1. What is information?

How does a piece of information affect the business?

Information is a general term for everything with the capacity to inform.
Any business organization depends on information to survive. Information is a
necessary tool in businesses as it affects and influences the whole operation and
the decision-making of the internal and external users of the business.
Additionally, any information could either bring profit or loss to the company.

2. What are the four levels of activity in the pyramid representing the business
organization? Distinguish between horizontal and vertical flows of information.
The four levels of activity in the pyramid representing the business
organization are top management, middle management, operations
management, operations personnel or the day-to-day operations
information. Horizontal communication involves information flowing
between persons of the same rank in the organization, whereas vertical
communication involves information moving from higher levels to lower
ones and vice versa. Comparing both horizontal and vertical flows of
information, a vertical form tends to be more formal.
3. What is the relationship among data, information and an information system?

4. Distinguish between AIS and MIS.

AIS or accounting information system is the ones responsible for the

gathering, storing, and processing of financial and accounting that will be
used by internal users to present information to its investors, creditors,
and tax authorities. Basically, AIS is a combination of both the traditional
accounting practices and modern technology. On the other hand, MIS or
management information systems is responsible for the nonfinancial
transactions that does not affect the business financially.

5. What are three (3) cycles of transaction processing systems?

6. What are the characteristics of good and useful information?

7. What is feedback and how is it useful in an information?

Feedback is a type of output that is sent to the system as a data source.

Feedback is used to start or change a process. It can be internal or external. Feedbacks
are very useful as an information for it either improves or encourages a fresh start for
whatever problem there is within the operations or the business itself. For example, the
personnel discovered an old broken machine used to produce the businesses’ products.
He or she knew that it would not produce the best quality possible so he or she gave
feedback about it which prevented producing low quality products and possible
customer dissatisfaction. Feedback is an essential thing especially when it comes to
businesses for it will determine which things or aspects that needed change or
improvement.

8. What are the roles played by accountants with respect to the information system?

9. Discuss how conceptual and physical systems differ and which functions are
responsible for each systems.

10. Contrast centralized data processing with distributed data processing. How do the
roles of end-users differ between the two approaches?

11. Distinguish internal and external auditing.

12. Why is it important to organizationally separate the accounting function from other
functions of the organization?

13. What is an ERP system?

14. Briefly explain accounting independence.

15. Discuss what is Sarbanes-Oxley Act (SOX) of 2002.