Notesale: Turn your study into money

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1
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Which of the following activities is not part of the production cycle?
a
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*c
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Managing raw materials
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Keeping the finished goods
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Correct answer: c
Learning objective 1
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43
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b
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*d
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The cycle involves managing and paying employees
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Decisions about who to hire will not impact upon the way the other processes
are executed
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5 – justify and communicate the role of accounting information in
supporting decision makers
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Which of the following activities is NOT part of the general ledger and financial
reporting cycle?
a
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c
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Preparing and updating journals and ledger accounts
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Preparing trial balances and producing financial reports
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Correct answer: d
Learning objective 1
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1
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Which of the following statements regarding the auditing of accounting information
systems is NOT true?
a
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c
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When conducting an audit, the auditors should consider legislative
requirements
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When conducting an audit, the auditors should consider prescriptions of
various accounting standards
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Correct answer: d
Learning objective 1
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46
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b
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*d
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Accountants are bound by professional ethics
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A casual bookkeeping employee, who is not a member of any professional
association, need not adhere to professional accounting ethics
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5 – justify and communicate the role of accounting information in
supporting decision makers
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Systems development is unlikely to be driven by:
a
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c
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a change in the regulatory environment
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a business need from within the organisation
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Correct answer: d
Learning objective 1
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1
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The ability to accurately ___ a system is an important skill for both accountants and
auditors:
a
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c
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change
document
store
validate

Correct answer: b
Learning objective 1
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49
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b
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d
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Data management
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Data validation
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5 – justify and communicate the role of accounting information in
supporting decision makers
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The domain that a system addresses is called:
*a
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c
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system scope
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external environment
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Correct answer: a
Learning objective 1
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1
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Traditionally, the role of an accountant is to capture and record financial information
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The days of the accountant
only being the one who maintains the books are long gone
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Accounting is still an important skill
to possess — it is just that what those with accounting skills do with them has changed
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1 – critically evaluate accounting practices, reflecting on how
accounting information systems enrich and extend the role of the accountant
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What are the differences between data and information?
Answer:
Data are the raw facts relating to or describing an event
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Information is used in decision making and can prompt action, as well as be a
guiding tool for decision making, while data cannot be used in this way
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2 – compare and contrast data and information
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Information overload can be harmful to both individuals and the relevant organisation,
why?
Answer:
Organisations need to be conscious of what information they produce (whether reports or
some other type of information) and make sure that it is relevant to the people who need it
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Over
time that problem may disappear, yet the reports are still produced
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So resources
are wasted in generating the reports
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This can lead to undesirable consequences, such as reduction in efficiency, decrease
in productivity, and increased stress
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2 – compare and contrast data and information
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15

4
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Answer:
Inputs can include data, as well as other resources, that are the starting point for a system
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Outputs
refer to what is obtained from a system, or the result of what the system does
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As such, for any process, there must be at least one input and one output associated
with it
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3 – critique and synthesise system concepts, giving examples
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What is feedback and how does it interact with the system?
Answer:
Interacting with the inputs, processes and output will be the provision of feedback, which is
the method for ensuring that the system is running as normal and that there are no problems
or exceptional circumstances
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If the system finds an error in the customer
number (e
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it has been entered as alpha-numeric when it should be numeric), then it will
alert the data entry person responsible and prompt them to re-enter the customer number in
the correct format
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3 – critique and synthesise system concepts, giving examples
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What is the relationship between system scope and the external environment?
Answer:
A system will also have a defined task or domain to which it is applied - one system cannot
do everything
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Systems
also operate within a particular external environment or context, which will affect the
operation of the system
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Collectively, the things belong to the external
environment are factors or pressures outside a system that influence its design and operation
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3 – critique and synthesise system concepts, giving examples
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16

Chapter 1: Systems fundamentals - Introduction

7
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Explain how this definition is arrived
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“Capturing, verifying, storing, sorting and reporting” describes the functions of accounting
within an organisation, whereas “data relating to an organisation’s activities” is relevant to
the definition of information
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Learning objective 1
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8
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What happened afterwards as technology continued to develop?
Answer:
As technology continued to develop, including management information systems, database
technology and electronic data processing technologies, and with the emergence of the
microcomputer, organisations began to see that the technology of the computer could be
applied beyond the domain of the accounting function
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As these new
techniques emerged, the accounting function’s reliance on the information systems function
increased
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Such developments meant that information systems technologies were being
incorporated into other functional areas of the organisation apart from accounting
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Learning objective 1
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1
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What kind of information can an accounting information system provide and what are the
uses of such information?
Answer:
The information that can be generated by an accounting information system is diverse
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These reports
represent information generated by the accounting system to support decision making by
providers of scarce economic resources
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However, the traditional financial statements are by no means the only source of information
available through the accounting information system
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Accounting information that typically extends further is also
available for decision makers within an organisation
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A properly
designed accounting information system can satisfy inter

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