UNIVERSITY EXAMINATIONS: 2015/2016
EXAMINATION FOR THE DIPLOMA IN BUSINESS INFORMATION
TECHNOLOGY
DBIT505 ACCOUNTING INFORMATION SYSTEMS
DATE: AUGUST 2016 TIME: 1½HOURS
INSTRUCTIONS: Answer Any THREE Questions,
QUESTION ONE
a) Information technology is continually changing the nature of accounting and the role of
accountants. Describe what you think the nature of the accounting function and the
accounting information system in a large company will be like in the year 2030.
(5 Marks)
b) E-Business can improve the efficiency and effectiveness of sellers’ outbound logistical
activities. Discuss (5 Marks)
c) A well-designed AIS can also help an organization profit by improving the efficiency and
effectiveness of its supply chain. Discuss how an AIS adds value to an organization
(4 Marks)
d) The database approach views data as an organizational resource that should be used by, and
managed for, the entire organization, not just the originating department or function. Name
any SIX advantages an organization would enjoy when they use a database as opposed to
the file approach. (6 Marks)
QUESTION TWO
a) Journals, also referred to as books of original entry, are used to systematically record all
accounting transactions before they are entered into the general ledger. Briefly explain the
three primary journals. (6 Marks)
b) An organization’s expenditure cycle includes the functions required to acquire goods and
services that are utilized by the organization in conducting its operations. Discuss FIVE
activities of the expenditure cycle (5 Marks)
c) A system is a set of two or more interrelated components that interact to achieve a goal.
Discuss the Five components of an accounting information system (5 Marks)
d) List down the four principles of a reliable AIS. (4 Marks)
QUESTION THREE
a) The accounting information system faces very many threats both intentional and
unintentional. What are examples of unintentional acts? Name any FIVE (5 Marks)
b) The Human resource management is a sub-system of AIS. It is normally faced by threats
but with internal controls in place an organization can be rid of them. What are some control
procedures? (5 Marks)
c) Explain the three basic functions performed by AIS. (3 Marks)
d) List the functions that should be separated in order to ensure no single employee is given
too much responsibility. (3 Marks)
e) Define the following terms (4 Marks)
Information
Data
Audit trail
DSS
QUESTION FOUR
a) Manual accounting system is an accounting system that performs data processing manually
while computerized accounting makes use of computers to handle raw data, manipulate the
data, and report the results quickly and accurately. Give FIVE advantages and FIVE
disadvantages of computerized accounting (10 Marks)
b) Information systems are classified according to the support they provide to organizations.
Briefly explain the following information systems categories. (10 Marks)
i. Transaction processing systems
ii. Knowledge based systems
iii. Office automation systems
iv. Management information systems
v. Expert support systems
QUESTION FIVE
a) Successful accounting information System must provide information for management
decision making, in that management’s decisions evolve around organization’s strategy,
the accounting information system should be designed to support the organization’s
strategy. Describe the two basic strategies suggested by porter. (4 Marks)
b) Outline computer fraud classifications (5 Marks)
c) What is the primary purpose of AIS (5 Marks)
d) Give reasons as to why controls for information systems are needed (3 Marks)
e) Explain the three categories of the resource management cycle (3 Marks)
