Mc Graw Hill Education

Transcription

1 Accounting Information Systems Vernon J. Richardson University of Arkansas C. Janie Chang San Diego State University Rodney Smith California State University, Long Beach Mc Graw Hill Education

2 Contents Preface viii PART ONE 1 AIS AND THE BUSINESS 1 Chapter 1 Accounting Information Systems and Firm Value 2 Introduction 4 Accountants as Business Analysts 4 Definition of Accounting Information Systems 4 A Simple Information System 4 Attributes of Useful Information 5 Data versus Information 5 Discretionary versus Mandatory Information 6 Role of Accountants in Accounting Information Systems 7 Specific Accounting Roles 8 Certifications in Accounting Information Systems 9 The Value Chain and Accounting Information Systems 10 AIS and Internal Business Processes 12 AIS and External Business Processes 13 The Supply Chain 13 Customer Relationship Management 15 AIS, Firm Profitability, and Stock Prices 16 AIS and Firm Profitability 16 AIS and Stock Prices 17 Summary 18 Key Words 19 Answers to Progress Checks 20 Multiple Choice Questions 21 Discussion Questions 23 Problems 23 Answers to Multiple Choice Questions 25 Chapter 2 Accountants as Business Analysts 26 Changing Roles of Accountants in Business 28 Business Process Documentation 29 Definitions 29 Purposes of Documentation 29 Value of Business Models 30 Types of Business Models 31 Activity Models 31 Business Process Modeling Notation 32 Building Blocks for BPMN Diagrams 32 Example of a Business Process Diagram 33 Identifying Participants in Business Process Diagrams 34 Messages in BPMN 35 Best Practices in Preparing BPMN Diagrams 36 Summary 36 Key Words 36 Appendix A: Flowcharting 37 Appendix B: Data Flow Diagrams 42 Answers to Progress Checks 44 Multiple Choice Questions 45 Discussion Questions 46 Problems 46 Answers to Multiple Choice Questions 47 Chapter 3 Data Modeling 48 Structure Models 50 Unified Modeling Language Class Diagrams 50 Building Blocks for UML Class Diagrams 50 Best Practices in Preparing Class Diagrams 54 UML Class Models for Relational Database Design 54 Business Rules 57 Summary 58 Key Words 58 Appendix A: Entity-Relationship Diagrams 59 Answers to Progress Checks 62 Multiple Choice Questions 62 Discussion Questions 64 Problems 65 Answers to Multiple Choice Questions 65 Chapter 4 Relational Databases and Enterprise Systems 66 Introduction 68 Definitions for Databases 68 Fundamentals of Relational Databases 69 Entities and Attributes 69 Keys and Relationships 69 Basic Requirements of Tables 71 Using Microsoft Access to Implement a Relational Database 71 xxiii

3 xxiv Contents Introduction to Microsoft Access 71 Steve's Stylin'Sunglasses 72 A Data Model and Attributes for Steve's Stylin' Sunglasses ' Sales Process 72 Multiplicities in Steve's Stylin'Sunglasses' Data Model 73 Using Access to Implement a Simple Database for Steve's Stylin ' Sunglasses 75 Structured Query Language (SQL) 80 Enterprise Systems 86 Challenges of Enterprise System Implementation 87 Enterprise Systems Computing in a Cloud 88 Summary 89 Key Words 89 Answers to Progress Checks 90 Appendix A: Creating a Form for Data Entry and Display 91 Multiple Choice Questions 96 Discussion Questions 97 Problems 97 Answers to Multiple Choice Questions 99 PART TWO BUSINESS PROCESSES 101 Chapter 5 Sales and Collections Business Process 102 Sales and Collection Process 104 Sunset Graphics Example 104 Company Overview 104 Sunset Graphics ' Sales and Collection Process Description 105 Sunset Graphics' Activity Models 105 Basic Sales Activity Model 105 Refining the Model to Show Collaboration 105 Refining the Model to Consider Exceptions 106 Business Rules and Sunset Graphics' Sales and Collection Process Controls 107 Sunset Graphics' Structure Models 109 UML Class Model for Quotes 109 UML Class Model for Adding Orders 110 UML Class Model for Adding Cash Receipts 111 UML Class Model for Adding Categorical Information 111 UML Class Model for Supporting Relational Database Planning 112 Sunset Graphics' Relational Database 114 Relational Database Planning for Attributes 114 Create Database and Define Tables 116 Set Relationships 117 Comprehensive Exercise: Baer Belly Bikinis' Sales to Retailers 118 Summaiy 120 Key Words 121 Appendix A: Generic REA Model with Multiplicities for the Sales and Collection Process 122 Answers to Progress Checks 123 Multiple Choice Questions 123 Discussion Questions 125 Problems 125 Answers to Multiple Choice Questions 127 Chapter 6 Purchases and Payments Business Process 128 Purchases and Payments Process 130 Sunset Graphics Example 130 Company Overview 130 Sunset Graphics ' Purchases and Payments Process Description 130 Sunset Graphics' Activity Models 131 Basic Purchases Activity Model 131 Refining the Model to Show Collaboration 131 Business Rules and Sunset Graphics' Purchases and Payments Process Controls 133 Sunset Graphics'Structure Models 134 Basic UML Class Diagram for Purchases and Payments 135 Refining the UML Class Diagram for Purchases and Payments 136 Sunset Graphics' Relational Database 137 Relational Database Planning for Attributes 137 Create Database and Define Tables 138 Comprehensive Exercise: Baer Belly Bikinis' Purchases of Fabric 138 BBB Cash Disbursements 140 Exercise Requirements 140 Attribute Listing for BBB 140 Summary 141 Key Words 141 Appendix A: Generic REA Model with Multiplicities for the Purchases and Payments Process 142 Answers to Progress Checks 144 Multiple Choice Questions 144

4 Contents xxv Discussion Questions 145 Problems 146 Answers to Multiple Choice Questions 149 Chapter 7 Conversion Business Process 150 Conversion Process 152 Sunset Graphics Example 152 Company Overview 152 Sunset Graphics ' Conversion Process Description 152 Sunset Graphics' Activity Models 154 Basic Purchases Activity Model 154 Refining the Model 154 Business Rules and Sunset Graphics' Conversion Process Controls 155 Sunset Graphics' Structure Models 157 Basic UML Class Diagram for Conversion 157 Refining the UML Class Diagram for Sunset's Conversion Process 158 Sunset Graphics' Relational Database 159 Relational Database Planning for Attributes 159 Create Database and Define Tables 159 Summary 161 KeyWords 161 Answers to Progress Checks 162 Multiple Choice Questions 162 Discussion Questions 164 Problems 164 Answers to Multiple Choice Questions 167 Chapter 8 Integrated Project 168 Project Background 170 Client Company Overview 170 Initial Interviews with Sy's Fish Company Employees 170 Project Instructions and Deliverables 172 Prepare Project Plan 173 Define Business Requirements 173 Prepare Structure Diagram 173 Prepare Activity Models Using BPMN 173 Import Data into Access, Create Efficient Tables, and Set Relationships 173 Prepare Queries 174 Prepare Report 174 Project Deliverables 174 Summary 175 Chapter Reporting Processes and extensible Business Reporting Language (XBRL) 176 Introduction 178 Data Warehouses and Data Marts 178 Business Intelligence 180 Digital Dashboards 182 Financial Reporting and XBRL 183 History and Development of XBRL 183 How XBRL Works 183 XBRL Assurance 186 XBRL GL 186 Summary 187 Key Words 188 Answers to Progress Checks 188 Multiple Choice Questions 189 Discussion Questions 190 Problems 191 Answers to Multiple Choice Questions 191 PART THREE MANAGING AND EVALUATING AIS PROJECTS 193 Chapter 10 Accounting Information Systems and Internal Controls 194 Introduction 196 Ethics, The Sarbanes-Oxley Act of 2002, and Corporate Governance 196 The Need for a Code of Ethics 196 Corporate Governance as Addressed by Sarbanes-Oxley 196 Control and Governance Frameworks 198 Overview of Control Concepts 198 Commonly Used Frameworks 198 COSO Internal Control Framework 199 COSO ERM Framework 201 COBIT Framework 207 Information Technology Infrastructure library 209 ISO Series 210 Comparing Control/Governance Frameworks 211 Summary 212 KeyWords 213 Appendix A: ERP Architecture and Control Issues 214 Answers to Progress Checks 216 Multiple Choice Questions 216

5 xxvi Contents Discussion Questions 217 Problems 218 Answers to Multiple Choice Questions 219 Chapter 11 Information Security and Computer Fraud 220 Introduction 222 Systems Integrity and Information Security 222 Information Security Risks and Attacks 222 Encryption and Authentication 223 Computer Fraud and Abuse 225 Computer Fraud Risk Assessment 226 Computer Fraud Schemes 227 Computer Fraud Prevention and Detection 229 Vulnerability Assessment and Management 229 Types of Vulnerabilities 230 An Overall Framework for Vulnerability Assessment and Management 231 System Availability 232 Disaster Recovery Planning and Business Continuity Management 234 Summary 235 Keywords 235 Answers to Progress Checks 236 Multiple Choice Questions 237 Discussion Questions 239 Problems 239 Answers to Multiple Choice Questions 239 Chapter 12 Monitoring and Auditing AIS 240 Introduction 242 Computer Hardware and Software 242 The Operating System 242 Database Systems 243 LANs and WANs 245 Wireless Networks 248 Computer-Assisted Audit Techniques 250 Continuous Auditing 251 Summary 254 Key Words 254 Answers to Progress Checks 255 Multiple Choice Questions 255 Discussion Questions 257 Problems 257 Answers to Multiple Choice Questions 258 PART FOUR AIS DEVELOPMENT AND MANAGEMENT 259 Chapter 13 The Balanced Scorecard and Business Value of Information Technology 260 Balanced Scorecard Framework 262 Learning and Growth Perspective 263 Process Perspective 263 Customer Perspective 264 Financial Perspective 264 Framework Integrating Strategy, Operations, and IT Investment 265 Role of AIS/IT in a Balanced Scorecard Framework 265 Using a Balanced Scorecard Management Process 267 Role of AIS/IT in the Balanced Scorecard Management Process 268 Summary 269 Key Words 269 Answers to Progress Checks 270 Multiple Choice Questions 270 Discussion Questions 271 Problems 272 Answers to Multiple Choice Questions 273 Chapter 14 Evaluating AIS Investments 274 Large IT Projects Require Economic Justification 276 The Business Case for IT Initiatives 276 Assessing Business Requirements for IT Initiatives 277 Estimating Benefits 278 Estimating Costs 279 Acquisition Costs 279 Operating Costs 280 Assessing Risks 280 Developing the Value Proposition 282 Test the Sensitivity of Estimates to Changes in Assumptions 284 Prepare the Value Proposition 284 Summary 284 Key Words 285 Answers to Progress Checks 286 Multiple Choice Questions 286 Discussion Questions 287

6 Contents xxvií Problems 288 Answers to Multiple Choice Questions 291 Chapter 15 The Systems Development Life Cycle and Project Management: Addressing the Challenges of Building AIS Systems 292 Introduction 294 Description of the Systems Development Life Cycle 294 Effective Information Technology Planning 296 Projects, Project Management, and Project Sponsors 298 Challenges of IT Project Management 299 Constraining Factors of IT Projects 299 Scope 300 Cost 300 Time 300 The Rule 301 Project Management Tools 301 Will the System Be Used, and Will It Be Useful? 303 Addressing Perceived Usefulness 304 Addressing Perceived Ease of Use 304 Summary 306 Key Words 306 Answers to Progress Checks 307 Multiple Choice Questions 308 Discussion Questions 309 Problems 310 Answers to Multiple Choice Questions 311 GLOSSARY OF MODELS 313 Structure Models Using the REA Framework 313 GLOSSARY 327 PHOTO CREDITS 337 INDEX 339