CHAPTER 1 Accounting Information Systems and the Accountant 1
Traditional Accounting Career Opportunities 2
Systems Consulting 2
Certified Fraud Examiner 3
Information Technology Auditing and Security 4
Predictive Analytics 5
Financial Accounting 6
Managerial Accounting 9
Auditing 12
Taxation 13
Accounting Information Systems 13
The Role of Accounting Information Systems in Organizations 17
Cloud Computing--Impact for Accountants 18
Sustainability Reporting 19
Suspicious Activity Reporting 20
Forensic Accounting, Governmental Accountants, and Terrorism 21
Corporate Scandals and Accounting 21
CHAPTER 2 Accounting on the Internet 33
Internet Addresses and Software 34
Intranets and Extranets 35
TheWorldWide Web, HTML, and IDEA 36
Groupware, Electronic Conferencing, and Blogs 36
Social Media and Its Value to Accountants 37
XBRL Instance Documents and Taxonomies 38
The Benefits and Drawbacks of XBRL 40
The Current Status of XBRL 41
e-Accounting 42
Retail Sales 43
E-Payments, E-Wallets, and Virtual Currencies 44
Business-to-Business E-Commerce 46
Electronic Data Interchange (EDI) 47
Cloud Computing 47
Identity Theft and Privacy 49
Security 51
Spam and Phishing 52
Firewalls, Intrusion Detection Systems,
Value-Added Networks, and Proxy Servers 53
Data Encryption 55
Digital Signatures and Digital Time Stamping 56
CHAPTER 3 Cybercrime, Fraud, and Ethics 67
Distinguishing Between Cybercrime and Fraud 68
Cybercrime Legislation 70
Cybercrime Statistics 72
Compromising Valuable Information 74
Hacking 75
Denial of Service 76
Enlist Top-Management Support 79
Increase Employee Awareness and Education 79
Assess Security Policies and Protect Passwords 80
Implement Controls 81
Identify Computer Criminals 82
Maintain Physical Security 83
Recognize the Symptoms of Employee Fraud 84
Use Data-Driven Techniques 85
Employ Forensic Accountants 86
Ethical Issues and Professional Associations 87
Meeting the Ethical Challenges 88
Privacy 89
Company Policies with Respect to Privacy 89
Identity Theft 90
CHAPTER 4 Information Technology and AISs 99
Six Reasons 100
The Top 10 Information Technologies 101
Input Devices 102
Central Processing Units 108
Output Devices 110
Magnetic (Hard) Disks 112
CD-ROMs, DVDs, and Blu-Ray Discs 113
Flash Memory 114
Image Processing and Record Management Systems 114
Communication Channels and Protocols 115
Local and Wide Area Networks 116
ClientServer Computing 118
Wireless Data Communications 120
Cloud Computing 122
Operating Systems 123
Application Software 124
Programming Languages 125
CHAPTER 5 Documenting Accounting Information Systems 139
Data Flow Diagrams 144
Document Flowcharts 149
System Flowcharts 153
Process Maps 156
Program Flowcharts 159
Decision Tables and Decision Trees 160
Software Tools for Graphical Documentation and SOX Compliance 162
The Importance of End User Documentation 165
Policies for end user Computing and Documentation 166
CHAPTER 6 Developing and Implementing Effective Accounting Information Systems 179
Four Stages in the Systems Development Life Cycle 180
Systems Studies and Accounting Information Systems 181
Planning for Success 182
Investigating Current Systems 183
Understanding Organizational Goals 184
Systems Survey Work 185
Data Analysis 186
Evaluating System Feasibility 187
Designing System Outputs, Processes, and Inputs 189
The System Specifications Report 192
Choosing an Accounting Information System 193
Outsourcing 196
Implementation Activities 198
Managing Implementation Projects 199
Postimplementation Review 202
System Maintenance 202
CHAPTER 7 Database Design 215
What Is a Database? 216
Significance of Databases 216
Storing Data in Databases 218
Additional Database Issues 220
Step 1--Identify Business and Economic Events 223
Step 2--Identify Entities 224
Step 3--Identify Relationships 225
Step 4--Create Entity-Relationship Diagrams 227
Step 5--Identify Attributes of Entities 227
Step 6--Convert E-R Diagrams into Database Tables 229
First Normal Form 231
Second Normal Form 232
Third Normal Form 233
CHAPTER 8 Organizing and Manipulating the Data in Databases 243
Database Management Systems 244
An Introduction to Microsoft Access 244
Creating Database Tables 245
Creating Relationships 247
Creating Records 250
Ensuring Valid and Accurate Data Entry 251
Tips for Creating Database Tables and Records 254
Creating Select Queries 255
Creating Action Queries 258
Guidelines for Creating Queries 260
Structured Query Language (SQL) 260
Sorting, Indexing, and Database Programming 261
Online Analytical Processing (OLAP) and Data Mining 261
Cloud Databases 262
DataWarehouses 263
CHAPTER 9 Database Forms and Reports 275
Creating Simple Forms 277
Using Forms for Input and Output Tasks 280
Subforms: Showing Data from Multiple Tables 281
Concluding Remarks About Forms 283
Creating Simple Reports 283
Creating Reports with Calculated Fields 287
Creating Reports with Grouped Data 289
Concluding Remarks About Reports 291
CHAPTER 10 Accounting Information Systems and Business Processes: Part I 301
Overview of the Financial Accounting Cycle 302
Coding Systems 303
Designing Reports 305
From Source Documents to Output Reports 306
Objectives of the Sales Process 308
Inputs to the Sales Process 311
Outputs of the Sales Process 312
Objectives of the Purchasing Process 314
Inputs to the Purchasing Process 315
Outputs of the Purchasing Process 318
Business Process Outsourcing (BPO) 321
Business Process Management Software 322
CHAPTER 11 Accounting Information Systems and Business Processes: Part II 333
Human Resource Management 334
Fixed Asset Management 337
Objectives of the Production Process 340
Inputs to the Production Process 344
Outputs of the Production Process 345
Objectives of the Financing Process 346
Inputs to the Financing Process 348
Outputs of the Financing Process 348
Professional Service Organizations 350
Not-for-Profit Organizations 351
Health Care Organizations 352
Why Reengineering Sometimes Fails 355
CHAPTER 12 Integrated Accounting and Enterprise Software 363
Small Business Accounting Software 364
Mid-Range and Large-Scale Accounting Software 367
Specialized Accounting Information Systems 367
Enterprise System Functionality 369
The Architecture of Enterprise Systems 371
Business Processes and ERP Systems 374
Benefits and Risks of Enterprise Systems 375
When Is a New AIS Needed? 378
Selecting the Right Accounting Software 378
CHAPTER 13 Introduction to Internal Control Systems 391
Definition of Internal Control 392
Internal Control Systems 393
1992 COSO Report 393
2013 COSO Report 395
2004 ERM Framework 396
Using the 2004 ERM Framework 398
Good Audit Trail 400
Sound Personnel Policies and Procedures 401
Separation of Duties 402
Physical Protection of Assets 404
Reviews of Operating Performance 408
COSO Guidance on Monitoring 408
Operating Performance vs. Monitoring 408
2012 COBIT, Version 5 409
Preventive Controls 411
Detective Controls 412
Corrective Controls 412
Requirements of the Sarbanes-Oxley Act 413
Cost-Benefit Analysis 413
A Risk Matrix 415
CHAPTER 14 Computer Controls for Organizations and Accounting Information Systems 425
Risk Assessment and Security Policies 427
Designing a Security Policy 427
Integrated Security for the Organization 427
Access to Data, Hardware and Software 429
Personnel Policies to Protect Systems and Data 434
Additional Policies to Protect Systems and Data 436
Input Controls 443
Processing Controls 446
Output Controls 448
CHAPTER 15 Information Technology Auditing 459
Internal versus External Auditing 460
Information Technology Auditing 461
Evaluating the Effectiveness of Information Systems Controls 464
Auditing Software 466
People Skills 468
Testing Computer Programs 469
Validating Computer Programs 471
Review of Systems Software 472
Validating Users and Access Privileges 473
Continuous Auditing 474
Information Technology Governance 476
The Sarbanes-Oxley Act of 2002 476
Auditing Standards No. 5 (AS 5) 478
Third-Party and Information Systems Reliability Assurances 478
Glossary (Available online at http:www.wiley.comcollegesimkin)
Index 487
