AIS Exam 1 Questions With Complete Correct Answers.

Accounting Information Systems Defined - A set of interrelated activities, documents, and technologies designed to collect data, process it, and report information to a diverse group of internal and external decision makers in organizations. AIS - -No "right" answer -Develop professional judgment and confidence in ability to analyze unstructured problems -No clear cut, easy, simplistic answers Five part of AIS - Inputs, processes, outputs, storage, internal controls. Inputs - Inputs to an AIS might include documents such as sales invoices and purchase orders. Accountants would also need to ask questions like those to design and/or audit the system: -what kind of source documents will the system users need? -should the documents be paper-based, electronic, or both? -how many copies of each document will be required? -what information should the documents contain? Processes - Processing tools can include computers and satellites. Here are some other questions you might ask about processing tools: -which processing tools should the AIS use? -should the tools be manual, computer-based, or both? -if computer-based tools are used in the AIS, which software and hardware packages should be implemented? Outputs - System outputs for most organizations would include the general-purpose financial statements as well as internal reports such as variance analyses. Other considerations include: -Beyond the general purpose financial statements, what other reports will managers and system users need? -How should the AIS be designed to facilitate their production?Storage - Data in an AIS system could be stored locally (as in a cash register or a transactions file) or remotely (as on an external network). Organizations also might maintain paper-based records of transactions. Relevant questions about storage include: -How should data be stored? On paper? Electronically? Both? -Where should the data be stored? Locally? Remotely? Both? -How long should data be stored? -Under what conditions can/should data be destroyed? Internal Controls (AIS Structure) - Most organizations employ internal controls such as daily backup of data and separation of duties (custody, authority, and record keeping) to maintain control over specific assets. Other questions might be: -What controls are necessary to promote information integrity in the AIS? -What behavioral effects are the controls likely to have? -Are the controls cost-effective?