Page 64 - Accounting Information Systems

C H A P TER 1 The Information System: An Accountant’s Perspective 35

10. What rules govern data collection? 23. Distinguish between the centralized and distrib-
11. What are the levels of data hierarchy? uted approaches to organizing the IT function.
12. What are the three fundamental tasks of database 24. What is the role of the data control group?
management? 25. What is distributed data processing?
13. What is feedback and how is it useful in an infor- 26. What are the advantages and disadvantages of
mation system? distributed data processing?
14. What are the fundamental objectives of all infor- 27. What types of tasks become redundant in a
mation systems? distributed data processing system?
15. What does stewardship mean and what is its role 28. What is a flat-file system?
in an information system? 29. What are the three general problems associated
16. Distinguish between responsibility, authority, and with data redundancy?
accountability. Which flow upward and which flow 30. Define the key elements of the REA model.
downward?
31. What is an ERP system?
17. Distinguish between turnkey, backbone, and
32. What three roles are played by accountants with
vendor-supported systems.
respect to the information system?
18. List each of the functional areas and their sub-
33. Define the term attest function.
functions.
34. Define the term assurance.
19. What are the roles of internal and external auditors?
35. What is IT auditing?
20. What is the role of a database administrator?
36. Distinguish between conceptual and physical
21. Name the three most common ways to segment
systems.
an organization.
22. What is the role of the accounting function in an
organization?

Discussion Questions

1. Discuss the differences between internal and 8. Discuss how the elements of efficiency, effective-
external users of information and their needs and ness, and flexibility are crucial to the design of an
demands on an information system. Historically, information system.
which type of user has the firm catered to most? 9. Discuss what is meant by the statement, ‘‘The
2. Comment on the level of detail necessary for accounting system is a conceptual flow of informa-
operations management, middle management, and tion that represents the physical flows of person-
stockholders. nel, raw materials, machinery, and cash through
3. Distinguish between financial and nonfinancial the organization.’’
transactions. Give three examples of each. 10. Discuss the importance of accounting indepen-
4. Why have re-engineering efforts been made to dence in accounting information systems. Give an
integrate AIS and MIS? example of where this concept is important (use
an example other than inventory control).
5. Do you think transaction processing systems differ
significantly between service and manufacturing 11. Discuss why it is crucial that internal auditors
industries? Are they equally important to both report solely to the uppermost level of manage-
sectors? ment (either to the chief executive officer or the
audit committee of the board of directors) and an-
6. Discuss the difference between the financial
swer to no other group.
reporting system and general ledger system.
12. Contrast centralized data processing with distrib-
7. Examine Figure 1-5 and discuss where and how
uted data processing. How do the roles of systems
problems can arise that can cause the resulting
professionals and end users change? What do you
information to be bad or ineffective.
think the trend is today?