BUSI2111-E1

ACCOUNTING INFORMATION SYSTEMS (Sample Exam Paper)

SECTION A

Attempt ALL questions

Each correct answer is worth 3 marks - Total 60 marks

For each question, there is only one correct answer

Mark the appropriate boxes on the multiple-choice answer card provided

1.  For today’s accounting graduates, which one of the following skills is the  LEAST expected among other options by employers like multinational enterprises? (c)

a. Data Analytics

b. Creative and critical thinking

c. Computer Programming

d. Database Technology

2. Which one of the following is WRONG about AIS? (d)

a. The accounting function has more and more relied on information systems

b. Information systems were almost a subset of accounting in 1970s

c. Even in the 21st century, not all accounting information systems apply information technologies

d. AIS is the overlap part between information systems and Accounting nowadays

3. One main reason for big data is: (a)

a. The rapid growing of social media and smart phones

b. The initiatives for green technology

c. Traditional databases can be used to store big data

d. Many types of software are more affordable for business

4. Big data includes: (b)

a. Data from an organization’s relational database

b. Data from real time environmental systems

c. Data generated from green technologies

d. Data related to leased software services

5. Which one of the followings is NOT an AIS function? (b)

a. Processing data and turning it into useful information

b. Allocating an organisation’s resources

c. Collecting and storing data about an organisation’s resources

d. Provide proper controls to safeguard an organisation’s resources

6. Which one of the following is NOT a business process supported by ERP systems? (a)

a. Customers

b. Human Resources

c. General ledger and financial reporting

d. Revenue

7. Which one of the following is NOT a benefit from XBRL? (b)

a. Reduced data manipulation

b. Reduced auditing needs

c. Data is interchangeable

d. Paperless reporting

8. Which of the following is a FALSE statement about the future trend and expectation of audit? (c)

a. The public expect that future auditing can prevent corporate failure

b. Auditors will analyse a much larger data set

c. Auditing will eventually be conducted by automation technologies

d. Future business models based on more advanced technology will create complex audit challenges

9. Based on the COSO’s Internal Control Model, control environment includes: (c)

a. Obtaining or generating relevant information to support internal control

b. Considering the possibility of fraud

c. Commitment to integrity and ethics

d. Evaluating the components of internal control

10. Internal control’s main objectives do NOT include: (d)

a. Complying with management policies

b. Proving accurate and reliable information

c. Improving efficiency

d. Assuring that no fraud existed

11. Which one of the following is NOT a benefit of database technology: (c)

a. Minimal data redundancy

b. Data integration

c. Decentralized management of data

d. Data sharing

12. Assume that when students enrol at UNNC, their name, ID number, address and phone number are recorded by the admissions department. The same information must be completed on their applications for accommodation and on their paper registration materials. These various forms are used to record information in different files maintained by each separate office. What advantage of database technology would improve the data storage and data quality? (c)

a. databases involve separate storage of each division’s data in separate files

b. databases integrate parallel activities

c. databases capture data once and store it once

d. users enter their own data when databases are used

13. Which one of the following is a FALSE statement about the difference between the traditional journal/ledger -based accounting system and the database/REA model -based accounting system? (c)

a. Databases store more comprehensive data than traditional accounting system.

b. Real time reports can be generated by database technologies.

c. The traditional approach can generate more accurate information.

d. The database approach enhances decision making.

14. Which statement below  is  FALSE  regarding the  basic  requirements  of relational databases? (d)

a. All non-key attributes in a table should describe a characteristic about the object identified by the primary key.

b. Every column in a row must be single-valued.

c. Foreign keys, if not null, must have values that correspond to the value of a primary key in another table.

d. Primary keys can be null.

15. If non-primary key items are stored several times in different locations (for example, salesperson name and address are manually entered and stored in multiple tables such as employee table, sales table, payroll table etc.), which anomaly can it cause? (a)

a. update anomaly

b. delete anomaly

c. insert anomaly

d. no anomaly

16. Which one of the following is not a possible type of cardinality between entities in an E-R diagram? (d)

a. one-to-many

b. many-to-many

c. one-to-one

d. zero-to-one

17. The purpose of normalisation is: (c)

a. Normalisation shows the relationships between entities.

b. Normalisation identifies the resources, events and agents of a business process.

c.  Normalisation  ensures  the  tables  in  a  database  is  well-designed  and free  from anomalies.

d. Normalisation is not important.

18. Which one of the following is NOT a benefit of standard SQL? (d)

a. cross-system communication

b. reduced training costs

c. retrieve information from many sources

d. increased dependence on a single vendor

19. Which one of the following is Data Manipulation Language (DML)? (b)

a. Create

b. Select

c. Grant

d. Revoke

20. Which one of the following is a FALSE statement on the advantages of visualisation? (c)

a. Information can be found more quickly.

b. Visualisations can help more people to learn and understand better about the data.

c. It takes a lot less time to build visualisations than write a report.

d. People process visualisations faster than information in written format.

SECTION B

Attempt 2 out of 3 questions

Total marks available = 40

21. Discussion (20 marks)

A computer programmer that works in the payroll department created a fake employee number and entered this employee into the payroll database. The programmer then programmed the payroll system to pay this fake employee and deposit the funds into one of their own bank accounts. Identify at least 2 control  procedures that could  have prevented the problem, and explain why each of the controls would have helped.

22. REA Diagram with Cardinality (20 marks)

Assume that you own five apartments in Dongqian Lake. Your business provides holiday apartment rental to people who take short-term holidays in Dongqian Lake. This is your main source of income. You want to design and build a database to keep track of your business. The following describes how your business is running.

The first thing that happens in your business is that one customer reserves a holiday home (i.e. one of your five apartments) for his/her vacation with families and friends. Reservations are made for specific days, and each day is associated with a specific cost. The entire rental must be paid at the same time of reservation. Customers then come to the lake, stay in the holiday home and enjoy their holiday. Feedback and satisfaction rating forms are available in the apartment; customers can fill out the form. if they would like to or if they have any complaints when staying in the holiday home. After customers leave the apartment, one of your employees checks the apartment and identifies anything that has been damaged. You keep a record of the conditions of each apartment after each rental and an estimate of the repair costs after each rental. You have three employees who maintain, clean and check the condition of the apartments.

Note: assume that there are no cancellation cases.

Required:

Given the above brief overview, draw an E-R Diagram for your business. Remember to use the REA methodology of identifying resources, events and agents. Your diagram should  also  include  cardinalities.  Also,  briefly  describe  the  three  steps  involved  in developing the REA diagram.

23. Table Normalisation (20 marks)

Use the following attributes to create tables that meet all of the normalization rules. Note: you do not need to create any new attributes. This is only a portion of a database.

Supplier#, Supplier Name, Supplier City, Status of Supplier (e.g., currently used vs. not currently used), Part#, Part Colour, Part Weight, Total Quantity of Parts in Inventory, Quantity of each Part from each Supplier, Warehouse#, Warehouse City, Total Quantity of Each Part in each Warehouse.

Note: each Supplier# can offer multiple parts; each Part# can be from multiple suppliers; each Part# can be stored in multiple warehouses; each Warehouse# can store multiple parts.

Required:

Clearly indicate all primary and foreign keys in your tables. Use the following notation.

Also, briefly describe your steps in normalizing this database.

•   Tables in ( )

•    Primary keys Underline

•    Foreign keys in Italics