Reference no: EM133081047

ACCG250 Accounting Systems Design and Development - Macquarie University

Section A:
1. Which of the following is least likely to be an output of the accounting information system?

a. Check
b. Invoice
c. Report
d. A Bar code

2. IT governance includes all but which of the following responsibilities?

a. Aligning It strategy with the business strategy
b. Writing programming code for IT systems
c. Insisting that an IT control framework be adopted and implemented
d. Measuring IT's performance

3. Which phase of the system development life cycle includes determining user needs of the IT system?

a. Systems planning
b. Systems analysis
c. Systems design
d. Systems implementation

4. Each of the following are methods for implementing a new application system except:

a. Direct conversion
b. Parallel conversion
c. Phased conversion
d. Test method

5. In comparison between Prototyping and RAD, which one is wrong

a. Both methods use an iterative approach in system development
b. Both of them save time
c. Prototyping and RAD use CASE tools in developing a system
d. Both methods emphasize on the speed of development

6. Which of the followings is not a situation where Outsourcing should be considered

a. When IT is a core competency area
b. When organisations do not have skilled IT staff that can keep technology up to date
c. When organisations may not be able to manage technology as well as firms that specialise in managing IT
d. When IT is cheaper to outsource

7. Which control activity is intended to serve as a method to confirm the accuracy or completeness of data in the accounting system?

a. Authorization
b. Segregation of duties
c. Security of assets
d. Independent checks and reconciliations

8. Control environment is

a. The attitude, emphasis and awareness of an organisation's management towards internal control and its operation within the organisation
b. The attitude, emphasis and awareness of the government towards internal control and operations within organisations
c. The attitude, emphasis and awareness of the legislative entities towards internal control and operations within organisations
d. All of the above

9. Which of the following statements is incorrect?

a. General controls operate across the organisation
b. General controls relate to the overall environment in which different information systems are located
c. General controls relate to specific applications and processes
d. General controls affect the operation of various information systems within an organisation indirectly

10. Which of the following statements is true?

a. Standardised forms help ensure completeness
b. Standardised forms help ensure accuracy
c. Standardised forms can be seen as a preventive control.
d. All of the above

11. In documenting systems, which pictorial method is described as a method that diagrams the actual flow and sequence of events?

a. System flowchart
b. Process map
c. Data flow diagram
d. Entity relationship diagram

12. Which of the followings is not correct?

a. Ethics and the law overlap
b. Ethics and religion overlap
c. Ethics has implications on Business revenues
d. Ethics is an objective matter

13. An intangible product (e.g. a song) which is based on someone's knowledge, experience and innovation is an example of a(an)

a. Copy Righted Property
b. Intellectual Property
c. A small text data file created by a web server that is stored on your computer
d. Hidden in free downloadable software and tracks your use of the internet

14. Which of the following ethical theories is more considered to be a practical approach?

a. Theory of Rights
b. Theory of Justice
c. Utilitarianism
d. Contractual Theory

15. A large retailer sells their database of customers' information to an insurance company. The insurance company sends email to the customers with an special offer on comprehensive car insurance. Majority of customers are happy to receive such an offer. This action is unethical, based on which of the following theories?

a. Theory of Rights
b. Consequential theories
c. Utilitarianism
d. Normative ethical theory

16. Which of the following statements is not true?
a. A financial AIS audit is a vital component of an entity's audit
b. All AIS audit staff should be able to audit any AIS
c. AIS auditors need continuous professional development
d. Postgraduate qualifications exist for AIS auditing

17. To test that the system will provide an appropriate response to every invalid input:

a. every possible permutation of valid transactions that could be entered into the system needs to be tested
b. every possible permutation of invalid transactions that could be entered into the system needs to be tested
c. every possible permutation of valid and invalid transactions that could be entered into the system needs to be tested
d. every possible permutation of valid and invalid transactions that could be entered into the system needs to be tested

18. The purpose of tracing sales invoices to shipping documents would be to provide evidence that:

a. shipments to customers were properly invoiced
b. no duplicate shipments or billings occurred
c. goods billed to customers were shipped
d. all prenumbered sales invoices were accounted for

19. Personnel who work in the receiving area should complete all of the following processes except:

a. Counting the goods received
b. Inspecting goods received for damage
c. Preparing a receiving report
d. Preparing an invoice

20. In a system of proper internal controls, the same employee should not be allowed to:

a. sign checks and cancel the supporting voucher package
b. receive goods and prepare the related receiving report
c. prepare voucher packages and sign checks
d. initiate purchase requisitions and inspect goods received

Section B:

1- List and briefly describe the steps required to perform an information systems audit.

2- There are different information systems development methodologies. Are these methodologies mutually exclusive? Why
Identify the ways that prototyping can be used to overcome two problems with SDLC (1 mark for addressing each problem).

3- A software development project has been identified as having six stages, these being
(i) design the logical plan for the software operation, (ii) select a programming language, (iii) write source code, (iv) test the source code, (v) integrate software with existing applications, and (vi) train users. The time estimates for each of these activities are contained in the following table, as well as actual time taken (where available, since the project is only partly complete).

Project activities, budgeted time and actual time

(a) Comment on the ability of the project to meet its schedule: if all remaining activities are completed according to budgeted times, will the project be completed on time?

(b) What activities are over schedule?

4- (a) What is IT governance? Describe four objectives of IT governance.

(b) Describe the relationship between the risk assessment and control activities components of the COSO framework.

Section C: System Planning and Development - Answer this in the space provided

Encosta Memories is a small family photography business. The business has a good reputation for high-quality photos and enjoys longstanding arrangements with many schools for the provision of school photos. Encosta Memories has traditionally used a small accounting package to manage its operations, with Make Your Business Profitable ‘MYBP' being the package currently in use. Recently, however, a few of the staff in the administration team have complained that MYBP has become slow in processing transactions. The computer that runs the program is also fast approaching its capacity, having not been updated for several years and now also handling some of the business's digital imaging requirements.

As a result of the strained system, Encosta Memories is considering the possibility of an upgrade. However, it is concerned that should it go ahead with an upgrade, it would have to employ a programmer to develop its new system, as well as a full-time IT specialist to keep the system running. It is also unsure of what needs to be done in managing the systems development process.

One of the things particularly troubling Mr De Lago, the part owner of Encosta
Memories, is the possibility of investing capital now and having to do so again in a couple of years time as technology changes. However, he does not mind spending a large sum now if the system is a long-term answer, since, as De Lago himself said,
‘Once the system is acquired then the business can get back to normal and do what it does best
- take photos - without having to spend money on IT.'
In light of the details you have about Encosta Memories, prepare a discussion in relation to the following questions:

Required:

1. (a) Is this De Lago's statement correct: ‘Once the system is acquired then the business can get back to normal and do what it does best - take photos - without having to spend money on IT'?
(b) Explain your reasoning.

2. Consider Application Service Provider (ASP), SDLC, and Outsourcing methods. Which of these methods would be the best choice for Encosta Memories to limit the costs of maintaining the system once it is in place within the organisation? Why?

3. Would you recommend that Encosta Memories make or buy the new system? Why?

4. Identify four possible consequences for Encosta Memories of relying on a single vendor for the system?

5. Explain five typical systems development problems may Encosta Memories face in developing the new system?

Section D: Controls and Business Cycle

The computer system requires all users to log on with a user identification (their first initial and the first six letters of their surname), and a password that is assigned to users when they join the firm (that is unable to be changed). The users have access to the internet and several have installed Windows Live Messenger and other chat programs on their machines.

The main task of John, one of the staff members, is to perform data entry. Each day he receives a bundle of orders from the customer assistant, with John's job being to enter the details into the system. John first enters the customer name, address and contact number then clicks on the ‘Next' button to enter the items and quantities ordered by the customer. If the customer name is not provided the computer will prompt John to go back and fill in the details before proceeding to the next screen. In addition, the computer will only accept numeric values for the quantities ordered. Once all orders are entered John clicks the ‘Done' button and the computer displays the number of orders entered on the screen. John usually ignores this, because by the time orders have been entered it is usually lunch time.

Required:

Use the following table and answer the following questions

1- Identify five risks in the process.

2- Suggest an internal control for each risk (the control may be mentioned in the case or missing and you think it should be applied).

4- Indicate whether the control is present or missing in the case.

5- Classify the control as general or application.

Section E: Ethics

Andrew Martins is the CEO of ABCD medical centre in North Sydney. In 2005, he purchased MedicFlex, customer relationship management software, to gather patients' personal information in one place, to more efficiently process patients' historical disease information, and to allow the doctors' to better communicate with their patients. By July 2010, the information for almost 20,000 patients were stored in MedicFlex.

In November 2010, Andrew met David Wong in an Asia-Pacific conference on e-health. David was the CEO of one of the largest health insurance providers in Asia-pacific region. He offered Andrew one million dollars to purchase MedicFlex patients database. He wanted to use patients' information in this database for promoting his insurance company's health services. David also promised to carefully maintain the security of the database and not to share the information with any other parties or companies.

Andrew decided to sell the patients database, as he argued that both the customers and the medical centre benefit from this decision. Not only most of the customers will benefit from David's exciting insurance offers and services, also he could use the money from selling the database to renovate the medical centre.

Required:

1- Explain how a Teleological approach is different from a Deontological approach.

2- Based on of the theory of Rights, identify and explain whether Andrew's decision to sell patients' information was an ethical or unethical decision.

3- Identify six stakeholders and describe the roles in this case

4- Explain Ethical Decision Making model. Apply this model to the above case