W1-2-60-1-6

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

UNIVERSITY EXAMINATIONS 2013/2014
EXAMINATION FOR THE DEGREE OF BACHELOR OF SCIENCE IN
INFORMATION TECHNOLOGY (YEAR III SEMESTER II)/ BACHELOR OF
COMMERCE (YEAR IV SEMESTER I)

BIT 2121: COMPUTERISED ACCOUNTING

DATE: APRIL, 2014 TIME: 2 HOURS

INSTRUCTIONS: This examination paper has five questions.

Answer ALL Questions in Section ONE and Any other TWO
Questions in Section TWO

SECTION ONE – COMPULSORY

Question One

a) Explain the concept of a company file as used in quick books. [4 marks]

b) Describe any three features that you can turn off during easy step interview of quick
books do. [6 marks]

c) Explain three reasons why you would restore a data file from the back-up file.
[3 marks]

d) You have been hired by a company that started in 2011. They have never used quick
books. Justify the “start date” you should use during the easy step interview of the quick book
2010. [3 marks]

e) Differentiate between the following:

i. Last day of the previous fiscal year and first day of a fiscal period. [2 marks]
ii. Vendor balance and customer balance. [2 marks]

f) Explain any four components of an accounting information system.[4 marks]

g) Using a diagram describe the process of auditing. [6 marks]

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SECTION TWO – CHOOSE ANY TWO QUESTIONS

Question Two

a)

i. Explain the five major sources of input to the payroll system. [5 marks]
ii. Explain the impact COBIT has had on the information systems professionals.
[5 marks]

b)
i. Describe the major functions of an accounting information systems professionals
[5 marks]
ii. Explain five reasons for increase in accounting information systems threats.
[5 marks]

Question Three

a) Discuss the time-based model of security in computerized accounting information

systems. [6 marks]

b)
i. Explain any five activities performed by accountants in a computerized environment.

[5 marks]
ii. Using a diagram, discuss the modules in a production cycle. [9 marks]

Question Four

a) Explain how a computerized accounting systems can add value to an organization.

[5 marks]

b)
i. Outline six responsibilities of internal auditor in a computerized environment.
[6 marks]
ii. Explain the frameworks that have been developed to help companies cultivate good
internal control systems. [9 marks]

Question Five

a) Explain the steps that you will follow to change-over from a manual system to a
computerized accounting system. Under the following change-over strategies: [3 marks @]

i. Parallel changeover
ii. Direct changeover
iii. Pilot change over.

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b)
i. Discuss the process of acquiring an accounting information system for your organization.
[6 marks]
ii. Explain the intent of Sarbanes-oxley act (50x) of 2002 concerning accounting
information systems. [5 marks]