CBS Accounting Information Systems 2 — Questions and Answers
Question 1: Which internal control principle requires that no single employee handle all phases of a transaction from authorization to recording to custody?
- Audit trail
- Segregation of duties (Correct answer)
- Dual control
- Least privilege
Correct answer: Segregation of duties
Segregation of duties divides transaction responsibilities among multiple employees to prevent fraud and errors.
Question 2: In an AIS, a 'chart of accounts' primarily serves what purpose?
- Lists all employees authorized to post journal entries
- Defines the coding structure used to classify financial transactions (Correct answer)
- Maps data flows between system modules
- Documents IT security access levels
Correct answer: Defines the coding structure used to classify financial transactions
A chart of accounts is a numbered listing of all account categories used to classify and record financial transactions.
Question 3: What type of AIS output report compares actual financial results against planned budgets?
- Aged trial balance
- Variance report (Correct answer)
- General ledger summary
- Cash disbursements journal
Correct answer: Variance report
A variance report highlights differences between budgeted and actual amounts, essential for budget control.
Question 4: Which database concept ensures that every record in a child table has a corresponding record in the parent table?
- Entity integrity
- Domain integrity
- Referential integrity (Correct answer)
- User-defined integrity
Correct answer: Referential integrity
Referential integrity enforces valid relationships between related tables through foreign key constraints.
Question 5: A batch processing system in an AIS differs from real-time processing primarily because batch processing:
- Updates records immediately upon transaction entry
- Accumulates transactions and processes them at scheduled intervals (Correct answer)
- Requires online connectivity at all times
- Eliminates the need for audit trails
Correct answer: Accumulates transactions and processes them at scheduled intervals
Batch processing collects transactions over a period and processes them together, unlike real-time systems that update instantly.
Question 6: Which document in the expenditure cycle authorizes the purchase of goods or services?
- Receiving report
- Vendor invoice
- Purchase order (Correct answer)
- Debit memo
Correct answer: Purchase order
A purchase order is the formal document issued to a vendor authorizing the purchase of specified goods or services.
Question 7: In ERP systems, what is the main advantage of having a single integrated database for all modules?
- It reduces the need for user authentication
- It eliminates the need for management reports
- It ensures data entered once is available across all functional areas (Correct answer)
- It allows each department to maintain independent data structures
Correct answer: It ensures data entered once is available across all functional areas
A single integrated database eliminates data silos and ensures consistency across finance, procurement, HR, and other modules.
CBS Accounting Information Systems 2
Which internal control principle requires that no single employee handle all phases of a transaction from authorization to recording to custody?