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Faculty of Business Studies
Accounting Information System
Tutor Marked Assignment
Number of Pages:5
(including 2 cover sheets(
This examination consists of TWO PARTS (all questions are compulsory questions). All
questions in total are marked out of 100 and are worth 50% of the overall assessment component.
The TMA requires you to:
Review various study chapters (from Chapter 1 to 4, and 12) of the textbook “Accounting
Information Systems, by Richardson, Chang, and Smith, and apply some of the concepts within
Conduct a simple information search using the internet and the e-library.
Present your findings in not more than 2,000 words ± 10% .
You should use a Microsoft Office Word and Times New Roman Font of 12 points.
You should read and follow the instructions below carefully. Each part of the process will carry
marks for the assignment.
Please read these instructions carefully, and contact your tutor if you require any further
You must fill in the assignment form (PT3), taking care to fill all information correctly including
your personal identifier, course code, and section & tutor.
The Arab Open University Definitions of cheating and plagiarism
According to the Arab Open University By-laws, “The following acts represent cases of
cheating and plagiarism:
• Verbatim copying of printed material and submitting them without proper
academic acknowledgement and documentation.
• Verbatim copying of material from the Internet, including tables and graphics.
• Copying other students’ notes or reports.
• Using paid or unpaid material prepared for the student by individuals or firms.
• Utilization of, or proceeding to utilize, contraband materials or devices in
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All University programs are required to apply penalties that are consistent with
the University by laws.
The TMA covers the accounting information systems concepts and practices in the businesses; as you
work, you will gain confidence in your ability to use the accounting information systems of real
company. It is marked out of 100 and is worth 25% of the overall assessment component. It is intended
to assess students’ understanding of some of the learning points within chapters 1 to 4, and 12. This
TMA requires you to apply the course concepts.
The TMA is intended to:
➢ Increase the students’ knowledge about the reality of the accounting as a profession.
➢ Assess students’ understanding of key learning points within chapters 1 to 4
➢ Develop the ability to understand and interact with the nature of the accounting information
systems in reality.
➢ Develop students’ communication skills, such as memo writing, essay writing, analysis and
presentation of material.
➢ Develop basic ICT skills such as using the internet.
General instructions for students:
Plagiarism: It is imperative that you write your answers using your own words. Plagiarism will
be penalized depending on its severity and according to AOU plagiarism policy.
Word count: Your answers are expected to be within the specified word count. A 10%
deviation from word count limit is acceptable. Not adhering to specified word count could result
in the deduction of up to 10 marks of your total TMA mark.
Format and Presentation: In your answer, you should explain each point or inquire
Use the following headings (below) to make up the different sections of your answer:
PT3 form (Cover)
Available on LMS
Title and contents page
Recorded according to the Harvard style – Available on LMS
Failing to do so could result in the deduction of up to 10 marks of your total TMA mark.
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PART ONE (60 MARKS)
Question I (20 marks)
Salma started Bag Zone in Riverside with the goal of providing good quality handbags. Unique
designs and utilizing uncommon materials for the making of the handbags is her competitive
advantage, and completed products can be wholesaled to fashion retailers or placed on
consignment in local retail shops. Additionally, the handbags can also be sold directly to
consumers by displaying the products at fashion or craft shows or selling them online. Business
has been brisk and she has established a sizeable client base over the last five years. She thinks
that it could be the time to spend in an information system to record details about the sales,
payroll process and offer more details about the inventory
Salma believes that it will be possible to modernize some of the business process for reducing
the amount of time, which it is taking for data processing. She wants to open up four further
stores throughout the next three years. Systems used should be capable of supporting these
Currently, Salma finds that no details are captured by the system about the customer. Only
details about the purchased goods, the method of payment, member of the staff, purchased
quantity, and price & totals are captured.
It has been analysed that levels of stock are recorded by using the stock card. It can be seen that
the details of the new inventory are entered into the cards when the new stock and details of
sold units are changed at the termination of each trading day. It is very clear that when things
become hectic, marketing off stock sheets can be forgotten and hence they are not very exact.
To know the level of the stock item, the physical check is needed.
As you have knowledge about information systems, would you provide assistance to Salma
in solving various issues like maintenance of customer details, maintenance of marketing
off stock sheets, collection of useful data for sales forecasting and accurate calculation of
wages & to electronically pay staff. You should indicate that your suggestion would help
each of the stores to improve the organizational performance along with store’s efficiency.
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Question 2 (20 marks)
Firms are always connected to both their suppliers and customers and their wants and needs.
The focus was on supply chain optimization to minimize costs and reduce inventories.
However, new supply chain technologies are emerging to respond to business disruption and
supply chain challenges such as those related to the global spread of COVID-19. On the other
hand, this crisis raised the importance of analysing changes in demand before and after that
Discuss giving examples from practice: how Accounting Information Systems (AIS)
assists in business integration with external parties such as suppliers and customers.
Question 3 (20 marks)
Business Process is a defined sequence of business activities that use resources to
transform specific inputs into specific outputs to achieve a business goal.
Explain business process documentation showing its importance
PART TWO (40 marks)
Question 1: (30 marks)
Firms invest in accounting information systems to create value. The value chain illustrates how
during each primary activity, the product should gain some value. An A I S serves an important
role in enabling value in each primary and supporting activity.
Explain the above statement showing where do AIS add value to a business?
• In the primary activities?
• In the support activities?
• The Effect of A I S on the income statement
Question 2 (10 marks)
Use the following description to create a Business Process Modeling Notation (BPMN)
activity diagram of Nora’s process.
Nora accesses the Amazon.com website to purchase a favorite musician’s latest album. She
searches for the musician’s name. Amazon displays the results of the search, and she selects the
correct entry. She samples the music and then decides whether to purchase the album. If she
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decides to purchase the album, then she must decide whether to purchase a physical CD or just
download the MP3 files.
If she decides to purchase the CD, she clicks on the buy now button. Since she is an Amazon
Prime member, she automatically receives free 2-day delivery and the item is charged to her
credit card. She then waits 2 days for the delivery of the CD. When it arrives, she can enjoy the
If she decides to purchase the MP3, she selects that option and again clicks on the buy now
button. She is charged for the item and taken to a page to download her music. She downloads
the album, and then she can enjoy her music.
End of TMA Questions
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