Accounting Information Systems. Final Exam, 1st, 2014/15
The Islamic University-Gaza
Faculty of Commerce
Department of Accounting
FINAL EXAMINATION
SEMESTER 1
2014/2015
ACCOUNTING INFORMATION SYSTEMS
(ACTE 4304)
Dr. Hisham Madi
DATE: 11/01/2015
TIME ALLWOED: 2 (HOURS)
NAME:
ID :
QUESTIONMARK
QUESTION 1 (10 Marks)
Determine whether each statement is True of False
1. Product documents are the result of transaction processing. (----)
2. Preventive controls reduce the frequency of occurrence of undesirable events. (----)
3. System flowcharts use symbols to represent the processes, data sources, data flows, and entities in a system. (----)
4. The personnel department authorizes changes in employee pay rates (----)
5. Authorization to dispose of fixed assets should be issued by the user of the asset. (----)
6. The first step in the system development life cycle is to develop a systems strategy. (----)
7. Project initiation is the process by which systems proposals are assessed for consistency with the strategic systems plan and evaluated in terms of their feasibility and cost-benefit characteristics. (----)
8. If individual modules are thoroughly tested, it is not necessary to test the whole system. (----)
9. Most system failures are due to poor role of accountants in designing the system.
(----)
10. If control procedures over a company’s computerized financial accounting system are particularly strong, auditors will not need to perform any substantive testing. (----)
QUESTION 2 (15 Marks)
Choose the best answer
1. Effective information has all of the following characteristics except
A. Relevance
B. Completeness
C. Summarization
D. Structure
2. Data processing does not involve
A. Calculating
B. System maintenance
C. Comparing
D. Merging
3. The type of transaction most suitable for batch processing is
A. Airline reservations
B. Credit Authorization
C. Payroll processing
D. adjustments to perpetual inventory
4. In the payroll system, which function should distribute paychecks?
A. Personnel department
B. Timekeeping
C. Paymaster
D. Payroll
5. The formal product of the systems evaluation and selection phase of the Systems Development Life Cycle is
A. The report of systems analysis
B. The systems selection report
C. The detailed system design
D. The systems plan
6. When developing the conceptual design of a system,
A. All similarities between competing systems are highlighted
B. Structure diagrams are commonly used
C. The format for input screens and source documents is decided
D. Inputs, processes, and outputs that distinguish one alternative from another are identified
7. In the construct phase, when performing design tasks, the design team first focuses on:
A. System Inputs
B. System Outputs
C. System Processes
D. A and B
8. Accountants and auditors use documentation describing
A. How to run the system
B. How to use the system
C. How to debug errors and perform maintenance on the system
D. All of the above.
9. Which of the following is not an advantage of commercial software? Commercial software
A. can be installed faster than a custom system
B. can be easily modified to the user’s exact specifications
C. is significantly less expensive than a system developed in-house
D. is less likely to have errors than an equivalent system developed in-house
10. An advantage of E-wallets is that:
A. Most E-wallet information is maintained on vendor file servers
B. They ensure the completion of a purchase transaction over the Internet
C. Users do not need to re-enter personal information each time they make an online purchase
D. none of the above is an advantage of E-wallets
11. ______are specifically tailored to auditor tasks
A. General-Use Software
B. Generalized Audit Software
C. Automated Work-paper Software
D. A and B
12. Example(s) of Electronic Data Interchange business documents include
A. Credit memos
B. Account Payable
C. Customs documents
D. A and C
13. ______is a specialized subset of eXtensible Markup Language for reporting financial information
A. eXtensible Business Language
B. eXtensible Business Reporting Language
C. eXtensible Reporting Language
D. A and C
14. External auditors examine an organization’s computer-based AIS to evaluate
A. How financial statements are affected by control procedures over computer processing.
B. How computer processing affects the financial statements
C. How external control procedures affect financial statements
D. B and C
15. The term “Integrated test facility" is associated with:
A. Auditing through-the-computer
B. Auditing around-the-computer
C. Auditing of manual accounting systems
D. Non-auditing procedures performed by a firm’s accounting subsystem employees
QESTION 3 (15 Marks)
1. What is the accountant’s role in the Systems Development Life Cycle?
------
2. Describe the differences between auditing around the computer and auditing through the computer? Which one is more effective in a computerized accounting information system? Why?
------
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3. In systems strategy of system development life cycle, end user feedback has several phases, list four (4) of them?
1. ______
2. ______
3. ______
4. ______
QUESTION 4 (10 Marks)
1. Three major tasks are handled by the Fixed Asset System. What is the purpose of each? What special control issues affect each?
------
2. Test data and Parallel simulation are among the techniques that auditors use to evaluate audit a computerized Accounting information system. How does an auditor evaluate computerized AIS by using those techniques?
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QUESTION 5 (10 Marks)
The Golf Club Company makes custom golf clubs. The manufacturing supervisor interviews people who have specialized manufacturing skills, and he informs payroll when an employee is hired. The employees use a time clock to record the hours they work. The employees are also required to keep a record of the time they spend working on each order. The supervisor approves all time cards.
The accountant analyzes the job tickets and prepares a labor distribution summary. Payroll prepares the payroll register and paychecks. The supervisor distributes the paychecks to the employees. Payroll informs cash disbursement of the funds required to cover the entire payroll amount. The cash disbursements clerk ensures that there are adequate funds in the company's regular checking account to cover the payroll
Describe at least three internal control weaknesses; for each weakness suggest an improvement to internal control?
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Wish you all the best
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