Semester One Examinations, 2022 BISM7209
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This exam paper must not be removed from the venue
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School of Business
Semester One Examinations, 2022
BISM7209 Accounting Information Systems
This paper is for St Lucia Campus (External) students.
Examination Duration: 120 minutes
Planning Time: 10 minutes
Exam Conditions:
•Learn.UQ non-invigilated
•File upload to Turnitin (Blackboard test is used to release the question
paper)
•This is an Open Book examination
•Any calculator permitted - unrestricted
•During Planning Time - Students are encouraged to review and plan
responses to the exam questions
•This examination paper will be released to the Library
* Open-book: Any additional written or printed material is permitted;
material may also be annotated.
Instructions to Students:
You will need to download the question paper included within the
Blackboard Test. Once you have completed the exam, upload the
completed exam answers file to the Turnitin assignment submission link.
You are required to type your response and submit a word document.
If you believe there is missing or incorrect information impacting
your ability to answer any question, please state this when writing
your answer.
For Examiner Use Only
Question
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Semester One Examinations, 2022 BISM7209
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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 Examinations, 2022 BISM7209
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Section A (20 marks)
Question 1 (20 marks/20 minutes)
Good Factoring is reliant on loose coupling between subsystems and tight internal cohesion
within a subsystem.
First, briefly describe what loose coupling between subsystems refers to. (1 mark each
concept up to a maximum of 5 marks)
Second, briefly describe what tight internal cohesion within a subsystem refers to. (1 mark
each concept up to a maximum of 5 marks)
Third, briefly provide the reasons why the notions of loose coupling and internal cohesion
are useful to us. (1 mark each concept up to a maximum of 10 marks)
Your tasks Your answers
Briefly describe what loose
coupling between
subsystems refers to.
Briefly describe what tight
internal cohesion within a
subsystem refers to.
Briefly provide the reasons
why the notions of loose
coupling between sub-
systems and tight internal
cohesion within sub-systems
are useful to us.
Semester One Examinations, 2022 BISM7209
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Section B (30 marks)
All the questions in this section relate to your major projects during the semester.
Question 1 (20 marks/20 minutes)
The following is an article from the Sydney Morning Herald on 27 January 2021. Please read
the article and then answer the four (4) questions relating to the fraud affecting National
Australia Bank.
Former NAB chief of staff sentenced to
eight years’ jail over kickback scheme
January 27, 2021 — 2.11pm
A former chief of staff to National Australia Bank CEOs will spend more than four years behind bars
after fraudulently approving inflated invoices in return for kickbacks worth more than $5 million.
Between 2013 and 2017, Rosemary Rogers accepted payments from Human Group chief executive
Helen Rosamond bankrolling lavish domestic and international holidays for herself and her extended
family, along with the purchase and renovation of a holiday home, plus two boats and a luxury car.
She pleaded guilty last year to multiple charges of dishonestly obtaining financial advantage by
deception and being an agent corruptly receiving a benefit.
In the NSW District Court on Wednesday, Rogers was sentenced to a maximum of eight years in jail,
with a non-parole period of four years and nine months, after what acting Judge Paul Conlon
described as a “particularly difficult sentencing exercise”.
In sentencing, Judge Conlon ran through the details of 64 charges against her, including 27 counts of
corruptly receiving a benefit, each of which carries a maximum sentence of seven years in prison,
and which bore a total value of $5,540,600.
Rogers was able to commit the fraud in her role as chief of staff to former NAB bosses Andrew
Thorburn and his predecessor Cameron Clyne, whereby she approved invoices from the Sydney-
based events and human resources company Human Group without scrutiny from NAB.
The invoices were prepared by Ms Rosamond, whom Judge Conlon said had developed such a close
relationship with Rogers that they would meet frequently for lunch despite living in Sydney and
Melbourne respectively. In texts, the women used the phrases “bestie” and “sister from another
mother” to refer to each other. They would also exchange gifts, including jewellery.
Then there were the bribes. Among them, a $1.5 million cheque went towards a $3.8 million luxury
home in Williamstown, an upmarket suburb in Melbourne’s inner-west. The funds from that cheque
came from a $2.2 million invoice Rogers approved ostensibly for the on-boarding of former NSW
premier Mike Baird, who joined the bank in 2017, six weeks after stepping down from his role as the
state’s top politician.
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The court heard the actual cost of on-boarding Mr Baird was $60,000. Human Group “had nothing to
do with the on-boarding of Mr Baird and the offender knew that,” Judge Conlon said.
The judge said it was “absolutely staggering” that such fraudulent invoices “were not detected by
some appropriate system for internal auditing by NAB”.
All it took was for Human Group to submit invoices that were “devoid of detail” and “the offender
would merely approve courtesy of her delegated authority,” he said.
Instead of meaningful detail, the invoices would be assigned with often obscure project names. The
$2.2 million invoice was labelled “Project Eagle”, in reference to the code name given to Mr Baird
during his recruitment process.
Payments covering holidays to the United States and Europe for Rogers and her extended family
were labelled “Project USA” and “Project Europe”, while a $4000 birthday celebration in Sydney was
titled “Project Outlaw”.
More than $620,000 was paid to Rogers for a holiday to the US with eight others – covering their
flights and accommodation, chartering a private jet, luxury cruises and chauffeurs during stops in
New York, Washington and Hawaii. During the Europe trip, Ms Rosamond covered more than
$180,000 worth of expenses.
She also paid for a $46,000 boat in 2014, and later, in 2016, its $115,000 replacement – with the
original boat traded in for $30,000.
A $172,000 BMW SUV was paid for, as was a $91,000 caravan.
It took a letter from an anonymous whistle-blower in December 2017 for NAB to discover and begin
to pursue Rogers. In the meantime, Human Group had made more than $44 million out of its
contract with the bank, which was its only client from 2015 onwards.
The court heard that while members of Rogers’ family had reimbursed her for some of the US trip,
she did not pass that money back to Human Group. The same occurred when Rogers’ family paid her
back for parts of other trips bankrolled by Ms Rosamond.
Judge Conlon said it was clear from Rogers’ spending that it was indicative of “greed, personal gain
and self-gratification”.
But while he said Rogers’ offending was above mid-range in its seriousness, he accepted her
expressions of remorse “are indeed genuine” and found her good prior character and prospects for
rehabilitation constituted exceptional circumstances.
NAB chief legal counsel Sharon Cook said the bank had assisted police throughout the investigation
and is “pleased this part of the matter is now resolved”.
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Since becoming aware of the issue, NAB has “made changes to strengthen controls in our
organisation, including changing delegations and introducing additional checks on expenses,” she
said. “We are taking court action to recover the proceeds of the alleged fraud.”
Ms Rosamond will face a trial next year involving separate charges for her alleged involvement.
Neither Mr Thorburn, Mr Clyne nor Mr Baird is accused of any 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 at National Australia Bank
(6 marks)
(c) Aside from the controls NAB is implementing, i.e., changing delegations and checks
on expenses, suggest and describe two further controls to avoid this fraudulent
situation happening again.
(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:
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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 username 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
Evaluate the main
level of information
provided by MYOB. Is
it strategic,
managerial,
operational, or
transactional? Briefly
justify your answer.
What ability, if any,
has MYOB to provide
what-if analyses to
support business
decisions? Briefly
justify your answer.
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What size of
organisation is MYOB
best suited to in light
of MYOB’s
capabilities? Briefly
justify your answer.
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Question 3 (5 marks/10 minutes)
Match the two lists, below, by placing the capital letter from List 1 in each of the cells
preceding the five descriptions in List 2 to which they best relate.
One description in List 2 can be answered with 2 matches from List 1. Therefore, you should
have 2 letters left over from List 1.
List 1: Concepts
A. Application (i.e., automated) control.
B. Corrective control.
C. Control environment.
D. Input validity.
E. Input completeness.
F. Input accuracy
G. Update completeness.
H. Efficient use of resources.
List 1: Capital letter List 2: Definitions/Descriptions
1. Insurance policy reimburses a company for losses due to
a fire in a warehouse.
2. Shipping notices have a serial number that is tracked to
ensure that they are all input.
3. Computer reviews each input to ensure that all the
required data are included.
4. Inventory movements are tracked with a scanner to
reduce manual counting.
5. Purchase orders are signed to approve the purchase.
(5 marks total, 1 mark per correct match)
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Question 4 (15 marks/15 minutes)
The following is the summary from a 2021 report into The challenges in
implementing digital change prepared by the UK National Audit Office. The
Report is in response to the recurring retinue of failed digital change programmes
besetting the UK Government.
Summary
1. Our way of life is now increasingly digital, and technology is almost
always a feature of large-scale government business change
programmes. Current and future public services are dominated by
digital change. This is clear in much of government’s thinking about
how to build back public services following the COVID-19 pandemic,
as well as in longer-term policies and strategies. In addition, the public
increasingly expects the government to make effective use of
technology, so public bodies have little choice but to deliver high-
quality digital services.
2. When large digital business change programmes run into difficulty, the
technology solution is often cast as the primary reason for failure.
There is rarely a single, isolated reason which causes critical
programmes to fail. Many of these programmes face intrinsic business
challenges as well as technical challenges.
Our findings point to a range of problems, including: shifting business
requirements; over-optimism; supplier performance; and lack of
capability at the senior and operational level. Only a small proportion of
permanent secretaries and other senior officials have first-hand
experience of digital business change and as a result many lack sufficient
understanding of the business, technical and delivery risks for which they
are responsible. This means that many of the problems stem from the
inability of senior decision-makers to engage effectively with the difficult
decisions required to implement technology-enabled business change.
3. Pressures on public finances mean there is an urgent imperative for those
designing and delivering digital business change programmes to learn
from the mistakes and experiences of their predecessors. If they do not
do so, these programmes will continue to fail. This report sets out the
lessons for the centre of government and departments to learn from the
experience of implementing digital change. It will be particularly useful for
senior decision-makers who may not have direct technical experience or
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who have not yet grasped the scale of the challenge. We have focused on
operational business change programmes with a significant technical
component, by which we mean programmes which deliver a service that
users interact with electronically. In pulling together these lessons, we
have reviewed our published reports and interviewed senior digital
leaders across government and the private sector. We have assessed good
practice and consulted with experts from industry, academia and think
tanks to highlight the nature of the challenges and understand why
government has found it hard to apply the lessons of experience.
Findings: lessons for government
4. Having consulted widely across government and its commercial suppliers, we
found a high level of agreement among digital leaders regarding the
challenges they face in delivering digital business change programmes. These
programmes share characteristics and challenges with all major programmes,
but added complexities make the difficulties even more acute and have often
been poorly understood. We hope that our report will add further impetus to
the work being carried out in government and support practical improvements
in digital change programmes.
5. We have identified lessons for government digital programmes in six
categories, which are essential to get right at the outset. These are
critical in any major project or programme, but in digital change the
initial and pre-deployment stages are even more pivotal than usual
because of the increased uncertainties which typically characterise
them, including ‘unknown unknown’ risks. If the delivery implications
are poorly understood the level of ambition can be unrealistic from the
outset. Successful delivery of digital business change programmes
requires organisations to equip non-technical leaders with the right skills,
and design suitable approval and governance frameworks.
You have been appointed as the Chief Information Officer advising Ministers of
the Queensland Government on digital change projects. One such minister has
approached you about a digital change project she seeks to undertake in her
portfolio. Based on the Summary from the UK’s National Audit Office’s Report,
briefly describe 3 preliminary, general recommendations you would make to
the Minister concerned.
(15 marks – up to 5 marks per recommendation)
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Recommendation
No.
Your recommendations to the Minister
1
2
3
END OF EXAMINATION