is a local but large fitness
Choose a familiar website, such as Amazon, ebookaplace.com or dvdorchard.com.Describe the sales or order to cash process from the customer's perspective as illustrated by that website.
Explain the relationships presented in the Standards Australia IT governance standard.(LO3, LO4)
Describe the relationship between the risk assessment and control activities components of the COSO framework. (LO5, LO6)
Compare the structure of the COSO and ERM frameworks. (LO9)
Summarise each component of the COSO internal control system. (LO5, LO6)
Explain why it is necessary for organisations to monitor and review their internal control system. (LO5, LO6)
Summarise the principles of corporate governance set forward by the ASX.CeO REOZ)
List and briefly describe three examples of financial statement risks that could come from within the organisation. (LO7)
Auditing and Assurance Standards Board 2009, Auditing Standard ASA 200 Overall Objective of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards,
Auditing and Assurance Standards Board 2009, Auditing Standard ASA 315 /dentifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, paragraph 18,
Auditing and Assurance Standards Board 2006, Auditing Standard ASA 315 Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement, paragraph 144.
Auditing and Assurance Standards Board 2009, Auditing Standard ASA 300 Planning an Audit of a Financial Report, www.auasb.gov.au.
New Zealand Institute of Chartered Accountants 2003, Auditing Standard 302 Knowledge of the audit environment, www.nzica.com; New Zealand Institute of Chartered Accountants 2007. Exposure draft
Bradford, M, Richtermeyer, SB & Roberts, DF 2007, 'System diagramming techniques: an analysis of methods used in accounting education and practice', Journal of Information Systems, vol. 21, no. 1,
House of Representatives of the United States of America 2002, Sarbanes-Oxley Act of 2002.
Ivancevich, DC & Sawyer, RS 2004, 'Flowcharting basics for internal auditors', Internal Auditing, vol. 19, no. 5, pp. 26-31; Reed, RM, Pence, DK & Doviyanski, A 2006, 'Mending the holes in SOX: the
Jones, RA & Lancaster, KAS 2001, 'Process mapping and scripting in the accounting information systems (AIS) curriculum', Accounting Education, vol. 10, no. 3, pp. 263-78.
Table constructed from results in Bradford, Richtermeyer & Roberts 2007, p. 184. 15. Based on Auditing and Assurance Standards Board 2009; Stimpson, J 2007, 'Audit tools adapt to changes', The
Damelio, R 1996, 'The basics of process mapping', Quality Resources, New York, cited in Jones & Lancaster 2001, p. 267.
Smith, KT & Smith, LM 2003, 'Tools and techniques for documenting accounting systems', Internal Auditing, vol. 18, no. 5 Sept/Oct, pp. 38-45.
Jones, RA., Tsay, JJ & Griggs, K 2005-06, 'An empirical investigation of the task specific relative strengths of selected accounting and information systems diagramming techniques', The Journal of
Burns, M 2007, 'A better way to flowchart', CA Magazine, vol. 140, no. 5 (Jun/Jul), p. 16.
Corporate governance is:(a) an internal control tool.(b) a factor influencing internal control.(c) a substitute for internal control.(d) part of the control environment.
An internal control system includes the control environment component. This is best described as: ;(a) the overall attitude of awareness and actions of ‘management to internal control.(b) the
IT governance is concerned with:(a) ensuring that the correct IT investment is always made.(b) controlling the use of IT within the organisation.(c) mandating selection procedures for new IT
In which component of the internal control system would you see a concern with hiring and recruitment policies?(a) Control environment(b) Risk assessment(c) Control activities(d) Information and
Which financial statement assertion is threatened when the organisation has recorded sales that didn’t take place?(a) Occurrence(b) Completeness(c) Accuracy(d) Classification
The assertion of cut-off would be at risk when:(a) the accounting information system accepts a value that is incorrect (e.g. 122 instead of 22).(b) the accounting information system accepts a
Which of the following components is part of the ERM and not part of the COSO framework?(a) Event identification(b) Information and communication(c) Monitoring(d) Control activities
Which of the following statements regarding risks for a business is false?(a) Risks can come from both internal and external factors.(b) Risks faced by an organisation will always have consequences
In which component of the internal control system would you see a concern with reviewing the existing control system operation?(a) Control environment(b) Risk assessment(c) Control activities(d)
Describe some inputs, processes and outputs of an accounting information system. (LO1, LO2, LO3)
What is the difference between data and information? (LO2)
What is information overload? What are its consequences? (LO2)
Briefly summarise the changing relationship between accounting and information systems. (LO4)
Compare the role of the accountant today to his or her role before the introduction of computer technology. How have the responsibilities and duties changed over time? (L04)
What are some of the uses of accounting information? Provide five examples of how accounting information may be used and who it would be used by. (LO5)
Information is:(a) a collection of raw facts about an organisation’s activities.(b) prepared from data through the application of rules and procedures.(c) always useful for those who receive it.(d)
A system:(a) is the combination of inputs, processes, outputs and feedback.(b) can be influenced by external factors.(c) will address a specific function or purpose.(d) all of the above.
Data is:(a) useful for decision making.(b) increasingly captured as new input technologies emerge.(c) best used by an organisation when linked to the processes that generate orrequire them.(d)
An example of an external factor affecting the operation of an organisation’s payrollsystem Is:(a) how many employees the organisation has working for it.(b) the government’s requirement to
MICR technology offers benefits to organisations that:(a) want to ensure no fraudulent transactions occur.(b) need security in data processing, such as devices for banks.(c) are unable to process
Which are correct? An accounting information system must (i) capture inputs,(ii) process data, (iii) prepare report outputs, (iv) be computerised, (v) store data,(vi) verify data inputs are
Which of the following could be examples of feedback in an airline's online reserva- tion system? (i) A message asking for confirmation of chosen flight dates, (ii) a link to a web page of an
The accounting function within the organisation has: (a) over time increased in power and presence throughout the organisation. (b) typically been merged with data management divisions, such as the
Conduct a web search and find an example of each of the following data input tech- niques: manual keying via a keyboard, MICR, barcode scanning, image scanning, voice recognition, and optical mark
You are responsible for advising a new grocery store on appropriate data capture techniques that can be used in its sales system. Using the table you completed in problem 1.1 as a guide, select an
The chapter discussed the idea of a system and its components. Construct a table listing the objective, inputs, processes, outputs and the external environment that affects the operation of each of
Describe some of the external influences that affect an accounting information system. To what extent do you think these influences dictate the design of am accounting system?
Based on the historical perspective of accounting information systems presented earlier in this chapter, consider the following questions. (a) Do you think that the accounting function will be
Conduct a web search of the big accounting firms and identify some of the skills they are typically looking for in graduates. Do they seem to be emphasising accounting skills or information skills?
A computer science student says to you, 'Any information system purporting to be useful to an organisation must be computerised, otherwise we are just wasting our time developing new technologies
Read the article in AIS focus 1.1 'Woolworths' pursuit of customer intimacy', and answer the following: (a) Why has Woolworths moved towards the data-mining project? (b) What are the different data
Using the data in figure 1.3 as a basis, describe how data are converted into infor- mation. In doing so, you should describe what differentiates data from information and provide at least three
Read the article in figure 1.9 'Of mice and matriculation, auditors click for exams', and answer the following: (a) Why is the IIA switching to computer based exams? (b) What are some of the
Read AIS focus 1.5, 'Royal Australian Mint's system upgrade', and answer the following. (a) What benefits do you think the Royal Australian Mint would expect from the new system? (b) Based on your
Read the article 'Customs stalled at SmartGate' in figure 1.10, and answer the following: (a) Why do you think it is important to do adequate testing before implementing a new system? (b) What
Explain why Porter argues that it is not possible for a business to adopt more than one strategy at a time. (LO1)
What is meant by the term 'operational effectiveness'? (L01)
Summarise the components of organisational strategy. (LO1)
Describe the relationship between the mission statement, strategy and business processes. (LO1)
Explain what it means for a business if it is considered an aggregator. What is unique about such a business's operations? (LO1)
Explain the difference between a strategy of cost leadership and differentiation. (LO1)
Describe the differences between the functionally based and process-based organ- isation. How do these differences affect how the organisation operates? (LO2)
What are the organisational advantages and disadvantages of the functionally based and process-based organisational designs? (LO2)
What is the relationship between business processes and ERP systems? (L05)
How do ERP systems promote better-designed processes within the organisation? (LO5)
Describe briefly two of the methods of making changes to a business process, namely TQM and BPR. (LO7)
What are some of the advantages and disadvantages of BPR? (L07)
Explain what is meant by the term 'clean slate approach' in the discussion of BPR. (L07)
List and describe, through the use of examples, the principles of BPR. (L07)
Identify some of the organisational issues that may emerge from BPR. Discuss their cause, likely consequences and how the organisation may manage these issues effectively. (LO7, L08)
The focus of the functional perspective of the organisation is on: (a) controlling the organisation so customers are satisfied. (b) ensuring the organisation can promptly respond to its operating
The benefits of a business process perspective include: (a) a well-defined hierarchy for organisational control. (b) an integrated horizontal organisation. (c) delegated power to employees through
ERP systems will help an organisation improve its process design when: (a) the existing process is flawed and the strategy of the organisation is consistent with the ERP approach. (b) the existing
In managing changes in a business process, organisations will often consult lower- level staff for ideas about improvements. This is done because: (a) lower-level employees need to have the
IT as an enabler of BPR means that: (a) all jobs should be performed by computers. (b) existing processes should be automated using the latest technology. (c) IT can enable people to better enjoy
TQM is designed for (i) _, (ii) change, while BPR is more of a (iii). t. (iv) approach to change. (a) (i) incremental, (ii) top-down, (iii) moderate risk, (iv) clean slate (b) (i) incremental, (ii)
Compare and contrast the functional perspective and the business process perspec- tive of the organisation. In particular, comment on the different abilities of the structures to (1) delegate work to
James McFarlane is the manager of a medium-sized manufacturing company. His company is looking at improving the design of its sales and manufacturing pro- cesses and one employee has suggested that
Describe and evaluate the advantages of electronic payment systems for the:(a) provider of goods and services.(b) buyer of goods and services.
Compare the operation of electronic bill payment (EBP) systems and electronic billpresentation and payment (EBPP) systems. Describe the differences between thetwo systems.’ Assess the relative
Two EBP providers in Australia include BPAYView and Australia Post. For each provider:(a) View its website.(b) List the services offered by each organisation.(c) Based on the information on the
Strides for Strides manufactures and sells athletic wear to retail stores, who thenstock the goods and sell them to customers. Its range of products includes warm-uptracksuits, body suits and running
Damocles’ Kitchenware sells cutlery and dinnerware to customers through a smallretail outlet located in downtown Brisbane. All of Damocles’ sales are to customerswho purchase on credit. Since the
Describe the operation of an ERS system.
Describe how the use of barcode systems could improve the operation of a businessprocess.
What are some of the potentially negative consequences of integrating technologyinto a re-engineered business process?
Describe the usage of an SSCC. How does an SSCC help a seller and a buyerimprove the operation of its business processes? Why is it important to have standardswhen using barcodes between different
List, describe and provide a potential example of each of the four benefits thatbusinesses can enjoy from applying technology to their business processes.
Use Porter’s five forces model to analyse the Australian university sector.(a) How many universities are there in Australia?(b) How does each of the five forces apply to universities?(c) Do you
The strategy discussion in the chapter mentions the need to have activities that areinterconnected and built towards the target goal. Select a business that you knowand describe the following:(a) The
Explain, using examples, how businesses can operate on data alone, without providinga physical product.Describe the ways in which you think the business processes of a manufacturingorganisation would
What advantages do databases offer for decision-making and reporting processes?
Define the operation of a relational database. Why has it taken over as the optimal structure to implement in organisations? (LO2, LO4)

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