Page 227 - Accounting Information Systems

198 PART II Transaction Cycles and Business Processes

Discussion Questions

1. Why do firms have separate departments for 9. What financial statement misrepresentations may
warehousing and shipping? What about warehous- result from an inconsistently applied credit policy?
ing and inventory control? Doesn’t this just create Be specific.
more paperwork? 10. Give three examples of access control in a POS
2. Distinguish between the sales order, billing, and system.
AR departments. Why can’t the sales order or AR 11. Discuss the trade-off in choosing to update the
departments prepare the bills? general ledger accounts in real time.
3. Explain the purpose of having mail room 12. Discuss how the nature of the necessary internal
procedures. control features is affected by switching from a
4. In a manual accounting system, what advantage manual system to (1) a large-scale computer-based
does the journal voucher system have over the accounting system or (2) a PC-based accounting
traditional general journal system? system.
5. How could an employee embezzle funds by issuing 13. Under what circumstances will automated mail
an unauthorized sales credit memo if the appropri- room procedures provide the most benefit? The
ate segregation of duties and authorization con- least benefit?
trols were not in place? 14. What makes POS systems different from revenue
6. What task can the AR department engage in to cycles of manufacturing firms?
verify that all customers’ checks have been appro- 15. Is a POS system that uses bar coding and a laser
priately deposited and recorded? light scanner foolproof against inaccurate updates?
7. Why is access control over revenue cycle docu- Discuss.
ments just as important as the physical control 16. How is EDI more than technology? What unique
devices over cash and inventory? control problems may it pose?
8. How can reengineering of the sales order proc- 17. Discuss the key segregation of duties related to
essing subsystem be accomplished using the computer programs that process accounting
Internet? transactions.

Multiple-Choice Questions

1. Which document is NOT prepared by the sales 3. Which function should the billing department
department? NOT perform?
a. packing slip a. record the sales in the sales journal
b. shipping notice b. send the ledger copy of the sales order to
c. bill of lading accounts receivable
d. stock release c. send the stock release document and the ship-
ping notice to the billing department as proof
2. Which document triggers the update of the inven-
of shipment
tory subsidiary ledger?
d. send the stock release document to inventory
a. bill of lading
control
b. stock release
c. sales order
d. shipping notice