Western Governors University
AUO1 – Auditing and Information Systems
Additional Study Questions/ Study Guide
1. Accounting Information Systems
Competency 302.1.1: Nature and Purpose
The student understands the nature and purpose of information systems.
* What is the difference between transaction processing systems, management information systems, and decision support systems?
2. Transaction processing systems - document financial activities
3. Management information systems - used to collect qualitative as well as quantitative information for decision making within organizations
4. Decision support systems - help the developers of an AIS identify what information they…show more content… 4. Process maps also describe the flow of information through an organization, use only a few symbols, and (to many) are among the easiest to draw and understand.
5. Two additional documentation tools are program flowcharts and decision tables. Accountants do not need to be programmers to evaluate or design an accounting information system, but they should understand in general terms how these tools work.
6. A variety of software tools exist for documenting AISs. These include standard personal productivity tools such as word processing and spreadsheet software, specialized CASE tools, and software packages designed to help companies comply with SOX and AS5.
* What are effective coding systems used in AIS?
* Accounting information systems depend on codes to record, classify, store, and retrieve financial data. Although it is possible in a manual system to use simple alphabetic descriptions when preparing journal entries, computerized systems use numeric codes (codes that use numbers only) or alphanumeric codes (codes that use numbers and letters) to record accounting transactions systematically. For example, a manual journal entry might include a debit to the “Direct Materials Inventory” account. In a computerized system, the debit might be to account “12345.”
* Alphanumeric codes are important in computerized systems, as they help to ensure uniformity and consistency.
* AISs typically use several