Accounting Information Systems

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Copyright
Brief Contents
Contents
PART 1 UNDERSTANDING INFORMATION SYSTEMS
	1 Introduction to Accounting Information Systems
		Synopsis
		Introduction
		The Textbook\'s Three Themes
		Beyond Debits and Credits
			Legal Issues Impacting Accountants
			Components of the Study of AIS
		What Is an Accounting Information System?
			Systems and Subsystems
			The Information System (IS)
			The Accounting Information System (AIS)
		Logical Components of a Business Process
		Management Uses of Information
			Data Versus Information
			Qualities of Information
			Management Decision Making
		The Accountant\'s Role in the Current Business Environment
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	2 Enterprise Systems
		Synopsis
		Introduction
			Enterprise Resource Planning (ERP) Systems
			Enterprise Systems Value Chain
		The Value of Systems Integration
			The Problem
			The Solution
			Additional Value
		Enterprise Systems Support for Organizational Processes
			Capturing Data During Business Events
			Enterprise Systems Data Facilitate Functioning of the Organization\'s Operations
		Enterprise Systems Record That Business Events Have Occurred
			Enterprise Systems Store Data for Decision Making
		Major ERP Modules
			Sales and Distribution
			Materials Management
			Financial Accounting
			Controlling and Profitability Analysis
			Human Capital Management
		Enterprise Systems Support for Major Business Event Processes
			Order-to-Cash
			Purchase-to-Pay
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	3 Electronic Business (E-Business) Systems
		Synopsis
		Introduction
		Applying E-Business to the Value Chain
		The Changing World of Business Processing
			A Comparison of Manual and Automated Accounting Information Systems
			Automating an Accounting Information System
			Online Transaction Entry (OLTE)
			Online Real-Time (OLRT) Processing
		Methods for Conducting E-Business
			Commerce through E-Mail
			Electronic Document Management (EDM)
			Electronic Data Interchange (EDI)
			EDI over the Internet
			EDI and Business Event Data Processing
			Internet Commerce
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
PART 2 ORGANIZING AND MANAGING INFORMATION
	4 Documenting Information Systems
		Synopsis
		Introduction
		Reading Systems Documentation
			Reading Data Flow Diagrams
			Reading Systems Flowcharts
		Preparing Systems Documentation
			Preparing Data Flow Diagrams
			Drawing the Context Diagram
			Drawing the Current Logical Data Flow Diagram
			Preparing Systems Flowcharts
			Drawing Systems Flowcharts
			Summary of Systems Flowcharting
		Documenting Enterprise Systems
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	5 Database Management Systems
		Synopsis
		Introduction
		Two Approaches to Business Event Processing
			The Applications Approach to Business Event Processing
			The Centralized Database Approach to Business Event Processing
			Databases and Business Events
		Database Management Systems (DBMSs)
			Logical Versus Physical Database Models
			Overcoming the Limitations of the Applications Approach
		Database Essentials
			Logical Database Models
			Elements of Relational Databases
			Normalization in Relational Databases
			Using Entity-Relationship Models
		Using Databases and Intelligent Systems to Aid Decision Makers
			Decision Aids: Decision Support Systems, Executive Information Systems, and Group Support Systems
			Expert Systems
			Intelligent Agents
			Data Warehouses
			Control and Audit Implications
			Knowledge Management Systems
		Dashboards
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	6 Relational Databases and SQL
		Synopsis
		Introduction
		Business Intelligence (BI)
			BI in the Era of Big Data
		REA Modeling
			Entities and Attributes
			Relationships
			Model Constraints
		REA Data Models and E-R Diagrams
		Relational Databases
			Relational Database Concepts
			Mapping an REA Model to a Relational DBMS
		SQL: A Relational Database Query Language
			Constructing Relational Databases
			Populating the Database
			Basic Querying Commands
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
PART 3 ENTERPRISE RISK MANAGEMENT
	7 Controlling Information Systems: Introduction to Enterprise Risk Management and Internal Control
		Synopsis
		Organizational Governance
		Enterprise Risk Management
			The Sarbanes-Oxley Act of 2002
		Defining Internal Control
			The COSO 1992 Definition of Internal Control
			Working Definition of Internal Control
			Fraud and Its Relationship to Control
			Implications of Computer Fraud and Abuse
			Ethical Considerations and the Control Environment
		A Framework for Assessing the Design of a System of Internal Control
			Control Goals of Operations Processes
			Control Goals of Information Processes
			Control Plans
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	8 Controlling Information Systems: Introduction to Pervasive Controls
		Synopsis
		Introduction
		Organizational Design Control Plans
			The Segregation of Duties Control Plan
		Personnel Policy Control Plans
			Selection and Hiring Control Plans
			Retention Control Plans
			Personnel Development Control Plans
			Personnel Management Control Plans
			Personnel Termination Control Plans
		Monitoring Control Plans
		IT General Controls and the COBIT Framework
			A Hypothetical Computer System
			Information Systems Organizational Design
		The COBIT Framework
		COBIT 5
			COBIT 5\'s Five GEIT Principles and Seven Enablers
			COBIT 5\'s Domains and the Governance Processes within Each Domain
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	9 Controlling Information Systems: Business Process and Application Controls
		Synopsis
		Introduction
		Implementing the Control Framework
			The Control Matrix
			Steps in Preparing the Control Matrix
		Sample Control Plans for Data Input
		Control Plans for Manual and Automated Data Entry
			System Description and Flowchart
			Applying the Control Framework
		Control Plans for Data Entry with Batches
			System Description and Flowchart
			Applying the Control Framework
		Summary
		Key Terms
		Appendix 9: Public Key Cryptography and Digital Signatures
		Review Questions
		Discussion Questions
		Short Problems
		Problems
PART 4 BUSINESS PROCESSES
	10 The Order Entry/Sales (OE/S) Process
		Synopsis
		Introduction
		Process Definition and Functions
		Organizational Setting
			A Horizontal Perspective
			A Vertical Perspective
			Managing the OE/S Process: Satisfying Customer Needs
			Connecting with Customers with Web 2.0 and Cloud Computing
			Decision Making and Kinds of Decisions
			Using Data Mining to Support Marketing
			Mastering Global E-Business
			Customer Relationship Management Systems
			Logical Description of the OE/ S Process
			Logical Data Flow Diagrams
			Logical Data Descriptions
			Logical Database Design
		Physical Description of the OE/S Process
			Electronic Data Capture
			Digital Image Processing
			The OE/S Process
			Management Reporting
		Application of the Control Framework
			Control Goals
			Recommended Control Plans
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	11 The Billing/Accounts Receivable/Cash Receipts (B/AR/CR) Process
		Synopsis
		Introduction
		Organizational Setting
		Using Technology to Optimize Cash Resources
			The Fraud Connection
		Logical Process Description
			Logical Data Flow Diagrams
			Logical Data Descriptions
			Logical Database Design
			Types of Billing Systems
		Physical Description of the Billing Process
			The Billing Process
			Selected Process Outputs
		Application of the Control Framework for the Billing Process
			Control Goals
			Recommended Control Plans
		Physical Description of the Cash Receipts Process
		Application of the Control Framework for the Cash Receipts Process
			Control Goals
			Recommended Control Plans
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	12 The Purchasing Process
		Synopsis
		Introduction
		Process Definition and Functions
		Organizational Setting
			An Internal Perspective
			Organizational Setting and Possible Goal Conflicts
			An External Perspective
			Supply Chain Management
		Logical Process Description
			Discussion and Illustration
			Determine Requirements
			Logical Data Descriptions
			Logical Database Design
		Technology Trends and Developments
		Physical Process Description
			Discussion and Illustration
			The Fraud Connection
		Application of the Control Framework to Purchasing
			Control Goals
			Recommended Control Plans
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	13 The Accounts Payable/Cash Disbursements (AP/CD) Process
		Synopsis
		Introduction
		Process Definition and Functions
		Organizational Setting
			A Horizontal Perspective
			A Vertical Perspective
		Logical Process Description
			Discussion and Illustration
			Processing Noninvoiced Disbursements
			Logical Data Descriptions
			Logical Database Design
		Technology Trends and Developments
		Physical Process Description
			Discussion and Illustration
			Record Accounts Payable
			Make Payments
			Exception Routines
			The Fraud Connection
			Nonfraudulent Losses
		Application of the Control Framework
			Control Goals
			Recommended Control Plans
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	14 The Human Resources (HR) Management and Payroll Processes
		Synopsis
		Introduction
		Process Definition and Functions
			Definition of the HR Management Process
			Definition of the Payroll Process
			Integration of the HR Management and Payroll Processes
			Organizational Setting and Managerial Decision Making
		The HR Management Process
			Implementing the HR Management Process
			Processing Inputs
			Processing Logic and Process Outputs
			Key Data Tables
		The Payroll Process
			Logical Description of the Payroll Process
			Technology Trends and Developments
		Physical Process Description
			The Fraud Connection
			Application of the Control Framework
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
	15 Integrated Production Processes (IPPs)
		Synopsis
		Competing in a Global Manufacturing Environment
			Product Innovation
			Production Process Innovation
			Supply Chain Management (SCM)
			Management Accounting Systems
		Integrated Production Processes (IPPs)
			Design Product and Production Processes
			Generate Master Production Schedule
			Determine Needs for Materials
			Develop Detailed Production Instructions
			Manufacturing (Production Work Centers)
			Record Manufacturing Events
			Generate Managerial Information
		Cost Accounting: Variance Analysis
			Record Standard Costs
			Compute Raw Material Quantity Variance
			Compute Direct Labor Variances
			Close Manufacturing Orders
			Compute Manufacturing Overhead Variances
		Inventory Management
			Decision Makers and Types of Decisions
			The Fraud Connection
			Inventory Process Controls
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
PART 5 REPORTING
	16 The General Ledger and Business Reporting (GL/BR) Process
		Synopsis
		System Definition and Functions
		Organizational Setting
			Horizontal Perspective of the General Ledger and Business Reporting Process
			Horizontal and Vertical Information Flows
		Logical System Description
			Discussion and Illustration
			The General Ledger Master Data
			Coding the General Ledger Chart of Accounts
			Limitations of the Hierarchical Chart of Accounts Approach
		Technology-Enabled Initiatives and the Reporting Environment
			ERP Financial Module Capability
			Balanced Scorecard
			Business Intelligence
			eXtensible Business Reporting Language (XBRL)
			Financial Reporting Fraud
			The Sarbanes-Oxley Act
			The Impact of U.S. GAAP and IFRS Convergence
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
PART 6 ACQUIRING AN AIS
	17 Acquiring and Implementing Accounting Information Systems
		Synopsis
		Introduction
		Acquiring an AIS from External Parties
		Managing the Systems Development Process
		Systems Development Methodology
		Step 1: Systems Survey
		Step 2: Structured Systems Analysis
			Systems Analysis Definition and Tasks
			The Analysis Deliverable: The Approved Systems Analysis Report
			Cost/Effectiveness Study
			Complete and Package the Approved Systems Analysis Report
		Step 3: Systems Selection
			The Systems Selection Deliverable: The Approved Configuration Plan
			Hardware Acquisition Alternatives
			The Intermediate Steps in Systems Selection
		Step 4: Structured Systems Design
			Definition and Goals
			The Systems Design Deliverable: The Approved Systems Design Document
		Step 5: Systems Implementation
			The Systems Implementation Deliverable: The Project Completion Report
			Approaches to Implementation
			The Intermediate Steps in Systems Implementation
			Test the System
			Conduct Conversion
		Step 6: Post-Implementation Review
		Step 7: Systems Maintenance
		Accountant Involvement in AIS Acquisition/Development and Implementation
		Summary
		Key Terms
		Review Questions
		Discussion Questions
		Short Problems
		Problems
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Index
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