(Each question is worth 1 mark; 10 marks/10 minutes)

Section A: Mark your answers for this section on the multiple-choice answer sheet

1.   In relation to IT governance, management concerns about IT’s capability to   support an organisation’s vision and strategy include all except the following:

A.  IT and business alignment

B.  security and privacy

C.  the internet

D.  retaining IT professionals

E.  proactive IT investment

2.   As a result of an inadequate design, a production process yields an abnormally high amount of raw material scrappage. Which control goal is most likely being violated?

A.  ensure effectiveness of operations

B.  ensure efficient employment of resources

C.  ensure security of resources

D.  ensure input accuracy

E.  ensure compliance

3.   Which of the following is a risk associated with the Customer Order event?

A. salespeople spending time doing unproductive things that do not influence potential customers

B. shipping poorly packaged products

C. lapping

D. an employee making an unauthorised allowance to a customer’s account

E. taking an order for a product or service that is not currently sold by the company and cannot be made available

4.   A purchase requisition is:

A.  a purchase agreement with a vendor

B.  a document sent to a vendor by the purchasing department

C.  an internal document sent from a department, function, or individual to the organisation’s purchasing department

D.  a document used to communicate approval for the purchase order event to other departments

E.  typically signed by the salesperson before being sent to the customer

5.   Which of the following reports or documents depends upon accurate and complete recording of the receipt of goods or services from a vendor?

A.  a listing of open purchase orders

B.  a purchase requisition

C.  orders approved and executed during the period

D.  a listing of aged payables

E.  an analysis of discounts used and/or discounts lost

6.   A disbursement voucher or payment voucher:

A.  lists all the invoices for all vendors of an organisation

B.  lists all the invoices for a particular vendor

C.  should equal the accounts payable subsidiary ledger total

D.  should equal the general ledger accounts payable control account balance

E.  is also called a vendor invoice

7.   In the production system, a move ticket provides a record of the:

A.  list of subassemblies that make up a product

B.  assembly line activities that have been completed

C.  raw materials that must be shifted to the production floor

D.  sequence of operations to be completed to make a finished product

E.  production lot size to be commenced on the production floor

8.   A critical success factor sometimes used to better manage inventory is “days of sale in inventory.” This CSF is defined as:

A.  the number of days it would require to sell inventory

B.  the days in the week when the highest levels of sales of inventory occur

C.  the average number of selling days that occur before a stockout occurs

D.  the time it will take before raw materials inventory are converted to finished goods for sale

E.  the difference between the average shortest and the longest period of time it takes to sell finished goods inventory

9.   In the human resources system, which of the following items of information is likely to be most useful in making decisions about hiring, training, and             assigning employees?

A.  information about the employees’ activities used to calculate compensation

B.  information about skill requirements associated with operating events and job positions

C.  information about potential employees’ credentials

D.  information about productivity outcomes of past operating events

E.  information about payroll deductions and employee benefits

10. In relation to exposures, the General Ledger system is most likely to provide information about:

A.  component-level exposures

B.  exposures to standing data in other system/cycles

C.  exposures to event-level data in other information systems used by the organisation

D.  asset-safeguarding and compliance exposures rather than effectiveness and efficiency exposures

E.  broad, organisational-level exposures

Section B (40 marks)

All 4 questions in this section relate to your major assignment during the semester.

Question 1 (10 marks/10 minutes)

(a)         In your first answer booklet, describe the detail of the transaction being

performed in the following screen. (5 marks)

(b)         In your first answer booklet, give the journal entry that MYOB made as a result of

the transaction in part (a). (Note: account numbers are not required; just use

account names.) (5 marks)

Question 2 (10 marks/10 minutes)

(a)         In your first answer booklet, describe the detail of the transaction being

performed in the following screen. (5 marks)

(b)         In your first answer booklet, give the journal entry that MYOB made as a result of

the transaction in part (a). (Note: account numbers are not required; just use

account names.) (5 marks)

Question 3 (10 marks/10 minutes)

(a)         In your first answer booklet, describe the detail of the transaction being

performed in the following screen. (5 marks)

(b)         In your first answer booklet, give the journal entry that MYOB made as a result of

the transaction in part (a). (Note: account numbers are not required; just use

account names.) (5 marks)

Question 4 (10 marks/10 minutes)

In your first answer booklet, draw a section of a BPMN process diagram to depict the   processes involved in the following small extract from Polis Grocers Inc. in your project. (The principal BPMN symbols are provided on the last pages of this exam paper.)

To enter an order, the customer must log on to the Polis Web site with a user-name and password. Using the customer database, the system confirms that the customer has a refrigerator unit in place and that the customer is in good standing. Once approved, the customer can browse the product list that is generated from the inventory database and add items from the shopping cart. When finished, the customer proceeds to the checkout screen to authorise the billing amount to be charged to his or her account. When the order is submitted, items are allocated in the inventory database, and a new order is recorded in the order database. In the warehouse, a clerk downloads an outstanding order from the order database to a handheld computer. The downloaded order provides an electronic picking ticket for use in assembling the customer’s order. The clerk reads the order from the handheld computer screen, picks the goods, and scans each item as it is placed in a box.

Section C (70 marks) Write your answers to the questions of this section in a NEW answer booklet.

Question 1 (12 marks/12 minutes)

With regard to the Inventory process control goals of effectiveness of operations, efficiency of operations, and resource security:

(i)    Give two (2) example controls for each of the three process control goals. (6 marks)

(ii)   For each of the three process control goals, select one example control from

your answer to (i). Explain how the control supports the production planning process, and the risks to the production process if such a control was not in

place. (6 marks)

Question 2 (18 marks/18 minutes)

(a)      The MYOB package provides an Inventory module. In the table below, a selection

of the reports available in the Inventory module are named, together with a one- line description of what information is provided in each  report. For each  report, you  should  specify whether the  report  is  providing  information  on  Components (Things),  Types,  Subsystems,  and/or  the  System.   Furthermore,  in   relation  to Components  and  Types,  specify  whether  the  information  relates  to  Resources, Events,   External   Agents,   Internal   Agents,   and/or   Locations.   In   relation   to Subsystems, indicate to which subsystem of the Inventory module the information in the report relates.

(15 marks)

(b)      In  relation  to  your  answer  to  part  (a)  of  this  question,  briefly  evaluate  the

Inventory module provided by MYOB.

(3 marks)

Question 3 (10 marks/10 minutes)

The following is a list of six control plans:

A.   Digital signatures

B.   Manually reconcile batch totals

C.   Preformatted screens

D.  One-for-one checking of the goods, picking ticket, and sales order

E.   Independent shipping authorisation

F.   Turnaround document.

The following are five statements describing each control goal or a system deficiency.

Control goal or system deficiencies

1.   Granby Company receives customer orders over the internet. They are concerned that some orders are fraudulent.

2.   Blandford Company receives sales orders on its web server. Several times each day, these are downloaded to the order entry and sales system. During the       download process, several line items are lost.

3.   When goods arrive from the warehouse at Ludlow Company, the shipping clerk keys in the sales order number to retrieve the sales order. Often, the clerk keys the sales order number incorrectly, and the wrong sales order is displayed.