1 - AIS: An Overview

Question 1

Relevant

Answer 1

An account receivable aging report is used in credit granting decision

Question 2

Reliable

Answer 2

A report checked by three different people for accuracy

Question 3

Complete

Answer 3

An account receivable aging report included all customer accounts

Question 4

Understandable

Answer 4

The report was carefully designed so that the data contained in the report became information to the reader

Question 5

Verifiable

Answer 5

The data in the report was checked by two clerks working independently

Question 6

Accessible

Answer 6

The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company’s network.

Question 7

Timely

Answer 7

An accounts receivable aging report was recieved before the credit manager had to make a decision whether to extend credit to a customer

Question 8

What are the 6 components of an AIS?

Answer 8

1. The people who use the system
2. The procedures and instructions used to collect, process and store data
3. The data about the organization and its business activities
4. The software used to process the data
5. The information technology infrastructure, including the computers, peripheral devices and network communications devices used in the AIS
6. The internal controls and security measures that safeguard AIS data