College of Business and Accountancy

University of Cebu-Banilad

Accounting Information System

Name: Jella Mae T. Ycalina
Course/Year:  BSA-2B
Class Sched:  1:30-3:00PM (FS) Date : December 13, 2021
Instructor: Amabella Grace N. Siaton, DBA

Explain the following:

1. Discuss any separation of duties necessary to control against unauthorized entries to

general ledger. What other control procedures regarding the general ledger should be
employed?

Because general ledger clerks have access to the general ledger, they should not have access
to the source departments' journal vouchers. If these journal vouchers are obtained by general
ledger clerks or anyone else with access to the general ledger, they may be utilized to make
unlawful entries. Pre-numbering and recording these papers at the source ensures accountability.

2. Discuss the various sources of data for the FRS output and how these data are processed
into information (output) for the different external users.

The information is derived from the various transaction processing departments. The cash
receipts journal, sales journal, purchases journal, and any other miscellaneous transactions are
the many data sources that are fed into the system. When this information is entered into the
system, the main ledger and subsidiary ledgers are updated. Any required changes and mistake
repairs are done following an examination of a trial balance of the general ledger accounts.
Finally, financial statements are generated and delivered to the relevant user groups.

3. Explain how erroneous journal vouchers lead to litigation and significant financial losses
for a firm.

Any choices made by investors and governmental authorities will be based on poor data if
journal vouchers are missing, forged, or incorrect, and information is misrepresented in the
financial accounts. If an investor provides capital to a company based on its financial statements,
and the financial statements are incorrect, and the investor loses money after the corrections are
made, the external user who suffered a loss may claim the company was fraudulent or negligent,
and sue for the amount lost. For erroneous data reporting, government entities such as the IRS
may apply hefty penalties.

4. Describe the role of the journal voucher in both batch and real-time GL systems.

Transaction processing programs in batch GL systems summarize and record transactions in

journal vouchers, which are then retained, examined, and eventually posted to the GL. Journal
vouchers are the authority and source of all GL posts in such systems. A real-time GL system, on
the other hand, publishes each transaction straight to the general ledger while also creating a
journal voucher. In this approach, the journal voucher does not permit a GL entry in the classic
 College of Business and Accountancy
University of Cebu-Banilad

Accounting Information System

Name: Jella Mae T. Ycalina
Course/Year:  BSA-2B
Class Sched:  1:30-3:00PM (FS) Date : December 13, 2021
Instructor: Amabella Grace N. Siaton, DBA

sense. It instead serves as a posting reference and audit trail, connecting GL summary account
balances to specific transactions.

5. Explain what is goal congruence.

A situation in which people at all levels of an organization have the same purpose is known
as goal congruence. A well-thought-out organizational design leads to goal alignment and the
ability for an organization to work together to achieve a strategy's objectives. The establishment
of properly planned pay packages for managers, which would drive managers to take decisions
that were compatible with the owners' objectives, is one strategy to assist in achieving goal
congruence between shareholders and managers.

6. What is information overload?

The excess of information accessible to a person attempting to accomplish a job or make a

decision is referred to as information overload. As a result, the decision-making process is
slowed, and a poor decision is made. When creating goods, designers should take great care to
ensure that information overload does not negatively impact the user's experience. Working on
data-intensive projects with binders and binders of material, infinite computer files, and millions
of email messages are examples of this type of overload.

7. Explain how exception reporting would be invaluable to the manager of a credit

department.

Exception reporting would be helpful to a credit department manager since it would reveal
specifics about clients who have been defaulting or have experienced severe payment delays.