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BAP71 Accounting Information Systems

Question

Answered

Questions:

Section A – Multiple Choice Questions

1:

IT governance is concerned with:

  1. ensuring that the correct IT investment is always made.
  2. controlling the use of IT within the organisation.
  3. mandating selection procedures for new IT investments.
  4. policies and procedures helping to align the use of IT and strategy.

2:   

In which component of the internal control system would you see a concern with hiring and recruitment policies?

  1. Control environment
  2. Risk assessment
  3. Control activities
  4. Information and communication
  5. Monitoring

3:

Sending customers a regular statement of account helps to detect:

  1. under-billing only.
  2. over-billing only.
  3. neither (a) nor (b).
  4. both (a) and (b).

4:

Monitoring the number of bad debts written off is useful to determine:

  1. how accurately sales of goods and services are recorded.
  2. how promptly goods and services are delivered.
  3. how well the credit check control is working.
  4. how well payments are recorded.

5:

Which of the following helps to determine demand for products?

  1. The level of previous sales.
  2. The forecast for future sales.
  3. The business strategy.
  4. All of the above.

6:

When choosing a supplier you should consider the:

  1. product price only.
  2. product quality only.
  3. supplier service levels only.
  4. business strategy.

7:

Which of the following is not an access control?

  1. Disabling terminated employees’ accounts promptly.
  2. Storing backup files off-site.
  3. Logging inactive users out automatically.
  4. Reviewing the access control log.

8:

An analytical review may involve identifying relationships:

  1. by comparing this client’s data for the current year with industry norms.
  2. within the same client database for the current year.
  3. by comparing this client’s data for the current year with this client’s data in prior time periods.
  4. all of the above.

9:

Which of the following according to futurists is unlikely to be a technology trend?

  1. Internet of everywhere.
  2. Increased security and privacy.
  3. Jobs changing and evolving as technology disrupts more industries.
  4. Big data.

10:

A company discovers that an employee has created a fictitious vendor on the vendor master file and the company has paid a total of $250 000 to this vendor through fake invoices. This is an example of fraud in the:

  1. revenue cycle.
  2. inventory management cycle.
  3. expenditure cycle.
  4. cash receipts cycle.

Section B – Short Answer Questions

1.

With respect to corporate and IT governance there are various stakeholders. Explain who they are and provide an example of a case study you have studied.

2.

The audit committee is a subcommittee of the board of directors. What is the role of the committee and why do you think it is an important role?

3.

Professionals like Accountants are expected to be ethical. Should ethics be important in business and why should we all be concerned about it?

4.

When designing a security system Engineers need to understand human behaviour and patterns. What seven principles should they consider? 

Section C – Case Studies

5.

A new Sales Director has joined your company. She is keen to increase sales by improving the efficiency of the sales process. She realises that the credit check on customers is slowing the process and wishes to remove the credit check. You are the CFO of the company and believe there are pros and cons with this idea. Prepare a memo for the CEO and explain the benefits and risks of removing the credit limit.

6.

You have now graduated and ready to enter the workforce. You see an advertisement in Seek.com and your eye catches a line that reads, “Accounting is an information system.” Based on your learnings in this subject prepare a cover letter to the prospective employer outlining your understanding of this statement and explain what this statement could mean from the employer’s perspective.

 

BAP71 Accounting Information Systems

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Questions 1. “Accounting takes in the process of Identifying, Recording and Communicating”. How would you like to explain the statement? Give support to your answer with examples on Identifying, Recording and Communicating. (3 activity Marks) 2. Explain the concept of double entry syst ...

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1) Define ‘generally accepted accounting procedures’. (LO 1.3)   2) Possies Ltd. Considers that its most valuable asset is its         employees- yet it has to leave them off the statement of financial position. Explain this situation. (LO 2.10)   3) On ...

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 To develop understanding of corporate finance and financial investments at final year undergraduate level. 2. To develop skills in the application of appropriate quantitative techniques. 3. To develop analytical skills in financial analysis ...

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Gloria Black was new employee to ABC Business, she is a single parent living with her 18-year-old son---Mark, who studied fulltime (four months) this year. Mark's tuition fees for 2018 are $6000. Mark is expected to earn $3500 in 2018 and will not use his tuition credit amount s when filing his pers ...

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