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ZAMBIA INSTITUTE OF CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS EXAMINATIONS


TECHNICIAN LEVEL

T7: INFORMATION TECHNOLOGY AND COMMUNICATION

SERIES: JUNE 2012


TOTAL MARKS 100 TIME ALLOWED: THREE (3) HOURS


INSTRUCTIONS TO CANDIDATES

1. You have fifteen (15) minutes reading time. Use it to study the examination paper
carefully so that you understand what to do in each question. You will be told when
to start writing.
2. This paper is divided into TWO sections:
Section A: Four Optional Information Technology Questions. Attempt any three.
Section B: Three Optional Communication Skills questions. Attempt any two (2).
3. Enter your student number and your National Registration Card number on the front
of the answer booklet. Your name must NOT appear anywhere on your answer
booklet.
4. Do NOT write in pencil (except for graphs and diagrams).
5. The marks shown against the requirement(s) for each question should be taken as
an indication of the expected length and depth of the answer.
6. All workings must be done in the answer booklet.
7. Present legible and tidy work.
8. Graph paper (if required) is provided at the end of the answer booklet.

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SECTION A: INFORMATION TECHNOLOGY
Attempt any three questions from this section.
QUESTION ONE
(a) Differentiate between a Computer and Computer Hardware. [2 Marks]
(b) Give definitions for the following types of computer memory: [6 Marks]
(i) RAM
(ii) ROM
(iii) CACHE
(c) List and explain any two features of Microsoft Windows as an Operating System.
[4 Marks]
(d) Clearly explain the difference between an application package and general package
software. [2 Marks]
(e) Explain any three common causes of computer lock-ups. [6 Marks]
[Total: 20 marks]
QUESTION TWO
(a) Distinguish between a spreadsheet and a word processor and give one example for
each. [4 Marks]
(b) The Chikhuni General Dealers operates its business in three branches in Zambia as
shown in the spreadsheet below:
A B C D E F G H I
Sales Sales Sales Wage
1 Month Chipata Kasama L/stone Total Bill O/E Net Profit
2 Jan. 789 574 460 ? 628 ? ?
3 Feb. 736 1230 1265 ? 628 ? ?
4 March 785 564 652 ? 628 ? ?
5 April 799 952 954 ? 628 ? ?
6 May 723 851 854 ? 628 ? ?
7 June 2086 965 1122 ? 628 ? ?
8 July 1744 2147 1955 ? 628 ? ?
9 Aug. 1143 1120 1235 ? 628 ? ?
10 Sept. 854 1230 1256 ? 628 ? ?
11 Oct. 753 654 654 ? 628 ? ?
12 Nov. 1747 751 852 ? 628 ? ?
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13 Dec. 1760 1789 1622 ? 628 ? ?
14 Total ? ? ? ? ? ? ?

Note: that O/E in the spreadsheet above represents Operating Expenses and comprises;
(i) Postage which is K2.125
(ii) Rentals which is K318.75
(iii) Tax which is K85.00
(iv) Incidentals which is K19.125
Required:
Arising from the above given information insert the formula to calculate;
(i) The total sales for each Branch for the year
(ii) The total sales for the three Branches for each month
(iii) The total O/E
(iv) The net profit for each month for the three branches.
(v) The net profit for the three Branches for the whole year.
(vi) If the value/figure for Chipata Branch for the month of June was reduced to 2026,
list the cells that will have the values affected by the reduction.
[16 Marks]
[Total: 20 marks]
QUESTION THREE
(a) A computer based business system involves seven interdependent elements. List
these elements. [7 Marks]
(b) Describe the three fundamental components of a Decision Support System (DSS).
[3 Marks]
(c) Define the terms Ethics and Privacy. [4 Marks]
(d) What is an Extranet and give four ways in which an Extranet may be used.
[6 Marks]
[Total: 20 marks]
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QUESTION FOUR
(a) Explain five benefits of using a computerized accounting information system.
[10 Marks]
(b) State five characteristics of a Management Information System (MIS). [5 Marks]
(c) Give five benefits that may be realised from a successfully-implemented Enterprise
Resource Planning (ERP) system project. [5 Marks]
[Total: 20 marks]
SECTION B COMMUNICATION
ATTEMPT any two questions from this section.
QUESTION FIVE
You work as the District Accountant in the Ministry of Education. Your District Education
Board Secretary (DEBS) has received a report that an accountant at one of the schools in
your district has been put on suspension to pave way for investigations into alleged theft of
public funds. It is alleged that the accountant has been issuing fake receipts from an
unofficial receipt book. As the District Accountant you have been asked to carry out
investigations of your own into the matter.
(a) State any five steps you would take to prepare for the assignment. [5 marks]
(b) Prepare a formal report, with recommendations, for the DEBS on the alleged theft
of public funds. [15 marks]
[Total: 20 mark s]
QUESTION SIX
You have noticed that uniformity in the way of presenting statistical information for
accounting purposes in your organisation is lacking, especially where visual communication
formats are involved. Prepare brief explanations of how each one of the following should be
used. Support your explanation with a diagram.
(a) Any one of the three Bar Charts
(b) Line Graph
(c) Pie Chart
(d) Gantt Chart
(5 marks each)
[Total: 20 marks]
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QUESTION SEVEN
You have been invited to contribute an article to the next issue of The Accountant, a ZICA
publication. Write the article in which:
(a) You demonstrate the importance of effective communication in business operations.
[10 marks]
(b) Outline the relationship between audience and purpose as pillars of communication.
[10 marks]
[Total: 20 marks]

END OF PAPER


























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T7: INFORMATION TECHNOLOGY AND COMMUNICATION SOLUTIONS
SUGGESTED SOLUTIONS
SOLUTION ONE
(a) [02 Marks].
(i) A Computer is an electronic device which will accept input data, process it, and
store or output the results.
(ii) Computer Hardware: means the various physical components which comprise a
computer system, as opposed to the non-tangible software elements.

(b) [06 Marks].
(i) RAM: is memory that is directly available to the processing unit. It holds the data
and programs in current use. Data can be written on to or read from random access
memory. Information can be stored or changed according to the requirements of an
application program. It is called Read/Write memory.
(ii) ROM: is a memory chip into which fixed data is written permanently at the time of
its manufacture. New data cannot be written into the memory the data on the
memory chip cannot be changed. It is called a read only memory because the
information it contains can only be used or read
(iii) CACHE: the cache is a small capacity but extremely fast memory chip which
saves a second copy of the pieces of data most recently read from or written to main
memory. When the cache is full, older entries are 'flushed out' to make room for new
ones.
The principle is that if a piece of data is accessed once it is highly likely that it will be
accessed again soon afterwards, and so keeping it readily to hand will speed up
processing.
(c) [08 Marks].
(i) A 'Desktop' is a general area from which programs may be accessed. Shortcuts to
disk drives, folders (directories), applications and files can all be placed on the
Desktop.
(ii) A 'Taskbar' includes the Start button (from which applications may be launched)
and buttons providing quick access to currently open applications.
(iii) A Recycle Bin for easy deletion and recovery of files.
(iv) Easy integration with networking software.
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(v) Multitasking is available, allowing more than one program to be active at one
time.
(vi) The Microsoft Internet Explorer browser is included.

(d) [02 Marks]
(i) An application package is a program or set of programs that will carry out a
specific processing application or job for example, a payroll package is used for
payroll processing. Application packages may be either written from scratch or
purchased off-the-shelf.
(ii) A general purpose package is an off-the-shelf program that can be used for
processing of a general type, but the computer user can apply the package to a
variety of uses. Windows is a general purpose package.
(e) [06 Marks]
Too many programs running at the same time
Not enough memory to support the running programs
Corrupt (damaged) or incorrectly installed software
Power management or screensaver problems
Improper operating temperatures and humidity levels
Hardware failure
Corrupt device driver (drivers are software files that tell your computer how to
communicate with hardware (the modem, the printer etc)).
A virus has infected the computer
SOLUTION TWO
(a) [04 Marks].
A spreadsheet is a rectangular array of cells in rows and columns. Or it may be
defined as an electronic piece of paper divided into rows and columns, while a
word processor is a program for producing and editing text such as letters and
reports.
An example of a spreadsheet is the Microsoft Excel and an example of word
processor is Microsoft word.
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(b) [16 Marks]

A B C D E F G H I
1 Month Chipata Kasama L/Stone Total Wage Bill O/E
Net
Profit
2 January 789 574 460 1823 628 425 770
3 February 736 1230 1265 3231 628 425 2178
4 March 785 564 652 2001 628 425 948
5 April 799 952 954 2705 628 425 1652
6 May 723 851 854 2428 628 425 1375
7 June 2086 965 1122 4173 628 425 3120
8 July 1744 2147 1955 5846 628 425 4793
9 August 1143 1120 1235 3498 628 425 2445
10 September 854 1230 1256 3340 628 425 2287
11 October 753 654 654 2061 628 425 1008
12 November 1747 751 852 3350 628 425 2297
13 December 1760 1789 1622 5171 628 425 4118
14 Total 13919 12827 12881 39627 7536 5100 26991

(i) The formula will be as follows;
1. =SUM(C2:C13) (2 marks)
2. =SUM(D2:D13) (2 marks)
3. =SUM(E2:E13) (2 marks)
Or the formula can be derived by adding each cell as =C2+C3+C4.C13, same for D and E
cells (Columns)
(ii) The formula will be;
=SUM(C2:E2) or adding each cell as ; =C2+D2+E2 see the answers in the above
spreadsheet. (2 marks)
(iii) Total Operating Expenses (O/E);
= (2.125+318.75+85.00+19.125) (2 marks)
(iv) Net Profit can be calculated using the formula: =(F2-(G2+H2)) or
=F2-(G2+H2) = 770 (2 marks)
(v) = Sum(I2:I13) or = F14 (G14 + H14) (2 marks)
(vi) The affected values/figures are; C14, F7, F14, I7 and I14 (2 marks)
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SOLUTION THREE
(a) [07 Marks]
(i) Hardware resources include the computer, its peripherals, and consumables such
as stationery.
(ii) Software are the programs running on these computers.
(iii) Procedures are the rules and steps to accomplish the defined goals of the system.
Many of the procedures are expressed as software. For instance, banking systems
have their predefined rules for providing interest at different rates for different types
of accounts.
(iv) People comprise managers, programmers, users and the staff required to operate
the system and make it functional. The latter group is often referred to as liveware.
(v) Data and Information information systems collect a large amount of data, but
data are not useful until they have been processed (eg analysed, collated and
summarised) to become information. In general, as information is presented to
higher levels of management, more data are compressed into smaller amounts of
information.
(vi) Feedback in information systems, feedback is information from the system that is
used to make changes to input or processing activities. For example, errors or
problems might make it necessary to correct the input data itself, or to change the
way data is collected.
(b) [03 Marks]
A DSS has three fundamental components:
(i) Database management system (DBMS): Stores large amounts of data
relevant to problems the DSS has been designed to tackle.
(ii) Model-based management system (MBMS): Transforms data from the
DBMS into information that is useful in decision making.
(iii) Dialogue generation and management system (DGMS): Provides a user-
friendly interface between the system and the managers who do not have
extensive computer training.
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(c) [04 Marks]
Ethics refers to the principles of right and wrong that can be used by
individuals acting as free moral agents to make choices to guide their
behaviour. Or can be defined as the principles of right and wrong that can be
referenced by individuals in making a personal decision or judgment.
Privacy is the claim of individuals to be left alone, free from surveillance
or interference from other individuals or organisations including the state.
Claims to privacy are also involved at the workplace.

(d) [06 Marks]
An Extranet is a private network that uses Internet technology and the public
telecommunication system to securely share part of a business's information or
operations with suppliers, vendors, partners, customers, or other businesses. An
extranet can be viewed as part of a company's intranet that is extended to users
outside the company.
An Extranet can be used in the following ways:
(i) Provide a pooled service which a number of business partners can access
(ii) Exchange news which is of use to partner companies and clients
(i) Share training or development resources
(ii) Publicise loyalty schemes, sponsorships, exhibition attendance
information and other promotional tools
(iii) Exchange potentially large volumes of transaction data using Electronic
Data Interchange (EDI)
(iv) Provide online presentations to business partners and prospects (and
not competitors)
(v) Share news of common interest exclusively with partner companies
(vi) Collaborate with other companies on joint development efforts
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SOLUTION FOUR
(a) [10 Marks]
Benefits of using computerised AIS
(i) Accuracy of processing. The use of a computerised system does not prevent
errors of input, hence the saying garbage in, garbage out. However, under all
normal circumstances there should be no arithmetical errors or misposting from
journals.
(ii) Speed of processing. Processing happens very rapidly, even when large
numbers of transactions occur. However, inputs to the system may be very
slow if manual methods are used.
(iii) Potential for automation of inputs. Automated data capture systems using,
for example, bar code readers can be used to input data directly to a file.
(iv) Labour economy. Automation of processing can lead to significant reductions
in head count.
(v) Information outputs. Information output from computerised AIS can be fed
directly to EIS and DSS.
(b) [05 Marks]
Characteristics of MIS
(i) Support structured decisions at operational and management control levels.
(ii) Designed to report on existing operations.
(iii) Have little analytical capability.
(iv) Relatively inflexible.
(v) Have an internal focus.
(c) [05 Marks]
The benefits that may be realised from a successfully-implemented ERP project
include the following:
1. Allowing access to the system to any individual with a terminal linked to
the system's central server.
2. Decision support features, to assist management with decision-making.
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3. In many cases, extranet links to the major suppliers and customers,
with electronic data interchange facilities for the automated transmission of
documentation such as purchase orders and invoices.
4. A lot of inefficiencies in the way things are done can be removed. The
company can adopt so called 'best practices' of how similar activities are
performed in world-class companies.
5. A company can restructure its processes, so that different functions (such
as accounting, shipping and manufacturing) work more closely together to get
products produced.
6. An organisation can align itself to a single plan, so that all activities, all across
the world, are smoothly co-ordinated.
7. Information and work practices can be standardised, so that the
terminology used is similar, no matter where you work in the company.
8. A company could do a lot more work for a lot more customers without
needing to employ so many people.
SOLUTION FIVE
(a) Steps
i) Contact the school manager or deputy by phone or other means.
ii) Compile checklist of (categories of) people to get information from.
iii) Specify data collection strategies.
iv) Develop data collection instruments to use e.g questionnaire(s).
iv) Draw a budget for the exercise.
v) Seek advice from/ consult regional accountant
vi) Brief the DEBS on way forward.
Any five steps
(b) NAME OF ORGANISATION
REPORT ON THE ALLEGED THEFT OF PUBLIC FUNDS
1. TERMS OF REFERENCE
As requested by the DEBS to establish the truth regarding the alleged
misappropriation of public funds by Mr X of Y High School. Below is a report with
recommendations.
2. PROCEDURES/METHODOLOGY
In order to carry out thorough investigations the following was done;
2.1 Arranged for and conducted the interview with the school management,
some pupils affected and some members of staff, etc.
2.2 Studied various receipt books to ascertain serial numbers.
2.3 Administered a questionnaire on some pupils and members of staff.
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3. FINDINGS
3.1 Most people interviewed said Mr X was least expected of such offence
because he was such a humble person.
3.2 The school manager and other members of staff suspect his lifestyle and
property.
3.3 A check of receipt books revealed that 2 books with 50 leaves each
belonged to a counterfeit set not the official books.
4. CONCLUSIONS
4.1 The behaviour of Mr X does not reflect his true character.
4.2 One hundred fake receipts were issued resulting into K55, 000,000
accounted for.
4.3 His records show a parallel pupils list to the official one.
5 RECOMMENDATIONS
5.1 Mr X should refund the 55,000,000 preferably through the pay roll.
5.2 Pupils and their sponsors must pay fees directly into the school account.
SOLUTION SIX
(a) (i) Simple Bar Chart
This is a visual display used to show performance of a product or products during a
given period. It is drawn by plotting columns on y axis (accumulated quantities)
against x axis (period of performance of same product, or products being examined
during the same period. It is constructed from a table showing the raw figures. It is
best used to highlight comparison of performance seen from the height of columns.
(ii) Multiple Bar Chart
This is a visual display used to show performance of several product during a given
period. It is drawn in the same way as the simple bar chart except that columns for
each product will be clustered together for a given period such as day, week or
month etc. The clusters are separated on the bar chart.
(iii) Component Bar Chart
Also called the Stacked or Cummulative Bar Chart. This is a visual display used to
show performance of several products over a long period of time. While the display
is on the x-y axis like the multiple bar chart, each column for a period is broken into
components reflecting each product. For example column for DAY 1 may have a
component for PRODUCT A, on top of which will be the component for PRODUCT B
followed by PRODUCT C etc.
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The end result is that on the same display, we can show how much each product
contributed during the same period over a number of such periods. The columns are
separated from each other, like in the multiple bar chart.
(b) Pie Chart
This is a visual display used to show performance of a product or products during a
given period by way of apportioning values on a circle. The resulting visual
impression shows a comparison of performance by size of the segment of the circle
occupied by each item. Whereas some people opt to use percentages, segments of
circles are best measured in degrees. Different colours or shadings are used to
represent various products or periods. Thus, accumulated quantities are not shown
as the case is in bar charts.
(c) Line Graph
This is a visual display used to show developments in the performance of a product
or products during a given period. Like the bar chart, it is plotted on the y x axis.
Instead of columns, the line graph uses dots connected to give a line showing
whether the product was improving or declining in performance during the period
under review.
(d) Gantt Chart
This is a visual display used to show a plan of activities during a given period. It is a
time plan where activities are allocated slots on a time schedule. It requires
identifying activities, duration and the period they have been allocated. It is very
useful when planning a project.
SOLUTION SEVEN
(a) The importance of communication in business.
i) Introduction: main line of thought on what communication can be taken to
be e.g exchange (definition).
ii) Body/Details: narrowing information gap between parties in business.
Sharing options, views on issues affecting business relationship
Negotiating attitudes and relationship with clients.
iii) Conclusion: without foregoing no meaningful relationship/trade can exist as
no one will know what the other offers.
(b) Key elements of measuring effectiveness of communication include; how much
information to give, when to give the information, desired outcome and strategies to
employ e.g choice of method (oral- phone, face to face , written, one on one, group,
via media, etc), route to take- direct or through others.
All these are possible when audience and purpose are clear.
Points under b should be logically incorporated in the text of the article.
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