Kế toán kiểm toán - Chapter 2: Overview of business processes

Accounting Information Systems9th EditionMarshall B. Romney Paul John Steinbart2-©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/SteinbartOverview of Business ProcessesChapter 22-©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/SteinbartLearning ObjectivesExplain the three basic functions performed by an accounting information system (AIS).Describe the documents and procedures used in an AIS to collect and process transaction data.Discuss the types of information that can be provided by an AIS.Describe the basic internal control objectives of an AIS and explain how they are accomplished.3Introduction: S&S, Inc.The grand opening of S&S is two weeks away.Scott and Susan recognize that they need qualified accounting help and have hired a full-time accountant, Ashton Fleming.Ashton is responsible for creating an accounting information system (AIS).4Introduction: S&S, Inc.What questions does Ashton ask himself?How am I going to organize things?Where do I start?What information does S&S need in order to operate effectively?How can that information be provided?5Introduction: S&S, Inc.How am I going to collect and process data about all the types of transactions that S&S will engage in?How do I organize all the data that will be collected?How should I design the AIS so that the information provided is reliable and accurate?6Learning Objective 1 Explain the three basic functions an accounting information system (AIS) performs.7IntroductionThis chapter provides an overview of how an AIS can perform its three basic functions :To collect and store data about the organization’s business activities and transactions efficiently and effectivelyTo provide information useful for decision makingTo provide adequate controls to ensure that data are recorded and processed accurately8Introduction This chapter will examine:Basic types of business activities in which an organization engagesKey decisions that must be considered when managing those activitiesInformation needed to make those decisions9IntroductionThis chapter:Describes how data about business activity is collected, processed and transformed into useful information for managementThen, it will introduce the concept of internal controls10The Three Basic Functions Performed by an AISTo collect and store data about the organization’s business activities and transactions efficiently and effectively:Capture transaction data on source documents.Record transaction data in journals, which present a chronological record of what occurred. Post data from journals to ledgers, which sort data by account type.11The Three Basic Functions Performed by an AISTo provide management with information useful for decision making:In manual systems, this information is provided in the form of reports that fall into two main categories:financial statementsmanagerial reports12The Three Basic Functions Performed by an AISTo provide adequate internal controls:Ensure that the information produced by the system is reliable.Ensure that business activities are performed efficiently and in accordance with management’s objectives.Safeguard organizational assets.13Basic Subsystems in the AISThe revenue cycle: involves activities of selling goods or services and collecting payment for those sales. The expenditure cycle: involves activities of buying and paying for goods or services used by the organization.The human resources/payroll cycle: involves activities of hiring and paying employees.14Basic Subsystems in the AISThe production cycle: involves activities converting raw materials and labor into finished goods. The financing cycle: involves activities of obtaining necessary funds to run the organization, repay creditors, and distribute profits to investors.15Basic Subsystems in the AISExpenditureCycleHumanResourcesProductionCycleRevenueCycleFinancingCycleGeneral Ledger & Reporting System16Learning Objective 2 Describe the documents and procedures used in an AIS to collect and process transaction data.17The Data Processing CycleThe data processing cycle consists of four steps:Data inputData storageData processingInformation Output18The Data Processing CycleThe trigger for data input is usually business activity. Data must be collected about:Each event of interestThe resources affected by each eventThe agents who participate in each event19Data Processing Cycle: Data InputHistorically, most businesses used paper source documents to collect data and then transferred that data into a computer.Today, most data are recorded directly through data entry screens.20Data Processing Cycle: Data InputControl over data collection is improved by: prenumbering each source document and using turnaround documentshaving the system automatically assign a sequential number to each new transactionemploying source data automation21Common Source Documents and FunctionsSource Document Function Sales order Take customer order.Delivery ticket Deliver or ship orderRemittance advice Receive cash.Deposit slip Deposit cash receipts.Credit memo Adjust customer accountsREVENUE CYCLE22Check Pay for items.Common Source Documents and Functions Source Document Function Purchase order Order items.Purchase requisition Request items.Receiving report Receive items.EXPENDITURE CYCLE23Common Source Documents and FunctionsHUMAN RESOURCES CYCLEW4 forms Collect employee withholding data.Time cards Record time worked by employees.Job time tickets Record time spent on specific jobs.Source Document Function24Common Source Documents and FunctionsGENERAL LEDGER AND REPORTING SYSTEMJournal voucher Record entry posted to general ledger.Source Document Function25Data Processing Cycle: Data Processing Batch processing is the periodic updating of the data stored about resources and agentsOn-line, real-time processing is the immediate updating as each transaction occurs 26Data Processing Cycle: Data Storage An entity is something about which information is stored.Each entity has attributes or characteristics of interest, which need to be stored.27Record Transaction Datain JournalsAfter transaction data have been captured on source documents, the next step is to record the data in a journal.A journal entry is made for each transaction showing the accounts and amounts to be debited and credited.28Record Transaction Datain JournalsThe general journal records infrequent or nonroutine transactions.Specialized journals simplify the process of recording large numbers of repetitive transactions.What are the four most common types of transactions?29Record Transaction Datain JournalsCredit salesCash receiptsPurchases on accountCash disbursements30Record Transaction Datain Journals Sales Journal Invoice Account Account PostDate Number Debited Number Ref. AmountDec. 1 201 Lee Co. 120-122 3 800.00Dec. 1 202 May Co. 120-033 3 700.00Dec. 1 203 DLK Co. 120-111 3 900.00 TOTAL: 2,400.00 120/502Page 531Post Transactions to LedgersLedgers are used to summarize the financial status, including the current balance, of individual accounts.The general ledger contains summary-level data for every asset, liability, equity, revenue, and expense account of an organization.32Post Transactions to LedgersA subsidiary ledger records all the detailed data for any general ledger account that has many individual subaccounts.What are some commonly used subsidiary ledgers?accounts receivableinventoryaccounts payable33Post Transactions to LedgersWhat is the general ledger account corresponding to a subsidiary ledger called?control accountA control account contains the total amount for all individual accounts in the subsidiary ledger.34Post Transactions to LedgersSales JournalPage 5DateInvoice NumberAccount DebitedAccount NumberPost Ref.AmountDec 1203DLK Co.120-1113900.00Total120/5022,400.00General LedgerAccount: Accounts Receivable Account Number: 120Date DescriptionPost Ref.DebitCreditBalanceDec 1SalesSJ52,4002,40035What is the Chart of Accounts?The chart of accounts is a list of all general ledger accounts used by an organization.It is important that the chart of accounts contains sufficient detail to meet the information needs of the organization. 36Learning Objective 3 Discuss the types of information that an AIS can provide.37Providing Information for Decision MakingThe second function of the AIS is to provide management with information useful for decision making.The information an AIS provides falls into two main categories:Financial StatementsManagerial Reports38Financial StatementsPrepare a trial balance.Make adjusting entries.Prepare the adjusted trial balance.Produce the income statement.Make closing entries.Produce the balance sheet.Prepare the statement of cash flows.39Managerial ReportsThe AIS must also be able to provide managers with detailed operational information about the organization’s performance.Two important types of managerial reports arebudgetperformance reports40Managerial ReportsWhat is a budget?A budget is the formal expression of goals in financial terms.One of the most common types of budget is a cash budget.41Managerial ReportsWhat is a performance report?A performance report lists the budgeted and actual amounts of revenues and expenses and also shows the variances, or differences, between these two amounts.42 Magic Co. Monthly Performance Report Budget Actual VarianceSales $32,400 $31,500 ($900)Cost of Goods 12,000 14,000 (2,000)Gross Margin $20,400 $17,500 ($2,900)Other Expenses 9,000 7,000 2,000Operating Income $11,400 $10,500 ($900)Managerial Reports43Learning Objective 4 Describe the basic internal control objectives of an AIS and explain how they are accomplished.44Internal Control ConsiderationsThe third function of an AIS is to provide adequate internal controls to accomplish three basic objectives:Ensure that the information is reliable.Ensure that business activities are performed efficiently.Safeguard organizational assets.45Internal Control ConsiderationsWhat are two important methods for accomplishing these objectives?Provide for adequate documentation of all business activities.Design the AIS for effective segregation of duties.46Adequate DocumentationDocumentation allows management to verify that assigned responsibilities were completed correctly.What did Ashton encounter while working as an auditor that gave him a firsthand glimpse of the types of problems that can arise from inadequate documentation?failure to bill for repair work47What is Segregation of Duties?Segregation of duties refers to dividing responsibility for different portions of a transaction among several people.What functions should be performed by different people?authorizing transactionsrecording transactionsmaintaining custody of assets48End of Chapter 249