ACCTG 222 Accounting Information Systems Final Exam SEMESTER ONE, 2023
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ACCTG 222
Final Exam
Accounting Information Systems
SEMESTER ONE, 2023
1 What are the process steps within the business cycle that are relevant to Tahini Systems Flowchart? (3 process steps in total)
Process Step
2 Who/ what does the letters below represent? (A, B, C , D , E, F, G)
3 Interpret the SFC: Please write down a narrative for the story in Box A. (Word limit:120 words )
4 Identify and describe TWO important internal controls that currently exist in Tahini. Explain how these internal controls reduce risk.
Word limit, each text box: 50 words
1. (a) Internal controls implemented
1. (b) Risks reduced
2. (a) Internal controls implemented
2. (b) Risks reduced
5 Suggest THREE potential internal controls to be implemented in Tahini and explain how the internal control can reduce risks .
(Word limit, each text box: 80 words ).
1 (a) Internal controls to be implemented
1 (b) Risks to be reduced
2 (a) Internal controls to be implemented
2 (b) Risks to be reduced
3 (a) Internal controls to be implemented
3 (b) Risks to be reduced
Fill in your answer here
Case: Waiwaiā
1. Sheri Britt had developed a hobby of making DIY candles at home during the pandemic . Her business focuses on a niche candle market with special fragrances . In 2023, she decided to start her business named Waiwaiā , which specialises in producing scented candles . She employs about 20 people to work for the business . All products are sold on credit.
2. The production process is mainly manual, beginning with specially designed mixers filled with ingredients . Most of the candle ingredients are bought on credit from local New Zealand suppliers . The common ingredients include soy wax and fragrance oil. The ingredients are precisely measured and added to the mixer. Once thoroughly mixed, the solution is poured into glassware containers to cool off.
3. The purchasing clerk conducts a stock take every morning to check which ingredients have fallen below their reorder point. The purchasing clerk first refills the ingredients , updates the ingredient level in the system , and then places an order in the system to the preferred supplier. These preferred suppliers are selected from a tender process by the purchasing manager. The purchasing manager also decides the reorder points for the ingredients . Duplicate copies of the order are produced in sequential orders . One copy is sent to the supplier, and the other copy is filed away.
4. Whenever the ingredients arrive, the warehouse clerk counts and inspects them . A surveillance camera is installed at the receiving area to run 24 hours , 7 days . The clerk also compares the quantity counted against the quantities mentioned on the packing slip and enters the quantity received into the system . The packing slip is filed away in the order of dates received.
5. Invoices for the ingredients are received from the suppliers after the ingredients have been delivered. The accounts payable clerk enters her password to access the AIS system . She then enters the invoice details into the system to update the accounts payable record. The invoices are then filed away.
6. On the 20th of each month, the accounts payable clerk organises payments for the invoices received during the month. She has a payment limit of $1000. For any transactions larger than $1,000, she needs to seek authorisation from the accounts manager. Once approved, the accounts payable clerk uploads the payment information into the online banking system . Once paid, the invoices are shredded for security reasons .
6
1. What are the process steps within the business cycle that are relevant for the Waiwaiā systems flowchart?
(3 in total, each to the relevant process step involved)
1 (a) Process Step
1 (b) Paragraph number in the case
2 (a) Process Step
2 (b) Paragraph number in the case
3 (a) Process Step
3 (b) Paragraph number in the case
7 Find FIVE adequate internal controls implemented in the process , and explain how the risks are reduced.
(Word limit, each text box: 50 words ).
1 (a) Adequate internal controls implemented
1 (b)Risks reduced
2 (a) Adequate internal controls implemented
2 (b) Risks reduced
3 (a) Adequate internal controls implemented
3 (b) Risks reduced
4 (a) Adequate internal controls implemented
4 (b) Risks reduced
5 (a) Adequate internal controls implemented
5 (b) Risks reduced
8 Suggest FIVE risk exposures and identify which risk category they belong to. Detail the internal control techniques needed to counter these risks , and for each technique, identify its internal control type.
(Word limit, each text box: 50 words ).
1 (a) Risk exposure
1 (b) Risk category (Brown’s Taxonomy)
1 (c ) Internal control technique to counter the risk
1 (d) Internal control type (e.g., preventive)
2 (a) Risk exposure
2 (b) Risk category (Brown’s Taxonomy)
2 (c ) Internal control technique to counter the risk
2 (d) Internal control type (e.g., preventive)
3 (a) Risk exposure
3 (b) Risk category (Brown’s Taxonomy)
3 (c ) Internal control technique to counter the risk
3 (d) Internal control type (e.g., preventive)
4 (a) Risk exposure
4 (b) Risk category (Brown’s Taxonomy)
4 (c ) Internal control technique to counter the risk
4 (d) Internal control type (e.g., preventive)
5 (a) Risk exposure
5(b) Risk category (Brown’s Taxonomy)
5(c ) Internal control technique to counter the risk
5(d) Internal control type (e.g., preventive)
9 After you finished the study of ACCTG 222, the managerial team of ABX company asked you to write a memorandum regarding the following:
1. What is internal control.
2. Why internal control is important to a business .
3. How to strengthen the internal controls in the three New Zealand local cases used as examples in class:
a. Auckland International Airport, 2016
b. Fujifilm , 2017
c . Middlemore Hospital, 2022
4. Please use your own words in this memorandum .
5. The word limit for this memorandum is 200 words .
2023-11-01