TRIMESTER 2 2020 FINAL EXAMINATION
STUDENT ID
STUDENT NAME
SUBJECT NAME: Accounting Information Systems
SUBJECT CODE: BAP71
TIME ALLOWED: 3 hours
PERMITTED MATERIALS:

• This is an Open Book exam
INSTRUCTIONS FOR STUDENTS:
• You do not require a separate answer booklet. Please type your responses in the spaces provided.
• Type your full name and ID at the top of this page.
• This test consists of 3 Sections. All sections are compulsory. Students are required to attempt all questions included in each of the sections.
Section A – Multiple Choice Questions (10 Marks)
Multiple Choice Directions:
It is the student’s responsibility to select the correct answer. Read each question and its suggested answers. When you have chosen the alternative which best answers the question, type your answer in the space provided after each question.
Section A – Multiple Choice Questions (20 Marks)
Question 1:
IT governance is concerned with:
a) ensuring that the correct IT investment is always made.
b) controlling the use of IT within the organisation.
c) mandating selection procedures for new IT investments.
d) policies and procedures helping to align the use of IT and strategy.
[Answer here]

Question 2:
In which component of the internal control system would you see a concern with hiring and recruitment policies?
a) Control environment
b) Risk assessment
c) Control activities
d) Information and communication
e) Monitoring
[Answer here]

Question 3:
Sending customers a regular statement of account helps to detect:
a) under-billing only.
b) over-billing only.
c) neither (a) nor (b).
d) both (a) and (b).
[Answer here]

Question 4:
Monitoring the number of bad debts written off is useful to determine:
a) how accurately sales of goods and services are recorded.
b) how promptly goods and services are delivered.
c) how well the credit check control is working.
d) how well payments are recorded.
[Answer here]

Question 5:
Which of the following helps to determine demand for products?
a) The level of previous sales.
b) The forecast for future sales.
c) The business strategy.
d) All of the above.
[Answer here]

Question 6:
When choosing a supplier you should consider the:
a) product price only.
b) product quality only.
c) supplier service levels only.
d) business strategy.
[Answer here]

Question 7:
Which of the following is not an access control?
a) Disabling terminated employees’ accounts promptly.
b) Storing backup files off-site.
c) Logging inactive users out automatically.
d) Reviewing the access control log.
[Answer here]

Question 8:
An analytical review may involve identifying relationships:
a) by comparing this client’s data for the current year with industry norms.
b) within the same client database for the current year.
c) by comparing this client’s data for the current year with this client’s data in prior time periods.
d) all of the above.
[Answer here]

Question 9:
Which of the following according to futurists is unlikely to be a technology trend?
a) Internet of everywhere.
b) Increased security and privacy.
c) Jobs changing and evolving as technology disrupts more industries.
d) Big data.
[Answer here]

Question 10:
A company discovers that an employee has created a fictitious vendor on the vendor master file and the company has paid a total of $250 000 to this vendor through fake invoices. This is an example of fraud in the:
a) revenue cycle.
b) inventory management cycle.
c) expenditure cycle.
d) cash receipts cycle.
[Answer here]

Section B – Short Answer Questions (20 Marks)
Question 1: (5 Marks)
With respect to corporate and IT governance there are various stakeholders. Explain who they are and provide an example of a case study you have studied.
[Answer here]
Question 2: (5 Marks)
The audit committee is a subcommittee of the board of directors. What is the role of the committee and why do you think it is an important role?
[Answer here]
Question 3: (5 Marks)
Professionals like Accountants are expected to be ethical. Should ethics be important in business and why should we all be concerned about it?
[Answer here]
Question 4: (5 marks)
When designing a security system Engineers need to understand human behaviour and patterns. What seven principles should they consider?
[Answer here]
Section C – Case Studies (40 Marks)
Question 5: (20 marks)
A new Sales Director has joined your company. She is keen to increase sales by improving the efficiency of the sales process. She realises that the credit check on customers is slowing the process and wishes to remove the credit check. You are the CFO of the company and believe there are pros and cons with this idea. Prepare a memo for the CEO and explain the benefits and risks of removing the credit limit.
[Answer here]
Question 6: (20 marks)
You have now graduated and ready to enter the workforce. You see an advertisement in Seek.com and your eye catches a line that reads, “Accounting is an information system.” Based on your learnings in this subject prepare a cover letter to the prospective employer outlining your understanding of this statement and explain what this statement could mean from the employer’s perspective.
[Answer here]
END OF EXAM PAPER