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Buss 344:Acounting Information Systems Question Paper

Buss 344:Acounting Information Systems

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2013

KENYA METHODIST UNIVERSITY

END OF 2''ND ''TRIMESTER 2013 (DAY) EXAMINATION
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : ACCT 344
UNIT TITLE : ACCOUNTING INFORMATION SYSTEMS

TIME: 2 HOURS

INSTRUCTIONS: Answer Question One and any Other TWO Questions

Question One
a) Explain the role of Information Technology (IT) in Financial and
Management accounting. (4marks)
b) Explain why documentation is important to accounting information systems? (5marks)
c) Define the term Internal controls and highlight the FOUR main objectives of Internal Control Systems in an organization. (6marks)
d) Describe FOUR (4) activities in the revenue and THREE (3) in the expenditure cycles. (7marks)
e) Discuss the FOUR (4) activities for transforming data into information to the general AIS model. (8marks)

Question Two
a) Business often modify or replace their financial information system to keep pace with their growth and take advantage of improved IT. This requires a substantial time and resource commitment. When an organization changes to AIS, a system analysis takes place.

Required:
i) Explain the purpose and reasons for surveying an organization`s existing
system. (5marks)
ii) Explain the activities commonly performed during system analysis.
(4marks)
iii) System analysis is performed by a project team composed of a system analyst, a management accountant and other knowledgeable and helpful people. What is the management accountant`s role in systems analysis.
(5marks)
b) Explain why employees resist implementation of accounting information systems and suggest ways to elevate employee resistance to change.
(6marks)

Question Three
a) Explain the FOUR steps of the risk-based audit approach and discuss
how they apply to the overall security of a company. (10marks)
b) Describe the audit purpose facilitated and the procedural steps followed when using the following:-
i) Generalized audit software. (3marks)
ii) Integrated test facilities. (3marks)
iii) Parallel simulation and modeling. (3marks)
c) What is an audit trail? (1mark)

Question Four
a) Which controls would best mitigate the following threats.
i) A sales person mistakenly entered an online order for 50 laser printers instead of 50 laser printer toner cartridges. (2marks)
ii) A 20 minute power brownout caused a mission-critical database server to crash, shutting down operations temporarily. (2marks)
b) Distinguish between preventive, detective and corrective controls.
(6marks)
c) Explain FOUR (4) types of fraud in business. (8marks)

Question Five
a) Give a brief description of each of the following documentation technologies document flowchart, systems flowcharts and data flow diagrams. (9marks)
b) Source documents are usually generated in the process of conducting common business activities list FOUR (4) source documents connected with the expenditure cycle. (4marks)
c) Briefly describe THREE tasks of accounting information systems (AIS)
(7marks)

Buss 344:Acounting Information Systems Question Paper

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