Sample Exam Questions: The Style Of Questions Appearing ✓ Solved

Sample Exam Questions NOTE: THE STYLE OF QUESTIONS APEARING

1. Introduction to AIS

1.1 Define a management information system.

1.2 Do you agree with the statement “Not every company needs an AIS system”? Please explain.

1.3 Why is it important for accounting students to gain knowledge about Accounting Information Systems?

2. Enterprise Systems, Transaction Processing and Systems Documentation

2.1 Define enterprise resource planning (ERP) systems and give two examples of common ERP add-on modules.

2.2 Describe five advantages of an enterprise system.

2.3 Lexington Company sells a broad range of fashion products to end users. The company is considering taking customers’ orders on their Web site.

a) What information should Lexington collect from the customer during this process?

b) What information would need to come from Lexington’s system to complete the order?

3. System Documentation

3.1 Why should you develop both logical and physical DFDs for systems?

What is the advantage of drawing a logical DFD before a physical DFD for a new information system?

3.2 EspressoCoffee customers place an online order. EspressoCoffee processes the customer order by sending a request to the credit card company to verify the customer’s good credit standing. The items are verified for availability. The shipment is processed and sent to the warehouse. An invoice is generated from the sales information and emailed to the customers. The corresponding database tables are updated. Draw the related logical level 0 DFD.

4. General Ledger and Reporting System

4.1 “Defining the codes for a chart of accounts is no big deal – nothing is permanent – I can change it at any time in the future.” Why do you agree (or disagree) with this statement?

4.2 Explain the functions of the general ledger and reporting system.

5. Revenue cycle

5.1 Explain the logical sequence of data flows in the Sales Order Entry process.

5.2 Explain the purpose of a Customer Relationship Management system.

6. Expenditure Cycle

6.1 Explain why ambiguities and conflicts exist among operations process goals of the purchase process.

6.2 Explain two possible scenarios of fraudulent behaviour related to the Expenditure Cycle.

7. Controls

7.1 If it were not for the potential of computer crime, the emphasis on controlling computer systems would decline significantly in importance. Do you agree? Discuss in detail.

7.3 If input data are entered into the system completely and accurately, then the information system control goals of ensuring update completeness and of ensuring update accuracy will be automatically achieved. Discuss.

7.4 In small companies with few employees, it is virtually impossible to implement the segregation of duties control plan. Do you agree or disagree with this statement? Discuss your answer.

7.5 No matter how sophisticated a system of internal control is, its success ultimately requires that you place your trust in certain key personnel. Do you agree? Discuss in detail.

8. Public Key Cryptography is an important facilitator of secure electronic commerce over the Internet. Describe, with the aid of a labelled diagram, how credit-card information is shared with an e-commerce vendor for payment of goods purchased over the Internet.

9. SAP Concepts (GL, AR, AP, Auditing)

9.1 Distinguish client, company code, chart of accounts and business area.

9.2 What is the difference between a fiscal year variant and a posting period variant? How are they used?

9.3 What are internal and external number ranges? Why is internal numbering preferred?

9.4 Design a year-independent fiscal year variant for a business with quarterly reporting. The fiscal year runs from 16 May in year 0 to 15 May in year 1.

10. Database Theory and SQL

10.1 A University uses a relational database. The ‘Course Table’ contains information about all courses the University provides, including the assigned convenor. The ‘Course Schedule Table’ lists the course timetable and the allocated lecture theatre. The ‘Theatre Table’ has information on theatre capacity (venue size) etc.

The University is planning to use the following SQL statements to query the tables mentioned above. What would be the expected outcome of the statement?

10.1 SELECT CourseName, Convenor, Venue FROM [Course Table], [Course Schedule] WHERE [Course Table].Course = [Course Schedule].Course;

10.2 Enter your answer in the blank table.

10.3 Write a SQL statement that lists the Course Number, CourseName, Convenor and Venue Size. The venue sizes should appear in ascending order.

11. AIS Acquisition and Implementation

11.1 What is a Gantt chart and how can it support the implementation of an AIS?

11.2 A vendor would never propose a system that would not meet an organization’s needs. Therefore, external validation of vendor proposals is not really needed. Do you agree? Justify your answer.

11.3 Explain the concept of a ‘direct conversion’ strategy. What are the risks of such an approach?

11.4 List and describe four ways that an accountant may be involved in the AIS acquisition process.

ADDITIONAL REVIEW MATERIAL

1. Answer ALL SAP Self Study Questions

2. Answer ALL SQL Questions from Workshop Week 13

3. Review ALL Questions listed in the weekly Topic Outline (Review Questions for Self Study)

4. Review ANY Questions listed in the weekly Workshop document (if provided)

Paper For Above Instructions

Accounting Information Systems (AIS) serve as a vital component in managing financial data and enhancing decision-making processes within organizations. A management information system (MIS) is a structured organization of data that provides information for decision-making and control within an organization. It involves collecting, processing, storing, and disseminating information to support organizational functions (O’Brien & Marakas, 2011). In the context of AIS, this system focuses on capturing and processing financial transactions, which is crucial for every organization regardless of size. It enables immediate access to crucial financial data, ensuring accuracy and relevancy in financial reporting.

While the statement "Not every company needs an AIS system" may seem valid for very small or micro businesses operating with minimal financial complexity, it overlooks the inherent value that an AIS brings to any level of operation. Even small companies can benefit from systematic tracking of their financial activities, as it enhances transparency and accountability, assisting in compliance with regulatory requirements. Therefore, I disagree with the statement; every organization, regardless of scale, can benefit from an appropriately designed AIS tailored to their specific needs (Romney & Steinbart, 2018).

For accounting students, gaining knowledge about AIS is paramount. Understanding AIS prepares students for the realities of the modern business environment, where technology plays a significant role in financial reporting and data management. Moreover, familiarity with AIS equips students with the necessary skills to analyze and interpret accounting data effectively, leading to better decision-making (Gelinas et al., 2019).

Enterprise Resource Planning (ERP) systems integrate various organizational systems and facilitate error-free transactions and production. ERP systems streamline processes and information across the organization by providing a centralized database (Monk & Wagner, 2013). Common ERP add-ons include Customer Relationship Management (CRM) modules and Supply Chain Management (SCM) modules, which further enhance an organization's capabilities.

The primary advantages of enterprise systems include improved efficiency through standardized processes, data accuracy through a unified database, better reporting through consistent data access, enhanced collaboration across departments, and greater responsiveness to market changes. This integration of information leads to improved strategic planning and operational efficiency (Gable et al., 2013).

When considering online order processing, Lexington Company should collect essential customer information such as name, address, contact information, and payment details to fulfill orders efficiently. Additionally, information from the company’s system, such as inventory status and pricing, must also be integrated to ensure a seamless ordering process.

Developing both logical and physical Data Flow Diagrams (DFDs) is essential for creating a comprehensive view of the system. A logical DFD provides a high-level overview of data flows without detailing the technological aspect, while a physical DFD includes all technical components and processes involved, making it easier to understand the system's operational requirements. This sequential approach aids in identifying potential issues and streamlining the technical design phase (Recker, 2010).

EspressoCoffee’s order processing scenario illustrates the complex interplay between customer interactions and backend validation processes. The logical level 0 DFD for this system would showcase the major processes involved—from customer order placement through credit verification, stock availability, shipment processing, invoicing, and database updates—thereby clarifying the operational workflow and data interactions.

With regard to accounting control systems, the assertion that without the threat of computer crime, the need for robust controls would decline is a simplistic view. The reality is that the integrity and accuracy of financial information remain critical regardless of perceived threats. Controls are essential to ensure compliance and operational efficiency, protecting an organization’s assets and information (Cohen et al., 2016).

The statement concerning segregation of duties highlights the challenges posed by small organizational structures where employees often wear multiple hats. Nonetheless, implementing at least some form of segregation of duties, even if not fully feasible, is crucial for enhancing accountability and minimizing risks associated with errors and fraud (Wells, 2014).

Public Key Cryptography plays an essential role in securing electronic commerce, enabling safe credit card transactions over the Internet. It facilitates the secure exchange of sensitive information between consumers and vendors, thereby fostering increased trust in online transactions. A visual diagram could depict the encryption and decryption processes to clarify how information is securely shared (Stallings, 2012).

The understanding of concepts such as fiscal year variants, internal and external number ranges, and the significance of normalization in relational databases contributes to more effective database management practices. Normalization reduces redundancy, improves data integrity, and enhances query performance (Date, 2012).

In summary, knowledge of integrated systems like AIS and ERP, along with their operational and strategic implications, is invaluable for today’s accounting professionals. The accounting landscape is increasingly complex, and the ability to navigate this complexity through technology is essential for career success in the field.

References

• Cohen, S., Tabb, L., & Pinkow, A. (2016). Internal Control Audit and Compliance: Documentation and Testing Under the New COSO Framework. Wiley.
• Date, C. J. (2012). Database Design and Relational Theory: Foundations of Professional Practice. O'Reilly Media.
• Gable, G. G., Sedera, D., & Chan, T. (2013). Re-conceptualizing Information System Success: The Importance of the Information Systems Development Process. Journal of Information Technology, 28(1), 80-98.
• Gelinas, U. J., Dull, R. B., & Wheeler, P. R. (2019). Accounting Information Systems. Cengage Learning.
• Monk, E. F., & Wagner, B. J. (2013). Concepts in Enterprise Resource Planning. Cengage Learning.
• O’Brien, J. A., & Marakas, G. M. (2011). Management Information Systems. McGraw-Hill/Irwin.
• Recker, J. (2010). Modeling Business Processes: A Petri Net-Oriented Approach. Springer.
• Stallings, W. (2012). Cryptography and Network Security: Principles and Practice. Pearson.
• Wells, J. T. (2014). Corporate Fraud Handbook: Prevention and Detection. Wiley.