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Accounting Information Systems Test 1 questions & answers.
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Accounting Information Systems Test 1questions & answers.
accounting information system ANS - a set of interrelated activities, documents, and technologies
designed to collect data, process it, and report information to a diverse group of internal and external
decision makers in organizations
AIS structure ANS - 1. Internal controls
2. Inputs
3. Processes
4. Outputs
5. Storage
Inputs ANS - Include documents such as sales invoices and purchase orders. Accountants would also
need to ask questions like these to design and/or audit the system:
a. What kinds of source documents will system users need?
b. Should the source documents be paper-based, electronic, both?
c. How many copies of each source document will be required?
d. What info should the documents contain?
Processes ANS - Include computers and satellites. Here are some other questions you might ask about
processing tools:
a. Which processing tools should the AIS use?
b. Should the tools be manual, computer-based, both?
c. If the computer-based tools are used in the AIS, which software and hardware packages should be
implemented?
Outputs ANS - Include the general-purpose financial statements as well as internal reports such as
variance analyses. Other considerations include:
, a. Beyond the general-purpose financial statements, what other reports will managers and system users
need?
b. How should the AIS be designed to facilitate their production?
Storage ANS - Data in an AIS could be stored in paper form, electronically, or a mix of both. If the data
are stored electronically, they are often broken down into 3 broad file types. Master, transaction, and
junction files. Relevant questions about this include:
a. How should data be stored? On paper? Electronically? Both?
b. Where should data be stored? Locally? Remotely? Both?
c. How long should data be stored?
d. Under what conditions can/should data be destroyed?
Master files ANS - contain data about "things", such as inventory, customers, and vendors
Transaction files ANS - focus on "activities" such as earning revenue and incurring expenses
Junction files ANS - link other files together
Internal Controls ANS - Most organizations employ this as daily backup of data and separation of duties
(custody, authority, and record keeping) to maintain control over specific assets. Other questions might
be:
a. What controls are necessary to promote info integrity in the AIS?
b. What behavioral effects are the controls likely to have?
c. Are the controls cost effective?
Sponsored (commercial) info ANS - Someone has paid a fee or given other consideration to have their
info put on the Internet, with the main purpose being to sell products and services.
Popular (practitioner) info ANS - Info that has gone through a review process prior to publication. It may
recount the experiences of a specific company or group of companies, offer suggestions to managers, or
present new ideas or ways of thinking. Usually more trustworthy and objective than sponsored info.
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