35
Chapter 1-1
Chapter 1-1
Chapter 1-2
Chapter 1:Accounting Information Systems
and the Accountant
What Are Accounting Information Systems (AIS)?
What’s New in AIS?
Accounting and IT
Careers in AIS
Chapter 1-3
What is a system?
Name some examples of systems…
What do these examples have in common?
3
Chapter 1-4
Socio-technical systems (STS) model
views organizational work systems as 2 jointly interacting work systems: the social and the technical (Bostrom, 1980).
Outputs
The outputs of the system are
the result of joint interactions
between these two systems
Structure Technology
People Tasks
Social TechnicalSystem System
Inputs
Chapter 1-5
What is an information system?
More than just the technologythe collection of computer hardware
and software, procedures, documents, forms, and people responsible for the capture, movement, management and distribution of data and information.
Chapter 1-6
Accounting Information Systems
An Accounting Information System (AIS) Data and processing procedures Creates needed information for users
AIS Today Financial and non-financial data Enterprise-wide information system Business process focused
Chapter 1-7
Data Raw facts No organization or meaning Beginning of audit trail
Information Processed data Meaningful to users
Information (versus Data)
Chapter 1-8
AIS Components
Chapter 1-9
Computerized Data Processing Problems
Information overload for users
Unable to identify input errors
Difficult to follow audit trails
Chapter 1-10
AIS and ERP
Overlapping of the Systems Provide same information
Emphasize business processes
Integration into seamless databases
Chapter 1-11
Which of the following is likely to be information rather than data?
A. Sales price
B. Customer number
C. Net profit
D. Employee name
Study Break #1
Chapter 1-12
Which of the following is likely to be information rather than data?
A. Sales price
B. Customer number
C. Net profit
D. Employee name
Study Break #1 - Answer
Chapter 1-13
With respect to computerized AIS, computers:
A. Turn data into information in all cases
B. Make audit trails easier to follow
C. Cannot catch mistakes as well as humans
D. Do not generally process information more quickly than humans
Study Break #2
Chapter 1-14
With respect to computerized AIS, computers:
A. Turn data into information in all cases
B. Make audit trails easier to follow
C. Cannot catch mistakes as well as humans
D. Do not generally process information more quickly than humans
Study Break #2 - Answer
Chapter 1-15
What’s New in AIS?
Cloud Computing
Sustainability Reporting
Suspicious Activity Reporting
Forensic Accounting, Governmental Accountants, and Terrorism
Corporate Scandals and Accounting
Chapter 1-16
Cloud Computing
Chapter 1-17
Disadvantages of Cloud Computing
Reliability of Internet Connection
Data Security Measures of Provider
Quality of Service
Reliability of Service Provider
Chapter 1-18
Sustainability Reporting
Reporting Nonfinancial Measures Impacts on income, value, or future performance
Chapter 1-19
Suspicious Activity Reporting
Chapter 1-20
Forensic Accounting
Forensic Accounting Combines skills of investigation, accounting, and auditing Provides evidence of criminal activity
Examples of AIS Uses in Forensic Accounting Identifying and denying financial aid to terrorists Tracing arms and chemical orders to final destination Planning for catastrophic events Controlling cyber terrorism Detecting money laundering and illegal transfers
Chapter 1-21
Corporate Scandals and Accounting
Enron (2001) Manipulation of accounting records Understate liabilities and inflate earnings
Bernard Madoff (2008) Investment fund manager Ponzi scheme Resulted in billions of dollars in losses
Chapter 1-22
The Sarbanes-Oxley Act of 2002:
A. Enables U.S. officers to wire tap corporate phones if required
B. Has led to a decrease in the amount of work done by auditors and accountants
C. Forbids corporations from making personal loans to executives
D. Requires the CEO of a public company to take responsibility for the reliability of its financial statements
Study Break #3
Chapter 1-23
The Sarbanes-Oxley Act of 2002:
A. Enables U.S. officers to wire tap corporate phones if required
B. Has lead to a decrease in the amount of work done by auditors and accountants
C. Forbids corporations from making personal loans to executives
D. Requires the CEO of a public company to take responsibility for the reliability of its financial statements
Study Break #3 - Answer
Chapter 1-24
Accounting and IT
Chapter 1-25
The Accounting Cycle
Chapter 1-26
Financial Accounting
Non-Financial Data REA Accounting Resources, Events, and Agents
Real-Time Reporting
Interactive Data and XBRL Reusable data in multiple applications “Tagging” data
Chapter 1-27
Managerial Accounting Business Intelligence and
Dashboards
Chapter 1-28
Auditing
Traditional role Evaluate the accuracy and completeness of a
corporation’s financial statements
Present role Evaluate client’s compliance with HIPAA laws IT evaluations and audits (security, privacy) Management consulting
Chapter 1-29
Taxation
Taxation Software Example of AIS Create and evaluate tax strategies Transmit completed forms
Professional Usage Research challenging questions Access more up-to-date information Database access
Chapter 1-30
A dashboard is:
A. A computer screen used by data entry clerks for input tasks
B. A physical device dedicated to AIS processing tasks
C. A summary screen typically used by managers
D. A type of blackboard used by managers to present useful information to others
Study Break #5
Chapter 1-31
A dashboard is:
A. A computer screen used by data entry clerks for input tasks
B. A physical device dedicated to AIS processing tasks
C. A summary screen typically used by managers
D. A type of blackboard used by managers to present useful information to others
Study Break #5 - Answer
Chapter 1-32
Careers in Accounting Information Systems
Traditional Accounting Understanding of accounting and information systems Certified Information Technology Professional
Systems Consulting Designing systems and reengineering processes Software and hardware selection Value-added resellers (VARs)
Chapter 1-33
Careers in Accounting Information Systems
Certified Fraud Examiner Professional certification Association of Certified Fraud Examiners (ACFE)
IT Auditing and Security Risk analysis with Information Systems Aid financial auditors in evaluation of controls Certified Information Systems Auditors (CISAs) Penetration testing
Chapter 1-34
AIS at Work: Consulting Work for CPAs
Disaster Recovery Planning Assures continuity of operations Must test plan regularly
IT Exposure Viruses and Worms
Auditing Standard No. 60 Report lack of disaster plan
Chapter 1-35
