I. DOCUMENTATION TOOLS:
Narratives (written descriptions)
Other written material
II. ACCOUNTANTS USE OF DOCUMENTATION
At a minimum, they have to read documentation to understand how a
Chapter 2 Reading Notes
Accounting Systems Documentation
1. Documentation of Accounting Systems
a. Documentation as it relates to accounting systems is a communication device
that describes in pictures, words, or both how to use the system, what the
Chapter 4 Reading Notes
Data Flows, Activities, and Structure of Accounting Systems
1. Data Flows in an Accounting System
a. Life Cycle of Transactions and Other Events
i. Some transactions and other events are initiated by personnel within
GENERAL LEDGER AND REPORTING SYSTEM
General Ledger Cycle Objectives
Transactions are recorded correctly and timely basis.
All necessary adjusting journal entries are processed.
All necessary financial reports.
The basic activities
AUDITING COMPUTER-BASED INFORMATION SYSTEMS
General Definition of Auditing
Auditing is a systematic process of objectively obtaining and evaluating
evidence regarding assertions about economic actions and events to
ascertain the degree of co
THE EXPENDITURE CYCLE:
PURCHASING AND CASH DISBURSEMENTS
The primary objective of the expenditure cycle is to minimize the total cost of acquiring and
maintaining inventory, supplies, and services.
Decisions that must be made include:
THE REVENUE CYCLE:
The revenue cycle is associated with providing goods and services to customers and
collecting their cash payments.
The primary objective of the revenue cycle is to provide the right product in the right
THE HUMAN RESOURCES MANAGEMENT/
The Human Resources/payroll cycle is associated with effectively managing the
The payroll system is one of the largest and most important components of the AIS.
INTRODUCTION TO SYSTEMS DEVELOPMENT
SYSTEMS DEVELOPMENT LIFE CYCLE
Whether systems changes are major or minor, most companies go through a systems
development life cycle.
The five stages in the systems development life cycle are:
A. Systems analysis
DATABASE DESIGN USING
THE REA DATA MODEL
Review of Relational Databases
-Most new DBMSs are called relational databases because
-This model only describes how the data appear this is called a _
-Each row in a relation is called a _.
-Each column in a
THE PRODUCTION CYCLE
The production cycle is a recurring set of business activities and related data processing operations associated
with the manufacture of products.
II. COST ACCOUNTING
A. Types of cost accounting systems:
1. Job order c
Chapter 1 Reading Notes
1. What Are Accounting Data?
a. Accounting Information
i. While most of the information is expressed in traditional monetary
terms, some is expressed as ratios, percentages or units.
2. Who Needs Accounting Information?
Chapter 5 Reading Notes
Reporting Process, Coding Methods, and Audit Trails
1. Reporting Principles
a. General principles that underlie reporting are:
i. Necessity for concise reports
ii. Emphasis on both physical and monetary measures
iii. Frequency of r
Accounting Information Information that meets the legitimate needs of external users,
communicates among parties transaction business with one another, and provides a basis
for informed management decisions. It can be expressed in monetary terms
CONFIDENTIALITY AND PRIVACY CONTROLS
Reliable systems protect confidential information from unauthorized
Types of information that need to be protected would include:
COMPUTER FRAUD & ABUSE
INTRODUCTORY FRAUD QUIZ:
1. Which of the following is the most frequent way in which fraud is detected?
a. Tip hotline
b. External audit
c. Internal audit
d. By chance
2. Most fraudsters _.
a. Have a criminal record
b. Have no cr
OVERVIEW: ACCOUNTING INFORMATION SYSTEMS
Characteristics of Most Systems
A system =
-Most new AIS systems implement databases. Virtually all mainframe computer sites
use database technology.
-Relational databases underlie most modern integrated AIS systems. They are the most
popular type of database u
PROCESSING INTEGRITY AND AVAILABILITY CONTROLS
A. The following controls regulate the integrity of input:
1. Forms design.
Prenumbered forms - to verify that none are missing.
Turnaround documents. A turnaround document is a
OVERVIEW OF BUSINESS PROCESSES
A transaction is an agreement between two entities to exchange goods or services OR any other
event that can be measured in economic terms by an organization.
The transaction cycle is a process that be
YEAR COURSE OFFERED:
SEMESTER COURSE OFFERED: Spring
Accountancy and Taxation
NAME OF COURSE:
Accounting Information Systems
COURSE DESCRIPTION: Accounting systems, including file, program, control
CONTROL AND ACCOUNTING INFORMATION
Control objectives are the same regardless of the data processing method, but a computer-based
AIS requires different policies and procedures to achieve that control.
Internal control is the proce
CONTROLS FOR INFORMATION SECURITY
THE TRUST SERVICES FRAMEWORK:
FIVE FUNDAMENTAL PRINCIPLES OF SYSTEM
A. SecuritySecurity procedures restrict access
B. Confidentialityprotects organizational information
C. Privacyprotects personal
Chapter 3 Reading Notes
Essential Elements and Basic Activities of Accounting Systems
1. Why Review Paper-Based Accounting System?
2. Similarities Between Paper-Based and Computerized Accounting Systems
a. An accounting system, whether paper-based or comp
TRANSACTION PROCESSING PROBLEM
Due Date: Date of Final Exam
Take the following transactions through the accounting cycle. This problem is to be done manually and emailed to me.
You may use the forms I have created for you. The problem covers the