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Chapter 7 Class Notes

by: Lauren95

Chapter 7 Class Notes ACC 375

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Accounting Information Systems
Dr. Farrell
Class Notes
Accounting Information Systems, Bodnar, Hopwood, Farrell
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This 7 page Class Notes was uploaded by Lauren95 on Thursday March 31, 2016. The Class Notes belongs to ACC 375 at Pace University taught by Dr. Farrell in Spring 2016. Since its upload, it has received 8 views.

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Date Created: 03/31/16
o ln some computerized a*coilniing systems, inputs are hased on psper handwritten ortyped doeuments. o These manually prepared documents are csliected and forwarded io the data processi*g departrnent for enor checking and proeessing. 62013I.edEdMi4&r.R6E&id&d*Ed-/lr,lilE.b7EsM@ry..- ?r.Watatt*cl.acatG*{?a.Effi.q,, ***uw**t* r Source dacuments, such as cilstomer *rders, are phyeicaevide*ce ofnputeinta the ,W fansacticnprocessingsysten'l and serue severalpurposes; I-'capturdata; L-*-__***-*--r.*.-.*.-* ,, l. Facilitoperations: - o p Stanaaruize operations; [g er*it"a permanentfile foruranalysis. t . Source documents ehould be *tandardized {,..W,ffiWW and designedforease ofuse and accurate data capturto minimize errors- .E-e;A- Go{,ps+.} P-<x-as&"'W €4iPs@*d@h.S&rtiqsP*d&elq,iJtlrs,tvtuk/Ery'&i ;"il*ffii!-*fr s.,,,^u***n tn t 'e*u*S a'*ransac+o^ dE b-J:rinc65- O&+pl G,'+rtJ-il".ooli t'r.:eso-i'&{" &.: Llt6.rrx d,:-.^enl irU.o +l-{" \ys+,rn. .f*nir'tat%+ e"t5..uo,.€bfto,<ci iok,lrrrollrr ,Dc,d- rrur.1 gt- qlrf&raal €q$ir.+. &.dgr,€-ir-cj(.\. $o .t ber"-r< a t(ll?J - {+dru{i'. ,O 2004 PrenticeHail Business Publishing,counting *zformationS-vstem.s,ie,b_BodnarA{opvl'eod .L- \ {id:*#;#|',.t1tr.#r?:e:€,1*$,*i3s1"et?9f1,ttt,:.:.,,,,:, ,:,rri:_:.:l:i::t::t:.:::.:rtl.:url::at.ri:ai!,:il:t,t,t: tt;*?}t.hf rtlf,**frutg Procedures far the cantrol ol data tranomitied proce$$ing " " Sata shculd not accept data beh#een users department$ and data unles$ ar ifiputdocumentcontrolform is pracessing prever* unauthoriuedlfraudutent presefit tmevidenc* and !'eference ths trans*cticns. transfer of data. $ubmission of input data should be " accompanied by an lnput documefil contral s A dafa iransfer/og {regrste$ provides a farm. controlover the disposition and u$e of data. " Socui"*ent eount* aresimple fgrsfbatelt controli totnls the nr;mberdoeuments to berocess+d. " Batch control totals are fundamental to this c Batch tstalmay betaken for all or severairic proce$s. .,,,,.::':i::::#:il::_"""-..r,,?6e8.&s6aBad w Iri,-r6;It,!yB.&s{l4w.edW r (Bo*dNz as ?aS;ible i'\ 'loa\.*.* €$aru4hr41 Gn"t11 .l"d t-,j dlJ c o Data entry: after source documents are Data editins routinss ensure ihat alldata receiv*d by data prqeessing, they ar* fields contain snly valid characters and manually keyed (typed). may be applied to each of the basic data O Key verifrerltiana contro!procedure &at " detects errors in the keyingeration. structl!res: * Characters . l/isuaveificationcompares *:e ssurce * Fields documents witra printoutorscree* image. Daia is tharoughly edited afterentry t* " Records ' ensure valid content. + Files *j St. €ai+ils 8) " Pragram dataediting scraen$ data foeryors. O }li'.ffinEAESe, balrd@E!1 ,.ih&tuE r*$4 @ .aL4t.',,byEpo., W QTortt 6 * -rll's lalg *irn< '&;;i[ tD"lh{^ 4q€€6re}4: @rfi. -> *|16,.reSet ues *r,so Peopp Po+f3 \'\ +t.ans6''l&rtJ Q,r< od &.1€S{siar' 4r'i5 inR'r* J/\L e1r9:' or.f +,*rro dccprt'en-l't &sre- -)-toro s-'? i+s e..o. fre& @*uu O :004 Prentice l{allBusiness Pr:blishingl ctountingln{ome*tion S.v-stems, ?/,b3,F*dnar/f{op*'ocd L"L ' Data should nextbe checked forreasonabl*ness * lneJecf,"onicinput sysfefi'ls,ometimes wtlichcan be dcne usinga variety oEflethode. called ofilifiaput systems, transactions are O . Table!a*kup: ccmparesctuai raluesith acceptabie input directlyintothe csmputer system; need values iatable. . fuioi*uf.'verifies that nurnericwith;n acceptable for keying in is eliminated. 0 tafiges. " One problem isthe pcosible ioss*f o Conti*uausoperati*ns auditing: use afregrammed segregation of duties andaudit trail. editesis toiscriminate among acceptableta. o lransae*ofi/ogs or fransecfio,egr$f5rssg all digit added to ade inputs inta apesialfll*hatcontain$tags to \ " Ch*ckdiait: anxiparifydundant nurnber similarato bit. identifu transactions. o Validcode:padiculatable l$okuponsi$tinofl'alid , Tag$ng: additiofiai audlt-orientedrmationis codes(valldfei:*xl<; exis*enceck). includedwith originatransaction data. q4!:tees!&(dfr,Is.IwhBsPft&.gt!/,{lri,}]Be&*&8!od W e&EP.smg&rdak.hlffi{s?'dc.E}I,iIs,iit.br8oJn{tr@d @ * State &,.a c{a+* g*^* P Gr.e-$("5 iS t Cs Ptx;t< da&& &) qui.€ as Q:Siblq :1 defi{reg) .aarrur-f .Jvrd *Vr-e- i*x3 +t'rc*;1h C.,*eo-+ Aornt GL L.:ha( i5 tr^r;sctno f'6,,nface5tF O tfia.rB ha[q $ k>:ltlrn{o -lo Qgta&- il St. s-lernS. (D ?ryf oC yr\lflatl'v"l Gfkos5 in cL c{-{-+4i\ 'Posr++erts. I*615r +.. Cer€q;n !i.ijirt::,ri:,i::.-iir.,:;1,rr.,r'1-.::::1,.:.tit,irr-r:ir:r.itit:1f:::l:it:'r:it:::i.:l:'rrl:r.rr: f ?ta f rrs*** *i n#ffiy *t*rfi o Prscessing involves the manipulation offiles. . TYPes si fiies: e provide collectionofiransaction Files etorageof data. 0 " ftansacflofifirei a o A filiea ccllectianofrecords that arerelated input data u$uaiiy containingemporary data by some attributes. (e.9.sales jaurnal). I n recordi$an organized collection ofelds @' fidasferfJe.'containsata that arepermanent .) (dataattributesthataregrouped for or of continuingnterest(e.9., accounts \ processing. ,,^;I . receivable master file). --- L Fields eontain daia such as numberg, amoufits, (:\" Refisrence fJe; contatnsdata that ere ' O sr eharatt#r$. necessary ta support data processing (e g , o A filisa collection ofecords, afid ressrdsre payralltax files); alsc k*owns a table file. a collectioaf fields. 34uPelig&dqb{-Fr}Ltrg$}e4tuq-{r'.lll*,byBoturEar'Wd w "Fo1 O U"+* {-r o Qna) aL +'hrq O6-",Unr,,e+ir-a +lte $rxU SirbSaa*""..c{ a'fecr"d'' 6 t*t &.*C+n'vrnrs:ier 3.+* +t" 6e5 a: hwt< ts Fr<'s''1e €)o ho.,oo-n-oft a Qt< as aC @ 2004 Pr*ntice Hatrl Business Publishing,,4 ccottnlircg{nfttrw.xion Svstsnrs, 9/eb-vB*dnar/Hopwood 2-3 6 Batch prose$sing systems: transactlons are . Batch prccessing in a sequenfia/fi?erocesslng pracessed periodicaliyin batches. involves the foll*wingsteps: Prepai*g the transaclianliladditionalediting . Weekly time report$ to praduce paychecks. " validaii*nsortin same geqllenceas master r Groups of checks to update accounb payable and maeterfil*. fite. account$ " Updalifigthemasfer fje:read records in bothiles " Groups of invqices to update an ane by ene, matph,aildwriteto new master file. receivable master file- o #pda**g the generaliedger:toreflect changesin r Batch processing can be perforrned with the masterfiie. either sequential- sr random-access fiie * Preparing generalledger repoftstriabalances pr*duced. and stherreports .,,.::::.:-:;.Mr*iryspd..*4a,,a,+B&rnry., w €rcurr*iMltu#.tu-B*biqeJMa.E!E,-4rr:.Ilt,l?Bu&de8We{ ^ -falk- C,zecs lt e(y\ore S+a,'A+rruLl B.t$iernj ' a t,.&+a dir-b L>,rRaa.+- onaqcJ.\<.€. & t*Prua*r Ce.:t& btu O4c& o.- +1,qJi(3. S I arqd</mon*tt- {cc.*-,rt (et<t)oblcJ "3acs- o? 6fla 4c.fg1 er,rt5 Pratflc^'E 'tt{.11 6rc<- 9<qugr,.*+tal ::E\ii,www: . . I ". : f;Pi&'tf :i1,ii..t_- dd FE# -",]Ti"l;::" '-r---, i : *Cli ,.-:l--:r i--1,*1'ti-' H iI,Hlr r;l@ ir'-f:,-':; o Pidj$#...d4Errli{cog ffi,J/?byBtudcp*"rd w 4U &dtu. -{t, w @ 2004 Prentice Hail Busin*ss Fublishing,,4 ccotmting fttforrzation Sltstetns,/e, b-vBodnar/lIapw*od lnrnany systems, indexes are * $teps in random-acce$$ file updating: ' maintained for hoth thesubsidiary and '. A record isread from the transaction file. generai ledger files. 2. The k*y value ofihe iransactionrecard is .iMaifltaining thc$e indexes allows users used to randamly access the related to quiekly asces$ a parileuiaracesilnt. record inthe master file. 3. The record inthe master {ileisupdated in " Randam-access fje upd6rin$ i$simpler rnemory and then rewrittenback tothe than seq uential-a*cess updating. data file. w @&13r.ffi}&aiiqIrE.klBbIsrlddH,.{lr, , \lcL, L+i:gCXU c.s,."E-il-s^ rsrlc-q rvg:rer--(!l<-f+ IlPs i* 4ce+e5 e- .- ) \o,ro (jlpA.*o +Ys {rc.*sacJtry)J*le -'fuo*to ". I b {v'y.s\err'l3 i-i'r€r * o?dt*- Lyaa5aftws A &5 :l * proces*ing: Real-fme transaftionsare proceseed immediately. " Online,realtimesysferns iClftSJ:proce$s 1 transactions immediately afterhey areinput I banK and can provide in:mediate outplrt ueers. J r Transactionsarenot aceumulatedinto batche$; on input are appliediffiediatelupdate master filusing random-acces$ updating. lwmsdiat* processlngdir*efrooessing " c Master files are aup tB date. . Re$ponse$ tu$erifiquidese immediate. €413Pffi&iEdE,A#diqdnd;.M,"{//abystubprd w w Qrot &t+q Prt*gtT) I (tru- cnrine .rar nn'e- s^rsk,a J:y*Ut rl*.*X* Cnor* ccra a'-'utxr:S -Frc616"gi+ifr |s-+ iSn+ lqkr' Qtr;et-tY-1frau O 2$04 Frentice HaliBusiness Fublishing,,,lcounting {nfitvwationSystems, Qie,$ Bodna*lHopwood 2-5 cf OLRS: o Relative aduanfages r Tvoes of real-tim€ Processlng: input . lmmediate processing of trafisaetions sysfems: users do not . Quick response to inquiries "''daia,ionlysreque$t information' ofOLR$: systerns: users interadcivelyinput o Relative disadvanfages cperations u Oautieniry Increa*ed cost afidcomplexity ofsystem data. process " More s*nsitivetohardv!'areand softwareerrorg frl* ptn"u*sing systems: imm*diately o to proces*ing errorsthaiarisefrofil " tl"reXa againit relevant rnaster files' Mcre susceptible inPut syslems ar fransaclion erron*ous orfraudulent more invefued . follpto"uiulng irrteractivelynput . Controloftransacti*n proc+ssing is pioissing syif*m*' u*t* . print"couiput isusuallynct produeed meaning no " irans*ctions and complete the entire human-verifiableevidence transaction when it':l*l}- -{J''/s'tvEo&dossrd W llld'tYBlaf{d W ryA1l#dl&cd4 &rP#dti4 ftnb'faI' e 413.sdik&,I!' P*!6h{sPF#"Ed'a3 " o sYstem can be rnanual' The output electrsnic, ar somettxing in behroeen' systems { Most manual batch-orient*d *itt, **quu*tial tite processing produee 0f output' very larse volu{ne$ * oniinu,i*al-tirfi* #lectrenis systerns tend littlseference-typs to pr*duce very sutput. o 813€6!6*e&+k' PS&$ry rdb'fi'L'Iri"bvtu'w;U${odo, w .r l3d.rEtuda&d.lkhiqd?dsrIt''{g//''*8i{6P*toi W 2-{: [n'fortnation Sysrerns'9/e'by Bcdnar/]Iopu'ood O 20$4 Prentice ltrallusiness Publishing"'lcru unting a Autput s*ntrals are designed to check that processing re*ults in valid output and that outputs are distributed properly. n A separate FSP confro Igraup isoften established to manitor EDp operalions. * Typically, an oufp*f drstributianregisfer is maintained to contrclthe dispoeition of reports. e$13f.ffiD!tu&,In4MbryepEnihcEi[,4;jlrd.lry$o&ETwd @ eSi3Pe*r.tuAchllrf{rtM&rtrrt li,/r,ty$oftdli@olW .,1tho9 +V,e.> Ca6a rn Lr?4r .o.,,rcltt*r"il , flecan0l{ .Tf it- regclt) t,)hr We i+ ca&ck)1' bon,S,co.s Q* Lc,.*a


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