College of Administration and Finance SciencesAssignment (2)
Deadline: Saturday 03/06/2023 @ 23:59
Course Name: Introduction to
Student’s Name:
Accounting Information Systems
Course Code: ACCT 402
Student’s ID Number:
Semester: Third Term 22/23
CRN:
Academic Year: 1444 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/15
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
● The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
● Assignments submitted through email will not be accepted.
● Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
● Students must mention question number clearly in their answer.
● Late submission will NOT be accepted.
● Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
● All answers must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism.
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College of Administration and Finance Sciences
● Submissions without this cover page will NOT be accepted.
Assignment Question(s):
(Marks 15)
Question 1:
(03 Marks)
What are the activities of sales order entry? Give four of the threats that may face and what could be
the possible controls for those threats?
Answer:
Question 2:
(03 Marks)
What are the advantages of the REA data model over the traditional AIS model?
Answer:
Question 3:
(04 Marks)
Under the payroll system of an organization we find several components such as HRM Department,
Employees, Bank, Government Agencies, Insurance and other companies, Various other
departments. Take an example of an organization and explain the relationship of these components
with reference to Payroll System of that organization
Answer:
Question 4:
(05 Marks)
Shahid Corporation is a midsize, privately owned, industrial instrument manufacturer supplying
precision equipment to manufacturers in the Midwest. The corporation is 10 years old and
uses an integrated ERP system. The administrative offices are located in a downtown building
and the production, shipping, and receiving departments are housed in a renovated
warehouse a few blocks away.
Customers place orders on the company’s website, by fax, or by telephone. All sales are on
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College of Administration and Finance Sciences
credit, FOB destination. During the past year sales have increased dramatically, but 15% of
credit sales have had to written off as uncollectible, including several large online orders to
first-time customers who denied ordering or receiving the merchandise.
Customer orders are picked and sent to the warehouse, where they are placed near the
loading dock in alphabetical sequence by customer name. The loading dock is used both for
outgoing shipments to customers and to receive incoming deliveries. There are ten to twenty
incoming deliveries every day, from a variety of sources.
The increased volume of sales has resulted in a number of errors in which customers were
sent the wrong items. There have also been some delays in shipping because items that
supposedly were in stock could not be found in the warehouse. Although a perpetual
inventory is maintained, there has not been a physical count of inventory for two years. When
an item is missing, the warehouse staff writes the information down in log book. Once a week,
the warehouse staff uses the log book to update the inventory records.
The system is configured to prepare the sales invoice only after shipping employees enter the
actual quantities sent to a customer, thereby ensuring that customers are billed only for items
actually sent and not for anything on back order.
Questions:
a. Identify at least three weaknesses in Shahid Corporation’s revenue cycle activities.
b. Describe the problem resulting from each weakness.
c. Recommend control procedures that should be added to the system to correct the weakness.
Answer:
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