Problem 1: Describe definition of AIS

- An “Accounting Information Systems” is

• a set of interrelated activities, documents, and technologies
• designed to collect data, process it, and report information
• to a diverse group of internal and external decision makers in organization.

Activities:
o Business processes
 Sales / collection
 Acquisition / payment
 Conversion
 Financing
 Human resource
o Accounting cycle steps
Documents
o Purchase orders
o Remittance advices
Technologies
o General ledger software
o ERP systems

Problem 2: Definition of Internal Control. Five components of Internal Control: Control

Environment, Risk Assessment, Control Activities, Information and communication, Monitoring
- Definition of Internal Control:
A process, effected by an entity’s board of directors, management and other personnel, designed to
provide reasonable assurance regarding the achievement of objectives relating to operations,
reporting, and compliance.
The five elements of the framework are:
- Control environment:

 Organization’s overall attitude about internal control

 Must be established at the top of the organization (CEO, CFO)
 Often called the “tone at the top” or “tone from the top”
- Risk assessment:
Clarifying an organization’s risk exposures
- Control activities:
Developing specific controls to address the risk exposures
- Information & communication:
Ensuring stakeholders know about the internal control plan
- Monitoring:
Creating a process for keeping the plan update and relevant
Problem 3: Bài tập 67, 69, 70 Chapter 6: Flowchart
67. Analyze the flowchart below and the statements which follow. Determine which statements
are true based on the flowchart.

a. All customers have a credit limit.

b. Because the customer is outside the company, the customer is also outside the system

boundary.

c. Customers can place orders in person or over the phone.

d. Flowcharting symbols are used appropriately.

e. Internal control in the process depicted would be strengthened by introducing a filing

system.

f. Journal entries associated with the process depicted would include debits to cost of goods

sold and credits to inventory.

g. The company does not use any form of information technology in the process depicted.

h. The company has weak separation of duties in the process depicted.

i. The company is not exposed to credit risk.

 j. The flowchart could be appropriately titled "Document flowchart of the sales/collection

process."

 True statements are: D, E, J, H

69. Prepare a systems flowchart based on the following case: The Celebration Theatre is a small,
independent theatre that puts on 12 plays per year. 30 days before the start of each calendar quarter,
Celebration prepares advertising for the productions in the upcoming quarter. They advertise on their
web site, via e-mail to their season subscribers and via direct mail and brochures to others. Patrons
can buy tickets for a single play; alternatively, they can subscribe to all three plays each quarter.
Quarterly subscriptions offer a 25% discount from the prices of single tickets. Patrons may purchase
tickets over the phone, at the box office or via the theatre's web site. All tickets are held at the box
office where they can be picked up as early as one week prior to the performance. The theatre has an
"open seating" plan, so patrons do not reserve a specific seat at any performance. If tickets are
purchased in person at the box office, non-subscribers may pay with cash or a major credit card;
subscribers can pay with cash, major credit card or check. All tickets purchased over the phone or via
the web site must be paid for with a major credit card. Celebration maintains an electronic database to
track all ticket sales; paper tickets are printed at least ten days prior to a performance.

70. Explain, in no more than ten sentences, the process depicted in the following flowchart:
A customer manually places an order with an employee. The employee determines if the sale will be
for cash or on credit. If on credit, the employee evaluates the customer's credit; if approved, the
employee delivers the goods. If credit is not approved, the process ends. If the sale is for cash, the
employee delivers the goods and the process ends.