This question paper must be returned. Candidates are not permitted to remove any part of it from the examination room. 

ACCG250 Accounting Systems Design and Development 

10 minutes reading time, 3 hours writing time 19 8 EXAMINATION INSTRUCTIONS: FOR SECTION A: Answer each question on the multiple-choice answer sheet provided. There is no negative marking for the multiple-choice questions. FOR SECTIONS B, C, D, E: Answer all questions in the space provided in this examination paper. Unit Code: Unit Name: Duration of Exam (including reading time if applicable): Total No. of Questions: Total No. of Pages (including this cover sheet): GENERAL INSTRUCTIONS TO STUDENTS: • Students are required to follow directions given by the Final Examination Supervisor and must refrain from communicating in any way with another student once they have entered the final examination venue. • Students may not write or mark the exam materials in any way during reading time. • Students may only access authorised materials during this examination. A list of authorised material is available on this cover sheet. • All watches must be removed and placed at the top of the exam desk and must remain there for the duration of the exam. All alarms, notifications and alerts must be switched off. • Students are not permitted to leave the exam room during the first hour (excluding reading time) and during the last 15 minutes of the examination. • If it is alleged you have breached these rules at any time during the examination, the matter may be reported to a University Discipline Committee for determination. Topic Multiple Choice Enterprise Resource Planning Controls Human Resources Ethics Totals Number of Questions 10 Questions 2 Questions 3 Questions 3 Questions 2 Question 19 Questions Number of Marks 20 Marks 20 Marks 20 Marks 20 Marks 20 Marks 100 Marks Score Section A Section B Section C Section D Section E AIDS AND MATERIALS PERMITTED/NOT PERMITTED: Dictionaries: Calculators: Other: No dictionaries permitted No calculators permitted Closed book – No notes or textbooks permitted Section A: Multiple Choice Questions Using the provided Multiple Choice Answer Sheet, choose the BEST answer for each of the following questions (2 marks each, 20 marks in total). 1. Which of the following statements best indicates the difference between data and information: a. information and data are the same. b. information is less useful than data. c. information is always useful whereas data is only sometimes useful. d. information is data that has been processed and converted 2. system can be defined as: a. activities that are performed on inputs b. any device used to capture data including manual keying and scanning. c. any process that an accountant is involved in. d. something that takes inputs, applies a set of rules or processes to the inputs and generates outputs. 3. An accounting information system can best be defined as: a. The application of technology to the capturing, storing, sorting and reporting of data. b. The application of technology to the capturing, storing, sorting and reporting of information. c. The application of technology to the capturing, verifying, storing, sorting and reporting of data relating to an organisation’s activities. d. The application of technology to the capturing, verifying, storing, sorting and reporting of information relating to an organisation’s activities. 4. An accounting information system is unlikely to help a firm to: a. eliminate financial fraud b. decide how much to purchase from suppliers c. determine the provision for bad debts d. determine whether to approve a credit sale 5. Which of the following statements concerning ethics is correct? a. Ethics is concerned with how we act and how we make decisions. b. Electronic accounting information systems eliminate the need for ethical behaviour. c. Professional bodies, such as CPA and ICAA, are placing less reliance on ethics and more on legal compliance. d. Ethical issues and legal issues are the same. 6. Which of the following statement regarding business processes is correct? a. Business processes represent the series of discrete activities that deliver something of value to external customers b. Business processes represent the series of discrete activities that deliver something of value to both internal and external customers c. Business processes represent the series of interlocking activities that deliver something of value to internal customers d. Business processes represent the series of interlocking activities that deliver something of value to both internal and external customers 7. XBRL stands for: a. Extensible business reporting language. b. Cross business reporting language. c. Extended business report language. d. Executable business reporting language. 2 8. Which of the following description of XBRL is true? a. XBRL is a new technology that yet to be made a practical reality. b. XBRL adds meaning to data so that other applications know what the data represents and how it should be treated c. XBRL is fundamentally different from HTML. d. A standard set of XBRL tags is not available yet. 9. Internal controls cannot: a. Prevent anomalous and undesirable occurrences b. Detect anomalous and undesirable occurrences c. Correct anomalous and undesirable occurrences d. Reverse the effects brought about by anomalous and undesirable occurrences 10. Internal controls do not control: a. Physical assets in an organisation b. Information resources in an organisation. c. Business process efficiencies in an organisation. d. Human behaviours in an organisation. Section B: Enterprise Resource Planning (20 Marks) – Answer in the spaces provided Imagine that you are conducting a field-based research project for your ERP class in a small local business. Assume that the business is a custom furniture manufacturer. In the course of your project, you tell the owner that you are using XERO in your class. The owner asks if they should be using XERO or some other ERP system in their business. a) What would be your response? b) What three questions would you ask or what information would you need to answer that question? Source: Accounting Information Systems. 10th edition. Cengage, 2015. a) b) 3 Section C: Controls (20 Marks) – Answer in the spaces provided Explain the risks, controls and control classification that arise in the following cases. • An inadvertent data entry error caused an employee’s wage rate to be overstated in the payroll master file. • A fictitious employee payroll record was added to the payroll master file. • A computer operator used an online terminal to increase her own salary. • A factory employee punched a friend’s time card in at 1:00 P.M. and out at 5:00 P.M. while the friend played golf that afternoon. • Some time cards were lost during payroll preparation; consequently, when paychecks were distributed, several employees complained about not being paid. Source: Romney, Marshall, et al. Accounting Information Systems Australasian Edition. Pearson Higher Education AU, 2012. In the table below: (a) Identify five (5) risks present in the previously listed activities. (1.5 mark each= 7.5 marks) (b) Recommend a control for each of the risks you identified. (1.5 mark each = 7.5 marks) (c) Classify each of the control activities as preventive, detective, or corrective. (1 mark each = 5 marks) Risk Control Control classification 1) 2) 3) 4 4) 5) Section D: Human Resources (20 Marks) – Answer in the spaces provided Company A has always had a strategy of product differentiation; that is, providing high quality products and extracting a price premium from the market. During the recent economic downturn, Company A has seen its customer base diminish and has decided to move strategically to a cost leadership strategy; that is, to try to sell more products at a lower price. a. What are the implications of this strategy change for the HR management and payroll process? (8 marks) b. What changes would you expect to see in the HR management and payroll cycle? (12 marks) Source: Romney, Marshall, et al. Accounting Information Systems Australasian Edition. Pearson Higher Education AU, 2012. a) 5 b) Section E: Ethics (20 Marks) – Answer in the spaces provided How a Pentagon Contract Became an Identity Crisis for Google WASHINGTON — Fei-Fei Li is among the brightest stars in the burgeoning field of artificial intelligence, somehow managing to hold down two demanding jobs simultaneously: head of Stanford University’s A.I. lab and chief scientist for A.I. at Google Cloud, one of the search giant’s most promising enterprises. ... Dr. Li’s concern about the implications of military contracts for Google has proved wise. The company’s relationship with the Defence Department since it won a share of the contract for the Maven program, which uses artificial intelligence to interpret video images and could be used to improve the targeting of drone strikes, has touched off an existential crisis, according to emails and documents reviewed by The Times as well as interviews with about a dozen current and former Google employees. It has fractured Google’s work force, caused heated staff meetings and internal exchanges, and prompted some employees to resign. The dispute has upset some senior Google officials, including Dr. Li, as they try to manage the gap between scientists with deep moral objections and salespeople who see how profitable the defence contracts will be for the company. ... The internal debate over Maven, viewed by both supporters and opponents as opening the door to much bigger defence contracts, generated a petition signed by about 4,000 employees who demanded “a clear policy stating that neither Google nor its contractors will ever build warfare technology.” Executives at DeepMind, an A.I. pioneer based in London that Google acquired in 2014, have said they are completely opposed to military and surveillance work, and employees at the lab have protested the contract. The acquisition agreement between the two companies said DeepMind technology would never be used for military or surveillance purposes. 6 About a dozen Google employees have resigned over the issue, which was first reported by Gizmodo. One departing engineer petitioned to rename a conference room after Clara Immerwahr, a German chemist who killed herself in 1915 after protesting the use of science in warfare. And “Do the Right Thing” stickers have appeared in Google’s New York City offices, according to company emails viewed by The Times. The polarized debate about Google and the military may leave out some nuances. Better analysis of drone imagery could reduce civilian casualties by improving operators’ ability to find and recognise terrorists. The Defence Department will hardly abandon its advance into artificial intelligence if Google bows out. And military experts say China and other developed countries are already investing heavily in A.I. for defence. ... Source: NY Times - https://www.nytimes.com/2018/05/30/technology/google-project-maven- pentagon.html (a) Imagine you are the Chief Information Officer of Google. Identify and apply the five steps of the ethical decision-making model to the case (20 points). 7 END OF PAPER 8