Reference no: EM132715174

Question 1: The value of accounting information is dependent upon its reliability. Internal controls are developed in order to assure that the information provided by the Accounting Information System (AIS) is reliable.

Outline two internal controls that support the internal control specification of reliable accounting information.

(Outline a range of considerations for developing accounting system specifications).

Question 2: Financial record reconstruction is often required to prepare financial statements, tax returns, court exhibits or insurance reimbursements. Sometimes accounting records and information are so inadequate that it proves impossible to prepare ccounts in the normal way. Discuss some ethical considerations of handling a financial reconstruction where records are very inadequate.

(Discuss ethical considerations for the handling of financial reconstruction).

Question 3: Identify three (3) elements of the accounting profession's code of practice that are necessary to ensure that users of accounting information systems can rely on the integrity of accounting data.

(Outline the key features of statutory requirements, codes of practice and organisational policy and procedures relating to accounting systems).

Question 4: Fred and Wilma own and operate Framing World, a company that frames diplomas, professional certificates and other documents. Customers bring in the documents they want framed; Fred or

Wilma fills out a sales order noting the client's information (name, address and so on), the type of document to be framed and the details of the framing itself (such as the type & colour of frame).They also scan the document to the store's internal computer network for reference purposes.

Most documents are framed by hand, but Framing World also uses some specialised equipment for more complex jobs. The company maintains its accounting records in a general ledger system; the firm's accountant prepares monthly reports, such as income statements and bank reconciliations, using spread sheets and word processing software. Work in process and finished goods inventory are kept secure with alarm systems and video surveillance.

Accounting information systems typically comprise five elements.

Analyse the preceding narrative by identifying a specific example of each element. Explain your responses in the grid below.

(Explain the process and procedures for recording and storing financial data).

What Example from Framing World of AIS Element of:

1) Input:

2) Process:

3) Output:

4) Storage:

5) Internal Control:

Question 5: Businesses may report incorrect amounts of GST if their accounting systems for capturing and recording GST information fail.

Explain four reasons why an accounting information system may fail to correctly deal with GST taxable transactions.

(Explain the key features of financial legislation relating to taxable transactions and reporting requirements).

Question 6: Explain the key benefits to an organisation of using an accounting information system as a basis of the budgeting process.

(Explain the key principles and practices of budgetary control and implications for accounting systems).

Question 7: The development of accounting information systems is much more than the software for ledger posting and report formation. It also involves establishing procedures for capturing data and distribution, as well as analysis of accounting information. In an accounting information system, there are three basic entities that need to be considered when specifying a system, namely, transactions, account and processing period. Outline the relationship between these three entities.

(Outline a range of considerations for developing accounting system specifications).

Question 8: Can breaches of data protection of personal information lead to criminal penalties in Australia? How would such breaches be handled?

Question 9: Identify and describe 2 data protection risks users face when using cloud computing services to store confidential financial data.

(Compare and contrast methods of data protection).

Question 10: Explain two (2) types of data backup processes that are used on a regular basis by large organisations.

(Explain the process and procedures for recording and storing financial data).

Question 11: Why would an organisation develop an accounting information system or make changes to its existing System?

Question 12: How does a system flow chart differ from a program flow chart?

Question 13: Explain the importance of a systems analysis report and describe its contents.

Question 14: Adequate controls have to be implemented if an organisation wants to reduce errors and fraud when using computer technology. It is in the design stage of an information system that the appropriate controls are planned to ensure reliability of data. A good design can prevent both intentional and unintentional alteration and destruction of data. The data controls can be classified as input controls, process controls and output controls. For each of these control categories, provide two specific controls and state their contribution to data reliability.

Question 15: Draw a simple flow chart to illustrate the purchasing function up to the point where the receiving department receives the goods ordered.