Detailed Analysis of Accounting Information System Homework Solution

This document presents a comprehensive solution to an accounting information systems homework assignment. It addresses key concepts such as Management Information Systems (MIS), Decision Support Systems (DSS), Executive Information Systems (EIS), and Expert Systems (ES), along with their roles in structured and unstructured decision-making. The solution also covers COBIT architecture for IT management, system analytic flowcharts, and the distinction between client-server systems. Furthermore, it outlines the importance of source documents, journals, ledgers, and financial statements. The assignment explores internal control elements, including risk assessment and control activities, and identifies vulnerabilities, exposures, and risks. It also includes the system analysis, design, implementation, and maintenance. The solution further explains the roles of investigators, the use of the fraud triangle, and the significance of vouching and tracing in auditing. The solution also includes a list of references.

accounting information system
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Answer 1:
 MIS
 A sophisticated system of reporting.
 Developed on the processing system of transaction.
 Used to encourage the structured form of decision making.
 DSS
 Offer support to semi-structured and the structured decisions.
 Problems are characterized by uncertain and incomplete knowledge.
 Include the tools of modeling, distinct scenarios are being modeled.
 EIS
 Encourages the executive management level.
 Formulation of strategic decision making.
 Extracts the data of summary from the internal systems of organization.
 ES
 Emulate the model of human and way of experts in the problem solving.
 Particular about the given situation or problem.
 Cannot be retained easily.
 Neural network
 Created to imitate the brain’s thought process.
 The aim is not to solve the particular problem.
 Intelligence is placed in hardware in generalized form.
Answer 2:
I have understood that the COBIT is the architecture which is being created for the management
and the governance of IT. It is the tool for managers which enables bridging the gap among the
issues of technicality (Lambert et al., 2007). The version 5 of COBIT is the latest one which
came in 2012. It is distinct from other versions because it meets the stakeholder's need, covers
the complete enterprise, provides the holistic approach to the organization to make decisions, etc.
Answer 3:
The system’s analytic flowchart is defined as a tool which is used by the programmers so that
they can map out the various steps which are needed in their programs to complete the task of
programming. It is the useful tool for mapping. The guidelines are followed to use the tool like,
the requirements are to be followed, the comparison should be understandable, and the connector
is used to reduce the flow lines. The flowchart is easier to read because it gives the better and
clear understanding of the activities as compared to the making of the flowchart which requires
constant alterations and changes (Romney et al., 2006).

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Answer 4:
 The server and client are referred to the computers, and it is used for distinct purposes.
 The client is defined as c computer which assesses server via the network.
 The server can store great variety and range of files.
 The types of server are the web, application, database, standalone, etc. and types of client
are thin, fat and hybrid.
 The computer of the client includes more software of end-user as compared to the
computer of the server.
The thin client is used to display the images graphically, which are offered by the server of
application.
Answer 5:
 Source documents- it forms the sources and provides as a proof of a transaction.
 Journals- it records the transactions which are being recorded.
 Ledger- it offers the collective form of accounts and finances of business.
 Trial balance- it provides the differences between the balances of debit and the credit.
 Financial statements- it is the complete report of the finances of an organization which
shows the financial position of the company and also ensured the quality information.
Answer 6:
 Control environment- contains the functions of management and the governance of an
organization. Focuses on awareness, attitude and the actions.
 The process of risk assessment- determines that how the risk can be managed and
minimized. It depends on nature, complexity and size.
 Information system- it is relevant to the reporting of finances and the objective contains
various records and the procedures (Lucas, H. C. 2008).
 Control activities- it contains the procedures and the policies which are designed to make
sure the directives are carried appropriately.
 Monitoring of controls- it assesses the effectiveness over time and makes the alterations
accordingly.
Answer 7:
 Vulnerability
 The software's mistake which can be utilized by a hacker to get access.
 Enables the hacker to execute and access the command.
 Exposure
 It is the issue of configuration which enables access to capabilities.
 Enables the hacker to hide the operations and the activities.
 Risk
 It is the impact of uncertainties on the objectives.
 Likelihood of occurring an event.

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This helps in analyzing security needs by creating awareness among the management from the
hackers. The firewall and the server of proxy fits to the assessment plan of risk as this help in
creating a barrier between the untrusted and the trusted network.
Answer 8:
 Systems analysis- it is the procedure of gathering factual data, identify the problems and
recommend the suggestions. The tools are the visual studio, IBM, etc.
 Systems design- it helps in designing the logical system. It includes the questions from
what to how and also provide the detailed description. Tools are the flowchart, decision
table, etc.
 System implementation- it includes the installation and acquisition of software and
hardware, training of user, conversion, and documentation. The tools are system and
program testing.
 System maintenance- it eradicates the system errors, helps in knowing the capabilities of
a system, analyzing the overall performance, etc.
The approach can be used while developing a new system in order to complete a particular
project.
Answer 9:
The investigators must ask the questions in the form of open-ended. The interview should be
made comfortable and try to create a rapport with the interviewee and ask the questions like
what, when, how, where and make the suspect confuse in his/her answers to know the truth. The
investigator should use the tone of conversational (Lieberman, A. Z., & Whinston, A. B. 2005).
The fraud triangle is an architecture which is used to define the reasoning behind the decision of
the worker to commit fraud at a workplace.
Answer 10
 Vouching is the auditing soul and tracing is used to verify the liabilities and the assets of
the company.
 Vouching is helpful for the tracing in an organization.
 Vouching keeps the evidence of documentary, and the tracing includes the documentary
and observation evidence.
The vouching and tracing is very important for an organization as it helps in getting all the
details of an organization related to the financial position.

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REFERENCES
Lambert, R., Leuz, C., & Verrecchia, R. E. (2007). Accounting information, disclosure, and the
cost of capital. Journal of accounting research, 45(2), 385-420.
Lieberman, A. Z., & Whinston, A. B. (2005). A structuring of an events-accounting information
system. The Accounting Review, 50(2), 246-258.
Lucas, H. C. (2008). The use of an accounting information system, action, and organizational
performance. The Accounting Review, 50(4), 735-746.
Romney, M. B., Steinbart, P. J., Zhang, R., & Xu, G. (2006). Accounting information systems.
Pearson Education