5 Questions
What is the objective of AIS?
To gather, process, and report financial and other information
Which of the following is not a characteristic of effective AIS?
Lack of controls
Which financial reports are included in AIS?
B/S, I/S, cash flow, and financial account balances
What is the purpose of AIS in relation to errors and fraud?
To safeguard assets and minimize errors and fraud
Who analyzes risks associated with computerized AIS?
Auditors
Study Notes
- AIS is a subsystem of MIS for gathering, processing, and reporting financial and other information.
- Its objective is to provide financial information to management and other interested parties.
- Consultants evaluate the efficiency of AIS, while auditors analyze risks associated with computerized AIS.
- Effective AIS should be compatible with the company's organization, provide necessary reports, have controls, and an audit trail.
- It should also have qualified personnel, simplicity, flexibility, and a favorable cost/benefit relationship.
- Financial reports include B/S, I/S, cash flow, and financial account balances.
- Special management reports include sales by product, job order listing, employee listing, and supplier listings.
- Financial projections include projected cash flow.
- AIS safeguards assets and minimizes errors and fraud.
- It should trace data processing steps from financial statements to source documents and vice versa.
Test your knowledge of Accounting Information Systems (AIS) with this quiz! From the basics of gathering and reporting financial information to the evaluation of efficiency and risk analysis, this quiz covers it all. Find out if you know what it takes to ensure an effective AIS, including compatibility, controls, and qualified personnel. Test yourself on financial and management reports, projections, and the crucial role of AIS in safeguarding assets and minimizing errors and fraud. Challenge yourself and see if you can trace data processing steps from
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