Accounting Information Systems (AIS) CUAC 204

Accounting Information Systems (AIS)
CUAC 204

Question 1

a)Discuss the difference between internal and external users information, their need and demands on an information system. (10 marks)

b)Distinguish between Accounting Information Systems (AIS) and Management Information Systems (MIS). (10 marks)

Question 2

Discuss the importance of accounting independence in Accounting Information Systems. Give where this concept is important. (20 marks)

Question 3

With an aid of a diagram explain System Development Life Cycle (SDLC) and thee role of the accountant in each stage. (20 marks)

Question 4

a)Contrast the advantages and disadvantages of CASE tools.(15 marks)

b)What should determine whether CASE is used?(5 marks)

Question 5

The evolution of most accounting systems follows a distinct cyclical pattern commonly called the system development life cycle (SDLC). Discuss in detail the four main components of the SDLC. (25 marks)

Question 6

“Unlike systems that occur naturally, Accounting Information System, must be created.”

Give 5 qualities of a successful system and how each quality may be achieved
(20 marks).

Question 7

The goal of any part of the information system is to help the decision-making process. Robert Anthony developed an approach for categorizing the decision-making activities within an organization. Having identified three levels of such activities, he stated that decision making differs so significantly between these levels that different information systems are needed at each level.

Give these levels and the decision problems for each level, a tabular presentation is encouraged and a write up of the information needs an accounting information system should provide for such decisions to be made. (20 marks)

Question 8

Why should an auditor be involved in the system design process (15 marks).

Question 9

“It is difficult and tiresome to come up with an accounting information system”. Discuss how the use of cycles help in making sense of accounting applications, give examples and flow charts of such cycles in your discussion. (20 marks)

Question 10

Discuss what is meant by the following:-

a)Closed systems

b)Relatively closed systems

c)Open systems

d)Feedback control systems

Give examples to expound your explanations (20 marks)

Question 11

Diagrammatically present the four transaction cycles identified by most auditors and briefly explain what is involved in each cycle. (20 marks)

Question 12

Compare and contrast batch processing and online processing, outlining the meaning, advantages and disadvantages of the two. Which one would you recommend for a manufacturing entity where the accounting function is decentralized? (20 marks)

Question 13

Giving examples, explain how the following systems aid management in decision-making

(i)Expert systems

(ii)Simulation

(iii)Decision Support system

(iv)Information centres(20 marks)

Question 14

Give 5 qualities of a successful system and how each quality may be achieved [20 marks]

Question 15

a)Discuss any four approaches to system changeover. Briefly outlining the advantages and disadvantages, if any, of each approach. [12 marks]

b)Why is a post – implementation review necessary for a new system? [8 marks]

Question 16

Give and explain the four main system analysis steps in the study of an accounting information system. [20 marks]

Question 17

Discuss any five elements that one would need in transaction processing. [20 marks]

Question 18

a) Discuss any four approaches to system changeover, briefly outlining the advantages and disadvantages, if any, of each approach. [12marks]

b) Why is a post-implementation review necessary for a new system? [8 marks]

Question 19

a)Briefly discuss the envisaged benefits by the Government of Zimbabwe for introducing fiscalised cash register for taxpayers who are registered for Value Added Tax (VAT) purposes in light of changes in technology and accounting information systems in general [10 marks] .

b) Discuss any two (2) of the following four basic types of systems:

i) Closed systems

ii) Relatively closed systems

iii) Open systems

iv) Feedback control systems [10 marks]

Question 20

a)“A system is a set of parts coordinated to accomplish a set of goals” West Churchman. Give three main characteristics of a system. [6 marks]

b) What are subsystems and super systems in accounting information system and why should an accountant be knowledgeable about these systems? [8marks]

c) Why is it necessary to create boundaries and interfaces when designing accounting information systems? [6 marks]

Question 21

Why should an auditor be involved in the system design? [20 marks]

Question 22

a) As an accountant of an organization, discuss why it might be necessary to initiate systems analysis. [6 marks]

b) Giving reasons for your answer, discuss the accounting system you would recommend to a decentralized organization between a computerized accounting information system and a manual accounting information system. [14 marks]

Question 23

RECYC Ltd is a medium sized recycling consultancy firm, which is currently experiencing rapid growth. This is evidenced by increased turnover. It has been able to develop a range of new consultancy and specialist business advisory services that it offers to its growing customer base. To cope with these developments, several organisation-wide initiatives have been launched over the past two years.

The existing financial systems are struggling to cope with these developments, but replacement software is due to be installed within the next six months. The new system was justified partly because it could reduce costs, although precise details have not been given. The application software selected does not fit existing business processes exactly. However, it has the clear advantage of giving RECYC access to an industry best practice system and is identical to that used by all its main competitors and some of its clients.

A three-person Project Steering Group has recommended that a phased approach to introduction should be used and has undertaken most of the project planning. A programme of events for implementing the system has been agreed, but is not yet fully operational. This group has not met for a while because the designated Project

Manager has been absent from work through illness. You are Head of RECYC’s Central Support Unit. You also serve on the Project Steering Group.

A Directors’ meeting is due to take place soon. The firm’s Managing Director has asked you to prepare and present a PowerPoint presentation to the other Directors on project management and implementation issues. You understand that the Directors are conscious that system implementation represents a form of further organisational change. They are asking questions about the approach that will be taken to the introduction of the new system, likely changes to practices, critical areas for success, system testing, support after implementation, system effectiveness, etc.

REQUIRED:

(a) List and describe the project management activities and variables addressed by your steering group. (8 marks)

(b) Describe the available options for the systems implementation and explain why a ‘phased’ approach to introducing the system is, in this case, more suitable. (7 marks)

(c) Name and describe the methods you are using to evaluate this information systems project and outline the limitations of financial models for establishing the value of information systems. (10 marks)

Question 24

A teacher training college in the UK has recently expanded very rapidly, introducing a number of programmes and increasing student intake capacity. It has also recently computerised its teaching and assessment processes based on a customised version of some off-the-shelf software. The Library had already been computerised a couple of years ago using a highly functional library automation system that includes multiple catalogs, authority control and so on. Accounts and payroll are handled by computers in the Finance and Accounting department, using popular accounting and payroll software packages.

In order to achieve further improvements in efficiency, the college’s management board asked a team of consultants to assess the suitability of its existing technology infrastructure and information systems to meet its strategic objectives. The consultants advised that the college is burdening itself with too many independent information systems. They strongly favoured an integrated information system on the lines of an enterprise resource planning (ERP) solution for a business organisation.They were concerned that adequate consideration may not have been given to all the areas of operation of the college, or to the strategic oversight of these. In particular they were concerned about the lack of automated procedures for the procurement of everything from laboratory equipment to travel tickets; the lack of integration of the Student Records department with Finance & Accounting (especially in relation to fee payments); and the marketing of the college to potential new students.

The consultants’ report also noted that the directors of the Finance and Accounting department and the Library were both reluctant to change from their existing information systems. The directors highlighted the fact that their departments had recently spent time and money investing in systems that were perfectly adequate for their needs and suited their operating practices.

While the college’s Information Technology department are technically capable of implementing an organisation wide ERP system, they are under-staffed and are highly dependent on key individuals. Management in the department are also concerned that they do not at this time have an adequate hardware infrastructure to support uninterrupted, secure operation of the options being proposed. In fact there has been a history of service outages over the previous six months, all of which were caused by technology failures and some of which resulted in data loss.

Given that management identified 24 hour online access to library resources, e-learning hubs, email and other services, 365 days a year, as essential in the increasingly competitive third level education sector, these outages are particularly worrying.

REQUIREMENT:

You are asked to address the following, based on a critical analysis of the above case study.

(a) Outline the main benefits and challenges for the college and, in particular, the Finance and Accounting department in implementing an ERP system. (8 Marks)

(b) Explain the advantages of using cloud computing services to implement an ERP system for the college. (8 Marks)

(c) Describe the core activities (stages) involved in a project to select, implement and deploy an ERP system in the college. Identify the main issues that need to be addressed during each activity/stage. (9 Marks)

[Total: 25 Marks]

Question 25

Describe briefly, what is meant by ANY FIVE of the following:

(a) Executive Support Systems

(b) Denial of Service attacks

(d) Open Source Software

(e) Privacy rights under the Data Protection Act

(f) M-commerce

(g) The Internet and Competitive Advantage

Question 26

(a) Explain how the concepts of responsibility, accountability and liability apply in relation to the ethical use of information systems. (6 Marks)

(b) Discuss the main ethical issues that need to be taken into consideration when using a customerrelationship management system to collect, store and use customer data. (8 Marks)

(6 Marks)

[Total: 20 Marks]

Question 27

(a) Identify and briefly explain six dimensions of information that affect the quality of decision making in anorganisation. (6 marks)

(b) Explain decision support systems, giving examples of how they might be used in an Irish business context.

(6 marks)

(c) Outline the main business benefits of collaboration, and explain how social networking can be used to helpachieve some or all of these benefits. Illustrate your answer with practical examples. (8 marks)

[Total: 20 Marks]

Question 28

(a) Explain information asymmetry and how the Internet has reduced this. Give an example of where and howit has been reduced from a consumer’s point of view. (6 marks)

(b) Describe four e-commerce revenue models and how they work, with examples of each. (6 marks)

(c) Outline an appropriate approach to take when planning a new e-commerce website for a business, andexplain the main decisions involved in building the website. (8 marks)

[Total: 20 Marks]

Question 29

(a) Explain what is involved in a total cost of ownership (TCO) analysis of an organisation’s technology assets. (7 marks)

(b) Define cloud computing, giving its main characteristics. Explain the different types of services it consists of,and the main benefits it offers to companies. (7 marks)

Question 29

Hibernia Ltd., a steel manufacturing company, purchased an information systems package over a decade ago.The system focuses on daily transaction processing of stock, sales and purchasing and provides regular usersummaries. Unfortunately, the output does not provide much of the necessary management information and asa consequence a Co-ordinator downloads output onto spreadsheets which are then manipulated, enhanced andemailed to users. Managers and Senior Managers often complain that even this information is inadequate for theirneeds. In response, Hibernia has employed a business information consultancy firm to conduct a review of itsinformation requirements. The consultancy firm reported that the existing system is outdated and much lessfunctionally rich than more recent software on the market. The main issues and recommendations aresummarised as follows:-

Purchase a new system

Hibernia should purchase a system (called InfoTek) which provides more complete, relevant and timelyinformation. The InfoTek system is easy to understand and navigate and would offer a more comprehensiveanalysis than the existing package provides, including historical statistics and comparison to prices charged bycompetitors. InfoTek also offers potential for further customisation to local needs through its display functions andflexible formats. Users (Senior Managers, Managers and Others) would be able to use the software efficientlystraight away without additional training. Daily transaction processing routines would remain unchanged.

Implementation of the new system

The system should be implemented by direct changeover because Hiberniaʼs network servers have insufficientcapacity to support both new and old systems. The installation should take place over a weekend to minimisedisruption. Once installed, systems maintenance should be minimal.

Redesign of Co-ordinatorʼs role

This role should be redesigned so that the existing post-holder becomes responsible for validating InfoTek output,co-ordinating information enhancements and providing support and advice to users.Hiberniaʼs Managing Director is familiar with InfoTek through past working experience and agrees that it is aworthwhile package. She is, however, unhappy about how the consultants have conducted their review. Inparticular, she is concerned that very few Managers, Senior Managers and other information users have beeninvolved in discussions. She also believes that any job design needs to concentrate on the characteristics of thepost in order to gain maximum motivation and job performance. She therefore treats the findings andrecommendations of the consultants with caution. A fellow Director has advised her not to implement theconsultantsʼ recommendations without further reference to the workforce as this might lead to staff resistance.

REQUIREMENTS:

(a) Discuss the reasons why there may be user resistance to the introduction of the new system and explain thetypes of support that could be organised to help users utilise InfoTek efficiently. (7 marks)

(b) Explain the issues Hibernia should consider before successfully implementing the recommended system. (9 marks)

[Total: 25 Marks]

Question 30

(a) Define an expert system, describe how it works, and explain its value to business. (6 Marks)

(b) Define the term knowledge management and, using an organisation of your choice, explain what types ofknowledge it would have and how such an organisation could benefit from knowledge management. (8 Marks)

[Total: 20 Marks]

Question 31

(a) Discuss the reasons why it is necessary for businesses to invest so heavily in information systems and whythere is such a high variability in the returns firms receive from their investment? (6 Marks)

(b) How can firms assess the value of information systems projects? (7 Marks)

[Total: 20 Marks]

Question 32

(a) List and describe the stages in decision making. (5 Marks)

(b) Distinguish between unstructured, semi-structured and structured decisions. (8 Marks)