1. Discuss what is meant by the statement, “The accounting system is a conceptual flow of information that represents the physical flows of personnel, raw materials, machinery, and cash through the organization.”
2. Discuss the importance of accounting independence in accounting information systems. Give an example of where this concept is important (use an example other than inventory control).
3. Discuss why it is crucial that internal auditors report solely to the uppermost level of management (either to the chief executive officer or the audit committee of the board of directors) and answer to no other group.
4. Contrast centralized data processing with distributed data processing. How do the roles of systems professionals and end users change? What do you think the trend is today?