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Questions and Answers

Which of the following is NOT a component of an Accounting Information System (AIS)?

Procedures

Marketing (correct)

Equipment

Personnel

What is the objective of an AIS?

To collect, process, and provide financial information needed by management and other interested parties (correct)

To provide an audit trail for financial data

To analyze risks associated with computerized AIS

To evaluate the efficiency and effectiveness of client's existing AIS

Which of the following is NOT a characteristic/principle of an effective AIS?

Adequacy of provision for audit trail

Compatibility to the company's organization

Use of advanced technology (correct)

Provision of necessary reports

What is the objective of an Accounting Information System (AIS)?

To gather and process financial and other information essential to the efficient conduct and evaluation of business activities Signup and view all the answers

What are the characteristics/principles of an effective AIS?

Provision of necessary reports, adequacy of provision for audit trail, simplicity and flexibility Signup and view all the answers

What is the role of an auditor in AIS?

To analyze risks associated with computerized AIS Signup and view all the answers

An Accounting Information System refers to the equipment and devices used for the efficient conduct of business activities.

False Signup and view all the answers

One of the objectives of an AIS is to provide financial information needed by management and other interested parties.

True Signup and view all the answers

The effectiveness of an AIS depends on the complexity of its design, regardless of whether it suits the organizational structure and policies of the business firm.