Question

PART A: The Expenditure and Production cycle:

1. Discuss the types of decision-making and strategic information should the AIS provide in the expenditure cycle.

2. Explain the role played by the AIS in the production cycle.  

PART B: TheGeneral Ledger and Reporting System

1. Describe the threats in the general ledger and reporting system and identify corresponding controls for each threat.

2. Explain the benefits of the XBRL in preparing financial information.

PART C : Data Base Design

1. Explain what is meant by the following statement: "Accountants can and should participate in all stages of the database design process."

2. Below the basic elements of REA data model:

• Inventory
• Sales
• Cash
• Cash received
• Employee
• Customer

Required:based on the basic elements above, draw a REA data model.

Answer 1

AIS system provides followings types of information for decision and strategic purpose-

1. Provide deatils on time or say Real Time information which helps in quick decision making.

2. Do all the corrections and modifications in a single time. Suppose if we change rate of tax on sales retrospectively, it will calculate all the figures and make them change.

3. Provide effects in double entry system which make work easier.

4.Provide accurate details and figure alongwith workin notes and comparision with previos data..

5. Provide facility for Ratio analaisys and advise regaring to correction consodering ideal ratios.