Accounting Information System 1 Revision 201201

Accounting Information System

Revision 201201

What is Information System? List its components.

IS – system to capture data, process, store, distribute, information.

Software, Hardware, Data, Procedure, People.

Discuss general problems of computer-based data capture and information processing.

information overload

error trapping

complicated audit trail

Distinguish Data and Information.

Data – raw facts of something

Information – processed data useful for decision making.

What is Source Document? Give an example.

Documents from where data are being captured for information processing. Example, invoice.

What is the importance of Source Document to accountants? Use Balance Sheet as an illustration.

Part of Audit Trail.

What is the greatest disadvantage of manually-prepared source documents? Discuss.

bulky.

typo errors.

What is the importance of System Documentation?

-learning a system, studying existing system, proposing new system.

Describe the role and components of Document Flowchart.

Flow chart shows the processing steps.

Input, Process, Output, Control points

Prepare a Document Flowchart based on the following scenario:

“Reordering supplies requires a requisition request. When I need more stationery, for example, I fill out two copies of a goods requisition form (GRF). I send the first copy to central supplies and file the second copy here in the office.”

What is Database? What is Database Management System?

Database=organized collection of data for efficient management and effective control. DBMS = a software to manage the database and handles interaction with business applications.

Discuss the importance of Database to businesses.

-Valuable information

-Volume

-Complexity

-Privacy

To be useful, the data in an organization’s databases must be stored efficiently and organized systematically. Discuss three important ideas along this line.

i. thedata hierarchy,

ii. record structures, and

iii. record keys

Briefly explain Computer Fraud

computer fraud as any illegal act for which knowledge of computer technology is essential f or its perpetration, investigation, or prosecution.

Describe examples of computer fraud

Unauthorized Theft, Use, Access, Modification, Copying, or Destruction of Software or Data .

Theft of Money by Altering Computer Records or the Theft o f Computer Time.

Discuss how to mitigate computer fraud

Assess Security Measures and Protect Passwords

Implement Controls

Identify Computer Criminals

What is the impact of E-Business to the accounting profession?

Accounting profession needs to recognize, participate and become active player in the electronic system that a company posses.

Discuss how EDI connects the businesses to their suppliers or customers.

Through electronic network. Set of predefined communication protocols. Diagram.

Discuss how Internet search benefits the businesses and consumers.

Business:

looking for sources

checking out competitors

getting feedback from customers

consumers

finding products

comparing products/prices

learn more about pros/cons of something

What is virus? How does it affect the businesses?

Malicious software that disturb/damage software/system.

Business may lose data, time, secrets.

Describe ways to protect computer systems from virus attacks.

use anti-virus.

don’t download files from unknown sender.

use usb drive with caution.

always scan for potential virus files.

Describe the typical stages of “program development”.

analysis

design

coding

testing

installation.

What is the objective of financial accounting information systems?

to provide relevant information to individuals and groups outside an organization’s boundaries—e.g., investors, federal and state tax agencies, and creditors.

Describe three important documents produced by Accounting Information System.

Balance Sheet,

Profit and Loss,

Cashflow statement.

Explain the concept behind REA accounting

Resources,

Events,

Activities

List components of an AIS.

-software, hardware, data, procedures, people

Discuss six reasons why IT is important to accountants.

-compatibility, procumement, security, performance evaluation, business process, professional requirement

“Most accounting transactions are processed in a three-phase operation called the input-processing-output cycle”. Explain.

-input = get the required data

- process = compute the data to produce desired results

- output = presenting the rsult of processing.

List four attributes of a good quality information.

-timely, relevant, meaningful, complete

What is Decision Table? What is the purpose of preparing Decision Table?

- a table of conditions and processing tasks that i ndicates what action to take for each possibility. Sometimes, decision tables are used as an alternative to program flowcharts.

Provide a sample of Decision Table to support the following scenario:

“A credit union pays interest to its depositors at the rate of 5% per year. Accounts of less than $5 are not paid interest. Accounts of $1,000 or more that have been with the credit union for more than one year get paid the normal 5 percent, plus a bonus of. 5 percent”

What is Database? What is Database Management System?

Database=organized collection of data for efficient management and effective control. DBMS = a software to manage the database and handles interaction with business applications.

Discuss the importance of Database to businesses.

-Valuable information

-Volume

-Complexity

-Privacy

Briefly explain Computer Abuse.

- the unauthorized use o f, or access to, a computer for purposes contraryto the wishes o f the computer’s owner.

Discuss the privacy issues and identity theft in the Internet environment.

- Cookies

- The Fair Employment Practices Guidelines.

- Privacy Policy on websites.

- dumpster diving, phising, smishing

Discuss the advantages and disadvantages of the following application to the business.
a. Facebook.
b. Youtube.

Facebook: adv: marketing. Disadv: personal communication.

Youtube: adv: marketing. Disadv: time