Accounting Information Systems, Midterm Exam, 1st 2015/16
The Islamic University-Gaza
Faculty of Commerce
Department of Accounting
MID-TERM EXAMINATION
SEMESTER 1
2015/2016
ACCOUNTING INFORMATION SYSTEMS
DATE: 14/11/2015
TIME ALLWOED: 1 (HOUR)
NAME:
ID :
QUESTIONMARK
QUESTION 1 (10 Marks)
Determine whether each statement is True of False
1. Information sources are financial transactions that enter the information system from internal and external sources. (------)
2. Accountants as System Designers, they are responsible for the physical system. (------)
3. The physical component in revenue cycle is acquisition of goods. (------)
4. Data flow diagrams show what logical tasks are being done and how they are done. (------)
5. Business ethics is the analysis of the nature and social impact of computer technology, and the corresponding formulation and justification of policies for the ethical use of such technology. (------)
QUESTION 2 (16 Marks)
Choose the best answer
1. Which subsystem is not part of the Accounting Information System?
A. Transaction Processing System
B. Expert System
C. General Ledger/Financial Reporting System
D. Management Reporting System
2. Data Processing tasks do not include
A. Retrieving
B. Merging
C. Calculating
D. Summarizing
3. A journal is used in manual accounting environments. What file is comparable to a journal in a computerized environment?
A. Archive file
B. Reference file
C. Transaction file
D. Master file
4. Operational inefficiencies occur because:
A. Accounts of many concurrent transactions need to be updated in real time.
B. Accounts of many concurrent transactions need to be updated in batch mode.
C. Accounts common to many concurrent transactions need to be updated in batch mode.
D. None of the above are true statements
5. One characteristic of employee fraud is that the fraud:
A. Is perpetrated at a level to which internal controls do not apply.
B. Involves misstating financial statements.
C. Involves the direct conversion of cash or other assets to the employee’s personal benefit.
D. Involves misappropriating assets in a series of complex transactions involving third parties
6. When duties cannot be segregated, the most important internal control procedure is:
A. Supervision.
B. Independent verification
C. Access controls
D. Accounting records
7. Copies of the sales order can be used for all of the following except:
A. Purchase order
B. Credit authorization
C. Shipping notice
D. Packing slip
8. The customer open order file is used to
A. Respond to customer queries
B. Fill the customer order
C. Ship the customer order
D. Authorize customer credit
QUESTION 3 (9 Marks)
1. What are the primary functions performed by the transaction processing system?
------
2. Distinguish between batch and real time processing?
------
QUESTION 4 (12 Marks)
1. What is the objective of re-engineering?
------
2. What role does each of the following departments play in the sales order processing subsystem: sales, credit, and shipping?
------
------
QUESTION 5 (13 Marks)
Al-manar books Inc., is the fastest growing book distributor in Gaza. Al-manar Books's sales process begins when a customer places an order with a sales representative by phone or fax. A sales department employee prepares manually multiple copies of sales orders. One copy of the sales order is sent over to the warehouse to be used for the purpose of inventory record keeping. Another two copies of the sales order, the shipping notice and stock release, are sent to the shipping department. A sales department employee files the original copy of the sales order in sales department.
In the shipping department, clerk reviews the documents and picks the books and sends them to customer along with the stock release. He then manually records the appropriate decrease in inventory in the hard-copy inventory subsidiary records that are maintained in the shipping department.
Required
1. Create a system flowchart for the existing system?
2. Analyze the internal control weaknesses in the system (at least 3)?
With Best Wishes
5