STRICTLY CONFIDENTIAL

THE PUBLIC ACCOUNTANTS EXAMINATION

COUNCIL OF MALAWI
2010 EXAMINATIONS
ACCOUNTING TECHNICIAN PROGRAMME
PAPER TC 4: INFORMATION SYSTEMS
(DECEMBER 2010)
TIME ALLOWED: 3 HOURS

SUGGESTED SOLUTIONS

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1.

(a)

(b)

(i)

Field - is made of characters (Bytes and words) grouped together to

form meaningful items of data.

(ii)

Record - this is a set of data about an identifiable item or occurrence.

When data is captured, a record is made about the facts of the
situation.

(iii)

Block This is the smallest addressable unit of data which can be

transferred into or out of the processing device at one time. It is like a
folder containing records in a manual filing system which is
transferred into or out of a filing cabinet.

(iv)
(v)

File This is a group of records physically organized into blocks put

together for processing according to some application purpose.
Transaction File This is made of sets of data records containing
source data used in the maintenance or update of master files as the
raw data to be processed in the production of report files.

(i)

System Testing
Before any computer system is brought into use; it is essential to
ascertain that it carries out all its intended functions within the
established parameters. Testing should be an on-going activity
throughout the design and programming stages. Where possible,
involve the users during testing. The complete system and its
environment must be tested to the satisfaction of the analyst and the
users.

(ii)

Education
This should start well before any development work is undertaken to
give users the ability to participate in development of their own
system.

(iii)

File conversion

(iv)

Involves the conversion of old file data (if it exists) into the form
required by the new system. Commonly, the data contained on source
documents has to be edited, because it is not required, or required in a
different format; this requires trained staff to be released from user
department to perform these duties or supervise temporary staff.
Changeover Procedures
Changeover can take place when the system has been proved to the
satisfaction of the analysts and all other activities have been
completed.
(TOTAL: 20 MARKS)

2.

(a)

(i)
(ii)

Hardware
Software

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(iii)

Vendor
3 Marks

(b)

(i)

Hardware
-

(ii)

Software
-

(iii)

Additional hardware for LAN; cable, networking cards for PCs,

hardware for backups and storage
Networking topology
Number of communication channels
Speed and capacity (data transmission)
Financial considerations, purchase, lease, rent
Batch storage support
Change over method from existing one.
Any seven, 1 Mark each = 7 Marks

For the management of the network and multi- user version of the
application packages
Performance effectiveness: - ability to perform all required
tasks that may be desired sometime in future, adequate capacity,
security password
Performance efficiency: - fast response, time efficient input,
efficient back-up
Ease of use: satisfactory user interface, help menus, flexible
interface, good error recovery
Quality documentation
Manufacture support
Conforms to new copyright legislation
Data protection Act.
Any seven, 1 Mark each = 7 Marks

Vendor
-

Hardware support fall line of hardware, quality products,

warranty
Software support complete software needs
Installation and training commitment to schedule
Maintenance routine maintenance procedures.
Any three, 1 Mark each = 3 Marks
(TOTAL: 20 MARKS)

3.

(a)

(i)

Software is a list of activity rules of a job instruction containing the

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operations to be performed in the required sequence to produce
desired results. Data processing systems consist of raw data being
subjected to a regulated activity to produce information (output). A
processing device (hardware) operating under activity rules
(software) performs the regulated activity.
(ii)

(iii)

(b)

4.

(a)

The two groups of software are:

(1)
(2)

Operating system software

Application system software

(1)

Operating system software is a machine oriented mix of

macros, sub-routines and programs which take over the
running and internal organisation of the computer once the
human operator has passed over control. In other words, the
operating system acts as a manager managing resources,
scheduling tasks and controlling the hardware e.g. DOS,
Windows, Unilux.

(2)

Application system software is a part of instructions that

produce information from raw business data e. g. payroll
production control and tailor made programs.

(i)

DOS is grouped under operating system software since it is software

necessary for the computer to run and to manage other programs and
system resources.

(ii)

Spreadsheets are grouped under application software that is necessary

for the computer to process raw business data to turn it into useful
information.
(TOTAL: 20 MARKS)

(i)

Virus
(1)
(2)
(3)

Updated anti- virus software.

Do not open files you are not sure of.
Limit use of diskettes.
2 Marks

(ii)

Corruption
(1)
(2)
(3)

(iii)

Scheduled and regular data and program backups.

Ensure constant power supply by use of UPS/Genset.
Disk reorganizations should be done by personnel that are
knowledgeable.
2 Marks

Hacking

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(1)
(2)
(3)

Set up firewall on the network.

Encrypt data when transmitting over the WAN.
Use passwords for logging into the computer.
2 Marks

(v)

Theft
(1)
(2)
(3)

Use passwords for the computers.

Limit access to computers by locking them in offices.
Physical checks of who is on the computer.
2 Marks

(vi)

Unauthorized access
(1)
(2)
(3)

Use of access passwords.

Limit access to computers by locking them in offices.
Physical checks of who is on the computer.
2 Marks

(b)

(i)

Power failures
(1)
(2)

Use of UPS to ensure constant power supply

Use of standby Genset in times of complete blackout.
2 Marks

(ii)

Fire
(1)
(2)
(3)
(4)

(iii)

No smoking in computer rooms

Have fire extinguishers
Ensure computer room is very tidy at all times to avoid
litter that may catch fire
Use of fire/smoke detectors.
2 Marks

Water
(1)
(2)

Computer rooms to be on raised grounds

Use of proper drainage systems.
2 Marks

(c)

(i)

Secure hardware against:

(1)
(2)
(3)

Physical locks to computer room doors

Only authorized people to visit computer room
Employ human security.
2 Marks

(ii)

Unauthorized use

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(1)
(2)
(3)

Use password on each computer

Random physical checks
Lock up computers.
2 Marks
(TOTAL: 20 MARKS)

5.

(a)

(b)

A terminal is mostly a computer VDU with keyboard without a CPU of its

own. Terminals are usually attached to servers or main frame in order to use
the CPU of mainframe or server. One server/mainframe can host more than
one terminal.
A PC can be attached to a file server by networking (WAN/LAN). In this
instance the file server acts as a storage of data and programs for the PC.
Some data may be stored on the PC but the file server acts as a main frame. It
does all processing of the data. To be able to attach the PC on the network,
you require:
-

LAN cable
LAN card
A hub
LAN software

The equipment above is for a LAN set-up

Connectivity over WAN requires:
- Telephone line (communication line)
- 2 modems
(c)

Advantages of attaching your PC to a file server are:

-

6.

Expensive server processor is shared

Your processing happens on the file server hence there is no
duplication of some procedures
It is easy to back-up your data since it is stored on one device
It is easy to set up local e- mail
No files are lost when a PC on a network is down. Processing
continues
Software upgrades can easily be made since most of the software is
resident on the server
Easy to update anti- viruses patches off the server download.
8 Marks

(d)

A major disadvantage is when the file server is down, no processing can be

done.
(TOTAL: 20 MARKS)

(a)

(i)
(ii)
(iii)
(iv)
(v)

Program narrative
Program authorization
Logic flow charts
Decision tables
Coding sheets

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(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)

Sample outputs reports

Glossary of symbolic address names
Input documents sample
Test data results (correct and error data)
Program progress and testing history
Operating instructions
Amendment program version.
6 Marks

(b)

(i)
(ii)
(iii)
(iv)

Program specification
Program design
Coding
Testing.
4 Marks
(TOTAL: 20 MARKS)

7.

(a)

(i)

A spreadsheet is an application package which enables the arithmetica l

and statistical analysis of data. Spreadsheets are widely used in
financial modeling.
A spreadsheet, in structure, is similar to a sheet of analysis paper, that
is, the depiction of text on data using columns and rows.

(ii)

A spreadsheet will usually feature the following:

-

Use of formulas. Each cell has a unique identification address e.g.

A1, B14, E7 which can be used in formulae. This facility allows
models to be built and what if analysis to be performed. Editing
facilities allow the layout of the spreadsheets to be altered as
required. The format commands can alter the way the data is
presented e.g. currency sign and number of decimal places.
Individual cells on blocks can be copied, moved, or deleted.

Graphical user interface These commands are presented to the

user as a structural hierarchy of options in a menu that can usually
be selected by means of a mouse.

Macros which are sequences of commands are frequently used but

can be associated with a single keystroke and re- used as and when
required.

Logical statements can be expressed by means of an IF (test)

then (executable statements) commands, where subsidiary
comment are only executed if test is true.

Statistical and financial analysis functions. Some spreadsheets will

perform complicated calculations such as standard deviation or net
present value on a specified range of values.

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-

File handling routines to save models that can be reused/updated or

combined with another file.

Graphics functions are usually available to

diagrammatic representation of data.

facilitate the

Other possible areas for consideration include:

-

Simple database representation

Multi-dimensional spreadsheets

Desktop publishing add-ons

8 Marks

(b)

(i)

Benefits to an organisation:
-

(ii)

An easy to use application for end-users such as accountants

Flexible tool for building models to aid the decision making
process
Facility for what if analysis which improves decision making by
allowing rapid re- interactions and saves time in performing
calculations.

Standardized reporting via standard templates

Integration of spreadsheet files with data bases of accounting

packages.

Overall improvements of data analysis and hence information

quality.
4 Marks

Possible areas of use include:

-

Market models for forecast sales demand

Budgeting

Consolidations

Financial analysis cashflow

Transportation models

Departmental models sales within organisation

Sensibility analysis

Tax estimation planning.

4 Marks
(TOTAL: 20 MARKS)

8.

(a)

Three types of services provided by a computer bureau:

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(i)

Hardware Data is taken to the bureau, processed by bureau staff and

results returned to the owner.

(ii)

Software Writing software packages for clients.

(iii)

Consultancy Give advice on buying and installing in house computer

systems.

(iv)

Computer staffing Staff training in punching, operating,

programming systems and clerical work.
6 Marks

(b)

(c)

Four disadvantages of a computer bureau:

-

The service is not under the control of the customer and can
therefore be inflexible and impersonal.

As the bureau needs to make profit, their services might be more

expensive than in-house facilities.

A facility used by many customers (possible competitors) can give

rise to problems of secrecy, privacy and security.

Like an off the peg suit, bureaus can provide compromise solutions
to individual problems.

With usages of external storage like flash disk, diskettes (etc)

bureaus can be a source of spreading viruses.
4 Marks

Steps when selecting a computer bureau:

(i)
(ii)

Identify what jobs you have for the bureau. If they are regular or
once off and if possible work out a time estimate for doing them.
Prepare a benchmark job and approach several reputable bureaus or
use a broker to obtain detailed quotations.

(iii)

You need to ascertain the availability of hardware and its compatibility

with your system.

(iv)
(v)
(vi)

Availability of adequate operating systems and software compatibility.

Experience, reliability, reputation and the bureaus financial stability.
Real service provided and extras.

(vii)

If the bureau can handle your requirement.

(viii)
(ix)

Confidentiality, security and insurance arrangements with the bureau.

Deliveries dates and turn-around time.

(x)

Availability of standby facilities at the bureau.

(xi)

Select, train and appoint a bureau liaison man in the customer

organisation who will negotiate contracts and prices.
10 Marks
(TOTAL: 20 MARKS)

END