Chapter 1 Accounting Information Systems and the Accountant
INTRODUCTION WHAT ARE ACCOUNTING INFORMATION SYSTEMS?
Accounting Information Systems—A Deﬁnition Accounting Information Systems and Their Role in Organizations
The Annual Report Universal Concrete Products Ross, Sells, and Young, LLP
REFERENCES AND RECOMMENDED READINGS ANSWERS TO TEST YOURSELF
WHAT’S NEW IN ACCOUNTING INFORMATION SYSTEMS?
Suspicious Activity Reporting Countering Terrorism Corporate Scandals and Accounting The Sarbanes-Oxley and Patriot Acts
ACCOUNTING AND IT
Financial Accounting Managerial Accounting Auditing Taxation
CAREERS IN ACCOUNTING INFORMATION SYSTEMS
Traditional Accounting Systems Consulting Information Technology Auditing and Security
After reading this chapter, you will: 1. Be able to distinguish between such terms as ‘‘systems,’’ ‘‘information systems,’’ ‘‘information technology,’’ and ‘‘accounting information systems.’’ 2. Learn how information technology (IT) inﬂuences accounting systems. 3. Be familiar with suspicious activity reporting. 4. Understand how ﬁnancial reporting is changing with advances in IT, such as XBRL. 5. Appreciate how IT allows management accountants to use business intelligence to create dashboards and scorecards. 6. Know why auditors provide a variety of assurance services. 7. Be more aware of what is new in the area of accounting information systems. 8. Be familiar with career opportunities that combine accounting and IT knowledge and skills.
AIS AT WORK—CONSULTING WORK FOR CPAs SUMMARY KEY TERMS YOU SHOULD KNOW TEST YOURSELF DISCUSSION QUESTIONS PROBLEMS
PART ONE / An Introduction to Accounting Information Systems
‘‘The accounting industry has always been paper-driven. Now, it is becoming technology driven.’’ Maureen Link, ‘‘3G Technology Will Change the Way You Work’’ Pennsylvania CPA Journal (Spring 2003), p. 19.
The study of accounting information systems (AISs) is, in large part, the study of the application of information technology (IT) to accounting systems. This chapter describes the ways that information technology affects ﬁnancial accounting, managerial accounting, auditing, and taxation. We begin by answering the question ‘‘what are accounting information systems’’ and then look at some new developments in the ﬁeld. Following this, we will examine some traditional roles of AISs in commerce. Why should you study accounting information systems? There are many reasons, which we will review brieﬂy in this chapter, but one of the most important is because of the special career opportunities that will enable you to combine your study of accounting subjects with your interest in computer systems. In today’s job market, accounting employers expect new hires to be computer literate. In addition, a large number of specialized employment opportunities are available to those students who possess a deeper understanding of computer subjects and can bring advanced computer skills to accounting jobs. The last part of this chapter describes a number of special career opportunities for those with an interest in AISs.
WHAT ARE ACCOUNTING INFORMATION SYSTEMS?
What do the following have in common: (1) a shoebox ﬁlled with a lawyer’s expense receipts, (2) the monthly payroll spreadsheet in the computer of an auto-repair shop, (3) the Peachtree accounting system for a small chain of dry-cleaning stores, and (4) the ERP (Enterprise Resource Planning) system of a large manufacturer? The answer is that they are all examples of accounting information systems. How can such a wide range of accounting applications each qualify as an accounting information system? The answer is that this is the essence of what AISs are—collections of raw and stored data (that together typically serve as inputs), processing methods (usually called ‘‘procedures’’), and information (outputs) that serve useful accounting purposes. Do such systems have to be computerized?...
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