SUBJECT: ACCOUNTING INFORMATION SYSTEM

QUESTION 3

A cash disbursements system is a system used by organizations to make vendor payments with hard copy checks which are mailed to the vendor. Organizations that use electronic funds transfer (EFT) to transmit payments with different procedures. Each day, the due date fields of the vendor invoice records are scanned for items due to be paid. Define the procedures performed on items which are due. (10 Marks)

QUESTION 4

The objective of internal control is to mitigate the risk from errors and fraud. Determine the primary risks associated with revenue cycle transactions.

(10 Marks)

QUESTION 5

The most common fraud schemes involve some form of asset misappropriation in which assets are either directly or indirectly diverted to the perpetrator's benefit. Almost 90 percent of the frauds included in the ACFE study fall in this general category. Briefly explain the subcategories of asset misappropriation by giving suitable examples for each fraud scheme.

(10 Marks)

QUESTION 6

Information generation is the process of compiling, arranging, formatting, and presenting information to users. Information can be an operational document such as sales order, structured report, or message on a computer screen. Identify and explain the characteristics of useful information required by an organization to accomplish their objectives in future.

(10 Marks)