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Accounting Information Systems(Bbit 311)  Question Paper

Accounting Information Systems(Bbit 311)  

Course:Computer Information Systems And Business Information Technology

Institution: Kenya Methodist University question papers

Exam Year:2010



TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions

Question 1
a) Define an Accounting Information System (AIS). (2marks)
b) Give three functions performed by an AIS. (3marks)
c) State any three characteristics that distinguish an AIS from other computer based information systems. (3marks)
d) Reliable accounting information systems protect confidential information from unauthorized disclosure. Identify the accounting information systems controls that can be used to do the following:
i) Protect the confidentiality of sensitive information. (2marks)
ii) Protect privacy of customers’ personal information. (2marks)
iii) Ensure processing integrity. (2marks)
iv) Ensure that the system is available when needed. (2marks)
e) Accounting data needs to be stored and organized in a ledger for easy and efficient access of data.
Define a ledger and state its contents. (3marks)
f) Giving appropriate examples, distinguish between a general ledger and a subsidiary ledger. (4marks)
g) Identify three types of audits that are commonly performed to examine all elements of the computerized accounting information system. (3marks)
h) Computer audit software (CAS) is a program that has been written especially for auditors to perform the audit function. Explain briefly four functions performed by CAS. (4marks)

Question 2
The transaction cycle begins with capturing data about a transaction and ends with an information output, such as financial statements. Discuss
a) How the basic business transactions can be grouped. (5marks)
b) The transactions in every group. (5marks)
c) How each transaction cycle relates to other cycles. (5marks)
d) How each transaction cycle interfaces with the general ledger and reporting system, which generates information for management and external parties. (5marks)

Question 3
Explain how the following tasks can be accomplished in QuickBooks:
i) Adding a customer
ii) Turning on stock and purchase orders
iii) Backing up and restoring data
iv) Entering a cash sale
v) Receiving payments in QuickBooks
vi) Placing a purchase order
vii) Receiving items which had been ordered with bill
viii) Purchase of items on cash
ix) Recording a sale on credit
x) Generating financial reports (profit and loss, balance sheets, sales analysis charts e.t.c.) (20marks)

Question 4
You are involved in the process of systems development for the accounting function in your organization. Discuss the FIVE stages which the team will go through during the development of the IS. (20marks)






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