5 Questions
True or false: Auditors are responsible for evaluating the efficiency of AIS.
False
True or false: Effective AIS should not have any controls, as they can hinder its flexibility.
False
True or false: Financial reports generated by AIS include only balance sheet and income statement.
False
True or false: Special management reports generated by AIS include employee salaries.
False
True or false: AIS should not have any audit trail, as it can increase the cost of the system.
False
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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