AIS CHAPTER 6

IDENTIFICATION:

1. This department receives hard copy of the personnel action forms, job tickets, and time cards, which
it converts to digital files.

- Data Processing Department

2. It performs the check writing, detailed record keeping, and general ledger functions.

- Batch Computer Programs

3. This system run periodically (weekly or monthly), and they are well suited to batch processing.

- Payroll Systems

4. It captures and processes a wide range of personnel-related data, including employee benefits, labor
resource planning, employee relations, employee skills, and personnel actions as well as payroll.

- HRM System

5. This department makes changes to the employee file in real time via terminals.

- Personnel or Personnel Department

6. It enters job cost data (real time or daily) to create the labor usage file.

- Cost Accounting Department

7. It automatically updates the fixed asset control account in the general ledger and prepares journal
vouchers for the general ledger department as evidence of the entry.

- Fixed Asset System

8. The schedule is stored on the computer disk to permit future depreciation calculations.

- Depreciation Schedule

9. This process begins when the fixed asset accounting clerk receives a receiving report and a cash
disbursement voucher.

- Acquisition Procedures

10. These documents provide evidence that the firm has physically received the asset and show its cost.

- Receiving Report and Cash Disbursement Voucher

11. The fixed asset system uses this to record end-of-period depreciation actions automatically.

- Depreciation Schedules

12. They report changes in the custody or status of assets to the fixed asset department.

- Department Managers
13. It formally authorizes the fixed asset department to remove from the ledger as asset disposed of by
the user department.

- Disposal Report

14. It should be formal and explicitly authorized.

- Fixed asset acquisitions

15. It is an important element in the physical security of fixed assets.

- Management supervision

16. This department reconciles information, calculates payroll and distributes paycheck to the
employees.

-Payroll Department

17. Receives information regarding time spent on each job from production.

-Cost Accounting

18. This department reconciles summary information from cost accounting ad accounts payable.

-GL Department

19. Receives payroll summary information from the payroll department and authorizes the cash
disbursements department to deposit a single check.

-Accounts Payable

20. It is the department where employees prepare two types of time records.

- Production Department

21. Prepares and submits personal action form to prepare payroll function

- Personal Department

22. Special case purchases system in which organization purchases labor rather than raw materials/
finished goods for resale.

- Payroll Processing

23. Captures time that individual workers spend on each production job

- Job Tickets

24. Captures time the employee is at work

- Time Cards

25. These are permanent item that represent the largest financial investment by the organization.

- Fixed Assets
26. It processes transactions pertaining to the acquisition, maintenance, and disposal of fixed assets.

- Fixed Asset System

27. It usually begins with the departmental manager or user recognizing the need to obtain a new asset
or replace an existing one.

- Asset Acquisition

28. It involves adjusting the fixed asset subsidiary account balances as the assets depreciate over time or
with usage.

- Asset Maintenance

29. It shows when and how much deprecation to record.

- Depreciation Schedule

30. It is when the management decides to dispose the asset.

- Asset Disposal

ENUMERATION:

1-4. Give the 4 key operating features of Reengineering the Payroll System

1. Personnel
2. Cost Accounting
3. Time-keeping
4. Data Processing

5-7. Three (3) department of the Batch Payroll System

1. Production
2. Data Processing
3. Cash Disbursements

8-9. Two types of Time Records

1. Job Tickets
2. Time Cards

10-12. Three procedures in the Computer based Fixed Asset System

1. Acquisition procedures
2. Asset maintenance
3. Disposal procedures

13-15. Enumerate the 3 Logic of a Fixed Asset System

1. Asset Acquisition
2. Asset Maintenance
 3. Asset Disposal

16-18. The 3 Examples of Independent Verification in the Payroll System

1. Time and Attendance

2. Accounts Payable
3. General Ledger

19-21. Enumerate the 3 Fixed Asset System Risks and Controls

1. Authorization Controls
2. Supervision Controls
3. Independent Verification Controls

22-25. The 4 Technologies for Employee Timekeeping

1. Biometric Time
2. Magnetic swipe ID cards
3. Proximity cards
4. Mobile remote devices

26-28. Enumerate at least 3 Documents of Audit Trail for Payroll

1. Time Cards
2. Journal Information
3. Subsidiary Ledger Accounts
4. GL Accounts

29-30. Give at least the 2 Payroll Application Logic

1. Error Messages
2. File Backup
3. Automated Posting To Accounts