What is the relationship between Accounting and an Accounting information system? (2.5 Marks) Accounting-Methods, procedures, and standards followed in accumulating, classifying, recording, and reporting business events and transactions. The accounting system includes the formal records and original source data. Regulatory requirements may exist on how a particular accounting system is to be maintained (e.g., insurance company). Accounting Information System-Subsystem of a Management Information System (MIS) that processes financial transactions to provide (1) internal reporting to managers for use in planning and controlling current and future operations and for nonroutine decision making; (2) external reporting to outside parties such as to stockholders, creditors, and government agencies. • What has happened to the relationship over the years? (2.5 Marks) Accounting and Information technology are two terms which are the used in every business . Because both are needed for effective working of a corporate or company. It is the need of time that we should understand the relationship between Accounting and Information Technology . Accounting is related recording and utilisation of recorded data . Information technology is scientific , technological , engineering disciplines and management technique used in information handling and processing , their application , computers and their interaction with men and machines and associated , economical and cultural matters . In Simple wording IT is that technique which and get and utilize the information with effective and efficient way. Now , we are ready for giving the relationship between Accounting And Information technology. Both are related to get information and utilization of that information . So both are interconnected with each other . If our specialize of both area merge both system with scientific and technical way , then they easily overcome the different problems due to lack of correct and adequate information related to business. • What is accounting information? (1 marks) Accounting information can be classified into two categories: financial accounting or public information and managerial accounting or private information. Financial accounting includes information disseminated to parties that are not part of the enterprise proper—stockholders, creditors, customers, suppliers, regulatory commissions, financial analysts, and trade associations—although the information is also of interest to the company\'s officers and managers. Such information relates to the financial position, liquidity (that is, ability to convert to cash), and profitability of an enterprise. Managerial accounting deals with cost-profit-volume relationships, efficiency and productivity, planning and control, pricing decisions, capital budgeting, and similar matters. This information is not generally disseminated outside the company. Whereas the general-purpose financial statements of financial accounting are assumed.

1. What is the relationship between Accounting and an Accounting information system? (2.5
Marks)
Accounting-Methods, procedures, and standards followed in accumulating, classifying,
recording, and reporting business events and transactions. The accounting system includes the
formal records and original source data. Regulatory requirements may exist on how a particular
accounting system is to be maintained (e.g., insurance company).
Accounting Information System-Subsystem of a Management Information System (MIS) that
processes financial transactions to provide (1) internal reporting to managers for use in planning
and controlling current and future operations and for nonroutine decision making; (2) external
reporting to outside parties such as to stockholders, creditors, and government agencies.
• What has happened to the relationship over the years? (2.5 Marks)
Accounting and Information technology are two terms which are the used in every business .
Because both are needed for effective working of a corporate or company. It is the need of time
that we should understand the relationship between Accounting and Information Technology .
Accounting is related recording and utilisation of recorded data . Information technology is
scientific , technological , engineering disciplines and management technique used in
information handling and processing , their application , computers and their interaction with
men and machines and associated , economical and cultural matters . In Simple wording IT is
that technique which and get and utilize the information with effective and efficient way.
Now , we are ready for giving the relationship between Accounting And Information
technology.
Both are related to get information and utilization of that information . So both are
interconnected with each other . If our specialize of both area merge both system with scientific
and technical way , then they easily overcome the different problems due to lack of correct and
adequate information related to business.
• What is accounting information? (1 marks)
Accounting information can be classified into two categories: financial accounting or public
information and managerial accounting or private information. Financial accounting includes
information disseminated to parties that are not part of the enterprise proper—stockholders,
creditors, customers, suppliers, regulatory commissions, financial analysts, and trade
associations—although the information is also of interest to the company's officers and
managers. Such information relates to the financial position, liquidity (that is, ability to convert
to cash), and profitability of an enterprise.
Managerial accounting deals with cost-profit-volume relationships, efficiency and productivity,

2. planning and control, pricing decisions, capital budgeting, and similar matters. This information
is not generally disseminated outside the company. Whereas the general-purpose financial
statements of financial accounting are assumed to meet basic information needs of most external
users, managerial accounting provides a wide variety of specialized reports for division
managers, department heads, project directors, section supervisors, and other managers.
• Name 4 uses of Accounting Information? ( 4 Marks)
Internal users (Primary Users) of accounting information include the following:
Accounting information is presented to internal users usually in the form of management
accounts, budgets, forecasts and financial statements.
External users (Secondary Users) of accounting information include the following:
• Use an example to illustrate the difference between data, information, and intelligence? (4
Marks)
Example-As sales manager of an online-store, your database fills itself everyday with data such
as the time and date of a purchase, the geographic location of your clients, their age, the total
amount of orders, etc. Most likely you will be interested in looking at how much money you
make each day, and a few other factors, plus you will have set your systems to send you an
update about it each day.
Here you have data transformed into information, it becomes Business Intelligence when you
decide to pay attention to all other information you can draw from your data by setting
appropriate systems, dashboards or other data visualization applications such as ClicData. You
will then have all the keys in your hand to make the most suitable decisions for your business.
Knowing that most of your customers are from the age range of 18 to 24 for example can make
you decide to offer more products likely to be bought by this particular age range, thus
optimizing your sales. At the same time, you would also realize that most of your customers are
based in a specific country, and you could reduce your cost of shipping by either striking a
specific deal with a carrier, or even installing a warehouse and a distribution center in this
country. Those are strategic decisions which will give you the edge over the competition.
• Discuss security concerns related to shadow data and business intelligence technologies. (2
Marks)
The main security concern is that, by copying enterprise secured data into a personal computer or
laptop, the copied data can now be easily accessed by any unauthorized person.
• Discuss the role of accounting professionals in the development of shadow data. (2 Marks)
Spreadsheets are very popular among accountants because they provide a large number of
spreadsheet analysis tools and these tools are easy to use. The end-user accountant can perform
relatively complex data analysis from a desktop or laptop computer using spreadsheet analysis
tools.

3. System Documentation
• What is system documentation? (1 Mark)
The collection of documents that describes the requirements, capabilities, limitations, design,
operation, and maintenance of a system, such as a communications, computing, or information
processing system.
• Why is it important to know system documentation? ( 4 marks)
1)Depicting how the System works,2)Training Users,3)Designing New Systems,4)Controlling
System Development and Maintainence Cost,5)Standardising Communication with others,
6)Auditing AIS’s, 7)Documenting business Processess
• Explain the 4 elements that makes up the Data Flow Diagrams? ( 4 marks)
Data Flow Diagrams are composed of the four basic symbols shown below.
• Give an example of who or when one of these documents may be required ( 2 marks)
1.
They should act as a communication medium between members of the
development team.
2.
They should be a system information repository to be used by
maintenance engineers.
3.
They should provide information for management to help them plan,
budget and schedule the software development process.
4.
Some of the documents should tell users how to use and administer the
system.
• What are Flowcharts? (1 mark)
A flowchart is a type of diagram that represents an algorithm, workflow or process, showing the
steps as boxes of various kinds, and their order by connecting them with arrows. This
diagrammatic representation illustrates a solution model to a given problem.
• List an example of an Input/output, processing and storage Symbols (6 marks)
Input/Output
Processing
Storage
• Differentiate between different types of Flowchart? ( 6 marks)
Basic Flowchart: is used when a new project is initiated, They involve sequence of steps that
involve decisions.
Swimlane Flowcharts: Help with Compliances of Documentations Required for Various

4. Government Regulations.It can also be used to document Processes which can be easily used by
the reader.
EPC Diagram: Documenting or modeling a business process is using an event-driven process
chain (EPC) diagram.
Workflow Diagram: These systems can focus on process integration, human task orientation, or
both. The goal is to create a consistent, quality output based on a standardized set of procedures.
Process Maps: . These uses are common in the fields of software and electronics. But they aren't
confined to just these disciplines.
Business organizations also use flowcharts for process improvement. Breaking down processes
into smaller steps, then examining them closely can reveal areas of both operating inefficiency
and opportunity for improvement.
SDL Diagrams: . SDL stands for Specification and Description Language. This is a flowchart
that offers a unique set of symbols that are used to map out real-time systems. The three basic
components of an SDL diagram are the system definition, the block, and the process.
One of the reasons that flowcharts are used frequently for program and network design is that
they also offer a good resource for internal problem solving. They are also a great way to show
customers how to troubleshoot common problems, because they are visual and are easy to
follow, when presented properly.
• If you were a new factory employee on your first day at a vast factory, indicate which level
Flowcharts would be required and
• If you were a new external auditor (assume that you have over 10 years of experience but new
to this factory) and wish to review the strength of internal control of the same factory, indicate
which Flowcharts you would require and why? ( 1.5 marks)
New Factory Employee:Swimlane Flowchart- Businesses often have internal or external
requirements for process documentation. Flowcharts are an excellent tool for these purposes.
Flexibility: Both new and existing employees can immediately learn the right way to perform
any job.
why? ( 1.5 marks)
New External Auditor:Process Map A process map is a detailed flowchart that is a useful tool for
auditing a process. There are four steps used in creating a process map:
Solution
What is the relationship between Accounting and an Accounting information system? (2.5
Marks)
Accounting-Methods, procedures, and standards followed in accumulating, classifying,

5. recording, and reporting business events and transactions. The accounting system includes the
formal records and original source data. Regulatory requirements may exist on how a particular
accounting system is to be maintained (e.g., insurance company).
Accounting Information System-Subsystem of a Management Information System (MIS) that
processes financial transactions to provide (1) internal reporting to managers for use in planning
and controlling current and future operations and for nonroutine decision making; (2) external
reporting to outside parties such as to stockholders, creditors, and government agencies.
• What has happened to the relationship over the years? (2.5 Marks)
Accounting and Information technology are two terms which are the used in every business .
Because both are needed for effective working of a corporate or company. It is the need of time
that we should understand the relationship between Accounting and Information Technology .
Accounting is related recording and utilisation of recorded data . Information technology is
scientific , technological , engineering disciplines and management technique used in
information handling and processing , their application , computers and their interaction with
men and machines and associated , economical and cultural matters . In Simple wording IT is
that technique which and get and utilize the information with effective and efficient way.
Now , we are ready for giving the relationship between Accounting And Information
technology.
Both are related to get information and utilization of that information . So both are
interconnected with each other . If our specialize of both area merge both system with scientific
and technical way , then they easily overcome the different problems due to lack of correct and
adequate information related to business.
• What is accounting information? (1 marks)
Accounting information can be classified into two categories: financial accounting or public
information and managerial accounting or private information. Financial accounting includes
information disseminated to parties that are not part of the enterprise proper—stockholders,
creditors, customers, suppliers, regulatory commissions, financial analysts, and trade
associations—although the information is also of interest to the company's officers and
managers. Such information relates to the financial position, liquidity (that is, ability to convert
to cash), and profitability of an enterprise.
Managerial accounting deals with cost-profit-volume relationships, efficiency and productivity,
planning and control, pricing decisions, capital budgeting, and similar matters. This information
is not generally disseminated outside the company. Whereas the general-purpose financial
statements of financial accounting are assumed to meet basic information needs of most external
users, managerial accounting provides a wide variety of specialized reports for division

6. managers, department heads, project directors, section supervisors, and other managers.
• Name 4 uses of Accounting Information? ( 4 Marks)
Internal users (Primary Users) of accounting information include the following:
Accounting information is presented to internal users usually in the form of management
accounts, budgets, forecasts and financial statements.
External users (Secondary Users) of accounting information include the following:
• Use an example to illustrate the difference between data, information, and intelligence? (4
Marks)
Example-As sales manager of an online-store, your database fills itself everyday with data such
as the time and date of a purchase, the geographic location of your clients, their age, the total
amount of orders, etc. Most likely you will be interested in looking at how much money you
make each day, and a few other factors, plus you will have set your systems to send you an
update about it each day.
Here you have data transformed into information, it becomes Business Intelligence when you
decide to pay attention to all other information you can draw from your data by setting
appropriate systems, dashboards or other data visualization applications such as ClicData. You
will then have all the keys in your hand to make the most suitable decisions for your business.
Knowing that most of your customers are from the age range of 18 to 24 for example can make
you decide to offer more products likely to be bought by this particular age range, thus
optimizing your sales. At the same time, you would also realize that most of your customers are
based in a specific country, and you could reduce your cost of shipping by either striking a
specific deal with a carrier, or even installing a warehouse and a distribution center in this
country. Those are strategic decisions which will give you the edge over the competition.
• Discuss security concerns related to shadow data and business intelligence technologies. (2
Marks)
The main security concern is that, by copying enterprise secured data into a personal computer or
laptop, the copied data can now be easily accessed by any unauthorized person.
• Discuss the role of accounting professionals in the development of shadow data. (2 Marks)
Spreadsheets are very popular among accountants because they provide a large number of
spreadsheet analysis tools and these tools are easy to use. The end-user accountant can perform
relatively complex data analysis from a desktop or laptop computer using spreadsheet analysis
tools.
System Documentation
• What is system documentation? (1 Mark)
The collection of documents that describes the requirements, capabilities, limitations, design,
operation, and maintenance of a system, such as a communications, computing, or information

7. processing system.
• Why is it important to know system documentation? ( 4 marks)
1)Depicting how the System works,2)Training Users,3)Designing New Systems,4)Controlling
System Development and Maintainence Cost,5)Standardising Communication with others,
6)Auditing AIS’s, 7)Documenting business Processess
• Explain the 4 elements that makes up the Data Flow Diagrams? ( 4 marks)
Data Flow Diagrams are composed of the four basic symbols shown below.
• Give an example of who or when one of these documents may be required ( 2 marks)
1.
They should act as a communication medium between members of the
development team.
2.
They should be a system information repository to be used by
maintenance engineers.
3.
They should provide information for management to help them plan,
budget and schedule the software development process.
4.
Some of the documents should tell users how to use and administer the
system.
• What are Flowcharts? (1 mark)
A flowchart is a type of diagram that represents an algorithm, workflow or process, showing the
steps as boxes of various kinds, and their order by connecting them with arrows. This
diagrammatic representation illustrates a solution model to a given problem.
• List an example of an Input/output, processing and storage Symbols (6 marks)
Input/Output
Processing
Storage
• Differentiate between different types of Flowchart? ( 6 marks)
Basic Flowchart: is used when a new project is initiated, They involve sequence of steps that
involve decisions.
Swimlane Flowcharts: Help with Compliances of Documentations Required for Various
Government Regulations.It can also be used to document Processes which can be easily used by
the reader.
EPC Diagram: Documenting or modeling a business process is using an event-driven process
chain (EPC) diagram.

8. Workflow Diagram: These systems can focus on process integration, human task orientation, or
both. The goal is to create a consistent, quality output based on a standardized set of procedures.
Process Maps: . These uses are common in the fields of software and electronics. But they aren't
confined to just these disciplines.
Business organizations also use flowcharts for process improvement. Breaking down processes
into smaller steps, then examining them closely can reveal areas of both operating inefficiency
and opportunity for improvement.
SDL Diagrams: . SDL stands for Specification and Description Language. This is a flowchart
that offers a unique set of symbols that are used to map out real-time systems. The three basic
components of an SDL diagram are the system definition, the block, and the process.
One of the reasons that flowcharts are used frequently for program and network design is that
they also offer a good resource for internal problem solving. They are also a great way to show
customers how to troubleshoot common problems, because they are visual and are easy to
follow, when presented properly.
• If you were a new factory employee on your first day at a vast factory, indicate which level
Flowcharts would be required and
• If you were a new external auditor (assume that you have over 10 years of experience but new
to this factory) and wish to review the strength of internal control of the same factory, indicate
which Flowcharts you would require and why? ( 1.5 marks)
New Factory Employee:Swimlane Flowchart- Businesses often have internal or external
requirements for process documentation. Flowcharts are an excellent tool for these purposes.
Flexibility: Both new and existing employees can immediately learn the right way to perform
any job.
why? ( 1.5 marks)
New External Auditor:Process Map A process map is a detailed flowchart that is a useful tool for
auditing a process. There are four steps used in creating a process map: