Kế toán, kiểm toán - Chương 1: Learning objectives

Vũ Quốc Thông 2/13/2016 1 Chapter 1-A OVERVIEW OF TRANSACTION PROCESSING AND INTEGRATED INFORMATION SYSTEM HO CHI MINH CITY OPEN UNIVERSITY ACCOUNTING – AUDITING FACULTY ACCOUNTING INFORMATION SYSTEM Lecturer: Vũ Quốc Thông Learning Objectives Describe Accounting Information System (AIS) Discuss how an AIS can add value to an organization  Identify basic transaction (data) processing cycles Explain an integrated information system (ERP system) 1-2 Vũ Quốc Thông 2/13/2016 2 Accounting Information System (AIS) 1-3 What Is a System?  System A set of two or more interrelated components interacting to achieve a goal  Goal Conflict Occurs when components act in their own interest without regard for overall goal  Goal Congruence Occurs when components acting in their own interest contribute toward overall goal 1-4 E.g.? Vũ Quốc Thông 2/13/2016 3 Data vs. Information  Data are facts that are recorded and stored.  Insufficient for decision making.  Information is processed data used in decision making.  Too much information however, will make it more, not less, difficult to make decisions. This is known as Information Overload. Information 1-5 Accounting Information System An Information System:  Collect, process, store financial data and report financial information  If Accounting = language of business  AIS = information providing vehicle 1-6 Vũ Quốc Thông 2/13/2016 4 Components of an AIS  People using the system  Procedures and Instructions  For collecting, processing, and storing data  Organizing Data  Software  Information Technology (IT) Infrastructure / Hardware  Computers, peripherals, networks, and so on  Internal Control and Security  Safeguard the system and its data 1-7 Picture? Accounting Information System 1-8 INFORM ATION (e.g. ?) DATA (e.g ?) ? ? ? ? ? Vũ Quốc Thông 2/13/2016 5 Analyze 1-9 ? ?? ?? ? ? ? C B A AIS and Business Functions  Collect and store data about organizational: Activities, resources, and personnel  Transform data into information enabling Management to:  Plan, execute, control, and evaluate Activities, resources, and personnel  Provide adequate control to safeguard Assets and data 1-10 Vũ Quốc Thông 2/13/2016 6 How an AIS can add value to an organization 1-11 How an AIS can add value A well-designed AIS can add value to an organization 1-12 Vũ Quốc Thông 2/13/2016 7 AIS Value Add  Improve Quality and Reduce Costs  Improve Efficiency  Improve Sharing Knowledge  Improve Internal Control  Improve Decision Making  Improve Supply Chain 1-13 Improve Decision Making  Identify situations that require action.  Provide alternative choices.  Reduce uncertainty.  Provide feedback on previous decisions.  Provide accurate and timely information. 1-14 Vũ Quốc Thông 2/13/2016 8 Value Chain  The set of activities a product or service moves along before as output it is sold to a customer At each activity the product or service gains value 1-15 Inbound Logistics Operations Outbound Logistics Marketing/ Sales Service Value Chain 1-16 Vũ Quốc Thông 2/13/2016 9 Basic transaction processing cycles 1-17 Transaction processing cycles  Systems working toward organizational goals Revenue Expenditure Production Human Resources Financing 1-18 Enterprise Vũ Quốc Thông 2/13/2016 10 Business Process Cycles  Revenue  Expenditure  Production  Human Resources  Financing 1-19  Give–Get exchanges  Between two entities  Measured in economic terms 1-20 Identify Give-Get rule in each business process cycle? Business Process Cycles (cont.) Vũ Quốc Thông 2/13/2016 11 Business Cycle Give–Get 1-21 An integrated information system (ERP system) 1-22 Vũ Quốc Thông 2/13/2016 12 ERP Systems 2-23 Integrated information system Enterprise Resource Planning (ERP) system Accounting cycle = central system Enterprise Resource Planning (ERP)  Integrate an organization’s information into an overall / extensible AIS  ERP modules: Accounting / Financial Human resources and payroll Order to cash (Sales cycle)  Purchase to pay (Purchase cycle) Manufacturing (Conversion cycle)  Project management  Customer relationship management . 1-24 Vũ Quốc Thông 2/13/2016 13 ERP Advantages  Integration of an organization’s data and financial information  Data is captured once (centralized database)  Greater management visibility, increased monitoring  Better access controls  Standardizes business operating procedures  Improved customer service  More efficient manufacturing 1-25 ERP Disadvantages  Cost  Time-consuming to implement  Changes to an organization’s existing business processes can be disruptive  Complex  Resistance to change 1-26 Vũ Quốc Thông 2/13/2016 14 More on reading and practice  Reading on textbook  Chapter 1 (p. 30 – 32)  Chapter 2 (p. 55 – 58) Doing homework on paper  Discussion questions Question 1.4 (p. 37) Question 2.1 and 2.5 (p. 60)  Chapter quiz (focus on relevant parts of the lecture) Quiz of chapter 1 (p.36) Quiz of chapter 2 (p. 59, 60) 1-27