https://padlet.com/konglf3001/yn07bybq10de Made with love en-us 2018-03-16 14:20:52 UTC 2023-02-21 20:49:08 UTC hello@padlet.com konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/242834539 AIS composed of three subsystems: 

• Transaction processing system
• General ledger/financial reporting system, 
• Management reporting system. 

]]> 2018-03-16 14:21:38 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/242834539 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/242835560 In AIS, accountants summarize the results of a firm transactions and issue reports such as financial statements, special purpose financial reports to help managers make informed decisions. ]]> 2018-03-16 14:23:34 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/242835560 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/242837061 Accountants must have conceptual view of the information system that clearly distinguishes key processes, areas of risk and legal responsibility from other aspects of the system. AIS processes financial and non-financial transactions while MIS processes nonfinancial transactions. ]]> 2018-03-16 14:26:00 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/242837061 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/242837664 General model for AIS:]]> 2018-03-16 14:26:46 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/242837664 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/242847233 Accountants play the role on AIS development as domain experts. Accountants are responsible for specifying certain reporting requirement, operational rules and framing internal control objectives that the system must achieve. Accountants perform audits of business organizations which involve AIS. Accountants need to have a thorough understanding of AIS functions and internal controls. ]]> 2018-03-16 14:42:35 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/242847233 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243044249 Transaction cycles:]]> 2018-03-17 07:50:40 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243044249 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243044457 Accountants capture and record the financial effects of the economic events that constitute the firm’s transactions. Accountants distributes transaction information to operations personnel to coordinate their key tasks. ]]> 2018-03-17 07:53:29 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243044457 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243044903 Accountants record financial data in manual system or computer-based system. Accounting records in manual systems are documents, journals, ledgers. Digital accounting system store data in digital computer files: master files, transaction files, reference files, archive files. The accounting records in both systems form an audit trail.]]> 2018-03-17 08:00:34 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243044903 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243045420 Accountants must have ability to document systems in graphic form. Types of documentation techniques are: data flow diagrams, entity relationship diagrams, system flowcharts, program flowcharts, record layout diagrams. ]]> 2018-03-17 08:09:03 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243045420 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243045477 Accountants should differentiate batch processing and real-time transaction processing model.

• Batch processing- gathering transactions into group/batches and then processing the entire batch as a single event.
• Real-time processing- process individual transactions continuously as they occur.

]]> 2018-03-17 08:09:58 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243045477 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243046253 Accountants should act ethically. 

• Ethical issues in business are grouped into four areas: equity, honesty, rights and exercise of corporate power. 
• Computer ethics is the analysis of the nature and social impact of computer technology and corresponding formulation and justification of policies for the ethical use of such technology. 

]]> 2018-03-17 08:21:38 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243046253 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243046291 Ethical issues of direct concern to accountants and managers:

• Privacy
• Security ownership of property 
• Equity in access
• Environmental issues
• Artificial intelligence
• Unemployment and displacement
• Misuse of computers. 

]]> 2018-03-17 08:22:22 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243046291 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243046668 Sarbanes-Oxley Act (SOX) has many provisions designed to deal with specific problems relating to corporate governance, capital markets and auditing profession. ]]> 2018-03-17 08:27:44 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243046668 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243046704 Auditors encounter fraud. 

• Employee fraud- generally designed to directly convert cash or other assets to the employee’s personal benefit. 
• Management fraud- misstatement of financial data and reports to gain additional compensation or to escape the penalty for poor performance. 

]]> 2018-03-17 08:28:16 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243046704 konglf3001 https://padlet.com/konglf3001/yn07bybq10de/wish/243046988 Accountants are concerned about internal control structure. 

• Preventive-detective-control model classifies control as preventive, detective and corrective. 
• The COSO framework consists of five components: control environment, risk assessment, information and communication, monitoring, control activities.

]]> 2018-03-17 08:31:35 UTC https://padlet.com/konglf3001/yn07bybq10de/wish/243046988