UNIVERSITY EXAMINATIONS: 2017/2018
EXAMINATION FOR THE DEGREE OF BACHELOR OF BUSINESS
INFORMATION TECHNOLOGY
BUSS 204 ACCOUNTING INFORMATION SYSTEMS
FULL TIME/PART TIME
DATE: JULY/AUGUST, 2018 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.
QUESTION ONE
a) Differentiate between accounting information system and information systems. [2 Marks]
b) Indicating how E-commerce organization makes use of the accounting information systems,
explain the importance of accounting information systems as a competitive advantage tool.
[6 Marks]
c) Briefly explain the primary objectives of accounting information systems. [4 Marks]
d) Define the term transaction. [1 Mark]
e) Explain the two types of transactions. [4 Marks]
f) Explain the core components of a standard REA model diagram. [5 Marks]
g) In the accounting information system, users deals with both data and information. Explain
the main differences between data and information indicating the core importance of each
one of them. [4 Marks]
h) Define the term internal control. [2 Marks]
i) Explain the importance of audit processes in the favor of the internal accountant. [2 Marks]
QUESTION TWO
a) Activities in systems are arranged in processes and so do the transactions in the accounting
information system. Briefly expound on the three cycles of a transaction in the accounting
information system. [6 Marks]
b) Explain any three elements of an IT audit. [6 Marks]
c) Explain the main steps followed in the transformation of data to information. [4 Marks]
d) Explain the point of sale system as used in business organizations [4 Marks]
QUESTION THREE
a) Define the term REA Model [2 Marks]
b) Examine why organizations uses the REA Model [4 Marks]
c) Basing your arguments on the how organizations understands the role of computer-based
accounting systems, describe how organizations adopt information technology and the
business processes that supports these systems. [8 Marks]
d) For proper co-ordination and communication, information has to flow in all the levels in an
organization. Using a diagram, explain information internal information flow. [6 Marks]
QUESTION FOUR
a) After successful conversion of data to information, not all the information is likely to be
useful to a given organization since they may have not met some of the required properties.
Briefly explain the characteristics that may make such information useless. 8 Marks]
b) Is true that a filter allows you to choose which information to include in your report?
Explain. [2 Marks]
c) What decision does an accountant have to make when writing a check? [4 Marks]
d) State any three accounting packages. [3 Marks]
e) Explain the three principles to be followed in the segregation of functions. [3 Marks]
QUESTION FIVE
a) Discuss the procedures followed during the audit for disaster recovery plan. [5 Marks]
b) State the three types of computer files used in accounting information systems. [3 Marks]
c) Explain what you have to decide when entering bills? [6 Marks]
d) Discuss the three main areas of business ethics. [6 Marks]
