UKAI 2023- Tutorial Solution

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTING AND MANAGEMENT (FAM)
ACADEMIC YEAR: 2012/2013
MAY 2012 TRIMESTER
UKAI 2023 ACCOUNTING INFORMATION SYSTEMS 1
Bac!"#$ #% Acc#&'()'* (H#'+)
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REVIEW QUESTIONS
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UKAI 2023- Tutorial Solution
1. Operational, operations management, middle management, and top
management. Horizontal flows support operation-level tasks. The
information is highly detailed about the day-to-day operations. Vertial flows
distribute summarized information to managers at all levels, and this
information flows upward. !nstrutions, "uotas, and budgets also flow
downward.
#. $ystem deomposition is the proess of dividing the system into smaller
subsystem parts, while interdependeny is the interation between the
subsystems. They are related by the degree and nature of the interation
between the subsystems. !f a vital subsystem fails, the entire system will
most likely fail.
%. &ata are fats that are olleted in a 'raw( form and made meaningful
through proesses suh as sorting, aggregating, lassifying, mathematially
manipulating, and summarizing. The meaningful data is onsidered to be
information.
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UKAI 2023- Tutorial Solution
). *!$s proess finanial transations and ertain nonfinanial transations
that diretly affet the proessing finanial transations. The e+ternal
finanial reporting douments of *!$ are sub,et to legal and professional
standards. -onse"uently, management and aountants have greater legal
responsibility for *!$ appliations than for .!$ appliations. The .!$
proesses nonfinanial transations that are outside the sope of the *!$.
.!$ appliations e+pand the information set provided to suh areas as
prodution, sales, marketing, and inventory management. .!$ often draws
from and builds on data from the *!$.
/. 0evenue yle, e+penditure yle, and onversion yle.
1. $torage, retrieval, and deletion.
2. 3eedbak is output that is sent bak to the system as a soure of data.
3eedbak is useful beause it an be used to initiate or ad,ust the system
proesses.
14. a. to support the stewardship funtion of management,
b. to support the deision-making proesses of managers, and
. to support the day-to-day operations of the firm.
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UKAI 2023- Tutorial Solution
15. 6udgets and standards are set by upper-management levels. The
responsibility for meeting these goals is passed to the managers at the
losest operational level. !n order for these managers to have the power to
make a differene as to whether these goals and7or standards are met, they
must be entrusted with the appropriate level of authority to make deisions.
0esponsibility of goals and standards, along with orresponding
authoritative powers, flow downward. The results of the operations must
flow upward to upper-level management. These upward flows represent
reports, whih hold managers aountable for their deisions and
management ations.
1#. Turnkey systems are ready to implement systems that may be purhased.
6akbone systems are partially developed systems with an underlying basi
struture that is built on to suit the lient8s uni"ue needs. Vendor-supported
systems are ustom systems provided, maintained, and supported by a
ommerial vendor.
1%. !nternal auditors are responsible for in-house appraisal of the finanial
reporting system. !nternal auditors are onerned with deterring and
deteting fraud and for onduting 9&: audits. 9+ternal auditors are
independent -:*s engaged by the firm to attest to the ompleteness and
auray of the finanial statements. 9+ternal auditors work together with
the internal auditors.
1). The database administrator is responsible for the seurity and integrity of
data stored in a entral database.
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UKAI 2023- Tutorial Solution
1/. ;eographi loation, produt lines, and funtion.
11. !n a entralized data proessing approah, the omputer servies funtion
is entrally loated. The databases are housed in one plae where all of the
data proessing ours by one or more main omputers. *ll systems
development and maintenane work for the entire organization is performed
by systems professionals. 9nd users wishing to have new systems or
features must submit a formal re"uest to this group and are usually
prioritized and plaed in a "ueue.
!n a distributed data-proessing approah, the -:<s are spread out and
ontrol over data and proessing is at the information proessing unit =!:<>
level. Thus, end users have more influene over the systems development
pro,ets, whih are typially handled by systems professionals at the !:<
level.
DISCUSSION QUESTIONS
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UKAI 2023- Tutorial Solution
1. The level of detail neessary for the stokholders is highly aggregated and
typially follows the format presribed by the $9- and ;**:. .uh more
detailed information is neessary for middle management to plan and
ontrol operations. Highly detailed information is needed at the operations
management level in order to run the day-to-day business proesses and
operations.
5. 3inanial transations affet the aounts in the balane sheet in some
manner. Three e+amples are 1> use of e"uipment-depreiation, 5> payment
of a bond payable, and #> reeipt of ash from a ustomer for a sale
previously made on aount. ?onfinanial transations inlude business
events that do not impat the finanial statements. Three e+amples are 1> a
book heked out by a student in a shool library, 5> the reording of a
ustomer omplaint via a toll-free hotline, and #> status reports of researh
and development pro,ets.
/. 9ffiieny is ruial to an *!$. The ost of olleting and produing
information should not outweigh its benefits. 3urther, the appliations should
be run in a manner that plaes the least strain on the overall system. 3or
e+ample, the printing of heks to vendors should not be done during the
day if it slows down the online sales order proessing system in a
multitasking environment.
!n order for a system to be effetive, the appropriate data should be
proessed, and the resulting information disseminated to the appropriate
users. 3or e+ample, an aounts reeivable delin"uent report should be
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UKAI 2023- Tutorial Solution
sent to the olletion department in a timely fashion, so that measures an
be taken to ollet the funds. The ability to reat to a hange is very
important, espeially in an 30$ where reporting re"uirements and
standards hange fre"uently.
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UKAI 2023- Tutorial Solution
2. The internal auditors are responsible for deteting and pursuing fraud within
the firm. !f management-level employees are involved, the internal auditors
may fear losing their ,obs if they blow the whistle on suh ativities. Thus,
the internal auditors should report to the board of diretors so that they do
not fear any reperussions of their ations from top management.
14. !n a entralized data-proessing environment, the omputer servies
personnel are all housed in one department where all of the systems
development and maintenane takes plae. 9nd users must formally
re"uest any additions or enhanements to the urrent system. !n a
distributed data proessing =&&:> system, the systems professionals may
still be housed together or they may be loated throughout the various
segments of the organization. 9nd users gain more ontrol over their data
and appliations. &&: is beoming more and more popular as networking
omputers is beoming easier and more ommonplae.
11. *ountants, although providers of finanial information to both internal and
e+ternal users, are still the primary 'users( of the *!$. The aountants
oversee the data olletion, proessing, and output of the *!$. Thus, as new
*!$s are developed by system professionals, aountants8 needs as seen
from the viewpoint of a user are very important. Thus, the aountants guide
the systems developers by onveying their needs and onstraints.
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UKAI 2023- Tutorial Solution
15. The aounting funtion provides reord-keeping servies for all of the
operations and day-to-day ativities of other departments, whih affet the
finanial position of the organization. 0eord-keeping tasks must be kept
separate from any area that has ustody over assets. Thus, the aounting
funtion must remain independent so that the protetion of the firm8s assets
is arried out in an environment with minimum possibilities for theft.
1#. Turnkey. These are ompletely finished and tested systems that are ready
for implementation. Typially, they are general-purpose systems or systems
ustomized to a speifi industry. Typially the end user will have standard
business praties that permit the use of 'anned( or 'off-the-shelf( systems
that an be employed with little or no modifiation.
In-house. @arger organizations with uni"ue and fre"uently hanging needs
engage in in-house development. The formal proess by whih this is
aomplished is alled the system development life yle.
Backbone. 6akbone systems onsist of a basi system struture on whih
to build. The primary proessing logi is preprogrammed, and the vendor
then designs the user interfaes to suit the lient8s uni"ue needs. *
bakbone system is a ompromise between a ustom system and a turnkey
system.
PROBLES
#. a. .0$
b. T:$
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UKAI 2023- Tutorial Solution
. 30$
d. .0$
e. T:$
f. 30$
g. .0$
h. T:$
i. 30$
,. T:$
k. .0$
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