Dr. Steinbart
Office: DS 400
Phone: 658-3828
Office Hours: T & R 11:00-12:00; W 9:00-12:00, or by appointment
Course Objective: To understand what an accounting information system is, how it works, and how it can be designed to work well. Special emphasis is placed on the design of an effective internal control structure and on how the accounting information system can add value to the organization.
Textbooks: Cushing, B.E. and M.B. Romney. 1993. Accounting Information Systems (6th edition) Reading, MA: Addison-Wesley.
Arens, A.A., and D.D. Ward. Systems Understanding Aid.
Grades: Grading Scale Graded Activities
A 90% or better Midterms (2 @ 100) 200
B+ = 87-89 Final 150
B = 80-86 Team Project 150
C+ = 77-79 Systems Understanding Aid 50
C = 70-76 RBase (SQL) Project5O
D = 60-69 600
F = less than 60%
Examinations will cover material in the textbook, lecture, AND readings.
Policies:
1) NO MAKE-UP EXAMS (except for hospitalization).
2) University withdrawal policy will be followed.
3) Assignments are due at the beginning of class on date indicated; substantial penalties apply to late assignments, even those turned in that same day.
(subject to changes announced in class)
D= Topic Assignment
1/17 Introduction Readings: "Tooling Up" and "The New Finance"
1/19 Introduction Chapter 1
1/24 The Data Processing Cycle Chapter 2; problem 11
1/26 Chapter 2; problem 5
1/3 1 Reengineering, technology and Reading: "Who's in Charge: CIO or CFO?"
documentation Chapter 3
2 /2 Documentation Chapter 3; problems 2 and 1 1
2/7 No class - A"G meeting finish work on Systems Understanding Aid protect
2 / 9 Controls - framework Chapter 12; problems 1, 3, 5
Reading "Employee Crime Can Cost You Millions"
Systems Understanding Aid due
2/14 Controls - segregation of duties Chapter 12; problem 11
2/1 6 EDP Controls: General Controls Chapter 13; problem 11
2 /2 1 EXAM I Chs 1-3, 12, general controls in ch. 13 plus
READINGS
2/23 Review; EDP application controls Chapter 13
Reading: "The Day the Software Crashed"
2/2 8 EDP application controls Chapter 13: problems 9,10,13,14,15
3 /2 Revenue Cycle Chapter 16 (revised)
3 / 7 Revenue Cycle Chapter 16 (revised)
3 /9 Revenue Cycle Chapter 16 (revised)
Reading: "EDI for Reengineering Business Processes"
3/2 1 Expenditure Cycle Chapter 17 (revised)
GROUP PROJECT FLOWCHARTS DUE
3/23 Expenditure Cycle Chapter 17 (revised)
3/28 Expenditure Cycle Chapter 17 (revised)
3/3 0 Payroll Cycle Chapter 19
4 / 4 EXAM 2 Chs 13 (application controls), 16, 17, 19 plus
READINGS
4/6 Review; Introduction to SQL
4 /1 I SQL and the REA model GROUP PROJECT DUE
4/13 SQL - simple queries
4/1 8 SQL - complex queries
4/20 SQL - advanced topics
4 /2 5 Fraud Chapter 14; FINAL COPY GROUP PROJECT DUE
4/27 Fraud Chapter 14; problems 4,5,6
5 / 2 Fraud Reading: "Financial Frankensteins"
Rbase/SQL project due
5/4 Wrap-up/review Reading: "The Future of Audits"
5 / 9 FINAL EXAM 8:00-9:50 Cumulative
Note: Assigned readings are on reserve in Pius Library:
Fisher, J.S. "The New Finance," Journal of Accountancy (August 1994): 73-76.
Stewart, N.R. "Tooling Up," Management Accounting (October 1994): 55-58.
Gawiser, S.R. "Who's In Charge: CIO or CFO?" Management Accounting (October 1994): 41-44.
Golden, T.W. 'temployee Crime Can Cost You Millions," Management Accounting (August 1993):
39-43.
Ross, P.E. "The Day the Software Crashed," Forbes (April 25, 1994): 142-156.
Borthick, A.F. and H.P. Roth. "EDI for Reengineering Business Processes," Management Accounting (October 1993): 32-37.
Wells, J.T. "Financial Frankensteins: Who knows what evil lurks in the hearts of men?" Internal Auditor (April 1993): 52-57.
Elliott, R.K. "The Future of Audits," Journal of Accountancy (September 1994): 74-82.
Objective: To analyze and document the revenue cycle activities of a local business.
· How does the company generate revenue? What products/services does it sell?
· How are sales made?
How are the products/services delivered to the customer?
· How is the customer billed?
· How are cash receipts processed?
· What documents (paper or electronic) are used to carry out the above activities?
· What key decisions need to be made to manage these activities?
· What reports are produced to monitor performance of revenue cycle activities?
· How does the accounting information system process the data? Is batch or on-line processing used? How often are master files updated?
· What are the basic threats facing the company in the revenue cycle?
· What control procedures are used to address those threats?
· In your opinion, how effective is the company's internal control structure? Are adequate backup and disaster recovery controls in place?
In your opinion, are there any ways to use information technology to redesign business processes to operate more efficiently?
Output: A report that describes and documents the revenue cycle activities of the company.
Written narrative of the revenue cycle activities
· Documentation of those activities, using some of the following, as appropriate:
+ Data Flow Diagrams
+ Systems flowcharts
+ Document flowcharts e Description and evaluation of control structure * Recommendations for improvements
Procedure:
1) Identify a potential company. It is up to YOU to find a company. Potential sources include:
family members * friends and acquaintances, current employer, past employer, businesses your regularly frequent
2) Initial interview (entire team plus professor)
3) Follow-up meetings to gather additional data
4) Flowchart activities - due March 21, 1995
5) Write up report. DUE APRIL 11, 1995 - output on word processor, spell-checked and proof-read for grammar.
6) After grading and corrections, provide bound copy of report to company.
7) Make oral presentation of findings to the company after they have had the opportunity to read your report.
Results: + Learn how to work in a team
+ Practice in making "real-world" oral presentation
+ Practice in applying material learned in book, lectures, and readings
This project is to be approached as a professional consulting project. This means you are to be on time for all meetings with the client and your team. You are to keep a detailed record of the time spent on the project (using forms to be provided). Finally, remember that information about the company (client) is CONFIDENTIAL.