Chapter 1: Accounting Information Systems and the Accountant Introduction What Are Accounting Information Systems (AIS)? What’s New in AIS? Accounting and IT Careers in AIS Chapter 1-1 Introduction Applying information technology (IT) to accounting systems     Financial accounting Managerial accounting Auditing Taxation Increased career opportunities   Specialized employment Combine accounting and advanced computer skills Chapter 1-2 Accounting Information Systems An Accounting Information System (AIS)   Data and processing procedures Creates needed information for users AIS Today    Financial and non-financial data Enterprise-wide information system Business process focused Chapter 1-3 The Accountant’s Challenge Provide information to support decision-making Business and Government processes Accounting and Finance Non-Accountants Chapter 1-4 Information (versus Data) Data    Raw facts No organization or meaning Beginning of audit trail Information   Processed data Meaningful to users Chapter 1-5 AIS Components Chapter 1-6 Computerized Data Processing Problems Information overload for users Unable to identify input errors Difficult to follow audit trails Chapter 1-7 AIS and ERP Accounting Information Systems Internal and External users  Financial information  Enterprise Resource Planning Systems Internal users  Financial and Nonfinancial information  Predictive analytics  Chapter 1-8 AIS and ERP Overlapping of the Systems  Provide same information  Emphasize business processes  Integration into seamless databases Chapter 1-9 Study Break #1 Which of the following is likely to be information rather than data? A Sales price B Customer number C Net profit D Employee name Chapter 1-10 Activity-Based Costing Assigning of Overhead Increased automation created difficulties  Lacked direct relationship between labor and overhead  AIS Implementation Easier assignment of overhead  Important aspect of strategic planning  Chapter 1-33 Corporate Performance Measurement Responsibility Accounting System Trace unfavorable performance to responsible department or individuals  Immediate corrective action by managers  Balanced Scorecard     Financial Performance Customer Knowledge Internal Business Processes Learning and Growth Chapter 1-34 Business Intelligence and Dashboards Chapter 1-35 Budgeting Definition   Financial projection for the future Short-range and long-range Usefulness   Managerial control Compare actual and budgeted results Chapter 1-36 Study Break #5 A dashboard is: A A computer screen used by data entry clerks for input tasks B A physical device dedicated to AIS processing tasks C A summary screen typically used by managers D A type of blackboard used by managers to present useful information to others Chapter 1-37 Study Break #5 - Answer A dashboard is: A A computer screen used by data entry clerks for input tasks B A physical device dedicated to AIS processing tasks C A summary screen typically used by managers D A type of blackboard used by managers to present useful information to others Chapter 1-38 Study Break #6 Assigning overhead costs based on the resources, rather than only direct labor, used in manufacturing is an example of: A Activity-based costing (ABC) B Budgeting C Cost-plus accounting D Financial, rather than managerial, accounting Chapter 1-39 Study Break #6 - Answer Assigning overhead costs based on the resources, rather than only direct labor, used in manufacturing is an example of: A Activity-based costing (ABC) B Budgeting C Cost-plus accounting D Financial, rather than managerial, accounting Chapter 1-40 Auditing Traditional role  Evaluate the accuracy and completeness of a corporation’s financial statements Present role Evaluate client’s compliance with HIPAA laws  IT evaluations and audits (security, privacy)  Management consulting  Chapter 1-41 Taxation Taxation Software    Example of AIS Create and evaluate tax strategies Transmit completed forms Professional Usage    Research challenging questions Access more up-to-date information Database access Chapter 1-42 Careers in Accounting Information Systems Traditional Accounting   Understanding of accounting and information systems Certified Information Technology Professional Systems Consulting    Designing systems and reengineering processes Software and hardware selection Value-added resellers (VARs) Chapter 1-43 Careers in Accounting Information Systems Certified Fraud Examiner   Professional certification Association of Certified Fraud Examiners (ACFE) IT Auditing and Security     Risk analysis with Information Systems Aid financial auditors in evaluation of controls Certified Information Systems Auditors (CISAs) Penetration testing Chapter 1-44 AIS at Work: Consulting Work for CPAs Disaster Recovery Planning   Assures continuity of operations Must test plan regularly IT Exposure  Viruses and Worms Auditing Standard No 60  Report lack of disaster plan Chapter 1-45 Copyright Copyright 2012 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 backup 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 1-46 Chapter Chapter 1-47 ... Combine accounting and advanced computer skills Chapter 1-2 Accounting Information Systems An Accounting Information System (AIS)   Data and processing procedures Creates needed information for... AIS and ERP Accounting Information Systems Internal and External users  Financial information  Enterprise Resource Planning Systems Internal users  Financial and Nonfinancial information ... Simple accounting receipts B Suspicious accounting revenue C Suspicious activity reporting D Standard accounts receivable Chapter 1-26 Accounting and IT Chapter 1-27 Objectives of Financial Accounting