1. Describe the three roles that an accountant can play in the AIS?

Designer, user, auditor

Designer - designer of an Accounting Information System is responsible for conceptual

design includes the design of managerial accounting information system. They determines as
to what accounting principles, auditing principles,Information System techniques and
developments methods to be applied. Designers are the primary users of AIS in modern
business technology.

Users-Accountants also actively participate in systems development and AIS designe process
to ensure appropriate system design. The design process to be effective, the users must
know how the systems are develop and what are the techniques and technology to be used
in the new system.

Audior- Accountants audit AIS to provide assurance in services.They are insterested on how
reliable the accounting data are and of the reports produced by the system. They must also
know what are the system development techniques, controls, technology used and the
design and operation of the AIS. Addtionally, internal auditor”s function is to perform wide
range of activities on behalf of the organization andf it includes the conducting of financial
statement audits while the external auditor’s function is limited as to system auditor.

2. Discuss the following that comprise the components of the study of AIS.

Technology, Databases, Reporting, Control, Business Operation, Events Processing,

Management Decision Making, Systems Development and operation, Communications,
Accounting and Auditing Principles

Technology - It enables businesses to develop, store and record financial transactions.

Technology provides on which AIS and business operations rest. So, it is important to have
knowledge of technology to understand AIS discipline.

Database - Accounting Information system basically tracks and records accounting-related

activities that are essentially used in decision making. So, this includes data collection and
storage to aid the decision-making process at all levels of management.

Reporting - Financial informations are communicated through reports. Accounting systems

make use of a variety of scheduled-demand reports.To layout reports generated by an
information system, the accountants need to recognize what outputs are desirable. Through
using powerful report-generating tools or adatabase query language, the user will prepare a
report on an ad hoc basis. These reports are ften support management decisions as well as
fulfill certain reporting obligations.

Control- Control are relevant rules and regulations of an entity to ensure the integrity of the
business activies accounting, accounting data, and the accuracy of corporate assets, in
accordance with the accounting principles and accounting system, developed, control,
business processes, etc. related management measures.

Business Operations - These are the activities that the businesses engage in day to day basis.
It includes hiring employees, purchasing inventory, and collecting cash from customers. An
AIS helps different departments to work together effectively.

Events Processing - Events includes sales and purchases of an entity. The data collected must
be captured and recorded to monitor business operations.

Managemnet Decision Making - An AIS enables better anlysis and decion-making based on
data collected. It helps users specifically managers to reduce uncertainty before making
decisions. Also in making management decisions, the information used must be aligned as to
what options are bing considered.

Systems Develpoment and Operations - information system process business events and
provide information for the manangement to be used in decision-making. It must be
effectively designed, impletemented and operated.

Communications - Communication is the core activity in accounting that is why, accountants

must possess a strrong communication skills in both written and oral to effectively
communicate the accounting information to the users.

Accounting and Auditing Principles - The account must have enough knowledge when it
come to proper accounting procedures as well as undertanding audits to which the
accounting information will be subjected to operate the accounting system.

4.1

1. A - This activity falls under the functional category of authorizing event because there is a
requirement of approval which means that without the acceptance from the shipping
department, the documents will not be shipped.

2. D - This activity falls under safeguarding resources because keeping an inventory item in a
locked storeroom means safeguarding what resources you have from any harm.

3. B- This activity falls under the executing events because to prepare and mails a bill to a
customer shows that the department execute their jobs.

4. C- This activity falls under the recording events because the invoice in item 3 is added to
the customer balance in the accounts receivable master data and it shows that it ensures
that the data reconcile with the system activity.

5. C- This activity falls under the recording events because the general ledger bookkeeper
enters a sales event in a data file it means that there is an act of recording a transactiondone
by the bookkeeper.
6. B- This activity falls under executing events because the purchasing department order
goods which shows an execution of an event and that is order made.

7. A- This activity falls under authorizing events because the inventory control department
signs a document requesting that goods be purchased so it means that there is a need of
confirmation by the inventory control department before the purchase of goods.

8. A- This activity fall under authorizing events because the purchasing department manager
reviews and signs all purchase order documents in excess of $100 which means that the
purchase order in th excess of 100 US dollars must be verified.

9. B- This activity fall under executing events because receiving department processes goods
received from the vendor means that there is an execution of an event.

10. C - This falls under recoring events because the receiving department completes the
receiving report means that shows that there is a recording of a transaction by the receiving
department.

11. D - This activity falls under safeguarding resources because placing an inventory into the
locked inventory storeroom it means safeguarding resources from any harm.

12. C - This activity falls under recording events because recognizing a payable by updating
the accounts payable master data shows that there is a recording of a transaction.

3.1

1. F - Ensure input completeness because this this scenario shows that the documents were
lost at the same time no documents were recorded. There is a failure to met the goals
which is ensuring input completeness.

2. G- Ensure update accuracy. It is because there is an error in recording a transaction. It

was added rather than subracted.

3. D - Ensure input validity. It is becausen there is a fabrication of documents on the part of

the mail room clerk so this make the input valid.
4. C - Ensure security of resources. The act done by the accounts receivable clerk destroys
the confidentiality of the entity. This act resulted to a leakage of the entity’s important
information.

5. A- Ensure effectiveness of operations. The effectiveness of operations achieved because

the customer check received was sent several times a day.

6. H- Ensure update completeness. Since the accounts receivable clerk failed to post an
entire page of transactions from the cash receipts journal to the accounts receivable
subsidiary ledger, it means that there is a failure in ensuring update completeness.

7. G - Ensure upadate accuracy. There were accounts that had been wrongfully recorded to
other customers so to ensure update accuracy was not met.

8. E- Ensure input accuracy. There is an error in the part of the clerk upon recording the
amount in the receipt.

9. B - Ensure efficient employment of resources. The incoming checks is less than the benefit
obtained from the incoming funds. So, the entity must ensure that its resources are efficient
to produce benefits.

10. C- Ensure security of resources. Since the company's accounts receivable system was
infiltrated by a hacker. To ensure security of resources was not met. And this may harm the
company’s information.

4.2

1. C - Since Peter infected the program he was working on with a damaging computer
virus, The proper to apply is personal termination plan so that he can no longer cause
more damage in the future.

2. D - There should be a segregation of duties among the employees to avoid this kind
of act. Through this, companies could easily track the possible fraudent act by their
employees.

3. B - The company should implement documentation control plan to easily monitor each
transactions to be made by its employee. Documentation will serve as an evidence for
each transaction.
4. I - Program change control will help the company to correct the errors made and as
well as to correct the format required by the VP.

5. H- Company’s data should be backed up for it to be accessible when something there

is something happened like in this scenario.

6. A- Selection and hiring control plans is necessary to a company to ensure that the
employee they are hiring is suitable as to their job description and to avoid
misunderstanding like in the case of Freida.

7. E- Biometric identification system will help the company to ensure that all employees
can no longer share their badges to gain access to every room in the facility.

8. F- Companies should have frre protection and control plan to avoid this kind of event
to happen and secure the safety of its people as well as it compay’s records.

9. G- IT steering committee to ensure that the task related to IT is tasked to those expert
on this field to avoid other works put on hold.

10. J - Continuous-data protection (CDP) is what company needs. This is to avoid the
company’s data from losing it and also, data will be protected from unforseen events.