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Auo 1 Study

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AUO1 – Auditing and Information Systems
Additional Study Questions

Accounting Information Systems
Competency 302.1.1: Nature and Purpose
The student understands the nature and purpose of information systems.
1. What is the difference between transaction processing systems, management information systems, and decision support systems?
Transaction processing systems - document financial activities
Management information systems - used to collect qualitative as well as quantitative information for decision making within organizations
Decision support systems - help the developers of an AIS identify what information they need for their planning, decision making, and control functions
2. How is a flowchart used?
A document flowchart traces the physical flow of documents through an organization—that is, the flow of documents from the departments, groups, or individuals who first created them to their final destinations.
3. How is the accounting information system documented?
An accounting information system is a collection of data and processing procedures that creates needed information for its users. An information system's components: Data or information is input, processed, and output as information for planning, decision-making, and control purposes.
4. What are effective coding systems used in AIS?
1) mnemonic codes, (2) sequence codes, (3) block codes, and (4) group codes.
5. How do accounting information software packages differ?
Owners will have to consider what tasks they'll want their system to accomplish, identify what software package or packages can perform these tasks, and perhaps evaluate several different computer hardware configurations that might support these packages.
6. What are the roles of accounting information systems in e-commerce?
Enterprise resource management (ERP) software such as SAP are particularly important…...

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