First MTP for CA INTER EIS-SM (May 20 Exams) Saket Ghiria Classes (9910674854)

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CA INTER: GROUP – II
PAPER – 7: Enterprise Information Systems & Strategic Management
This Question Paper Contains Two Sections. Section A is of 10 Marks, Section B is of 40 Marks.
Time Allowed – 90 Minutes Chapter No. 1 & 2 of EIS Maximum Marks – 50
Section A – Case Scenario Based MCQs Total 10 MARKS
All Questions are Compulsory. Only write the correct option without any explanation.
First Case Scenario Based MCQs (Total 5 MARKS, 1.25 MARK for Each Question)
Today as volume of transactions are huge, companies have shifted to computerized system of accounting from
the manual accounting system and some of the big organisations also adopted full fledge enterprise resource
planning (ERP) system to get a competitive advantage against the smaller rivals as ERP is an integrated system
thus it provides significant benefits over the non-integrate system. In the computerized accounting system, there
are various steps involved to process the transaction and finally preparing the financial statements. The very first
requirement of the computerized system of accounting is that all transactions must be supported by some
documentary evidences called vouchers. There are various kinds of vouchers used for different purposes. The
vouchers should be numbered properly. After the posting of vouchers, ledgers are prepared. The uses are allotted
the user ID and password for accessing and using the computerized accounting system. Mr. Mayank who has
recently joined an organisation which uses the computerized accounting system also got the user ID and
password through which he can view and edit the financial records.

Based on the above case scenario, answer the following questions:

(Q.N. 1) Consider the following statements about the voucher numbering:

(i) As far as possible, voucher number must be unique for every voucher
(ii) Every voucher type should have common numbering system for easy identification and proper recording
in the system
(iii) A voucher number may have prefix or suffix or both
(iv) Vouchers can be recorded in the system in the discretionary order i.e. voucher issued earlier should have
earlier number

Which of the above statements are correct?

(a) (i), (ii) & (iii) Only

(b) (ii) & (iv) Only

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First MTP for CA INTER EIS-SM (May 20 Exams) Saket Ghiria Classes (9910674854)
(c) (i), (iii) & (iv) Only
(d) (i) & (iii) Only

(Q.N. 2) Mr. Mayank has limited knowledge of accountancy but has recently join an organisation as an
accountant. The company has transferred fund from our one bank account to our own another bank account. For
recording this transaction, _________ voucher is used.

(a) Contra
(b) Journal
(c) Transfer
(d) Notional
(Q.N. 3) The user ID and password allotted to Mr. Mayank has been stolen by Mr. Raja who is a cashier in the
organisation. Which of the following section of Information Technology Act, 2000 as amended, could be used to
punish Mr. Raja for the theft of user ID and password of Mr. Mayank?

(a) Section 66D

(b) Section 66C
(c) Section 66B
(d) Section 66E

(Q.N. 4) Consider the following statements about the accounting flow mechanism of the accounting and financial
software system:

(i) Voucher entry task may either be performed manually or can also be automated
(ii) Posting, Balancing and Trial Balance task is usually performed manually to ensure high accuracy and
better controllability
(iii) Voucher entries are carried out after the balancing task is done
(iv) Profit and loss account and balance sheet is the output of accounting flow mechanism

Which of the above statements are correct?

(a) (i), (ii) & (iii) Only

(b) (ii) & (iv) Only
(c) (i), (iii) & (iv) Only
(d) (i) & (iv) Only

Second Case Scenario Based MCQs (Total 5 MARKS, 1.25 MARK for Each Question)
Aircon Ltd. is a mid-size manufacturer of automobile parts and components. It has adopted process automation
for procure to pay (P2P), some of its crucial manufacturing and order to cash (OTC) process recently. After
successfully establishing itself in the automobile industry, Aircon Ltd. is now well positioned in the automobile
parts and components market. Not only in India, it has grown significantly in the foreign markets and it generates
over 35% of its total revenue from the European Markets. With the growing operations, Aircon is increasingly
concerned about the various risks affecting its business and is considering to have proper risk management
strategies so to mitigate the impact thereof. Risks can be classified into various categories like business risk like
strategic risk, compliance risk, operational risk, hazard risk etc., technology risk, data related risks etc. As most of
the organisations are using technology to perform various business processes, technology risk also got huge
importance. However it also understands that all kinds of risks are not applicable to every kinds of organisations
and some kinds of risks are more prevalent in some particular types of organisations.

Based on the above case scenario, answer the following questions:

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First MTP for CA INTER EIS-SM (May 20 Exams) Saket Ghiria Classes (9910674854)
(Q.N. 1) Considering the Business Process Automation concept, __________ ensures that data is only available
to persons who have right to see the same while _____________ ensures that no un-authorized amendments
can be made in the data.

(a) Confidentiality, Availability

(b) Confidentiality, Integrity
(c) Integrity, Confidentiality
(d) Integrity, Availability

(Q.N. 2) Aircon Ltd. was facing the issues like disbursement made to unauthorized supplier, disbursement made
for the goods not received etc. It is best represented by ____________ risk.
(a) Masters P2P
(b) Masters O2C
(c) Transactions P2P
(d) Transactions O2C

(Q.N. 3) Which of the following statement best describes Hazard risk?

(a) Any risk remaining even after the counter measures are analyzed and implemented.
(b) Risk that could prevent the organization from operating in the most effective and efficient manner.
(c) Risk that could expose the organization to fines and penalties from a regulatory agency.
(d) Risks that are insurable, such as natural disasters, impairment of physical assets, terrorism etc.

(Q.N. 4) Identify the incorrect statement among the following.

(a) Even when all the possible safeguards are applied, there is probably going to be some residual risk called
safeguard risk. The risk can be minimized, but it can seldom be eliminated.
(b) If a single employee can initiate, authorize and disburse a loan, the possibility of misuse cannot be
ignored.
(c) Organizations must ensure that the systems implemented by it should cater all the business objectives as
well as meets its regulatory requirements.
(d) There may not be one but multiple vendors providing different services. This also represents a risk.

Section B – Subjective Questions Total 40 MARKS

All Questions are Compulsory.
(Q-1). Briefly explain the associated risk and key controls required for each of the following aspects of ERP
implementation process. (8 MARK)
(a) System Failure
(b) Application Portfolio Management
(c) Consultants
(d) Lengthy implementation time
(Q-2). Describe Role-Based Access Control (RBAC) mechanism in ERP Systems. (3 MARK)
(Q-3). The GST of 80 items is to be calculated as per the following details. With Code No. and Value of Supply as
input, draw a flowchart to calculate Tax and print the Tax, Code No. of the Item and the Type of Item. (6 MARK)

Code No. (C.N.) Types of Item Tax Rate

001 Perishable 18%
002 Textiles 10%

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 First MTP for CA INTER EIS-SM (May 20 Exams) Saket Ghiria Classes (9910674854)
003 Luxury Items 28%
004 Machinery 12%

(Q-4). Mr. Bhanu Pratap is the managing director of Bhanu Plastics Ltd., a large family owned business.
Considering the needs of the business, Mr. Bhanu is considering to automate the order receipt and delivery
system of the company. In this process, company has determined the objectives and goals to be achieved
from the BPA exercise. What is the next step company should consider in this regard? Explain briefly with
the aspects needed consideration for the same. (4 MARK)
(Q-5). Briefly explain the Plant Maintenance Module of the ERP System. Also state its objectives. (5 MARK)
(Q-6). What is data analytics? Also briefly explain data analytics process. (5 MARK)
(Q-7). Explain the term vulnerability. When a computing system can be considered as vulnerable? Explain
briefly. (5 MARK)
(Q-8). What are the application controls? List any four examples of application controls. (4 MARK)

End of Question Paper

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