Chapter 1 Accounting Information Systems and the Accountant

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

CASE ANALYSES
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

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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.

INTRODUCTION
The study of accounting information systems (AISs) is, in large part, the study of the

References: AND RECOMMENDED READINGS Beaumier, Carol M., ‘‘Anti-Money-Laundering Compliance: Elements of a Successful Program’’ Bank Accounting & Finance Vol. 21, No. 2 (February 2008), pp. 39–42. Boehmer, Jay. ‘‘Cos Face Sarbanes-Oxley Law’’ Business Travel News Vol. 21, No. 1 (January 19, 2004), pp. 1–2. Cheney, Glenn. ‘‘Are Auditors Patriot Act Ready?’’ Accounting Today Vol. 21, No. 22 (December 17, 2007), p. 14. Coustan, Harvey, Linda M. Leinicke, W. Max Rexroad, & Joyce A. Ostrosky, ‘‘Sarbanes-Oxley: What it Means to the Marketplace’’ Journal of Accountancy (February 2004), pp. 43–47. Hannon, Neal J., ‘‘The Lead Singer Gets a Chorus,’’ Strategic Finance, Vol. 87, Iss. 11 (May 2006), pp. 59–60. Hemphill, Thomas A. ‘‘Corporate Responsibility and the War on Terrorism’’ Business Horizons Vol. 46, No. 3 (May/June 2003), pp. 13–17. Holbrook, Kevin. ‘‘Adding Value with Analytics,’’ Strategic Finance (November 2004), p. 40–43. Kaplan, Robert S., & David P. Norton, ‘‘Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part II,’’ Accounting Horizons (June 2001), pp. 147–160. Kerstetter, Jim. ‘‘Sarbanes-Oxley Sparks a Software Boom,’’ Business Week (January 12, 2004), p. 94. Johnston, Randolph P., ‘‘A Tour of Tomorrow’s Technology,’’ Journal of Accountancy, Vol.200, No. 4 (October 2005), pp. 95–96. Malykhina, Elena. ‘‘XBRL: More than a Must-Do,’’ InformationWeek, Iss. 1091 (May 29, 2006), pp. 57–59. Rainer, R. Kelly Jr., Efraim Turban, & Richard E. Potter. Introduction to Information Systems. Hoboken, NJ: John Wiley & Sons, Inc. (2007). CHAPTER 1 / Accounting Information Systems and the Accountant 33 Reynolds, Bob. ‘‘How the Terrorists Helped the Taxman’’ Accountancy Vol. 131, No. 1316 (April 2003), pp. 44–46. Richards, Dave. ‘‘Envisioning Our Future,’’ Internal Auditor (August 2001), pp. 60–67. Thottam, Jyoti. ‘‘Inside Business: What Can America Make’’ Time Magazine (January 12, 2004), pp. 77 ff. Tie, Robert. ‘‘XBRL: It’s Unstoppable,’’ Journal of Accountancy (August 2005), Vol. 200, Iss. 2, pp. 32–35. Vardi, Nathan. ‘‘Auditing Arafat’’ Forbes Magazine, Vol. 171, No. 6 (March 17, 2003) pp. 49–51. Willis, Mike. ‘‘XBRL and Data Standardization: Transforming the Way CPAs Work,’’ Journal of Accountancy, Vol. 199, Iss. 3 (March 2005), pp. 80–81. ANSWERS TO TEST YOURSELF 1. a 2. c 3. c 4. c 5. c 6. c 7. d 8. a 9. b 10. e 11. d