System Diagram Technique-Based Development of an Inter ...

9th Global Conference on Business & Economics ISBN : 978-0-9742114-2-7

System Diagram Technique-Based Development of an Inter-Enterprise AIS in the Global Environment and Course Learning

Submit to IJBE-International Journal of Business and Economics; ISSN 1543-1614

Submit to publish in Conference ProceedingsSubmit for presentation at the 9th Global Conference on Business & Economics

October 16-17, 2009, Cambridge, UK

Manuscript # GCBE 2519

Supattra BoonmakDepartment of Accountancy

Faculty of Commerce and AccountancyChulalongkorn University

Bangkok, 10330Thailand

[email protected]

Acknowledgements

The author thanks Professor Dr Atul Gupta, Professor Joy Grant, the double blind peer reviewers, the Editor and also thanks Stephen Lorriman for help editing.



Supattra Boonmak Chulalongkorn University, Bangkok, 10330, Thailand,

ABSTRACT This research investigates the uses of SD technique to develop SD and AIS. It also examines the SD technique learnt by students in an accounting information system course. The SD techniques used in this study are system flowchart, data flow diagram, entity-relationship diagram, resource-event-agent, process maps, and Unified Modeling Language. The results include business process analysis of data captured from entrepreneurs, SD technique used to develop SD and inter-enterprise AIS in the global environment, and the summarization of courses providing SD techniques employed by students. Respondents are business enterprises and students. The findings in this research also provide a descriptive analysis and Pearson chi-square test. The results reveal that SFC and DFD are most popular for master’s and bachelor’s degree students of accounting while E-RD, REA, and UML are important for master’s and bachelor’s degree students of AIS. This study is useful to entrepreneurs and supports students in their learning.

Keywords : system diagram technique; system flowcharts; data flow diagrams; E-R diagram; REA model; process maps; UML; system diagram; Inter-enterprise AIS; course learning.

October 16-17, 2009Cambridge University, UK

2



Supattra Boonmak Chulalongkorn University, Bangkok, 10330, Thailand,

ABSTRACT This research investigates the uses of SD technique to develop SD and AIS. It also examines the SD technique learnt by students in an accounting information system course. The SD techniques used in this study are system flowchart, data flow diagram, entity-relationship diagram, resource-event-agent, process maps, and Unified Modeling Language. The results include business process analysis of data captured from entrepreneurs, SD technique used to develop SD and inter-enterprise AIS in the global environment, and the summarization of courses providing SD techniques employed by students. Respondents are business enterprises and students. The findings in this research also provide a descriptive analysis and Pearson chi-square test. The results reveal that SFC and DFD are most popular for master’s and bachelor’s degree students of accounting while E-RD, REA, and UML are important for master’s and bachelor’s degree students of AIS. This study is useful to entrepreneurs and supports students in their learning.

Keywords : system diagram technique; system flowcharts; data flow diagrams; E-R diagram; REA model; process maps; UML; system diagram; Inter-enterprise AIS; course learning.

INTRODUCTION System Diagrams (SD) are an integral component of system documentation and have

become increasingly important in response to heightened awareness surrounding process improvement and documentation as well as compliance concerns with legislation such as the Sarbanes-Oxley Act (Bradford et al.2007). In this study, I make further developments on my prior research paper entitled “REA Model-AN Analysis and Development of an Inter-Enterprise Accounting Information System in the Global Environment.” The prior research of Marianne Bradford, Sandra B. Richtermeyer, and Douglas F. Roberts’ “System Diagramming Techniques: An Analysis of Methods Used in Accounting Education and Practice” (2007) is also used as a basis in this study. Thus, the major purposes of this study are using system diagram techniques to: (1) prepare system diagrams (SD) and develop accounting information systems (AIS); (2) investigate how students learn in accounting and accounting information system major courses. System diagram techniques used in this study include: system flowcharts (SFC), data flow diagrams (DFD), entity-relationship (E-R) diagrams, resource-event-agent (REA) models, and Unified Modeling Language (UML). These various system diagram techniques are taken from many well-established accounting information system and information system textbooks, including Enterprise Information Systems (2005) by Dunn, Cherrington and Hollander; Information System Development (2006), 4th edition by Avison and Fitzgerald; Accounting Information Systems (2008), 10 th

edition by Bagranoff, Simkin and Strand; Accounting Information Systems (2008) by Hurt; Accounting Information Systems (2008) by Hall; Accounting Information Systems (2008), 7th


3


edition by Gelinas, and Dull; Accounting Information Systems (2009), 11 th edition by Romney and Steinbart; Accounting Information Systems (2006) by Rama and Jones.

Table 1 presents a summary of the SD techniques used in many AIS textbooks. In my analysis, I found that the SD techniques of SFC, DFD, ERD, and REA, are discussed in many AIS textbooks by many different authors whereas PM and UML are included in only a few. I also use PM in this research although it is not used by many business firms.

Data included in this study are captured from two sources, namely (1) business processes from 40 business firms whose enterprises do business on a global level; (2) 200 graduate and undergraduate students from the two majors of Accounting and Accounting Information Systems from a few Thai universities.

The study focuses on the development of an AIS with data captured from business processes. System diagram techniques are used to prepare system diagrams showing the AIS developed. The results are useful for students, accounting educators, business specialists and also accounting professionals as these diagrams present the information flow among business processes across inter-enterprises in the global environment. So students, accounting educators, business specialists and accountant professionals can make insights into SD and the development of an existing AIS, its strengths, weaknesses and control systems. The results also are beneficial for students as they can learn how to develop SD and AIS in their course studies.

SYSTEM DIAGRAM TECHNIQUESIn the work of Bradford et al. (2007), SD can play a vital role in documentation by

graphically depicting internal controls, data flow, and information flow related to key processes that support organization. System diagrams (SD) are an integral component of system documentation and have become increasingly important in response to the heightened awareness surrounding process improvement and documentation as well as compliance concerns with legislation such as the Sarbanes-Oxley ACT. SD is also an important concept in accounting information systems. This study examines SD commonly included in accounting curricula and compares these methods with those used by accounting practitioners. The SDs included in the study are system flowcharts, entity-relationship diagrams, data flow diagrams, resource-event-agent models, process maps, and Unified Modeling Language.

In this study, students develop a business process diagram to understand the business situation and create database queries to detect billing discrepancies and manage costs for corporate cell phone service (Borthick and Jones 2007). This paper describes a unique learning outcome process for the assessment of an undergraduate course in AIS. The author first frames the importance of assessment for motivating faculties to foster “continuous improvement” in student learning (Diagle et al.2007). Although the databases are supplied in the form of Microsoft Access files, the simulation can be worked with any database query tool. The simulation helps learners develop their capabilities for designing audit objectives and procedures for testing system development and for querying databases (Borthick and Bowen 2008). The simulation, workable with a database query tool or audit software, is appropriate for students with querying proficiency and audit procedure design capability (Borthick and Curtis 2008).

This data model, the process model, the role-process links, and the reports were used to estimate the front-end costs and cost changes associated with the new system. The process model indicated that the sales call process would change. Separate data diagrams were constructed for building into a single diagram. Process diagrams specified activities and linked them to the data. The process model output of the system analysis did point out certain improvements in internal efficiencies. System analysis proved to be useful in identifying these


4


maintenance costs, since the consumption of paper and wireless services could be better estimated once the data and process models were created (Bajaj, Bradley, and Cravens 2008). The rules established by Elmasri and Navithe (2003) were followed to translate the generalization-specification hierarchies in the semantic model to the traditional relation schema. Figure 3 shows the Extended Entity-Relation (EER) semantic model of the database accounting system. Using this EER model, objects and relational schemas were then constructed, each in third normal form (3NF) (Bowen and Debreceny 2005). Students develop and use database queries to analyze the possible causes of potential budget overrun. Students query a Microsoft Access database with tables showing sales of PCs (Borthick and Jones 2005). Appendix B provides an example of the fill-in-the-blank assignment and suggested flowchart solution. Similarly, the instructor can also expand the concepts in this role-play by creating a data flow diagram (DFD) or a resource-event-agent (REA) assignment (Hayes and Reynolds 2005). Systems issues include organizational approaches to system implementation and business process analysis. This case is appropriate for use in either undergraduate or graduate Accounting Information Systems courses (Bradford and Fisher 2005)

This paper examines the development and use of the EDGAR Extraction System (EES), a customized automated system that extracts relevant information about employee stock options from financial statement disclosure notes on the EDGAR database (Conlon and Grant 2006). Present accounting data models such as the REA model merely focus on the modeling of static accounting phenomena. Therefore, new object-oriented models have been presented (Verdaasdonk 2003). Historically, accounting education has focused on traditional SD methods such as systems flowcharts and DFDs. In the more recent past, various types of SD methods, such as process maps, REA models and UML, have emerged in practice, but these techniques have been slow to find their way into accounting curricula (Bradford et al.2007). Accountants can use many different types of logic charts to trace the flow of accounting data through an AIS. System flowcharts and DFDs are the two most popular techniques. System flowcharts usually focus on the electronic flows of data in computerized AISs. Other examples of documentation aids include process maps, data flow diagrams, program flowcharts and decision tables (Bagranoff et al.2008). Based on studies of AIS and other textbooks with reviews of some researches, this study is based on the following types of SD Techniques: (1) system flowcharts (SFC); (2) data flow diagrams (DFD); (3) entity-relationship (E-R) diagrams; (4) REA models; (5) process maps; (6) United Modeling Language (UML) diagrams. The following is a description of each of the SD techniques included in this study.

System flowcharts The SFC documents the flow of data through a company’s computerized system. It identifies sources of data, the places where data are temporarily stored, and the outputs through which processed data appear (Bagranoff et al.2007). SFC represents a system that includes both manual and computer processes and portrays the computer aspects of a system. It depicts the relationships between input (source) data, transaction files, computer programs, master files, and output reports produced by the system. SFC also describes the type of media being used in the system such as magnetic tape, magnetic disk, and terminal (Hall 2008), giving the user a “big picture” look at an information system. SFC combines all of these resources with their related business processes (Hurt 2008). It depicts the sequence of activities performed as the business events flow through the process (Gelinas and Dull 2008). System flowcharts are used to graphically document an information system (Dunn et al. 2005). In sum, SFCs are an important systems analysis, design, and evaluation tool (Romney and Steinbart 2009).


5


Data Flow Diagram DFDs are used primarily in the system development process as a tool for analyzing

an existing system or planning and creating a new system. Documented data flows are important for understanding an AIS (Bagranoff et al.2007). Both DFD and SFC are useful in the design and implementation of AIS but an SFC typically provides more detail than a DFD (Hurt 2008). A DFD is a graphical representation of a system. It depicts a system’s components, the data flows among the components, and the sources, destination, and storage of data (Gelinas and Dull 2008). Data flow diagramming symbols have a variety of system analysis purposes, including graphically displaying the logical flow of data through a process (Dunn et al.2005). A DFD graphically describes the flow of data within an organization (Romney and Steinbart 2009). The DFD uses symbols to represent the entities, processes, data flows, and data stores that pertain to a system (Hall 2008).

Entity-Relationship (E-R) DiagramsIn a laboratory experiment, participants composed and executed queries in SQL for an

Oracle database. All participants had received training in developing SQL queries and received a set of instructions containing the scenario, the details of tasks to be performed, the data dictionary, and the entity-relationship diagram (Ashkanasy et al.2007). Database designers use a graphical documentation technique called the entity-relationship (E-R) diagram to depict the entities and their direct relationships (Bagranoff et al. 2007). A data model depicts user requirements for data stored in a database. The most popular data modeling approach is E-R modeling, in which the designer identifies the entities’ relationships (Gelinas and Dull 2008). E-R modeling has been the most commonly used tool for presenting REA business process level patterns (Dunn et al.2005) and is a graphical technique for portraying a database schema. These diagrams can be used to represent the contents of any kind of database, showing the various entities being modeled and the important relationships among them (Romney and Steinbart 2009). E-R diagrams depict the user’s data model. Entities in E-R diagrams are of one class while entities in an REA diagram are divided into three classes (resources, events, and agents) (Hall 2008).

Resource-Event-Agent This study follows the REA model, an innovative approach to teaching information systems, developed by Bill McCarthy of Michigan State University. The REA model is the framework for analyzing the relationships among an organization’s critical resources, events, and agents. Students will benefit from this theoretical foundation for enterprise systems because it provides a glimpse of what is possible in enterprise systems yet also permits comparison to existing systems. This study encourages students to apply the object patterns (things and relationships between them) and script patterns (logical sequences of events) that make up the REA enterprise ontology to help them understand enterprises and transaction cycles/business processes (Dunn et al. 2005). McCarthy proposed a generalized model for accounting systems after analyzing many accounting transactions and identifying the common features of the transactions. McCarthy and Geerts have further developed the constructs of the original model to form an enterprise domain ontology. This ontology is called the REA Enterprise Ontology because three of the principle constructs are resources, events, and agents. Entity-relationship modeling has been the most commonly used tool for presenting REA business process level patterns. (Dunn et al. 2005). Church, and Smith (2007) propose in “An extension of the REA framework to support balance scorecard information requirements” extensions to the REA framework to encompass


6


the information requirements of the balanced scorecard and other management systems that incorporate non-financial measures. The REA conceptual accounting framework was designed to describe the information architecture related to an organization’s economic activity (e.g., McCarthy 1982; Dunn et al. 2005). Gerard (2005) uses the REA pattern as an example of a domain-specific pattern that can be encoded as a knowledge structure for the conceptual modeling of AIS, and tests its effects on the accuracy of conceptual modeling in a familiar business setting. Results suggest it is insufficient to know only a conceptual modeling notation because structured knowledge of domain-specific patterns reduces design errors. Verdaasdonk, (2003) suggests in “An object-oriented model for Ex Ante accounting information” that present accounting data models such as the REA model merely focus on the modeling of static accounting phenomena. A new object-oriented model is presented that enables the use of ex ante accounting data for this purpose. Geerts and McCarthy (2006) put forward the REA enterprise model as a widely accepted framework for the design of the accountability infrastructure of enterprise information systems. Several techniques are available for documenting business processes. This study follows the REA model, an innovative approach to teaching information systems, developed by Bill McCarthy of Michigan State University. The REA model is the framework for analyzing the relationships among an organization’s critical resources, events, and agents. This study encourages students to apply the object patterns (things and relationships between them) and script patterns (logical sequences of events) that make up the REA enterprise ontology to help them understand enterprises and transaction cycles/business processes (Dunn et al. 2005).

Process Maps In the work of Bradford et al. (2007), process maps is an SD technique developed by General Electric in the 1980s and used by many organizations to document, analyze, streamline, and redesign their business activities (Hunt 1996). Process maps are often used to show how work is currently accomplished in an organization and how it could be improved (Bradford et al. 2001). They show the specific combination of functions, steps, inputs, and outputs that an organization employs to provide value to its customers (Damelio 1996). Process maps document business processes in easy-to-follow logic diagrams. Internal and external auditors can use process maps to help them see how a department or division operates, assist them in documenting what they have learned, help them identify internal control weaknesses or problems in existing operations, be used as training aids, and help them study business processes and redesign them for greater productivity. Accountants and managers can use this tool to help them describe current processes to others.

Unified-Modeling Language In this study, research also focuses on the UML activity diagram which plays the role of a map in understanding business processes by showing the sequence of activities in the process. A business process is a sequence of activities performed by a business for acquiring, producing, and selling goods and services. Accountants and others have an interest in modeling business processes and several models have been developed. Accountants find it useful to view a company’s business processes in terms of its transaction cycles, which group related events that typically occur in a particular sequence. Events are activities that happen at a particular point in time (Rama/Jones 2006). UML is a language used for specifying, visualizing, constructing, and documenting an information system. It was developed as a tool for object-oriented analysis and designed by Grady Booch, Jim Rumbaugh, and Ivar Jacobson. This language provides an inventory of diagrams for documenting business


7


processes and information systems (Rama/Jones 2006). This study also organizes activity diagrams into two types: the overview diagram and the detailed diagram. The overview diagram presents a high-level view of business processes by documenting the key events, the sequence of these events, and the information flows among these events while the detailed diagram provides a more detailed representation of the activities associated with one or two events shown on the overview diagram. The researcher organizes activity diagrams into overview and detailed diagrams as this approach has been found to be useful in documenting and analyzing internal control. In this study, the focus is placed on both of them. UML can be used to model AIS.

Table 2 presents the results from analysis of SD techniques used to develop SD and AIS. It is found that SFC mostly shows information processes and operational processes while DFD presents dataflow and system processes. ERD is used to portray DB schema and cardinality among entities while REA classifies events into resources, events, and agents. The process map shows a combination of functions, steps, inputs and outputs. Finally, UML shows the activity diagram, the sequence of steps in a business process, and the UML activity diagram. See Table 2.

Research Study in Systems Diagram Techniques In preparing this study, the researcher used an SD-based technique for two parts of the study. First, a business process analysis of data captured from the researcher’s prior research was performed which was used to prepare a system diagram and develop an inter-enterprise AIS in the global environment. This study follows the workflow table showing the conceptual foundation of events and activities composed in a company’s business processes, as outlined in Table 3a (Rama and Jones 2006). Then, the workflow table showing the analysis of the business process of data captured from business enterprises. Table 3b was prepared following the conceptual foundation of events and activities in Table 3a. Table 3b focuses on the events, activities, actors, documents, tables and files in the trading systems. In designing the workflow table of an inter-enterprise accounting information system in the global environment in Table 3b, the researcher captured all the data and information from prior research, literature, journals and articles, etc. This model was used as the pretest for the business enterprises. The completed model had, then, been established and was used in this study. 100 completed models were attached via e-mail to 100 entrepreneurs and 40 models were returned.

Table 3 presents an analysis of business processes from the data captured from business enterprises. In this analysis, the data captured from 40 entrepreneurs consist of events occurred during business processes among the inter-enterprises in the global environment, documents used during each event, table/files used and which occurred during each event, and departments or persons who are involved in performing each event. See Table 3.

Figure 3 presents the SD prepared and developed during this study and consists of six differing diagrams of an inter-enterprise AIS. Figure 3.1 presents the system flowchart diagram, Figure 3.2 presents the data flow diagram, Figure 3.3 shows the database schema and cardinality among entities, Figure 3.4 shows the relationships among the resources, events, and agents. Figure 3.5 shows the specific combination of functions, steps, inputs, and outputs while Figure 3.6 presents UML activity diagrams. See FIGURES 3.1-3.6.

Second, the researcher’s students in many different courses learnt how to use SD techniques to develop SD and AIS. So the researcher analyzed which courses students should take and learn how to use SD techniques to develop SD and AIS by using the results from part 1 as an example. See TABLES 4 and 5.


8


Table 4 presents an analysis of courses providing SD techniques mostly taken by students. In this study, students are classified into four types: Master’s of Accounting (M.ACC); Master’s of Accounting Information Systems (M.AIS); Bachelor’s of Accounting (B.ACC); and Bachelor’s of Accounting Information Systems (B.AIS). Courses are classified into four types: Accounting Information Systems (AIS); Management Information Systems (MIS); Accounting Information System Development (AIS DEV); Databases (DB). The researcher found that most of the four types of students learn SFC, and DFD in the AIS and MIS classes. ERD is mostly learnt by M.AIS and B.AIS students in the AIS development and database classes with some further learning from the AIS and MIS classes. REA is mostly learnt by the four types of students in the AIS class and especially by M.AIS and B.AIS students in the AIS development and DB classes. For UML, most students from M.AIS and B.AIS learn it in the AIS development and DB classes.

Table 5 presents a summarization of the courses providing the SD techniques mostly learnt by students. This table is classified into three parts: the level of students; the system diagram techniques learned and used by students; and the courses taken by students. The researcher found that most M.ACC students in the AIS and MIS courses learn SFC, DFD, E-RD, REA in their classes. Most M.AIS students in the AIS, MIS classes learn SFC, DFD, PM while some of them in the AIS DEV and DB classes learn E-RD, REA, and UML. Almost all B.ACC students learn SFC, DFD, E-RD, PM in their AIS, MIS classes while some students learn REA and UML in the AIS DEV and DB classes. Finally, most B.AIS students learn SFC, DFD, PM in their AIS and MIS classes and study E-RD, REA in great detail as well as UML in their AIS DEV, AIS, MIS and DB classes.

RESEARCH DEVELOPMENTIn this study, the primary purposes are to prepare SD and AIS using the data captured

from business processes among inter-enterprises and use such SD and AIS as examples for students’ learning. Based on the previous findings in this study, the researcher developed two types of model: the first is a system diagram technique model used to develop an inter-enterprise AIS in the global environment, the second is a system diagram technique model used by students in their course learning. See FIGURE 1 and FIGURE 2.

System diagram technique modelsFigure 1 shows two types of SD technique model: (1a) SD technique model

conceptual foundation (AIS textbooks 2005-2006; Bradford, Richtermeyer and Roberts 2007) and (1b) SD technique model of an inter-enterprise AIS in the global environment. See FIGURE 1.

Figure 2 also shows two types of SD technique model: (2 a) SD technique model conceptual foundation (AIS textbooks 2008-2009) and (2 b) SD technique model taken by students in an Accounting Information System major course. See FIGURE 2.

HYPOTHESES DEVELOPMENT A major purpose of this study is to use business process data captured from business enterprises with a system diagramming technique to prepare a system diagram of business process presenting the development of an inter-enterprise accounting information system in the global environment. Based on this objective, the researcher is interested in whether the development of SD and AIS above is consistent with the system diagram technique used in preparing the business processes and system diagram. Also, based on the SD technique used


9


in the researcher’s first study, the researcher is also interested in using it to teach her students in four major courses in which the SD technique is used: (1) AIS development; (2) AIS; (3) MIS; (4) database course. Thus, the following two hypotheses (H1-H2) have been developed:

H1: Development of SD and AIS with data captured from business processes is consistent with the system diagram technique.

H2: Students learn how to use the system diagram technique in preparing and developing SD and AIS in any course.

The data captured from the questionnaires is used to develop an inter-enterprise AIS in the global environment. See FIGURES 3.1-3.6. Thus, students can learn how to use the SD technique to develop SD and AIS from Figures 3.1-3.6. Students in this study came from four major areas: (1) Master’s of Accounting (M.ACC), (2) Master’s of Accounting Information Systems (M.AIS), (3) Bachelor’s of Accounting (B.ACC), and (4) Bachelor’s of Accounting Information Systems (B.AIS).

METHODOLOGY AND SAMPLE SELECTION From the two hypotheses developed for this study, a survey of respondents included industrial businesspersons and executive students who work in accounting and accounting information system areas. Forty respondents who work in industrial enterprises were asked for the steps and flows of purchasing processes among organizations in the global environment (Romney and Steinbart 2006) while 200 students were asked about the courses they took, the SD technique they used in their courses and their private studies. Table 6 shows the descriptive statistics of key information related to these respondents from the survey. Data from Table 6 indicates that the respondents were purchasing managers and most had a Master’s and Bachelor’s in Accounting as well as more than 20 years of total work experience.

RESULTS The development of SD and AIS with data captured from business processes is consistent with the system diagram techniques. Hypothesis 1 (H 1) focuses on using business process data captured from 40 entrepreneurs to develop SD and AIS. See FIGURES 3.1- 3.6. The second part of the survey questions asks all respondents to indicate which SD technique they use to develop SD and AIS. The results are shown in Table 7. Table 7 presents an analysis of the SD techniques used to develop SD and AIS. The results indicate that SFC is used to present the flow of operation, while DFD is used to show the flow of data and information. To develop the relationships of entities, developers use E-RD, while REA presents the relationships of resources, events, and agents. Process maps show the flow of processes. Finally, the UML activity diagram consisting of an overview and detailed diagram is presented by UML.

Table 8 presents the summary of SD technique-based business process data used to develop SD and inter-enterprise AIS in the global environment. Table 8 summarizes the analysis from Table 7 with business process data captured from 40 entrepreneurs consisting of: (1) negotiation of contract; (2) confirmation of schedule; (3) confirmation of credit, payment; (4) at port; (5) cargo shipment; (6) customs procedure. These data are used to develop SD and AIS through the SD technique which consists of SFC, DFD, E-RD, REA,


10


process maps, and UML. Most respondents indicate that all SD techniques are used to develop SD and inter-enterprise AIS in the global environment: (1) flow of operation; (2) flow of data and information; (3) relationship of entities; (4) relationship of resource, event, agent; (5) flow of processes; (6) UML activity diagram.

CONCLUSION, LIMITATIONS AND FUTURE RESEARCH The system diagram technique is an important tool for developing and presenting the overview of the system diagram and accounting information systems in each business process. This study is classified into two parts: (1) developing and preparing the system diagram and accounting information systems in the global environment; (2) how the SD and AIS developed in the first part should be learnt by students in any course. Data used in this study are captured from 40 business enterprises in the international trading industry. These data are used to prepare system diagrams and develop AIS by using the SD techniques of system flowchart, data flow diagram, E-R diagram, resource-event-agent, process maps, and Unified-Modeling-Language. The student data captured is used to present the SD model learnt by students in accounting and accounting information system courses. The results of the study indicate that SFC is used to show information and operation processes while DFD is used to show system process and data flow. While E-RD is used to present database schema and cardinality among entities, REA is used to classify entities into resource, event, and agent. The process map is used to show the combination of functions, steps, inputs, and outputs and UML is used to show activity diagram, sequence of steps in business processes, and UML activity diagram. The results also reveal that most students from accounting and accounting information system majors, including M.ACC, M.AIS, B.ACC and B.AIS, learn how to use SFC and DFD in their accounting information systems and management information systems courses while ERD, REA, and UML are mostly learnt by students in the area of accounting information system development, accounting information systems, and database courses and among students majoring in M.AIS and B.AIS, but not so much among those majoring in M.ACC and B.ACC. Respondents also indicate that the process map is not learnt in any course. Some students may learn about process maps in an AIS course and while some respondents didn’t answer the relevant questions.

The results also indicate that SD techniques including SFC, DFD, and process maps are mostly used to present the flow of operations, the flow of data and information, the flow of processes while E-RD and REA are used to present the relationships of entities and relationships of resources, events, and agents and UML is used to present the UML activity diagram. This technique-based business process data is used to develop SD and inter-enterprise AIS in the global environment.

A limitation of this study is the business processes. In this study, the focus is only on the procurement and purchasing systems globally. The sample size of data is too small because most business enterprises did not give any feedback to the e-mails and keep their data confidential. Another is that some respondents are not accustomed to the concept of some SD techniques and some students never take some courses in this area so it takes time to gather data for this study. Future research should look at the sale and revenue systems.


11


REFERENCES

American Accounting Association (AAA). (2006). Issues in Accounting Education. Sarasota, FL: American Accounting Association.

American Accounting Association (AAA). (2007). Journal of Information Systems. Sarasota, FL: American Accounting Association.



Ashkanasy, N., Bowen, P. L., Rohde, F. H., & Wu, C. Y. A. (2007). The Effects of User Characteristics on Query Performance in the Presence of Information Request Ambiguity. Journal of Information Systems, (Spring), 37-51.

Bagranoff, N. A., Simkin, M. G., & Norman C. S. (2008). Accounting Information Systems. New York, NY: John Wiley &. Sons. Bagranoff, N. A., & Brewer, P. C. (2003). PMB Investments: An Enterprise System Implementation. Journal of Information Systems, (Spring), 85-106.

Bajaj, A., Bradley, W. E., & Cravens, K. S. (2008). SAAS: Integrating Systems Analysis with Accounting and Strategy for Ex Ante Evaluation of IS Investments. Journal of Information Systems, (Spring), 97-124.

Borthick, A. F., & Jones, D. R. (2005). Analyzing a Potential Warranty Call Center Budget Overrun: Using Database Queries to Solve Business Problems. Journal of Information Systems, (Spring), 97-111.

Borthick, A. F., & Jones, D. R. (2007). Creating a Business Process Diagram and Database Queries to Detect Billing Errors and Analyze Calling Patterns for Cell Phone Service. Journal of Information Systems, (Spring), 107-122.

Borthick, A. F., & Curtis, M. B. (2008). Due Diligence on Fast-Fashion Inventory through Data Querying. Journal of Information Systems, (Spring), 77-93.

Borthick, A. F., & Bowen, P. L. (2008). Auditing System Development: Constructing the Meaning of Systematic and Rational” in the Context of Legacy Code Migration for Vendor Incentives. Journal of Information Systems, (Spring), 47-62.

Bowen, P. L., & Debreceny, R. S. (2005). The Effects on End-User Query Performance of Incorporating Object-Oriented Abstractions in Database Accounting Systems. Journal of Information Systems, (Spring), 43-74.

Bradford, M. & Fisher, I. (2005). New York State Agencies: A Case Study for Analyzing the Process of Legacy System Migration: Part I. Journal of Information Systems, (Fall), 173-189.


12


Bradford, M., Roberts, D. F., & Richtermeyer, S. B. (2007). System DiagrammingTechniques: An Analysis of Methods Used in Accounting Education and Practice.Journal of Information Systems, (Spring), 173-212.

Brazel, J. F., & Dang, L. (2005). The Effect of ERP Systems Implementations on the usefulness of Accounting Information. Research paper, North Carolina StateUniversity and Oregon State University, USA.

Church, K. S., & Smith, R. E. (2007). An Extension of the REA Framework to Support Balance Scorecard Information Requirements. Journal of Information Systems, (Spring), 1-25.

Colon, S. J., & Grant, G. H. (2006). EDGAR Extraction System: An Automated Approach to Analyze Employee Stock Option Disclosures. Journal of Information Systems, (Fall), 119-142.

Diagle, R. J., Hayes, D. C., & Hughes II, K. E. (2007). Assessing Student LearningOutcomes in the Introductory Accounting Information Systems Course Using theAICPA’s Core Competency Framework. Journal of Information Systems, (Spring), 149-169.

Dunn, C. L., Cherrington, J. O. & Hollander, A. S. (2005). Enterprise Information Systems: A Pattern-Based Approach. New York, NY: McGraw Hill.

Geerts, G. L., & McCarthy, W. E. (2006). Policy-Level Specifications in REA EnterpriseInformation Systems. Journal of Information Systems, (Fall), 37-63.

Gelinas, Jr., U. J., & Dull, R. B. (2008). Accounting Information Systems, 7th edition. Mason, OH: Thomson South-Western.

Gelinas, Jr., U. J., & Gogan, J. L. (2006). Accountants and Emerging Technologies: A Case Study at the United States Department of The Treasury Bureau of Engraving and printing. Journal of Information Systems, (Fall), 93-116.

Gerard, G. J. (2005). The REA Pattern, Knowledge Structures, and Conceptual Modeling Performance. Journal of Information Systems, (Fall), 57-77.

Hall, J. A. (2008). Accounting Information Systems, 6th edition. Mason, OH: South-Western.

Hayes, D. C., & Reynolds, J. K. (2005). Caroline’s Candy Shop: An In-Class Role-Play of the Revenue Cycle. Journal of Information Systems, (Spring), 131-154.

Hurt, R. L. (2008). Accounting Information Systems: Basic Concepts and Current Issues. New York, NY: McGraw Hill.

Ingram, R. W., & Lunsford, D. L. (2003). Developing an e-Commerce System using Active Server Pages. Journal of Information Systems, (Spring), 135-156.

Jones, F. L. & Rama, D. V. (2006). Accounting Information Systems: A Business


13


Process Approach. Mason, OH: Thomson South-Western.

Lin, P. C., & Smith, L. M. (2006). Using a Web-Based Accounting System for Teaching Accounting System Design and Implementation. Journal of Information Systems, (Fall), 65-79.

Normand, C. J., & Sinason, D. H. (2006). Omni Furniture Company: A Systems Development Life Cycle Case. Journal of Information Systems, (Fall), 81-91.

Romney, M. B., & Steinbart, P. J. (2006). Accounting Information Systems. New Jersey, NJ: Pearson, Inc.

Romney, M. B., & Steinbart, P. J. (2009). Accounting Information Systems, 11th edition. Upper Saddle River,: NJ: Pearson Prentice Hall..

Verdaasdonk, P. (2003). An Object- Oriented Model for Ex Ante Accounting Information.Journal of Information Systems, (Spring), 43-61.


14


APPENDIXES

Table 1: Summary of System Diagram Techniques used in AIS Textbooks (AIS Textbook from Authors 2005-2009)

CoursesSystem Diagram

Techniques Textbooks Authors

AISMISAIS Development Database

AISMISAIS Development Database

AISAIS Development Database

AISAIS Development Database

AIS

AIS Development Database

System Flowchart

Dataflow Diagram

Entity-Relationship Diagram

Resource-Event-Agent

Process Map

Unified-Modeling-Language

AIS (2008) 10th editionAIS (2008)AIS (2008)AIS (2008) 7th editionAIS (2009) 11th edition

IS development (2006) 4th editionAIS (2008) 10th editionAIS (2008)AIS (2008)AIS (2008) 7th editionAIS (2009) 11th edition

IS development (2006) 4th editionAIS (2008) 10th editionAIS (2008)AIS (2008)AIS (2008) 7th editionAIS (2009) 11th edition

EIS (2005)IS development (2006) 4th editionAIS (2008) 10th editionAIS (2008)AIS (2008)AIS (2008) 7th editionAIS (2009) 11th edition

AIS (2008) 10th edition

IS development (2006) 4th editionAIS (2006)

Bagranoff, Simkin, StrandHurtHallGelinas and DullRomney and Steinbart

Avison, Fitzgerald


Avison, Fitzgerald


Dunn/Cherrington/HollanderAvison, Fitzgerald


Bagranoff, Simkin, Strand

Avison, Fitzgerald

Rama and Jones

Table 2 : Results from analysis of SD techniques used to develop an AIS

SD techniques SD & AIS developmentSFC Showing information processes and operational processesDFD Showing system, data flow processesE-RD Portraying data base schemas cardinality among entitiesREA Classifying entities in to R, E, APM Showing the combination of functions, steps, inputs & outputs

UML Showing activity diagram, sequence of steps in business process, UML activity diagram


15


Table 3 : Workflow table showing the conceptual foundation of events and activities that compose a company’s business process and an example of a workflow table showing analysis of the business process of data captured from business enterprises (Rama and Jones 2006)

(a) Workflow table showing the conceptual foundation of events andactivities (Rama and Jones 2006)

Events Activities Actors

Event 1 Activity 1.1 Actor 1--------------Activity 1.n

Event 2 Activity 2.1 Actor 2--------------Activity 2.n

---------- -------------Event n Activity n.1 Actor n

-------------- Activity n. n

(b) Examples of workflow table showing analysis of business process of data captured from business enterprises

Events Activities Documents/Inputs used

Tables/files Persons/departments

• Negotiation of contact

•Contact vendor•Ask for letter of credit

•Pro-forma invoice•Purchase order•Letter of credit

•Purchase order•Letter of credit

•Vendor

•Customer

•Issuing bank

• Confirmation of schedule

•Receive details of products •Examine schedule •Receive document/schedule

•Details of products•Original documents•Shipping documents•Bill of loading

•Delivery order

•Shipping

•Bill of lading

•Delivery order

•Vendor

•Issuing bank

•Issuing bank

•Shipping•Customer•Port•Agent•Carrier

• Confirmation of credit

• Ship cargo to customer• Pay to Port

• Customer• Shipping• Port


16


• Pick up cargo • Examine documents• Prepare truck for cargo• Examine cargo• Carry cargo on truck Carry cargo on truck• Enter sub gate outsub gate outExamine cargo• Enter main gate

•Carrier

• AT port • Transfer cargo from carrier• Pay for service to shipping • Examine cargo• Enter gate in• Transfer cargo on truck• Enter gate out

• Customer• Shipping• Port• Carrier

• CargoShipment

• Cargo shipment from port • Prepare cargo for authorization• Prepare cargo for investigation• Investigate cargo•Transfer cargo to warehouse

•Customer

•Customs procedure

•Prepare inspection sheet• Pay for insurance • Pass I/S to customs

• Customer


17


Table 4 : An analysis of courses providing SD techniques mostly taken by students

Table 5 : Summarization of courses providing SD techniques mostly taken by students

Level of students SD techniques used Course takenM.ACC SFC AIS, MIS

DFD AIS, MISE-RD AISREA AISPM none

UML none

M.AIS SFC AIS, MISDFD AIS, MISE-RD AIS DEV, AIS, DBREA AIS DEV, AIS, DB PM AIS

UML AIS DEV, AIS, DB

B. ACC SFC AIS, MISDFD AIS, MISE-RD AIS, MISREA AIS DEV, AIS, DBPM AIS

UML AIS DEV., DB

B.AIS SFC AIS, MISDFD AIS,MISE-RD AIS DEV, AIS, DBREA AIS DEV, AIS, DBPM AIS

UML AIS DEV, AIS, DB


18


Table 6 : Survey of Respondents

Panel A: Number of Employees Percentage 0 - 100 5 101 - 300 15

301 - 500 25 501 - 3000 50 Over 3000 5

Panel B: Managerial position

Inventory 10Purchasing 50Receiving 10Account Payable 5Finance 10Accounting 5CIO 5CEO 5

Panel C: Years of total work experience

Less than 3 years 153 - 5 106 - 10 10

11 - 15 10 16 - 20 15 21 - 25 35 Greater than 25 years 5

Panel D: Education

Master’s in Accounting 40 Master’s in Accounting Information Systems 10

Bachelor’s in Accounting 30 Bachelor’s in Accounting Information Systems 10


19


Table 7 : Analysis of SD technique used to develop SD and AIS (Respondents 2008)

Type of SD and AIS developed SD technique used

SFC DFD E-RD REA Process Map UML

Flow of operations *

Flow of data and information *

Relationship of entities *

Relationship of resource-event-agent *

Flow of processes *

UML activity diagram *

Table 8 : Summary of SD technique-based business process data used to develop SD and Inter-enterprise AIS in the Global Environment (business enterprises 2008)

Business Processes SD technique Development of SD and AISNegotiation of contract SFC Flow of operations Confirmation of schedule DFD Flow of data and information Confirmation of credit,payment

E-RD Relationship of entities

At Port REA Relationship of resource-event-agent

Cargo shipment Process Map Flow of processesCustomer procedure UML UML activity diagram


20


Table 9 : Percentage of SD techniques and respondents: Business enterprises SD techniques Percentage

. SFC 70

. DFD 20

. E-RD 5

. REA 3

. Process Map 0 . UML 2

Table 10 : Percentage of SD techniques and respondents: Students

SD techniques Percentage

. SFC 30

. DFD 30

. E-RD 20 . REA 10

. Process Map 1 . UML 9

Table 11 : Percentage of Agreement of Respondents on the Impact of SD techniques on AIS development and course learning

AIS development Course learning

Agree (Yes) 98.5 99.7

Do not agree (No) 1.5 0.3


21


Table 12 : The degree of relationship between the use of SFC and respondents (1=to a very slight degree, 2=to a slight degree, 3=to no large or small degree, 4= to a good degree, 5=to a greater degree

Degree ofrelationship

Respondent

nto a

greater degree

to a gooddegree

to no large or small degree

to a slightdegree

to a very slight degree

Businessenterprise 40 35 5 0 0 0

student 200 110 90 0 0 0

Table 13 : The degree of relationship between the use of DFD and respondents (1=to a very slight degree, 2=to a slight degree, 3=to no large or small degree, 4= to

a good degree, 5=to a greater degree


Respondent

nto a

greater degree

to a gooddegree


to a slightdegree



student 200 150 50 0 0 0


22


Table 14 : The degree of relationship between the use of E-R diagram and respondents (1=to a very slight degree, 2=to a slight degree, 3=to no large or small degree,

4= to a good degree, 5=to a greater degree


Respondent

nto a

greater degree

to a gooddegree


to a slightdegree



student 200 50 50 50 30 20

Table 15 : The degree of relationship between the use of REA and respondents (1=to a very slight degree, 2=to a slight degree, 3=to no large or small degree, 4= to a good degree, 5=to a greater degree


Respondent

nto a

greater degree

to a gooddegree


to a slightdegree



student 200 20 30 50 50 50


23


Table 16 : The degree of relationship between the use of Process Maps (PM) and respondents (1=to a very slight degree, 2=to a slight degree, 3=to no

large or small degree, 4= to a good degree, 5=to a greater degree


Respondent

nto a

greater degree

to a gooddegree


to a slightdegree



student 200 10 20 30 60 80

Table 17 : The degree of relationship between the use of UML and respondents (1=to a very slight degree, 2=to a slight degree, 3=to no large or small degree, 4= to a

good degree, 5=to a greater degree


Respondent

nto a

greater degree

to a gooddegree


to a slightdegree



student 200 10 20 30 70 70

Table 18 : Chi-square Test between the use of SFC and respondents Value Df Asymp.Sig. Exact Sig. Exact Sig. Point (2-sided) (2-sided) (1-sided) Probability

Pearson Chi-Square 1.689(a) 2 .176 .168Likelihood Ratio 1.725 2 .198 .169Fisher’s Exact Test 1.041 .165Linear-by-Linear 1.402(b) 1 .165 .162 .081 .005Association


24


Table 19 : Chi-square Test between the use of DFD and respondents Value Df Asymp.Sig. Exact Sig. Exact Sig. Point (2-sided) (2-sided) (1-sided) Probability


Table 20 : Chi-square Test between the use of E-RD and respondents Value Df Asymp.Sig. Exact Sig. Exact Sig. Point (2-sided) (2-sided) (1-sided) Probability


Table 21 : Chi-square Test between the use of REA and respondents Value Df Asymp.Sig. Exact Sig. Exact Sig. Point (2-sided) (2-sided) (1-sided) Probability


Table 22 : Chi-square Test between the use of Process Map and respondents Value Df Asymp.Sig. Exact Sig. Exact Sig. Point (2-sided) (2-sided) (1-sided) Probability



25


Table 23 : Chi-square Test between the use of UML and respondents Value Df Asymp.Sig. Exact Sig. Exact Sig. Point (2-sided) (2-sided) (1-sided) Probability



26


Figure 1 : System diagram technique conceptual foundation model and system diagram technique model of an inter-enterprise accounting information system in the global environment

1a. System diagram technique conceptual foundation model (AIS textbooks 2005-2006; Bradford, Richtermeyer and Roberts 2007)

1b. System diagram technique model of an inter-enterprise accounting information system in the global environment (operation)

Resource-Event-Agent(REA)

Entity-RelationshipDiagram(E-RD)

Data flowDiagram(DFD)

SystemFlowchart

(SFC)

Process Map(PM)

Unified ModelingLanguage

(UML)

SystemDiagram

Technique

System diagram (SD)and

Accounting Information System (AIS)

In the Global Environment

Businessprocesses

System diagramandAIS

1 a.

1 b.

Business porcessesfrom

Entrepreneurs


27


Figure 2 : SD technique model conceptual foundation and SD technique model taken by students in an AIS major course

(2 a) SD technique model conceptual foundation (AIS textbooks 2005-2009)

(2 b) SD technique model learnt by students in an AIS major course (operation)


28


Figure 3.1 : SFC diagram shows the development of an electronic-based inter- enterprise AIS in the global environment

Start

Transfer dataTo AS 400

System

Print hard Copy of PO data

PO data

Fax POdata

receive POdata

Transfer :Invoice dataAirlinr data

To AS 400 System

Prepare exportprocedure

Confirm airlineticket

Issue Invoice

Receive document/data

Receive:. Invoice data. Airline dataFrom AS 400

System

A

Prepare data/Document

P rovide products

Tranfer data toAS 400 System

Receive data from

AS 400 System

Record Purchase data

PO IS

PurchaseDepartment

(Local country)

Purchase/salesDepartment

(Foreign country)

ExportDepartment

(Foreign country)

ITDepartment

SFC Diagram shows the development of an electronic-based Inter-enterprise AIS in the Global Environment

Database

EnterPurchase

data


29


Purchasingdepartment

Local country

ImporterLocal country

Importer agentLocal country

Customs Customsairport

InvestigatingDepartment

Import productCustoms

WarehouseImporterairport

WarehousePurchaser

Local country

A

ExamineInvoice

data

Send Invoice

data

Enter data

AS 400

Transferinvoice.dataAirline data

ReceiveData onAS 400system

Printhardcopy of

data

PerformEDI-basedCustoms

Procedure(paperless)

Provideproducts

PrepareCustoms

documents

ReceiveCustoms

documents

PerformCustoms

procedure

PerformEDI-basedImported

Procedures(paperless)

line

stop

Greenline

Redline

Meet anofficer

Meet anoffical

Move products

to warehouse

Receive products

from airline


30


Figure 3.2 : DFD diagram shows the development of an electronic-based inter- enterprise AIS in the global environment

5 Receive PO

4Fax PO data

3Print PO data

(paper)

2Move data to

AS 400

1Enter Purchase

data

Inventorydepartment

Variousdepartment

Purchasingdepartment

(Local country)

SaleDepartment

(Foreign Country)

6Prepare document

And provideproducts

7 Transfer data to

AS 400system

PurchasingDepartment

(Local Country)

DFD shows the development of an electronic-based Inter-Enterprise AIs in the Global Environment

Purchase data

PO

PO

PO

PO

PO

PO

Document

data

PO

PO

PO

Document

Database

PO

PO


31


1Examine

Invoice data

2Send invoice to(Local country)

3Enter invoice

data toAS 400system

4Transfer

invoice dataAirline data

5Print hard

copyOf data

6Perform

EDI-basedCustomsprocedure

7Provideproducts

8PrepareCustoms

documents


(Local country)Importer

(Local Country)


(Local country)

customers

Importer(Local country)

Invoice

Airline

invoice

Importo agent(Local country)

Customsdocumnt

Invoice Invoice

Invoice

Invoice

Invoice

airline

Data

EDI-data

customs

document

EDI


32


4Meet anofficer

1Performcustoms

prodedure

3Red line

orGreen line

2 Perform

EDI-basedImport

procedure

5Move products to

warehouse

6ReceiveProducts

From airlines

customs

Customs(airport)

InvestigateDepartment of

Import productscustoms

Warehouse(Importer)( airport)

Warehouse(Purchaser)

(Local country)

Customsdocuments

Red Line

Green line


33


Figure 3.3 : E-RD diagram shows the development of an electronic-based inter- Enterprise AIS in the global environment


34



35



36



37



38



39


Figure 3.4 : REA diagram shows the development of an electronic-based inter- enterprise AIS in the global environment


40



41



42



43



44



45


Figure 3.5 : Process map shows the development of an electronic-based inter-enterprise AIS in the global environment

Enter purchase

data

Transfer data toAS 400

Print hard copy

of PO data

Fax PO data

Receive POdata

Prepare data

document

ProvideProducts

TransferData toAS 400

Receive data fromAS 400

Pruchase Department

(Local country)

Sale department(Foreign country)

ReceiveDocument/

data

IssueInvoice

Confirmairlineticket

Receive dataInvoice data

andAirline data

Prepareexport

procedure

Examine Invoice data

Send Invoice data

Transfer•Invoice data•Airline data

to AS 400

Receive Invoice data

andAirline data

Enter dataTo

AS 400

TransferInvoice data

AndAirline data

Exportdepartment

(Foreign Country)

Importer(Local country

Purchasedepartment

(Local country)


46


_____________________________________________________________________ customs document - customs procedures (continued)

Print hardcopy of data

PerformEDI-basedcustoms

procedure

Provideproducts

Preparecustoms

documents

Receive customs

documents

_____________________________________________________________________ customs procedures (continued)

Performcustoms

procedure

PerformEDI-basedImportedprocedure

Line Meet anofficer

Move productsto

Local country

Receive products

from airline

Meet an officer

Green line

Red line

Customs(airport)

_____________________________________________________________________


47


Figure 3.6 : UML diagram shows the development of an electronic-based inter- enterprise AIS in the global environment


48


__________________________________________


49



50

Date post:	19-Jan-2017
Category:	Documents
Upload:	lyliem
View:	219 times
Download:	0 times