DISCUSSION QUESTIONS:
1. Printing and distribution of invoices does not constitute an increase in economic resources. On the other hand, can you give examples of what should be included in REA diagram? Remember that REA specifies the domain rules assuring soundness and consistency of business software applications from the business perspective.
2. Any information system operates with data. Moving between the system parts and processes this data creates the data flows. Complicated information systems have lots of data flows which can be presented in a form of a data flow diagram and data models. How are data models used in practice? Please provide examples.
3. Data flow diagrams represent data flows in a clear visual way as arrows between blocks which represent parts and processes of the system. They help to determine the level and effectiveness of internal controls, which is particularly useful for auditors and upper management. What other functions do system flowcharts reflect?
4. One very different aspect in not-for-profit industry, that affects the use and need for AIS specialization, is their handling of restricted funds. Non-profits receive money for specific purposes and these funds cannot be spent anywhere else. Organizations are required to keep track of how these funds are used. How, do you think, should their AIS customized to perform this function?