INFO243-20S2 Term Test
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INFO243-20S2
Term Test
Part A: Short Answer Questions.
This section has 5 questions, and is worth 30 marks altogether.
You are required to answer ALL questions in this section.
1) James Hall (Accounting Information Systems, 10e) discusses THREE types of documents that are typically found in an AIS. Name the three types of documents, and give an example of each.
(6 marks)
2) Give ONE example of afinancial transaction and ONE example of a nonfinancial transaction that would be of interest to a sales manager, and
Explain why it would be important to capture each ofthese in a firm’s information system.
(6 marks)
3) Consider a company whose shares are traded on a stock exchange. Give an example of ONE situational pressure and ONE opportunity that would increase the likelihood of a fraud occurring, and briefly explain why this might be so.
(6 marks)
4) With reference to fraud, give ONE example of corruption and ONE example of a misappropriation of a non-asset, and briefly explain why you have classified each of these as an example of fraud.
(6 marks)
5) Give ONE example of a technology trend that is impacting the Accounting profession.
• Briefly explain what the impact is, and
• Give ONE recommendation on how the Accounting profession (or processes) may need to change in response to the trend.
(6 marks) TOTAL: 30 MARKS
Part B: Answer all questions.
Question 1: The AIS Context & Business Ethics
a) Bikes4U is a bicycle manufacturer with manufacturing plants in New Zealand and Malaysia. The company’s AIS produces monthly status reports on inventory, accounts receivables and accounts payables for department managers.
(i) Identify THREE characteristics of information that are important for ensuring these reports are useful to the department managers, and
(ii) Using examples, briefly explain why each characteristic of information would be
important to the department managers.
(12 marks)
b) Bikes4U manufacturing plants have sensors that collect data directly from the production line. This is used to capture any downtimes and to monitor the performance of various machines and the efficiency of the machine operators (staff). In addition, when a fault occurs the machine operators are required to record what happened and what actions were taken, in a logbook that is kept in an office on the production floor. Information from the logbook along with the sensor data helps Bikes4U to diagnose problems and improve the manufacturing process, and use of company assets. Accuracy is therefore very important. However, the machine operators often forget to record the faults in the logbook. Often the logbook cannot be found at the time it is needed or sometimes the operator is busy and puts it off for another time. When this happens they may forget to write up the logbook or they omit key details when the entry is made.
Ken, the production manager, has suggested that Bikes4U automates the manual process of recording faults in a logbook, by using video-capture to record what happens on the production floor, and voice-capture to record any comments made by the operators (similar to the voice-recording of pilots in an airplane cockpit). Ken believes that this would be much more convenient for the operators and would ensure that key information is not missed. The
relevant data would be extracted and analysed, and the remaining data would be deleted. Consider the scenario above.
(i) Identify and explain TWO ethical issues associated with the use of IT that this scenario might raise.
(ii) Including at least ONE of the possible ethical issues you have raised, explain ONE
positive impact and ONE negative impact of implementing Ken’s suggestion.
(iii) Giving an example, briefly explain what the ethical responsibility ofthe organisation
is, when deciding whether they should implement Ken’s suggestion.
(14 marks) TOTAL: 26 MARKS
Question 2: Documenting AIS
Bikes4U has a number of casual employees who are paid by timesheets. Each fortnight they submit their timesheets to the payroll clerk no later than 3:00pm on Thursday, for processing. Using a PC in the payroll department, the payroll clerk enters the employee’s details and hours worked in to the payroll system; the timesheets are then filed alphabetically in a folder in the department. The payroll system checks the timesheet data that is entered against the employee payroll database and updates the database. The system then produces hardcopies of the paychecks for the employees and three copies of the payroll summary report. One copy of the summary report is kept in the payroll department, one copy is sent to the Finance Manager and the other copy along with the paychecks, are sent to the cash disbursements department. The cash disbursements clerk checks the summary report and the paychecks and posts the transactions to the cash disbursements journal using a PC in their department. The paychecks are then sent to the Finance Manager for signing. Finally, the signed checks are sent by the Finance Manager to the company administrator who distributes them to the employees when they come in on Friday.
Required:
a) Prepare a systemflowchart that represents the payroll process described in the narrative above.
(38 marks)
b) Sally is one of the Senior accountants at Bikes4U. Give THREE reasons why documenting the firm’s accounting processes would be important for Bikes4U.
(6 marks) TOTAL: 44 MARKS
2022-08-06