Accounting Information Systems (15th Global Edition)

Table of contents

Table of contents :
Front Cover
Title Page
Copyright Page
Brief Contents
Contents
Preface
Part 1 Conceptual Foundations of Accounting Information Systems
Chapter 1 Accounting Information Systems: an Overview
Introduction
Information Needs and Business Processes
Information Needs
Business Processes
Accounting Information Systems
How an AIS Can Add Value to an Organization
An AIS Can Use Artificial Intelligence and Data Analytics to Improve Decision Making
The AIS and Blockchain
Cloud Computing, Virtualization, and the Internet of Things
The AIS and Corporate Strategy
The Role of the AIS in the Value Chain
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
AIS in Action Solutions Quiz Key
Chapter 2 Overview of Transaction Processing and Enterprise Resource Planning Systems
Introduction
Transaction Processing: the Data Processing Cycle
Data Input
Data Storage
Data Processing
Information Output
Transaction Processing: Blockchain
Enterprise Resource Planning (ERP) Systems
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 2-1 Bar Harbor Blueberry Farm
CASE 2-2 SDC
AIS in Action Solutions Quiz Key
Chapter 3 Systems Documentation Techniques
Introduction
Business Process Diagrams
Flowcharts
Types of Flowcharts
Program Flowcharts
Data Flow Diagrams
Subdividing the DFD
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Comprehensive Problem
Discussion Questions
Problems
CASE 3-1 Dub 5
AIS in Action Solutions Quiz Key
Comprehensive Problem Solution
Part II Data Analytics
Chapter 4 Relational Databases
Introduction
Databases and Files
Using Data Warehouses for Data Analytics
The Advantages of Database Systems
The Importance of Good Data
Database Systems
Logical and Physical Views of Data
Schemas
The Data Dictionary
DBMS Languages
Relational Databases
Types of Attributes
Designing a Relational Database for S&S, Inc.
Basic Requirements of a Relational Database
Two Approaches to Database Design
Creating Relational Database Queries
Query 1
Query 2
Query 3
Query 4
Query 5
Database Systems and the Future of Accounting
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Comprehensive Problem
Discussion Questions
Problems
CASE 4-1 Research Project
AIS in Action Solutions Quiz Key
Comprehensive Problem Solution
Appendix: Data Normalization
Summary
Chapter 5 Introduction to Data Analytics in Accounting
Introduction
Ask the Right Questions
Extract, Transform, and Load Relevant Data
Extracting Data
Transforming Data
Loading Data
Apply Appropriate Data Analytic Techniques
Interpret and Share the Results with Stakeholders
Interpreting Results
Sharing Results
Additional Data Analytics Considerations
Automation
Data Analytics Is Not Always the Right Tool
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 5-1 Robotic Process Automation—Wood’s Amazing Woods Inc.
AIS in Action Solutions Quiz Key
Chapter 6 Transforming Data
Introduction
Attributes of High-Quality Data
Data Structuring
Aggregate Data
Data Joining
Data Pivoting
Data Standardization
Data Parsing and Data Concatenation
Cryptic Data Values
Misfielded Data Values
Data Formatting and Data Consistency
Data Cleaning
Data De-Duplication
Data Filtering
Data Contradiction Errors
Data Threshold Violations
Violated Attribute Dependencies
Data Entry Errors
Data Validation
Visual Inspection
Basic Statistical Tests
Audit a Sample
Advanced Testing Techniques
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 6-1 Hotel Data Cleaning Case
AIS in Action Solutions Quiz Key
Chapter 7 Data Analysis and Presentation
Introduction
Data Analysis
Descriptive Analytics
Diagnostic Analytics
Predictive Analytics
Prescriptive Analytics
Common Problems with Data Analytics
Data Presentation
Choosing the Right Visualization
Designing High-quality Visualizations
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 7-1 Analyzing Gamified Training
CASE 7-1 Appendix
AIS in Action Solutions Quiz Key
Part III Control of Accounting Information Systems
Chapter 8 Fraud and Errors
Introduction
AIS Threats
Natural and Political Disasters
Software Errors and Equipment Malfunctions
Unintentional Errors
Intentional Acts
Introduction to Fraud
Misappropriation of Assets
Fraudulent Financial Reporting
Sas No. 99 (AU-C Section 240): The Auditor’s Responsibility to Detect Fraud
Who Perpetrates Fraud and Why
The Fraud Triangle
Computer Fraud
The Rise in Computer Fraud
Computer Fraud Classifications
Preventing and Detecting Fraud and Abuse
Using Data Analytics to Prevent and Detect Fraud
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 8-1 David L. Miller: Portrait of a White-Collar Criminal
CASE 8-2 Heirloom Photo Plans
AIS in Action Solutions Quiz Key
Chapter 9 Computer Fraud and Abuse Techniques
Introduction
Computer Attacks and Abuse
Social Engineering
Malware
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 9-1 Shadowcrew
AIS in Action Solutions Quiz Key
Chapter 10 Control and Accounting Information Systems
Introduction
Why Threats to Accounting Information Systems Are Increasing
Overview of Control Concepts
The Foreign Corrupt Practices and Sarbanes–oxley Acts
Control Frameworks
COBIT Framework
COSO’s Internal Control Framework
The Control Environment
Management’s Philosophy, Operating Style, and Risk Appetite
Commitment to Integrity, Ethical Values, and Competence
Internal Control Oversight by the Board of Directors
Organizational Structure
Methods of Assigning Authority and Responsibility
Human Resources Standards That Attract, Develop, and Retain Competent Individuals
External Influences
Risk Assessment and Risk Response
Estimate Likelihood and Impact
Identify Controls
Estimate Costs and Benefits
Determine Cost/benefit Effectiveness
Implement Control or Accept, Share, or Avoid the Risk
Control Activities
Proper Authorization of Transactions and Activities
Segregation of Duties
Project Development and Acquisition Controls
Change Management Controls
Design and Use of Documents and Records
Safeguard Assets, Records, and Data
Independent Checks on Performance
Communicate Information and Monitor Control Processes
Information and Communication
Monitoring
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 10-1 The Greater Providence Deposit & Trust Embezzlement
AIS in Action Solutions Quiz Key
Chapter 11 Controls for Information Security
Introduction
Three Fundamental Information Security Concepts
1. Security Is a Management Issue, Not Just a Technology Issue
2. People: the Critical Factor
3. The Time-Based Model of Information Security
Protecting Information Resources
Physical Security: Access Controls
Process: User Access Controls
It Solutions: Antimalware Controls
It Solutions: Network Access Controls
It Solutions: Device and Software Hardening Controls
It Solutions: Encryption
Detecting Attacks
Log Analysis
Intrusion Detection Systems
Honeypots
Continuous Monitoring
Responding to Attacks
Computer Incident Response Team (CIRT)
Chief Information Security Officer (CISO)
Monitor and Revise Security Solutions
Penetration Testing
Change Controls and Change Management
Security Implications of Virtualization, Cloud Computing, and the Internet of Things
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 11-1 Assessing Change Control and Change Management
CASE 11-2 Research Project
AIS in Action Solutions Quiz Key
Chapter 12 Confidentiality and Privacy Controls
Introduction
Protecting Confidentiality and Privacy
Identify and Classify Information to Be Protected
Protecting Sensitive Information with Encryption
Controlling Access to Sensitive Information
Training
Privacy Regulations and Generally Accepted Privacy Principles
The Eu’s Gdpr and U.s. Laws
Generally Accepted Privacy Principles
Encryption
Factors That Influence Encryption Strength
Types of Encryption Systems
Virtual Private Networks (vpns)
Hashing
Digital Signatures
Digital Certificates and Public Key Infrastructure
Blockchain
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 12-1 Protecting Privacy of Tax Returns
CASE 12-2 Generally Accepted Privacy Principles
AIS in Action Solutions Quiz Key
Chapter 13 Processing Integrity and Availability Controls
Introduction
Processing Integrity
Input Controls
Processing Controls
Output Controls
Illustrative Example: Credit Sales Processing
Processing Integrity Controls in Spreadsheets
Availability
Minimizing Risk of System Downtime
Recovery and Resumption of Normal Operations
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 13-1 Ensuring Systems Availability
CASE 13-2 Ensuring Process Integrity in Spreadsheets
AIS in Action Solutions Quiz Key
Part IV Accounting Information Systems Applications
Chapter 14 The Revenue Cycle: Sales to Cash Collections
Introduction
Revenue Cycle Information System
Process
Threats and Controls
Sales Order Entry
Taking Customer Orders
Credit Approval
Checking Inventory Availability
Responding to Customer Inquiries
Shipping
Pick and Pack the Order
Ship the Order
Billing
Invoicing
Maintain Accounts Receivable
Cash Collections
Process
Threats and Controls
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Problems
CASE 14-1 Research Project: The Use of RFID in Retail 491
Discussion Questions
AIS in Action Solutions Quiz Key
Chapter 15 The Expenditure Cycle: Purchasing to Cash Disbursements
Introduction
Expenditure Cycle Information System
Process
Threats and Controls
Ordering Materials, Supplies, and Services
Identifying What, When, and How Much to Purchase
Choosing Suppliers
Receiving
Process
Threats and Controls
Approving Supplier Invoices
Process
Threats and Controls
Cash Disbursements
Process
Threats and Controls
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 15-1 Group Case Analysis: School District Expenditure Fraud
CASE 15-2 Anatomy of a Multi-Million Dollar Embezzlement at ING Bank
AIS in Action Solutions Quiz Key
Chapter 16 The Production Cycle
Introduction
Production Cycle Information System
Process
Threats and Controls
Product Design
Process
Threats and Controls
Planning and Scheduling
Production Planning Methods
Key Documents and Forms
Threats and Controls
Production Operations
Threats and Controls
Cost Accounting
Process
Threats and Controls
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 16-1 The Accountant and CIM
AIS in Action Solutions Quiz Key
Chapter 17 The Human Resources Management and Payroll Cycle
Introduction
HRM/Payroll Cycle Information System
Overview of Hrm Process and Information Needs
Threats and Controls
Payroll Cycle Activities
Update Payroll Master Database
Validate Time and Attendance Data
Prepare Payroll
Disburse Payroll
Calculate and Disburse Employer-Paid Benefits, Taxes, and Voluntary Employee Deductions
Outsourcing Options: Payroll Service Bureaus and Professional Employer Organizations
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 17-1 Excel Project: Sorting and Grouping Data 589
AIS in Action Solutions Quiz Key
Chapter 18 General Ledger and Reporting System
Introduction
General Ledger and Reporting System
Process
Threats and Controls
Update General Ledger
Process
Threats and Controls
Post Adjusting Entries
Process
Threats and Controls
Prepare Financial Statements
Process
Threats and Controls
Produce Managerial Reports
Process
Threats and Controls
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 18-1 Exploring iXBRL Viewers
CASE 18-2 Evaluating a General Ledger Package
AIS in Action Solutions Quiz Key
Part V The Rea Data Model
Chapter 19 Database Design Using the REA Data Model
Introduction
Database Design Process
Entity-Relationship Diagrams
The REA Data Model
Three Basic Types of Entities
Structuring Relationships: The Basic Rea Template
Developing an REA Diagram
Step 1: Identify Relevant Events
Step 2: Identify Resources and Agents
Step 3: Determine Cardinalities of Relationships
What an Rea Diagram Reveals About an Organization
Business Meaning of Cardinalities
Uniqueness of Rea Diagrams
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Comprehensive Problem
Discussion Questions
Problems
CASE 19-1 REA Data Modeling Extension
AIS in Action Solutions Quiz Key
Comprehensive Problem Solution
Chapter 20 Implementing an REA Model in a Relational Database
Introduction
Integrating Rea Diagrams Across Cycles
Merging Redundant Resource Entities
Merging Redundant Event Entities
Validating the Accuracy of Integrated Rea Diagrams
Implementing an REA Diagram in a Relational Database
Step 1: Create Tables for Each Distinct Entity and M:N Relationship
Step 2: Assign Attributes to Each Table
Step 3: Use Foreign Keys to Implement 1:1 and 1:N Relationships
Completeness Check
Using REA Diagrams to Retrieve Information from a Database
Creating Journals and Ledgers
Generating Financial Statements
Creating Managerial Reports
Summary and Case Conclusion
Key Term
AIS in Action Chapter Quiz
Comprehensive Problem
Discussion Questions
Problems
CASE 20-1 Practical Database Design
AIS in Action Solutions Quiz Key
Comprehensive Problem Solution
Chapter 21 Special Topics in REA Modeling
Introduction
Additional Revenue and Expenditure Cycle Modeling Topics
Additional Revenue Cycle Events and Attribute Placement
Additional Expenditure Cycle Events and Attribute Placement
Sale of Services
Acquisition of Intangible Services
Digital Assets
Rental Transactions
Additional REA Features
Employee Roles
M:N Agent–Event Relationships
Locations
Relationships Between Resources and Agents
Production Cycle Rea Model
Additional Entities—intellectual Property
Production Cycle Events
New REA Feature
Combined HR/Payroll Data Model
HR Cycle Entities
Tracking Employees’ Time
Financing Activities Data Model
Summary and Case Conclusion
AIS in Action Chapter Quiz
Discussion Questions
Problems
CASE 21-1 Practical Database Assignment
AIS in Action Solutions Quiz Key
Appendix: Extending the REA Model to Include Information About Policies
Part VI The Systems Development Process
Chapter 22 Introduction to Systems Development and Systems Analysis
Introduction
Systems Development
The Systems Development Life Cycle
The Players
Planning Systems Development
Planning Techniques
Feasibility Analysis
Capital Budgeting: Calculating Economic Feasibility
Behavioral Aspects of Change
Why Behavioral Problems Occur
How People Resist Change
Preventing Behavioral Problems
Systems Analysis
Initial Investigation
Systems Survey
Feasibility Study
Information Needs and Systems Requirements
Systems Analysis Report
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Comprehensive Problem
Discussion Questions
Problems
CASE 22-1 Audio Visual Corporation
AIS in Action Solutions Quiz Key
Comprehensive Problem Solution
Chapter 23 AIS Development Strategies
Introduction
Purchasing Software
Selecting a Vendor
Acquiring Hardware and Software
Evaluating Proposals and Selecting a System
Development by In-house Information Systems Departments
End-User-Developed Software
Advantages and Disadvantages of End-User Computing
Managing and Controlling End-User Computing
Outsourcing the System
Advantages and Disadvantages of Outsourcing
Methods for Improving Systems Development
Business Process Management
Prototyping
Agile Methodologies
Computer-Aided Software Engineering
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Comprehensive Problem
Discussion Questions
Problems
AIS in Action Solutions Quiz Key
Comprehensive Problem Solution
Chapter 24 Systems Design, Implementation, and Operation
Introduction
Conceptual Systems Design
Evaluate Design Alternatives
Prepare Design Specifications and Reports
Physical Systems Design
Output Design
File and Database Design
Input Design
Program Design
Procedures and Controls Design
Systems Implementation
Implementation Planning and Site Preparation
Selecting and Training Personnel
Complete Documentation
Testing the System
Systems Conversion
Operation and Maintenance
Summary and Case Conclusion
Key Terms
AIS in Action Chapter Quiz
Comprehensive Problem
Discussion Questions
Problems
CASE 24-1 Citizen’s Gas Company
AIS in Action Solutions Quiz Key
Comprehensive Problem Solution
Glossary
Index