Contents
Overview of Business Processes
Overview of an Accounting Information System
Business Process Linkage Throughout the Supply Chain
IT Enablement of Business Processes
Basic Computer and IT Concepts
BASIC COMPUTER DATA STRUCTURES
FILE ACCESS AND PROCESSING MODES
DATA WAREHOUSE AND DATA MINING
E-PAYABLES AND ELECTRONIC INVOICE PRESENTMENT AND PAYMENT
ENTERPRISE RESOURCE PLANNING SYSTEMS
The Internal Control Structure of Organizations
COSO ACCOUNTING INTERNAL CONTROL STRUCTURE
The Importance of Accounting Information Systems to Accountants
The Relation of Ethics to Accounting Information Systems
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 2
Foundational Concepts of the AIS
Interrelationships of Business Processes and the AIS
Types of Accounting Information Systems
Accounting Software Market Segments
Input Methods Used in Business Processes
ONLINE AND REAL-TIME PROCESSING
Outputs from the AIS Related to Business Processes
Documenting Processes and Systems
Ethical Considerations at the Foundation of Accounting Information Systems
Appendix: Resources Events Agents (REA) in Accounting Information Systems
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 3
Fraud, Ethics, and Internal Control
Introduction to the Need for a Code of Ethics and Internal Controls
CATEGORIES OF ACCOUNTING-RELATED FRAUD
The Nature of Management Fraud
INTERNAL SOURCES OF COMPUTER FRAUD
EXTERNAL SOURCES OF COMPUTER FRAUD
Policies to Assist in the Avoidance of Fraud and Errors
Maintenance of a Code of Ethics
Maintenance of Accounting Internal Controls
THE DETAILS OF THE COSO REPORT
REASONABLE ASSURANCE OF INTERNAL CONTROLS
Maintenance of Information Technology Controls
Appendix A: Recent History of Internal Control Standards
Appendix B: Control Objectives for Information Technology (COBIT)
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 4
Internal Controls and Risks in IT Systems
An Overview of Internal Controls for IT Systems General Controls for IT Systems
AUTHENTICATION OF USERS AND LIMITING
HACKING AND OTHER NETWORK BREAK-INS
PHYSICAL ENVIRONMENT AND SECURITY
General Controls from an AICPA Trust Services Principles Perspective
RISKS IN NOT LIMITING UNAUTHORIZED USERS
RISKS FROM HACKING OR OTHER NETWORK BREAK-INS
RISKS FROM ENVIRONMENTAL FACTORS
Hardware and Software Exposures in IT Systems
THE DATABASE MANAGEMENT SYSTEM
THE INTERNET AND WORLD WIDE WEB
TELECOMMUTING WORKERS AND MOBILE WORKERS
Application Software and Application Controls
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 5
Corporate Governance and the Sarbanes-Oxley Act
An Overview of Corporate Governance
Participants in the Corporate Governance Process
Functions within the Corporate Governance Process
INTERNAL CONTROLS AND COMPLIANCE
The History of Corporate Governance
The Sarbanes–Oxley Act of 2002
The Impact of the Sarbanes–Oxley Act on Corporate Governance
The Importance of Corporate Governance in the Study of Accounting Information Systems
Ethics and Corporate Governance
CONTINUING CASE: ROBATELLI'S PIZZERIA
Elements of the Systems Planning Phase of the SDLC
THE MATCH OF IT SYSTEMS TO STRATEGIC OBJECTIVES
PLANNING AND OVERSIGHT OF THE PROPOSED CHANGES
Elements of the Systems Analysis Phase of the SDLC
SYSTEM SURVEY: THE STUDY OF THE CURRENT SYSTEM
DETERMINATION OF USER REQUIREMENTS
Elements of the Systems Design Phase of the SDLC
CLOUD COMPUTING AS A CONCEPTUAL DESIGN
Elements of the Systems Implementation Phase of the SDLC
Elements of the Operation and Maintenance Phase of the SDLC
The Critical Importance of IT Governance in an Organization
SDLC AS PART OF STRATEGIC MANAGEMENT
Ethical Considerations Related to IT Governance
ETHICAL CONSIDERATIONS FOR MANAGEMENT
ETHICAL CONSIDERATIONS FOR EMPLOYEES
ETHICAL CONSIDERATIONS FOR CONSULTANTS
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 7
Auditing Information Technology-Based Processes
Introduction to Auditing IT Processes
Information Risk and IT-Enhanced Internal Control
Authoritative Literature Used in Auditing
Management Assertions and Audit Objectives
Tests of Transactions and Tests of Balances
CHANGES IN A CLIENT'S IT ENVIRONMENT
Ethical Issues Related to Auditing
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 8
Revenue and Cash Collection Processes and Controls
Introduction to Revenue Processes
Risks and Controls in Sales Processes
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF ASSETS AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
Risks and Controls in Sales Return Processes
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF ASSETS AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
Risks and Controls in the Cash Collection Processes
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF ASSETS AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
IT-Enabled Systems of Revenue and Cash Collection Processes
E-Business Systems and the Related Risks and Controls
SECURITY AND CONFIDENTIALITY RISKS
Electronic Data Interchange (EDI) Systems and the Risks and Controls
Point of Sale (POS) Systems and the Related Risks and Controls
Ethical Issues Related to Revenue Processes
Corporate Governance in Revenue Processes
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 9
Expenditures Processes and Controls—Purchases
Introduction to Expenditures Processes
Risks and Controls in the Purchasing Process
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF ASSETS AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
Risks and Controls in the Purchase Return Processes
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF ASSETS AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
Risks and Controls in the Cash Disbursement Processes
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF ASSETS AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
IT Systems of Expenditures and Cash Disbursement Processes
Risks and Controls in Computer-Based Matching
SECURITY AND CONFIDENTIALITY RISKS
Risks and Controls in Evaluated Receipt Settlement
E-Business and Electronic Data Interchange (EDI)
Risks and Controls in E-Business and EDI
Ethical Issues Related to Expenditures Processes
Corporate Governance in Expenditure Processes
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 10
Expenditures Processes and Controls–Payroll and Fixed Assets
Introduction to Payroll and Fixed Asset Processes
Risks and Controls in the Payroll Processes
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF ASSETS AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
IT Systems of Payroll Processes
Risks and Controls in Fixed Assets Processes
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF ASSETS AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
IT Systems of Fixed Assets Processes
Ethical Issues Related to Payroll and Fixed Assets Processes
Corporate Governance in Payroll and Fixed Assets Processes
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 11
Conversion Processes and Controls
Basic Features of Conversion Processes
Components of the Logistics Function
Cost Accounting Reports Generated by Conversion Processes
Risks and Controls in Conversion Processes
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF ASSETS AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
IT Systems of Conversion Processes
Ethical Issues Related to Conversion Processes
Corporate Governance in Conversion Processes
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 12
Administrative Processes and Controls
Introduction to Administrative Processes
Risks and Controls in Capital and Investment Processes
Risks and Controls in General Ledger Processes
ADEQUATE RECORDS AND DOCUMENTS
SECURITY OF THE GENERAL LEDGER AND DOCUMENTS
INDEPENDENT CHECKS AND RECONCILIATION
Reporting as an Output of the General Ledger Processes
Ethical Issues Related to Administrative Processes and Reporting
UNETHICAL MANAGEMENT BEHAVIOR IN CAPITAL SOURCES AND INVESTING
INTERNAL REPORTING OF ETHICAL ISSUES
Corporate Governance in Administrative Processes and Reporting
CONTINUING CASE: ROBATELLI'S PIZZERIA
The Need for Data Collection and Storage
TRADE-OFFS IN DATABASE STORAGE
Use of a Data Warehouse to Analyze Data
IT Controls for Data and Databases
Ethical Issues Related to Data Collection and Storage
ETHICAL RESPONSIBILITIES OF THE COMPANY
ETHICAL RESPONSIBILITIES OF EMPLOYEES
ETHICAL RESPONSIBILITIES OF CUSTOMERS
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 14
E-Commerce and E-Business
Introduction to E-Commerce and E-Business
The Physical Structure and Standards of the Internet
THE COMMON STANDARDS OF THE INTERNET
BENEFITS AND DISADVANTAGES OF E-COMMERCE FOR THE CUSTOMER
BENEFITS AND DISADVANTAGES OF E-COMMERCE FOR THE BUSINESS
THE COMBINATION OF E-COMMERCE AND TRADITIONAL COMMERCE
Privacy Expectations in E-Commerce
E-Business Enablement Examples
Intranets and Extranets to Enable E-Business
Internal Controls for the Internet, Intranets, and Extranets
XML and XBRL as Tools to Enable E-Business
XBRL FOR FINANCIAL STATEMENT REPORTING
Ethical Issues Related to E-Business and E-Commerce
CONTINUING CASE: ROBATELLI'S PIZZERIA
CHAPTER 15
IT Infrastructure for E-Business
Current ERP System Characteristics
PRODUCT DEVELOPMENT AND MANUFACTURING
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Market Segments of ERP Systems
BEST OF BREED VERSUS ERP MODULES
BUSINESS PROCESS REENGINEERING
CUSTOMIZATION OF THE ERP SYSTEM
THE COSTS OF HARDWARE AND SOFTWARE
THE METHODS OF CONVERSION TO THE ERP SYSTEM
Benefits and Risks of ERP Systems
ERP Systems and the Sarbanes-Oxley Act