Accounting Information Systems: Basic Concepts and Current Issues (4th edition) Dr. Bob Hurt, C.F.E. End-of-chapter solutions Chapter 1: Role and purpose of AIS . . 1-1 1. Reading review questions a. What is an accounting information system? An accounting information system, like all systems, is a collection of inter-related parts designed to achieve a specific goal. In the case of AIS, that goal is to prepare information for decision making. b. Explain three reasons AIS is an important area of study for future accountants. (1) Developing a strong AIS helps achieve some of the components of the FASB Conceptual Framework of Accounting. (2) Studying AIS helps students develop many of the core competencies suggested by the AICPA. (3) Acquiring knowledge about AIS helps students learn more about common business processes. c. List and discuss the five parts of a generic accounting information system. The five generic parts of the AIS are: inputs (such as source documents), processing (such as with general ledger software), outputs (such as the general purpose financial statements), storage (such as in master and transaction files) and internal control (such as separation of duties). d. Identify five broad criteria you can use to evaluate information on the Internet and in other sources. The University of Maryland University College offered five criteria for information evaluation. They are: authority, accuracy, objectivity, currency and coverage. e. In a manner specified by your instructor (e.g., individually or with a group, as a written paper or as an oral presentation), prepare an original response to one or more of the questions for this chapter’s “AIS in the Business World.” As in previous editions, I’ve posted responses to each chapter’s AIS in the Business World on my accounting information systems blog (www.bobhurtais.blogspot.com). Look for the 4 th edition’s responses in the 15 December 2014 post. 2. Multiple choice review questions. Answers to all of these questions appear at the end of the textbook itself.