CHAPTER ONE: Accounting Information Systems and the Accountant DISCUSSION QUESTIONS:
3. Advances in IT are likely to have a continuing impact on financial accounting. What are some changes you think will occur in the way financial information is gathered, processed, and communicated as a result of increasingly sophisticated IT? Advances in IT that allow transactions to be captured immediately, accountants and even the AIS itself can produce financial statements almost in real-time. Interactive data allows for information to be reused and carried seamlessly among a variety of applications or reports. 4. XBRL is emerging as the language that will be used to create interactive data that financial managers can use in communication. How do you think the use of interactive data might enhance the value of a company’s financial statements?
It will allow the data to be used between programs, allowing for faster access and calculations, meaning that the company can quickly prepare financial statements at any time. 5. Discuss suspicious activity reporting. For example, do you think that such reporting should be a legal requirement, or should it be just and ethical matter? Do you think that the majority of SAR activity is illegal, or are these mostly false alarms?
SAR laws now require accountants to report questionably financial transactions to the U.S. Department of Treasury. It should be a legal requirement because of the ease of committing fraud through an AIS and the fact that it can be used as a deterrent. Most of the activity is probably false alarms, but it is better to be safe than sorry. 6. Managerial accounting is impacted by IT in many ways, including enhancing CPM. How do you think a university might be able to use a scorecard or dashboard approach to operate more effectively?
The scorecard and dashboard approach allow a university to track and assess the functionality of its activities and match it against its strategic values. It can trace unfavorable performance to be able to correct it. This ensures the university has successful internal controls as well. The dashboard will allow it to be easier to understand given there are many elements/departments within a university. 7. Look again at the list of assurance services shown in Figure 1-9. Can you think of other assurance services that CPA’s could offer which would take advantage of their AIS experience?
They could offer an assurance/IT help for individuals and their AISs and computer systems. They could vouch for compliance with organizations or other companies that might come in contact with them, as in to recommend them. They could offer a “seal of approval.” 10. This chapter stressed the importance of IT for understanding how AISs operate. But is this the only skill valued by employers? How important do you think analytical thinking skills or writing skills are? Discuss.
No. Due to the fact that AISs are complex, analytical skills are necessary to make decisions and figure out whatever is needed. Writing skills are important to communication and also programming AISs. Both of these skills are very valued by employers. A well-rounded mix would make an ideal candidate in accounting/IT fields. PROBLEMS
a. AAA – American Accounting Association
b. ABC – Activity Based Costing
c. AICPA – American Institute of Certified Public Accountants
d. AIS – Accounting Information Systems
e. CFO – Certified Financial Officer
f. CISA – Certified Information Systems Auditor
g. CITP- Certified Information Technology Professional
h. CPA – Certified Public Accountant
i. CPM – Corporate Performance Measurement
j. ERP – Enterprise Resource Planning
k. FASB – Financial Accounting Standards Board
l. HIPPA – Health Insurance Portability and Accountability Act
m. ISACA – Information Systems Audit and Control Association
n. IT – Information Technology
o. KPI – Key Performance Indicators
p. OSC -
q. PATRIOT Act - Uniting and Strengthening...
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