UDE 1011 / T1 / 26 & 27 .09.

2018 Computer Application in Accounting

TUTORIAL 1 – CHAPTER 1

1. Briefly explain with example the internal information flow.

a. Horizontal flows of information used primarily at the
operations level to capture transaction and operations data
b. Vertical flows of information
i. downward flows — instructions, quotas, and budgets
ii. upward flows — aggregated transaction and operations
data

2. Briefly explain why information system is important in an

organization.
a. To support the stewardship function of management,
b. To support management decision making, and
c. To support the firm’s day-to-day operations.

3. Briefly explain what is transaction and type of transactions with

example.
a. A transaction is a event that affects or is of interest to the
organization and is processed by its information system as a
unit of work.

1 Mr. Mustaffa Bin Bukhari

UDE 1011 / T1 / 26 & 27 .09.2018 Computer Application in Accounting

b. Financial transactions
i. economic events that affect the assets and equities of
the organization
ii. e.g., purchase of an airline ticket
c. Nonfinancial transactions
i. all other events processed by the organization’s
information system
ii. e.g., an airline reservation — no commitment by the
customer

4. What is an information system (IS)?

a. An information system is the set of formal procedures by
which data are collected, processed into information, and
distributed to users.
5. What is an accounting information system (AIS)?
a. Accounting is an information system.
b. It identifies, collects, processes, and communicates economic
information about a firm using a wide variety of
technologies.
c. It captures and records the financial effects of the firm’s
transactions.
d. It distributes transaction information to operations personnel
to coordinate many key tasks.

2 Mr. Mustaffa Bin Bukhari

UDE 1011 / T1 / 26 & 27 .09.2018 Computer Application in Accounting

6. Distinguish between AIS and Management Information System

(MIS).
a. Accounting Information Systems (AIS) process
i. financial transactions; e.g., sale of goods
ii. nonfinancial transactions that directly affect the
processing of financial transactions; e.g., addition of
newly approved vendors
b. Management Information Systems (MIS) process
i. nonfinancial transactions that are not normally
processed by traditional AIS; e.g., tracking customer
complaints
7. Briefly explain the condition to be met for information to be
useful.
a. Relevance: serves a purpose
b. Timeliness: no older than the time period of the action it
supports
c. Accuracy: free from material errors
d. Completeness: all information essential to a decision or task
is present
e. Summarization: aggregated in accordance with the user’s
needs
8. How does organization structure help in information system?
a. The structure of an organization helps to allocate
i. responsibility

3 Mr. Mustaffa Bin Bukhari

UDE 1011 / T1 / 26 & 27 .09.2018 Computer Application in Accounting

ii. authority
iii. accountability
9. Write about 100 to 150 words on how AIS would give advantages
towards organizations.
a. Any possible answer/ lecturer’s discretion.

4 Mr. Mustaffa Bin Bukhari