ch01 accounting information systems - an overview
DESCRIPTION
ch01 AISTRANSCRIPT
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 1
Accounting Accounting InformationInformationSystems: An Systems: An
OverviewOverviewChapter 1Chapter 1
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 2
Learning Objective 1Learning Objective 1
Understand the related conceptsUnderstand the related conceptsof transaction cycles andof transaction cycles and
internal control structure.internal control structure.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 3
OverviewOverview
An An accounting information systemaccounting information system (AIS) (AIS)is a collection of resources designed tois a collection of resources designed to
transform data into information.transform data into information.
Accounting information systemsAccounting information systemsperform this transformation.perform this transformation.
ManualManual
ComputerizedComputerized
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 4
Information and DecisionsInformation and Decisions
Who are the two main usersWho are the two main usersof accounting information?of accounting information?
External usersExternal users
Internal usersInternal users
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 5
Information and DecisionsInformation and Decisions
Who are the external usersWho are the external usersof accounting information?of accounting information?
StockholdersStockholders
InvestorsInvestors
CreditorsCreditors
Government agenciesGovernment agencies
Customers and vendorsCustomers and vendors
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 6
Information and DecisionsInformation and Decisions
StrategicStrategic
TacticalTactical
OperationalOperational
Transaction orientedTransaction oriented
Lower-LevelLower-LevelManagementManagement
MiddleMiddleManagementManagement
Top-LevelTop-LevelManagementManagement
SummarizationSummarizationand Filtrationand Filtration
Hierarchy of Internal UsersHierarchy of Internal Users
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 7
Information SystemsInformation Systems
The term The term information systeminformation system suggests the use suggests the useof computer technology in an organization.of computer technology in an organization.
HardwareHardware
SoftwareSoftwareDataData InformationInformation
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 8
Information SystemsInformation Systems
Electronic Data Processing System (EDP)Electronic Data Processing System (EDP)
Data Processing System (DP)Data Processing System (DP)
Management Information System (MIS)Management Information System (MIS)
Decision Support System (DSS)Decision Support System (DSS)
Expert System (ES)Expert System (ES)
Executive Information System (EIS)Executive Information System (EIS)
Accounting Information System (AIS)Accounting Information System (AIS)
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 9
Business ProcessesBusiness Processes
DataData OrganizationalOrganizationalunitsunits
Logical timeLogical timesequencesequence
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Business ProcessesBusiness Processes
InboundInbound salessales
logisticslogistics
OutboundOutbound salessales
logisticslogistics OperationsOperations
MarketingMarketing ServiceService
Primary Business ProcessesPrimary Business Processes
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 11
Business ProcessesBusiness Processes
ProcurementProcurement TechnologyTechnologydevelopmentdevelopment
HumanHumanresourcesresources
FirmFirminfrastructureinfrastructure
Supporting Business ProcessesSupporting Business Processes
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Transaction Processing CyclesTransaction Processing Cycles
1. Revenue cycle1. Revenue cycle
2. Expenditure cycle2. Expenditure cycle
3. Production cycle3. Production cycle
4. Finance cycle4. Finance cycle
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 13
Internal Control ProcessInternal Control Process
Reliability of financial reportingReliability of financial reporting
Effectiveness and efficiencyEffectiveness and efficiency
ComplianceCompliance
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 14
Internal Control ProcessInternal Control Process
What are the elements of internal control?What are the elements of internal control?
Control environmentControl environment
Risk assessmentRisk assessment
Control activitiesControl activities
Information and communicationInformation and communication
MonitoringMonitoring
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 15
Internal Control ProcessInternal Control Process
Segregation of Duties:Segregation of Duties:
No individual or department shouldNo individual or department shouldcontrol the accounting recordscontrol the accounting recordsrelating to its own operation.relating to its own operation.
Internal Auditing:Internal Auditing:
It is an independent appraisalIt is an independent appraisalactivity within the organization.activity within the organization.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 16
Learning Objective 2Learning Objective 2
Describe the organizationalDescribe the organizationalstructure of the informationstructure of the information
system function in organizations.system function in organizations.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 17
The Information System The Information System FunctionFunction
ChiefChiefInformationInformation
OfficerOfficer
ManagerManagerSystemsSystemsAnalysisAnalysis
ManagerManagerProgrammingProgramming
ManagerManagerOperationsOperations
ManagerManagerTechnicalTechnicalSupportSupport
ManagerManagerUserUser
SupportSupport
SteeringSteeringCommitteeCommittee
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 18
The Information System The Information System FunctionFunction
ManagerManagerProgrammingProgramming
ManagerManagerSystemsSystemsAnalysisAnalysis
ApplicationApplicationAnalystsAnalysts
ApplicationApplicationProgrammersProgrammers
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 19
The Information System The Information System FunctionFunction
ManagerManagerOperationsOperations
MaintenanceMaintenanceProgrammersProgrammers
ComputerComputerOperatorsOperators
DataDataEntryEntry
OperatorsOperators
FileFileLibrarianLibrarian
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The Information System The Information System FunctionFunction
ManagerManagerTechnicalTechnicalSupportSupport
DatabaseDatabaseAdministrationAdministration
CommunicationCommunicationAnalystsAnalysts
SystemsSystemsProgrammersProgrammers
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 21
The Information System The Information System FunctionFunction
Project organizationsProject organizations
Application projectsApplication projects
AnalystsAnalysts ProgrammersProgrammers
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 22
Learning Objective 3Learning Objective 3
Discuss applications ofDiscuss applications ofinformation technologyinformation technology
in organizations.in organizations.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 23
End-User ComputingEnd-User Computing
End-user computing (EUC) is theEnd-user computing (EUC) is thehands-on use of computers by end users.hands-on use of computers by end users.
Functional end users do their ownFunctional end users do their owninformation processing activities.information processing activities.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 24
EUC: Mainframe ApplicationEUC: Mainframe Application
User SubmitsUser SubmitsQuery LanguageQuery Language
JobJob
User ReportUser Report
DatabaseDatabaseAccounts ReceivableAccounts Receivable
DataData
Query LanguageQuery LanguageProcessorProcessor
DatabaseDatabaseAccess ControlAccess Control
SoftwareSoftware
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 25
Traditional ApproachTraditional Approach
UserUser Information SystemInformation SystemSpecialistsSpecialists
Data Processing for the End Data Processing for the End UserUser
DataDataProcessingProcessing
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End-User Computing ApproachEnd-User Computing Approach
UserUser Database Software orDatabase Software orPersonal ComputerPersonal Computer
Data Processing for the End Data Processing for the End UserUser
DataDataProcessingProcessing
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EUC: Stand-Alone PC EUC: Stand-Alone PC ApplicationApplication
Mainframe DataMainframe Dataor Reportor Report
User PreparedUser PreparedDataData
PersonalPersonalComputerComputer
ReportReport
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Quick-Response TechnologyQuick-Response Technology
Quick-response systems are essentialQuick-response systems are essentialto the total quality performanceto the total quality performance(TQP) movement in business.(TQP) movement in business.
TQP is also called TQM orTQP is also called TQM ortotal quality management.total quality management.
TQP emphasizes customer satisfaction.TQP emphasizes customer satisfaction.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 29
Quick-Response TechnologyQuick-Response Technology
Hardware and software standardizationHardware and software standardization
Electronic data interchange (EDI)Electronic data interchange (EDI)
Universal product code (UPC) barUniversal product code (UPC) barcode identification of productscode identification of products
and scanning technologiesand scanning technologies
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 30
Quick-Response TechnologyQuick-Response Technology
Retail SaleRetail Saleof Productof Product
Scan BarScan BarCodeCode
Retailer’s Computer SystemRetailer’s Computer System
Electronic DataElectronic DataInterchangeInterchange
Vendor’s Computer SystemVendor’s Computer SystemShip OrderShip Order
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 31
Web CommerceWeb Commerce
Sales via the World Wide Web areSales via the World Wide Web arean integral part of the economy.an integral part of the economy.
What are some benefits?What are some benefits?
ConsumersConsumers No waiting in lineNo waiting in line
MerchantsMerchants Cost savingsCost savings
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 32
Electronic Data InterchangeElectronic Data Interchange
RetailerRetailer SupplierSupplier
Purchase OrderPurchase Order
SavesSaves timetime
EliminatesEliminates paperpaper
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Extensible BusinessExtensible BusinessReporting LanguageReporting Language
XBRL is a language that facilitates theXBRL is a language that facilitates theexchange over the Internet of all kinds ofexchange over the Internet of all kinds of
business documents and financial statements.business documents and financial statements.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 34
Computer-Integrated Computer-Integrated ManufacturingManufacturing
What are the components of a CIM system?What are the components of a CIM system?
Computer-aided design (CAD) workstationsComputer-aided design (CAD) workstations
Real-time production monitoringReal-time production monitoringand control systemsand control systems
Order and inventory control systemOrder and inventory control system
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 35
Electronic Payment Systems Electronic Payment Systems (EFT)(EFT)
Electronic funds transfer systems areElectronic funds transfer systems areelectronic payment systems in whichelectronic payment systems in whichprocessing and communication areprocessing and communication are
primarily or totally electronic.primarily or totally electronic.
Banks can interface withBanks can interface withcorporate EDI applications.corporate EDI applications.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 36
Learning Objective 4Learning Objective 4
Characterize the developmentCharacterize the developmentof information systems.of information systems.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 37
The Accountant andThe Accountant andSystems DevelopmentSystems Development
Accountants may undertake systemsAccountants may undertake systemsdevelopment activities eitherdevelopment activities either
internally or externally.internally or externally.
Systems development activities areSystems development activities areoften encountered by internal andoften encountered by internal andexternal auditors during reviewsexternal auditors during reviewsof information systems controls.of information systems controls.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 38
The Accountant andThe Accountant andSystems DevelopmentSystems Development
Systems analysisSystems analysis
Systems designSystems design
Systems implementationSystems implementation
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The Accountant andThe Accountant andSystems DevelopmentSystems Development
What are the general objectivesWhat are the general objectivesof systems analysis?of systems analysis?
To improve the quality of informationTo improve the quality of information
To improve internal controlTo improve internal control
To minimize cost, where appropriateTo minimize cost, where appropriate
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 40
The Accountant andThe Accountant andSystems DevelopmentSystems Development
Systems design is the process ofSystems design is the process ofspecifying the details of the solutionspecifying the details of the solution
selected by the systems analysis process.selected by the systems analysis process.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 41
The Accountant andThe Accountant andSystems DevelopmentSystems Development
Systems implementation is the process ofSystems implementation is the process ofplacing the revised or newly designedplacing the revised or newly designed
procedures and methods into operations.procedures and methods into operations.
Testing the solution prior to implementationTesting the solution prior to implementation
Documenting the solutionDocumenting the solution
Reviewing the systemReviewing the system
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 42
Systems ApproachSystems Approach
What is the systems approach?What is the systems approach?
It is a general procedure for theIt is a general procedure for theadministration of a systems project. administration of a systems project.
Its purpose is to assist in the orderlyIts purpose is to assist in the orderlydevelopment of effective systems.development of effective systems.
What are the six steps of theWhat are the six steps of thesystems approach process?systems approach process?
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 43
Systems ApproachSystems Approach
Statement of system objective(s)Statement of system objective(s)11Creation of alternativesCreation of alternatives22
Systems analysisSystems analysis33Systems designSystems design44
Systems implementationSystems implementation55Systems evaluationSystems evaluation66
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Behavioral ConsiderationsBehavioral Considerations
A new information systemA new information systemcreates new work relationshipscreates new work relationships
among existing personnel.among existing personnel.
It creates changes in job contentIt creates changes in job contentand perhaps a change in theand perhaps a change in the
formal organizational structure.formal organizational structure.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 45
Behavioral ConsiderationsBehavioral Considerations
The user cooperation needed to operateThe user cooperation needed to operatethe system successfully should be ensuredthe system successfully should be ensured
during the design of a system, not afterward.during the design of a system, not afterward.
A philosophy of A philosophy of user-orienteduser-oriented design fosters design fostersa set of attitudes and an approach to systemsa set of attitudes and an approach to systems
development that consciously considersdevelopment that consciously considersthe organizational context.the organizational context.
2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 1 – 46
End of Chapter End of Chapter 11