Accounting Information Systems 8th Edition by James Hall

Exercise 42

SYSTEM CONFIGURATION
The flowchart for Problem 11 represents the computer processing portion of a sales order system. Answer the following questions.
a. What type of data processing system is this? Explain, and be specific.
b. The auditor suggests that this system can be greatly simplified by changing to direct access files. Explain the major operational changes that would occur in the system if this were done.
c. The auditor warns of control implications from this change that must be considered. Explain the nature of the control implications.
d. Sketch a flowchart (the computerized portion only) of the proposed new system. Use correct symbols and label the diagram.