Transcript PowerPoint
Chapter 2-1 Foundational Concepts of the AIS Chapter 2-2 Accounting Information Systems, 1st Edition Study Objectives 1. The interrelationships of business processes and the AIS 2. Types of accounting information systems 3. Accounting software market segments 4. Input methods used in business processes 5. The processing of accounting data 6. Outputs from the AIS related to business processes 7. Documenting processes and systems 8. Client-server computing 9. Ethical considerations at the foundation of accounting information systems Chapter 2-3 Business Processes and the AIS Accounting Information System - a system that captures, records, processes, and reports accounting information. Business Process - a prescribed sequence of work steps completed in order to produce a desired result. Chapter 2-4 SO 1 The interrelationships of business processes and the AIS Types of Accounting Information Systems Three categories of AIS: 1. Manual systems 2. Legacy systems 3. Modern, integrated IT systems Chapter 2-5 SO 2 Types of accounting information systems Types of Accounting Information Systems Manual Systems Generally used by small organizations. Entirely manual system would require: Chapter 2-6 Source document General journal Turnaround document Special journals General ledger Subsidiary ledgers SO 2 Types of accounting information systems Types of Accounting Information Systems Legacy Systems Decision whether to replace or update legacy systems. 1. Screen scrapers 2. Enterprise application integration 3. Complete replacement of legacy systems Chapter 2-7 SO 2 Types of accounting information systems Types of Accounting Information Systems Modern, Integrated Systems New programs sold by software development companies are more user friendly than legacy accounting systems. Advantages to purchasing accounting software: Lower cost Shorter implementation time Fewer bugs Chapter 2-8 SO 2 Types of accounting information systems Accounting Software Market Segments Exhibit 2-2 Accounting Software Market Segments Chapter 2-9 SO 3 Accounting software market segments Input Methods for AIS Input methods used in organizations: Source documents and keying Bar coding Point of sale systems EDI E-business Chapter 2-10 SO 4 Input methods used in business processes Processing Methods Batch Processing -Transactions are grouped. Advantages 1. Efficient for large volumes of like transactions. 2. Generally use less costly hardware and software. Online and Real-Time Processing Advantages 1. Information provided on a timely basis. All files are constantly up to date. 2. The business processes are integrated into a single database so that a single system is achieved. Chapter 2-11 SO 5 The processing of accounting data Outputs of the AIS General Categories of Outputs 1. Trading partner documents such as checks, invoices, and statements 2. Internal documents 3. Internal reports 4. External reports Chapter 2-12 SO 6 Outputs from the AIS related to business processes Documenting Systems Pictorial Representations of processes and systems include: 1. Process maps 2. System flowcharts 3. Document flowcharts 4. Data flow diagrams 5. Entity relationship diagrams (ER diagrams) Chapter 2-13 SO 7 Documenting processes and systems Documenting Systems Exhibit 2-7 Common System Flowchart Symbols System Flowcharts Intended to depict the entire system, including inputs, manual and computerized processes, and outputs. Chapter 2-14 SO 7 Documenting processes and systems Client–Server Computing Two Levels of Client-Server Computing: 1. Distributed presentation. 2. Distributed applications. Chapter 2-15 SO 8 Client-server computing Copyright Copyright © 2008 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. Chapter 2-16 Business Processes and the AIS Concept Check 1. Which of the following statements is not true? a. Accounting information systems must maintain both detail and summary information. b. Business processes may vary from company to company. c. Regardless of the extent of computerization, all accounting information systems must capture data from the transactions within business processes. d. Business processes categorized as expenditure processes are not intended to be processes that serve customers. Chapter 2-17 SO 1 The interrelationships of business processes and the AIS Types of Accounting Information Systems Concept Check 2. In a manual system, an adjusting entry would most likely be initially recorded in a a. special journal. b. subsidiary ledger. c. general journal. d. general ledger. Chapter 2-18 SO 2 Types of accounting information systems Input Methods for AIS Concept Check 7. An IT system that uses touch-screen cash registers as an input method is called a. Electronic data interchange. b. E-business. c. Point of sale system. d. Source documents and keying. Chapter 2-19 SO 4 Input methods used in business processes Processing Methods Concept Check 8. When similar transactions are grouped together for a specified time for processing, it is called a. Online processing. b. Real-time processing. c. Batch processing. d. Group processing. Chapter 2-20 SO 5 The processing of accounting data Documenting Systems Concept Check 10. In documenting systems, which pictorial method is described as a method that diagrams the actual flow and sequence of events? a. System flowchart. b. Process map. c. Data flow diagram. d. Entity relationship diagram. Chapter 2-21 SO 7 Documenting processes and systems Client–Server Computing Concept Check 12. In a client–server system, when the client PC manipulates data for presentation, but does not do any other significant processing, it is called a. Distributed presentation. b. Distributed application. c. Distributed database. d. Distributed processing. Chapter 2-22 SO 8 Client-server computing