Semester One Final Examinations, 2021 BISM7209 Accounting Information Systems
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Prior to starting this exam please scroll through the
entire exam to ensure you know where and how to
answer each of the questions in all three sections.
Semester One Final Examinations, 2021 BISM7209 Accounting Information Systems
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Question 1 (20 marks/20 minutes)
Why do we need information systems? Information systems are implementations
of models that we devise to represent real-world phenomena. Assuming that we
have a good representation, in the table below briefly describe the three ways
that information systems are useful
For each of the three (3) ways listed in the table, below, briefly explain why
information systems are useful..
Your explanation of why each way information systems are useful is worth the
marks indicated.
(20 marks)
Ways
information
systems are
useful
Type your descriptions of the ways information systems are useful here.
No. 1
7 marks
No. 2
6 marks
No. 3
7 marks
Semester One Final Examinations, 2021 BISM7209 Accounting Information Systems
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Section B (30 marks)
All the questions in this section relate to your major project during the
semester.
Question 1 (20 marks/20 minutes)
The following is an article from Sydney Morning Herald in 2019. Please read the article
and then answer the four (4) questions relating to the fraud affecting National Australia
Bank.
NSW Police arrest company director in
NAB fraud scandal investigation
Lucy Cormack, Nick McKenzie and Richard Baker
Updated March 1, 2019 — 2.18pm first published at 10.01am
The director of a company at the centre of an alleged $40 million corporate fraud
scandal involving National Australia Bank has been arrested and charged with more than
50 bribery and corruption offences.
Helen Rosamond, 43, is the owner and director of Human Group, an events and human
resources company that has held lucrative contracts with NAB going back 12 years and
worth almost $120 million.
Police will allege Ms Rosamond paid multiple extravagant bribes between 2013 and 2017
to an executive at the bank in order for the executive to approve bloated invoices.
Such bribes allegedly included a four-night trip for 13 people from Melbourne to Sydney
costing more than $76,000, a one-month trip to the US for eight people which cost
$485,000, multiple trips to the Emirates resort at Wolgan Valley, prepaid credit cards,
private helicopter transfers and a $46,000 boat.
On Friday morning, Ms Rosamond was arrested by members of Strike Force Napthali at
her harbourside home and taken to Kings Cross police station.
Shortly after 4pm she appeared via audio-visual link at Central Local Court, where she
was granted bail by Magistrate , subject to a number of strict conditions, including
surrendering her passport, reporting to police daily and posting a $200,000 surety.
He said the financial gains allegedly made by Ms Rosamond were "mostly to facilitate a
lifestyle" for herself and her family, with "boats, holidays," and "houses."
Semester One Final Examinations, 2021 BISM7209 Accounting Information Systems
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She is the first to be charged after an extensive 12-month investigation by the state's
financial crimes squad into an alleged kickbacks scandal that ran out of the office of
recently departed NAB chief executive Andrew Thorburn.
The massive scale of the alleged fraud was described on Friday by acting Assistant
Commissioner Stuart Smith as "something we haven't seen before".
Ms Rosamond has been charged with 56 counts of bribing an agent and two counts of
obtaining benefit by deception, related to the allegedly corrupt provision of over-inflated
invoices for services to NAB between 2013 and 2017.
At the centre of the police investigation is the relationship between Ms Rosamond and
Mr Thorburn's former chief of staff, Rosemary Rogers. The investigation was triggered by
a whistle-blower referral within NAB last year.
Information gleaned from the report was referred to the financial crimes squad in
February last year, prompting the formation of Strike Force Napthali.
Within two months, Napthali investigators descended on the North Sydney office of
Human Group, as well as other properties in Milsons Point and Potts Point. Police
executed 20 search warrants at multiple properties, seizing "a warehouse" worth of
documents and electronic storage devices.
Forensic accountants from police and NAB have spent thousands of hours over 12
months examining the document haul since.
The alleged scam, which was mentioned at the banking royal commission, involved
Human Group inflating invoices for its services to NAB to cover large commissions and to
fund extravagant overseas holidays taken by Ms Rogers and her family.
Acting Assistant Commissioner Smith said those involved with the alleged fraud had
received substantial benefit.
"The commissions were paid to ensure certain contracts would remain viable with
[NAB]," he said, adding that the financial institution was also "a victim" and had been
working with police.
"Obviously that was to secure those contracts and then those contracts were overpaid
what would be an expected amount," acting Assistant Commissioner Smith said.
Ms Rogers has not been arrested or charged. She held the position of chief-of-staff for
nine years, including under former chief executive Cameron Clyne, before her
resignation in December 2017.
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Last month, Supreme Courts in NSW and Victoria slapped freezing orders over Ms
Rogers' $6.2 million property portfolio, three of her bank accounts and a $1 million NAB
bank cheque following a proceeds of crime application by the NSW Crime Commission
last year.
Mr Thorburn, who quit as chief executive last month following criticism from banking
royal commissioner Kenneth Hayne, is not suspected of wrongdoing.
Questions:
(a) From the information provided in the article, explain how the fraud actually
worked.
(4 marks)
(b) Discuss what the fundamental control problem was with National
Australia Bank.
(6 marks)
(c) Suggest and describe two controls that National Australia Bank could use
to uncover and avoid dealing with fraudulent suppliers in future.
(6 marks)
(d) For each suggested control in (c) above, indicate whether it is preventive,
detective, and/or corrective in nature. (4 marks)
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Answer Section B, Question 1 (Questions a, b, c, and d) here:
Semester One Final Examinations, 2021 BISM7209 Accounting Information Systems
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Question 2 (10 marks/15 minutes)
Based on the following small extract from Polis Grocers Inc., fill in the missing activities
in the table of Entities and Activities presented below.
(10 marks, 1 mark per correct activity)
Extract, Polis Grocers Inc.
To enter an order, the customer must log on to the Polis Web site with a user-name and
password. Using the customer database, the system confirms that the customer has a
refrigerator unit in place and that the customer is in good standing. Once approved, the customer
can browse the product list that is generated from the inventory database and add items from
the shopping cart. When finished, the customer proceeds to the checkout screen to authorize the
billing amount to be charged to his or her account. When the order is submitted, items are
allocated in the inventory database, and a new order is recorded in the order database. In the
warehouse, a clerk downloads an outstanding order from the order database to a handheld
computer. The downloaded order provides an electronic picking ticket for use in assembling the
customer’s order.
Entity Activity (type your answer in the rows below)
1. Customer
2. Computer
3. Computer
4. Computer
5. Customer
6. Customer
7. Customer
8. Computer
9. Computer
10. Computer
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Section C (50 marks)
Question 1 (12 marks/15 minutes)
With regard to the Inventory process control goals of effectiveness of operations,
efficiency of operations, and resource security:
(a) Give two (2) example controls for each of the three process control goals.
(6 marks)
(b) For each of the three process control goals, select one example control from your
answer to (a). Explain how the control supports the production planning process, and
the risks to the production process if such a control was not in place.
(6 marks – 2 marks for each explanation of how the production
planning process is supported and the risks to the production
process if the control was not in place)
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Answer Section C, Question 1(a) and Question 1(b) here:
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Question 2 (18 marks/25 minutes)
Thinking about your MYOB assignment, evaluate MYOB’s Billing/Debtors/Cash
System module in terms of each aspect listed in the following table. In your
response, include an appropriate example to support your evaluation. This
question continues, over.
(6 marks for each aspect, i.e., one mark per appropriate evaluation point
up to 4 marks for each aspect, and 2 marks for each relevant example
supporting the evaluation points)
Aspect Type your response
The main level of
information provided
by MYOB, i.e.,
strategic, managerial,
operational, and
transactional.
The ability of MYOB
to provide what-if
analyses.
Semester One Final Examinations, 2021 BISM7209 Accounting Information Systems
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The size of the
organisation MYOB is
best suited to in light
of MYOB’s
capabilities
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Question 3 (10 marks/10 minutes)
Following is a list of eight generic control goals (A-H), followed by eight descriptions of
either process failures (i.e., control goals not met) or instances of successful control
plans (i.e., plans that helped to achieve controls goals).
List the numbers 1 through 8 in the table below. Each number represents one of the
described situations on the page below. In the table, next to each number, place the
capital letter of the control goal that best matches the situation described.
Hint: Some letters may be used more than once in each situation. Conversely, some letters
may not be used at all.
Control goals:
A. Ensure effectiveness of operations
B. Ensure efficient employment of resources
C. Ensure security of resources
D. Ensure input validity
E. Ensure input completeness
F. Ensure input accuracy
G. Ensure update completeness
H. Ensure update accuracy
Situations:
1. Instead of preparing deposit slips by hand, Kaley Company has them
generated by the computer. The company does so to speed up the
deposit of cash (speedy deposit being an objective at Kaley).
2. In a typical cash receipt process, one of the earliest processes is to
endorse each customer’s check with the legend, for example, “for deposit
only to Cost and Effect Company.”
3. Levers Corporation recorded as sales some shipments of disk drives
between their warehouses. These disks drives had not been ordered by
anyone and were still the property of Levers.
4. Diffusion Co. prepares customer sales order on a multipart form, one copy
of which is sent to its building department, where it is placed in a
temporary file pending shipping notification. Each morning, a billing clerk
reviews the file of open sales orders and investigates with the shipping
department any missing shipping notices for orders entered 48 hours (or
more) earlier.
5. An accounts payable clerk at C&C Company enters vendor invoices into
the computer. When the invoices for the particular day were entered, the
computer noted that vendor invoice 12345 appeared twice. The
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computer rejected the second entry (i.e., the duplicate, the invoice with
the same number).
6. In entering the invoices mentioned in situation 5, the data for the
payment terms was missing from invoice 12349 and therefore was not
keyed into the computer.
7. Referring to situation 4, once a shipping notice is received in the billing
department, the first step in preparing the invoice to send to the
customer is to compare the unit prices shown on the sales order with a
standard price list kept in the billing department.
8. At Falcon Company, the accounts receivable master data are updated at
the end of each day from payment data contained on the cash receipts
event data store. At the completion of the update run, the difference
between total dollar value of accounts receivable before and after the
update run is compared to the total dollars of payments being processed.
(10 marks)
Situation Control Goal(s)
1
2
3
4
5
6
7
8
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Question 4 (10 marks/15 minutes)
Relative to IT Governance, two (20) of the most important areas are listed, below. Please
briefly describe the goal of each area of IT Governance and for each IT Governance area
give one example of the consequences if the goal is not achieved. This question
continues, over.
(5 marks for each area, i.e., up to 2 marks per goal description, and up to 3
marks for each relevant example of the consequence of the goal not being
achieved)
IT Governance
Area
Type the goal and example of consequence of
the goal not being achieved here.
Value Delivery
Risk
Management
END OF EXAMINATION