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Lincoln University
ACCT 203 Accounting Information Systems – Semester 1, 2018
Week 1 - Solutions from Chapter 1
Gelinas, U.J., Dull, R.B., & Wheeler, P.R. (2014). Accounting information systems (10 ed). Cengage Learning Australia Pty
Limited: Melbourne, Australia.
DQ 1-1 “I just want to be a good accountant, technology does not interest me.”
Comment on this statement, considering today’s technology environment.
ANS. Possible points that could be made:
a. Distinguish between an accountant and a bookkeeper. An understanding
of accounting software and related technology would enable one to
advance beyond entry-level positions.
b. Without knowledge of computer technology, an accountant can be a
bookkeeper/accountant for a small firm that does not use computers at
all. (With the ubiquitous nature of computers, this has become a weak
argument, at best.) More realistically, with the low cost of accounting
software, only very select organizations may not benefit from automation.
Examples of those organizations would include businesses that sell a low
volume of unique products.
c. Because the ability to access data, present data for decision making, audit
an accounting system, and so on are all affected by computer technology,
the career path for an accountant will be severely limited by a lack of
knowledge of computer technology.
d. The public accounting profession is competitive and the effective use of
technology helps maintain a competitive edge. For example, an auditor
can usually complete an audit engagement in less time—and be surer of
the findings—than he/she would be without using technology in the audit.
This will permit the auditor to charge less for the work and to obtain more
clients. And, if the auditor’s findings can be supported, he/she will be less
likely to experience legal ramifications (e.g., from the SEC, from
stockholders, and so on).
e. The Sarbanes-Oxley Act of 2002 requires that the CFO (and CEO) sign the
financial statements and attest to their accuracy, that companies notify
the Securities and Exchange Commission of material events within two
days, and that companies file their earnings statements within 35 days of
the end of a quarter. All of these requirements have implications for the
organization’s accounting information system and the ability of the CFO to
understand and monitor its operation.
2
DQ 1-2 Examine Figure 1.1. Based on any work experience and university education to
date, with which elements are you least comfortable? With which are you
most comfortable? Discuss your answers.
Figure 1.1 Elements in the Study of AIS
ANS. The point of this question is to get the students to see the breadth of
coverage of the AIS course and to see how the course will help fill in gaps in
