UNIVERSITY OF ZIMBABWE

Nov/Dec 2018 Examinations

Faculty: Commerce
Department: Accountancy
Paper Code and Title: AC221: ACCOUNTING INFORMATION SYSTEMS
Duration: 3 Hours
Examiner: Mrs. Kunzekweguta

Authorised Materials NONE

INSTRUCTIONS:
1. This paper contains TWO sections (Section A and Section B).
2. Answer section A on Microsoft excel.
3. Answer section B on Microsoft word.
4. Answer All Questions.
5. This Examination paper consists of 6 printed pages
NB: DO NOT TURN OVER THE QUESTION PAPER OR COMMENCE
WRITING UNTIL INSTRUCTED TO DO SO.

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 SECTION A (40 marks)

Refer to the dataset on Tsime for this section

Question 1 (a)

The dataset for this question is contained in the Microsoft Excel document on tsime.

Create a control procedure that would prevent, or at least detect, each of the errors in the data set.
Add the following data validation controls to your spreadsheet, including explanatory error
messages.

Assuming the following rules govern normal data:

 Employee numbers are five-digits in length and range from 10000 through 99999.
 Maximum pay rate is $50, and minimum is $10.
 Hours worked should never exceed 50.
 Deductions should never exceed 40% of gross pay.

Using the appropriate controls and explanatory error messages to your spreadsheet ensure the
following is controlled:

i. Employee number not numeric (1 mark)

ii. Pay rate too high or too low (2 marks)
iii. Hours worked too high (2 marks)
iv. Deductions too high relative to gross pay (2 marks)
v. Error in calculating net pay (1 mark)
vi. Employee’s Names are selected from a given list. (1 mark)
vii. Employee data is entered in the month of march 2018 (1 mark)

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Question 1 (b)

The following information is for a vehicle loan acquired by Sheryl (Pvt) Ltd:

Amount financed: $20000.

Annual rate: 7%.
Payment period: 6 years, payable monthly.

i. Using the appropriate formula calculate the number of payment periods. (1 mark)
ii. What is the monthly rate of the loan? (2 marks)
iii. Using the appropriate formula calculate the monthly payment? (2 marks)
iv. Prepare the loan amortization schedule for the loan on your spreadsheet. (5 marks)

Question 2 (a)

The information given in worksheet named question 2 (a) is an initial financial projection for a
new branch Sherly (Pvt) Ltd plans to open:

The table shows the branch will make a loss of $1 250 from the initial projection.

Using the appropriate formulae for the different scenarios calculate the following to ensure that
the organisation breakeven.

i. What price should the product be sold per unit in order for the organisation to breakeven
if all the other elements remain constant. (2 marks)
ii. How many units should the organisation sell in order for the organisation to breakeven if
all the other elements remain constant? (2 marks)
iii. What price should the product cost per unit in order for the organisation to breakeven if
all the other elements remain constant. (2 marks)
iv. All the other elements remaining constant, fixed costs should be incurred at how much
for the organisation to breakeven. (2 marks)

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Question 2b

The following data contained in worksheet question 2b is for NTM (Pvt) Ltd. The organisation
has hired you to assist them in analyzing their data.

Required

i. Using the appropriate formulae get the correct price for the products. (2 marks)
ii. Using the appropriate formulae get the correct regions, where the sales rep’s are
operating from. (2 marks)
iii. Using the appropriate formulae get the correct discount an individual gets from buying a
certain number of units? (2 marks)
iv. Using the appropriate formulae calculate the net revenue? (1 mark)
v. Using the appropriate data analysis tool, create a regional net revenue report, for the
sales reps.
(5 marks)

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 SECTION B (60 marks)

Question 1 (20 marks)

a) Explain how each of the following types of computer fraud and abuse techniques are used
to commit fraudulent acts by individuals.
i. Hacking (3 marks)
ii. Eavesdropping (3 marks)
iii. Virus (3 marks)
b) What is the impact of computer fraud in organisations? (4 marks)
c) Why would an organisation want to use all of the following information security controls:
firewalls, intrusion prevention systems, intrusion detection systems, and a computer
emergency response team (CIRT). (7 marks)

Question 2 (20 marks)

a) Giving examples, describe the scenarios where an organisation can use real time
mirroring and a cold site as an option for replacing IT infrastructure for their disaster
recovery plan.
‘ (5 marks)
b) A fire destroyed the data center, including all backup copies of Jacoweb (Pvt) Ltd
sensitive data. Which controls should best be used by the company to mitigate the threat?
(5 marks)
c) Describe how segregation of duties may be implemented to prevent the following from
occurring:

A payroll clerk recorded a 40-hour work week for an employee who had quit the previous
week. He then prepared a pay slip for this employee, forged her signature, and cashed
the money. (5 marks)
d) Given the knowledge that you have acquired on the use of QuickBooks premier software.
Give recommendations on the internal control procedures that can be implemented to

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 protect against the processing of a credit sale of a customer that surplus’s their credit
limit. (5 marks)

Question 3 ( 20 marks)

a) Identify and describe how two concurrent audit techniques can be used to reduce the risks
of fraud and abuse. (5 marks)
b) Mr. Mandizha an accountant at Sheryl (Pvt) Ltd is considering being involved in the
computer acquisition process at his organisation. Giving reasons, what aspects of
computer acquisition might he provide a useful contribution? (5 marks)
c) The Chief executive officer of Sheryl (Pvt) ltd, has introduced a new information system,
in order to speed up the system implementation he has requested the postponement of the
establishment of internal controls until the system is fully operational.
Advice the CEO on his decision. (5 marks)

d) How can an organisation use prototyping to hasten or improve their software development
process? (5 marks)

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