Professional Documents
Culture Documents
Final Examination
Semester 2 2020
Online Mode
Instructions:
There are four sections in the paper. Multiple choice can be answered in the
grid provided while all other questions must be answered in the answer booklet.
This test has a total mark of 100 and carries 50% weighting towards your overall
course grade
There are 15 pages in this exam paper including the cover page
Circle the BEST answer for each of the following multiple-choice questions in the answer grid
provided in the answer booklet. Each multiple-choice question is worth one (1) mark.
1 The internal control activity related to the adequate records and documents, related to
sales, includes which of the following?
A Information systems duties included in the revenue process includes the preparation of
sales orders and shipping logs.
B All records are to be prepared by someone other than the person who has custody of
the assets.
D Those responsible for recording sales should ensure that the supporting documentation
is retained and organized.
A revenue cycle
B expenditure cycle.
C financing cycle
D production cycle
3 Which of the following is not an example of one of the basic types of fraud?
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B While straightening the store at the end of the day, a shoe store employee finds and
keeps an expensive pair of sunglasses left by a customer
C A purchasing agent places a large order at higher-than-normal unit prices with a vendor
that gave the agent tickets to several football games
4 A control procedure designed so that the employee that records cash received from
customers does not also have access to the cash itself is an example of a(n)
A preventive control.
B detective control
C corrective control
D authorization control
B Log analysis
C Encryption
6 Whenever a company grants credit to customers, there is a danger that customers will
not pay. In fact, most companies have occasional problems with customers who fail to
pay which leads to writing off the accounts receivable. Proper controls related to these
uncollectible accounts include all of the following, except:
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B Thorough guidelines are to be established for determining the amount of an allowance
for uncollectible accounts
D Mathematical verification of the cash receipts journal and the accounts receivable
ledger.
7 The formula for ending inventory is given as follows: X + Y – Z = Ending Inventory. Which
of the following represents Y in the equation?
C Net Purchases
D Opening Inventory
8 Which of the following options in the inventory setup would I select if I were using a
periodic inventory system?
A I only
B I & II only
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9 Which of the following is the CORRECT procedure for recording accrued electricity
expenses?
A Undeposited Funds is used to assist with the reconciliation of your cheque account by
recording the day’s banking as a single deposit
C Undeposited Funds operates in a similar way to (and instead of) a Cash Drawer
11 All of the following are guidelines for preparing data flow diagrams except
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12 A data flow diagram
A is a graphical description of the source and destination of data that shows how data
flow within an organization
C is a graphical description of the relationship among the input, processing, and output in
an information system
13 A well-planned and drawn level 0 data flow diagram for the expenditure cycle would
show which of the following processes?
A 1.0 Order Goods; 2.0 Receive and Store Goods; 3.0 Pay for Goods
B 1.0 Order Goods; 1.1 Receive and Store Goods; 1.2 Pay for Goods
C 0.1 Order Goods; 0.2 Receive and Store Goods; 0.3 Pay for Goods
D 0.1 Order Goods; 0.12 Receive and Store Goods; 0.13 Pay for Goods
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15 Which of the following is not a payroll category in MYOB?
A Wages
B Entitlements
C Deductions
D Assets
B you only need to perform initial reconciliation if there are outstanding deposits and
unpresented cheques
17 What option you will choose in Payroll command centre to make salary payment of an
employee?
A Payroll Categories
C Process Payroll
D Transaction Journal
18 XYZ Ltd pays its employees cash for their wages. Which account you need to choose for
processing wages of the employees?
A Cheque account
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C Electronic Clearing account
19 When entering an invoice in what circumstances would you input a negative amount in
the “ship” column
A to enter a sale
20 At the end of 2016, the auditors of Rosy Waters Ltd are demanding reconciliations for
various balance sheet accounts. If you were to provide reconciliations for accounts
receivable, what report (s) would you be producing to perform the reconciliation?
D Either A or C
A Business processes represent the series of discrete activities that deliver something of
value to external users
B Business processes represent the series of discrete activities that deliver something of
value to both internal and external users.
C Business processes represent the series of interlocking activities that deliver something
of value to internal users
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D Business processes represent the series of interlocking activities that deliver something
of value to both internal and external users.
B A framework for making decisions on which technology to adopt does not exist
C ERP systems are not suitable for organizations that are business process oriented
D To decide which technology to adopt, the current needs and the future direction of the
organization must be considered
23 Under a system of sound internal controls, if a company sold defective goods, the
return of those goods from the customer should be accepted by the
A receiving clerk
B sales clerk
C purchasing clerk
24 Jason is working on an excel sheet and wishes to bold all numbers with a value greater
than 100. Which of the following excel tools can automate this task for Jason?
A VLOOKUP
B SUMIF
C Conditional Formatting
D Macro
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25 You have 100 units of item number D101 in as balance in your MYOB system and this
reconciles with the stock take. You are trying to record a sales transaction of 50 units
and you are confident that all entries made are accurate but the MYOB prompts you to
back order some units. What could be the possible reason?
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SECTION B SHORT ANSWER QUESTIONS 25 marks
Question 26 (3 marks)
List 3 (three) differences between an initial bank reconciliation and the final bank reconciliation
in MYOB?
Question 27 (6 marks)
a) When entering a sale, the `tax inclusive` check box is at times checked and many times
left unchecked. Under what circumstances it should be left unchecked? (2 marks)
b) If a cash sale is being entered through this invoice, what additional information will
need to be entered compared to a credit sale? (2 marks)
c) The current layout of the invoice allows you to enter sales of inventory items, if you
wanted to enter service revenue, what would the desired invoice layout be and how
would you change the layout? (2 marks)
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Question 28 (5 marks)
You have an excel workbook labeled Fixed Assets. In the workbook you have two sheets:
i) Fixed Assets Items – This sheet has a list of three columns with the headings Fixed
Asset Code (A1), Fixed Asset Name (B1) and Fixed Asset Quantity (C1).
ii) Fixed Assets Purchase Price – This sheet has two columns with the headings Fixed
Asset Code (A1:A72) and Fixed Asset Purchase Price (B1:B72).
You wish to write a formula that will reference the Item prices from the sheet Fixed Assets
Purchase Price based on the Fixed Asset Code in the Fixed Assets Item Sheet. You add a heading
to the Fixed Assets Items Sheet in cell D1 and label the heading Price. You wish to enter the
formula directly below the heading in cell D2. You will then copy this formula to the other cells
in the column to reference the prices of the other items.
Required:
Using VLOOKUP, write the excel formula in cell D2 required to achieve your objective. The
formula must be able to be copied to the other cells in the column and reference the correct
purchase price.
Question 29 (7 marks)
Excel has the “SUMIF” and the “SUMIFS” function. Clearly distinguish between the two
important excel functions and provide a suitable example where each of the two functions will
be utilized.
Question 30 (4 marks)
Explain the difference between an Absolute and Relative reference in Microsoft Excel.
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SECTION C APPLICATION QUESTIONS 25 marks
Question 31 (8 marks)
Jackie Chan is an accounting software consultant at Ching Pong Chang & Associates Consulting.
Ching Pong is a value-added reseller of accounting software for mid-size companies, which
normally have revenue between $50-500 million. One of Jackie’s responsibilities is to solicit
new client companies and to meet with their management to recommend the best accounting
software system for them. Midmarket accounting software typically offers several modules that
the client may choose from. For example, not all client would need an e-business module for
their accounting software.
Required:
Since part of Jackie’s compensation is a percentage of software sales and consulting revenue
that he generates, what are the ethical conflicts he faces when soliciting new clients and
recommending software and software modules?
Mobile money and agency banking services have been suggested as a viable means to reduce
poverty in the Pacific.
Question 33 (7 marks)
Recent evidence suggests that mobile money in Fiji has not been successful. Studies show that
most people are not using mobile money in Fiji. Taking into consideration rural dwellers, discuss
at least 3 reasons why they may be hesitant to use mobile banking services.
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SECTION D CASE STUDY 25 marks
Bart Simpson is the accountant and cashier of a small company exporting its products to Europe
and Asia. The company purchases parts from both local and overseas suppliers. Any employees
working in the factory can initiate a purchase request and send it to the purchasing department
to avoid delay. The purchasing department will use the same supplier for the last purchase to
reduce the work load and send the purchase order to the supplier.
The staff members of the receiving department always rely on the purchase order to fill in the
receiving report without actually checking the delivery from the suppliers.
When a vendor invoice is received, Bart checks for a corresponding purchase order. If he locates
the purchase order, he then rings the receiving department for an oral confirmation that the
goods have arrived. If the goods have arrived, Bart prepares an Internet Banking Transfer through
the Which Bank and authorizes the transfer himself for a local supplier. In case of an overseas
supplier, Bart buys foreign currency from his sister Lisa who owns a foreign exchange business.
Bart then puts the foreign currency and the remittance advice in an envelope and then mails it
to the overseas supplier in order to save bank fees and charges.
If Bart cannot locate the purchase order, he places the invoice in the ‘pending invoice’ tray until
he receives a reminder notice from the supplier. He then repeats the process above if the
purchase order is found. In the unlikely case that Bart cannot locate the purchase order after
receiving the reminder notice from the supplier, he calls the purchasing department and requests
another copy of the purchase order.
As Bart has been busy, he rarely remembers to pay the suppliers on time to take advantage of
special cash discounts offered by them. In one or two occasions, Bart paid the same invoice twice.
Luckily no major financial loss incurred as the suppliers agreed to refund the overpayment in
most cases.
Carefully study the scenario above and highlight Five (5) internal control weaknesses (5
marks). Discuss how the identified internal control weaknesses can be addressed (5 marks).
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Part II (10 marks)
Refer to the flowchart below. Please provide the best description for the Flowchart regarding the
business processes involved (Mention all specific details regarding the processes)
Jones has saved $20,000 and is considering opening a sushi bar in the University of the South
Pacific dining hall food court. Jones would accept cash and credit card payments, which would be
handled primarily by the servers. Jones also plans to offer introductory specials to attract
customers during the initial months of business such as the orientation and enrolment weeks.
Jones will be using the point of sale (POS) system as part of this new business venture.
Required:
What internal controls should be implemented to reduce the risk of theft or error related to the
handling of cash, credit card payments and coupons?
THE END
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