002499 ACCOUNTING INFORMATION SYSTEMS
ECOMMRCE 1000
LECTURER: INDRIT TROSHANI
Official Reading Time: 10 mins
Writing Time: 180 mins
Total Duration 190 mins
Instructions to Candidate:
1. Answer ALL SIX (6) questions.
2. This is a Closed Book examination. You should answer all questions in the answer book
and should begin each answer on a new page in the answer book.
3. The marks shown add up to 100. This examination constitutes 70% of the total
assessment. Please allocate your time according to the marks shown.
5. Please allocate your time according to the percentage contribution of the questions.
6. Examination materials must NOT be removed from the examination room.
Materials:
• 1 Blue answer book
• No materials allowed
QUESTION 1
(1) Give three examples each of the advantages and the disadvantages of an ERP
system with a centralized database. How you can increase the chance of a
successful ERP implementation?
[8 marks]
(2) Another question worth 2 marks goes here.
[2 marks]
(4) What is information integrity? Illustrate your answer using examples from the above
tables.
[3 marks]
(5) Explain four advantages of using relational databases. Illustrate with examples.
[4 marks]
[Total mark – Question 1 = 17 marks]
QUESTION 2
(1) Another question worth 6 marks goes here.
[6 marks]
(2) Another question worth 3 marks goes here.
[3 marks]
(3) Another question worth 2 marks goes here.
[2 marks]
(4) Ajax Manufacturing installed a new barcode based inventory tracking system in its
warehouse. To close the books each month on a timely basis, the six people who work
in the warehouse must scan each item in a 36-hour period while still performing their
normal duties. During certain months, when inventory expands to meet seasonal
demands, the scan takes as many as 30 hours to complete. In addition, the scanners
do not accurately record some inventory items that require low operating temperatures.
A recent audit brought to management’s attention that the inventory records are not
always accurate. Which aspect(s) of feasibility did Ajax fail to consider prior to installing
the inventory tracking system.
[4 marks]
[Total mark – Question 2 = 15 marks]
QUESTION 3
(1) Distinguish between document flowcharts, system flowcharts, data flow diagrams, and
program flow charts. How are they similar? How are they different?
[4 marks]
(2) Describe four control procedures that organisations should have in place to ensure that
only authorised users access the system and that user access is limited according to
their responsibilities.
[4 marks]
(3) What are some of the consequences to a company that makes a poor decision in
selecting a new AIS?
[2 marks]
(4) Another question worth 8 marks goes here.
[8 marks]
[Total mark – Question 3 = 18 marks]
QUESTION 4
Businesses often modify or replace their financial information system to keep pace with
their growth and take advantage of improved IT. This requires a substantial time and
resource commitment. When an organisation changes its AIS, a systems analysis
takes place.
(1) Explain the purpose and reasons for surveying an organisation’s existing system.
[6 marks]
(2) Explain the activities commonly performed during systems analysis.
[6 marks]
(3) Systems analysis is often performed by a project team composed of a systems analyst,
a management accountant, and other knowledgeable and helpful people. What is the
accountant’s role in systems analysis?
[6 marks]
[Total mark – Question 4 = 18 marks]
QUESTION 5
Question 5 goes here
[Total mark – Question 5 = 17 marks]
QUESTION 6
(1) Sara Jones owns a rapidly growing retail store that faces stiff competition due to poor
customer service, late and error-prone billing, and inefficient inventory control. To
continue its growth, its AIS must be upgraded but Sara is not sure what it wants the
AIS to accomplish. Sara has heard about prototyping, but does not know what it is or
whether it would help. How would you explain prototyping to Sara? Include an
explanation of its advantages and disadvantages as well as when its use is
appropriate. What is the difference between authentication and authorisation?
[7 marks]
(2) Clint Grace has been business over 30 years and has definite ideas about how his ten
retail stores should be run. He is financially conservative and is reluctant to make
expenditures that do not have a clear financial payoff. Store profitability has declined
sharply and customer dissatisfaction is high. Store managers never know how much
inventory is on hand and when purchases are needed until a shelf is empty. Clint asks
you to determine why profitability has declined and to recommend a solution. You
determine that the current AIS is inefficient and unreliable and that company processes
and procedures are out of date. You believe the solution is to redesign the systems and
business processes using BPM. What are some challenges you might face in
redesigning the system? How will you present your recommendations to Clint? What
are the limitations, if any, of relying on the results of penetration tests to assess the
overall level of security?
[8 marks]
[Total mark – Question 6 = 15 marks]