Question 1      (20 marks/20 minutes)

For the four (4) types of decision making, state whether the characteristics of the information supporting those decision-making types is likely to be:

ill-defined or well-defined; use internal or external information; whether the information sources are internal or external; whether the information is future-oriented or historical; frequent or infrequent; or, more or less accurate.

Provide an example for each type of decision making that illustrates and confirms your assessment of the information characteristics for each decision type.

0.5 marks for each correctly aligned information characteristic, and 3 marks for each appropriate example that confirms the characteristics in light of the decision type. (20 marks)

 Section B (30 marks)

Write your answers to the questions of this section in a NEW answer booklet.

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

Question 1      (10 marks/15 minutes)

Assume you are the general manager of Surfing Shops Australia. Following are your relevant Profit & Loss [Year to Date] and Balance Sheet reports, as at 31 July 2018.

a)   In your first answer booklet, specify five critical emergent properties (critical success factors) of the business that you would need to monitor.                         (5 marks)

b)   In your first answer booklet, using the data provided in the P & L and Balance Sheet reports, how would you judge the performance of your business as at 31 July 2018? (5 marks)

Question 2      (5 marks/5 minutes)

(a)  In your first answer booklet, describe the detail of the transaction being                 performed in the following screen. Please note the negative amount (3.5 marks).

(b)  In your first answer booklet, give the journal entry that MYOB made as a result of the transaction below. (Note: account numbers are not required; just use account names.)                       (1.5 marks)

Question 4      (10 marks/10 minutes)

In your first answer booklet, draw a section of systems flowchart to depict the processes involved in the following small extract from Polis Grocers Inc. in your project.

Note: The principal systems flowchart symbols are on the last page of this question

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.

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

module provided by MYOB. (3 marks)

Question 3      (5 marks/6 minutes)

Following is a list of eight generic control goals, followed by four descriptions of either   process failures (i.e., control goals not met) or instances of successful control plans (i.e., plans that helped to achieve controls goals).

List the numbers 1 to 4 on your answer booklet. Each number represents one of the  described situations on the page. In your answer booklet, next to each number, place the capital letter of the control goal that best matches the situation described.

Hint: Some letters may be used more than once. Conversely, some letters may not apply at all.

Control Goals

A.   Ensure effectiveness of operations

B.   Ensure efficient employment of resources

C.   Ensure security of resources

D.   Ensure input validity

E.   Ensure input completeness

F.   Ensure input accuracy

G.   Ensure update completeness

H.   Ensure update accuracy

Situations

1.   MiniScribe Corporation recorded as sales some shipments of disk drives between their warehouses. These disk drives had not been ordered by  anyone and were still the property of MiniScribe.

2.   XYZ Co. prepares customer sales orders on a multipart form, one copy of        which is sent to its billing department where it is placed in a temporary file    pending shipping notification. Each morning, a billing clerk reviews the file of open sales orders and investigates with the shipping department any missing shipping notices for orders entered 48 hours or more earlier.

3.   At Otis Company, the accounts receivable master data is updated at the end of each day from payment data contained on the cash receipts event data    store. At the completion of the update run, the difference between the total dollar value of AR before and after the update run is compared to the total   dollars of payments being processed.

4.   Referring to situation 2, once a shipping notice is received in the billing       department, the first step in preparing the invoice to the customer is to      compare the unit prices shown on the sales order with a standard price list kept in the billing department. (5 marks)

Question 4      (5 marks/6 minutes)

Briefly describe the major events that can occur in the real-world inventory system.  (5 marks)

Question 5      (10 marks/15 minutes)

The following is an article from The Courier-Mail newspaper in 2013. Read the article and then answer the four (4) questions relating to the $16 million fraud affecting Queensland

Health.

Fraudster Joel Morehu-Barlow jailed for 14 years for stealing $16m from

Queensland Health

Tony Keim, Courier Mail

March 20, 2013 12:00am

FAKE Tahitian prince Joel Morehu-Barlow looked far from the jet-setting, playboy           persona his frauds had bankrolled when he was yesterday sentenced to 14 years in jail. He stood in the dock of Brisbane District Court 25 dressed in a dapper black suit - but it was  not one of his trademark Louis Vuitton numbers. And he wore on his face the type of        defeated acceptance that his future would be a bleak one locked up in a Brisbane jail cell, rather than that of Tahitian royalty or the Maori prince he falsely claimed to be.

Today he will be dressed in drab brown prison-issue attire on suicide watch as he awaits processing and classification before transfer to the prison he will call home until he is    eligible for parole in December 2016.

Hohepa Hikairo "Joel" Morehu-Barlow, 38, has already served more than a year behind  bars in pre-sentence custody since being caught - and later pleading guilty - to one of the greatest frauds committed against the Queensland taxpayer, embezzling more than $16   million.

He committed the fraud while working as a manager for Queensland Health between      September 2007 and November 2011. He yesterday pleaded guilty to numerous charges, including swindling Queensland taxpayers of $16,690,067.59.

The charges include two counts each of falsifying a record and fraud, with a circumstance of aggravation that he was an employee who took more than $30,000, and one each of     uttering a forged document, possessing a dangerous drug, drug utensils and a "relevant     substance".

Prosecutor Todd Fuller, SC, yesterday said Morehu-Barlow rose through the QH ranks    from September 2005 after falsely claiming he held a NZ law degree. He was appointed  to "higher finance positions" and siphoned QH funds - via 62 transactions over four years - into his own dummy company, Health Initiatives and Choices.

Over a three-year period from September 2008, Morehu-Barlow deposited $5.61 million earmarked for QH's Filling the Gap Program, to provide dental services to the disadvantaged, into a Commonwealth Bank account he controlled.

On November 17, 2011, $11 million was transferred into the same bank account from     funds set aside for a North Queensland university for a similar dental program. Mr Fuller said about $4.5 million of taxpayer funds had not been recovered.

The popular socialite frittered away a total of $6.16 million on his Moray St unit, $600,000 in cash withdrawals, $1.13 million on travel and accommodation, $636,740 on Louis Vuitton products and more.

Barrister David Shepherd, for Morehu-Barlow, said apart from the amount and ease with  which his client obtained the money - the fraud conducted by his client was quite               straightforward. "It was a simple fraud that involved an exceptional amount of money," he said. Mr Shepherd said his client only came unstuck when a mid-level QH staffer did a      simple computer check that revealed the company receiving fraudulent funds was in

Morehu-Barlow's name.

Mr Shepherd said his client was the oldest of six children and was subject to childhood    abuse by his alcoholic father. The court also heard Morehu-Barlow had previous criminal convictions for "dishonesty" offences committed in New Zealand.

Judge Kerry O'Brien, in sentencing Morehu-Barlow, said a cumulative prison term of 14 years was warranted due the magnitude of the fraud.

Questions:

(a)         From  the  information  provided  in  the  article,  explain  briefly  how  the  fraud

actually worked.                               (2 marks)

(b)         Briefly explain what the fundamental control problem was with Queensland

Health.                                   (2 marks)

(c)         Explain briefly two controls that you might suggest to avoid this fraudulent  situation happening again.       (4 marks)

(d)        For each suggested control, explain whether it is preventive, detective, and/or corrective in nature.        (2 marks)