Accounting Information Systems
Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Chapter 9, Problem 7DQ
Summary Introduction

To describe: Why the process of entering the data close to the originating source produces fewer errors than the system of writing down the order by the customer.

Introduction:

Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.

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The computer processing portion of a sales order system is represented by the flowchart. Answer the following questions.a. What type of data processing system is this? Explain, and be specific.b. The auditor suggests that this system can be greatly simplified by changing to direct access files. Explain the major operational changes that would occur in the system if this were done.c. The auditor warns of control implications from this change that must be considered. Explain the nature of the control implications.d. Sketch a flowchart (the computerized portion only) of the proposed new system. Use correct symbols and label the diagram.
Which of the following is NOT an example of application control?* a. Pre-filled forms are already sent to users to minimize input errors b. After processing, the daily sales summary are reconciled with the individual sales invoices processed c. Reasonableness tests on acceptable working hours are embedded in the payroll software d. An equipment failure causes an error message on the monitor
In the evaluation of sales transaction processing and control design in the following information:(a)identify two or three potential weaknesses. breifly explain the potential mistatement, recommended correction and possible weakness of all two or three potential weaknesses identified. Marco uses the PC network to manage inventory, sales requisitions, and sales orders. Salesclerks who can read the perpetual inventory records via their PCs take customer orders. Most orders originate from phone requests, but a few arrive on a walk-in basis and some occasionally come in the mail. Usually, building contractors or their representatives call to get current price quotes and find out if specific appliances are in stock. When goods are available and the price is satisfactory, a salesclerk originates a sales requisition and the process of approving and filling it begins if customers plan to pick up their order the same day. Orders received after 4:00 PM cannot be delivered the same day; buyers…
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