As an accounting professional, you have been tasked with conducting an examination of the accounting information systems (AIS) implemented within a fictional company, ABC Corporation. The purpose of this examination is to assess the effectiveness, efficiency, and reliability of the AIS in supporting the company's financial reporting and internal control processes. The examination will be conducted in a structured manner, following a series of steps and procedures. The reports that will be produced will be used by management to make meaningful decisions, therefore the information must be useful. Before your examination, you are required to discuss the SEVEN (7) characteristics that make information useful AND the THREE (3) objectives of good information. (20 marks)

As an accounting professional, you have been tasked with conducting an examination of the accounting information systems (AIS) implemented within a fictional company, ABC Corporation. The purpose of this examination is to assess the effectiveness, efficiency, and reliability of the AIS in supporting the company's financial reporting and internal control processes. The examination will be conducted in a structured manner, following a series of steps and procedures. The reports that will be produced will be used by management to make meaningful decisions, therefore the information must be useful. Before your examination, you are required to discuss the SEVEN (7) characteristics that make information useful AND the THREE (3) objectives of good information. (20 marks) Discussion Question 2 An entity has incurred the following expenditure during the current year: a) $100,000 spent on the design of a new product it is anticipated that this design will be taken forward over the next two year period to be developed and tested with a view to production in three years time. b) $500,000 spent on the testing of a new production system which has been designed internally and which will be in operation during the following accounting year. This new system should reduce the costs of production by 20%. According to IAS 38 , how should each of these costs be treated in the financial statements of the entity