ACC200 Study Guide - Final Guide: Relational Database Management System, Antivirus Software, Data Warehouse
Accounting systems study
Topic 1 – role of accounting information systems
The role of the accountant has changed as computer systems have emerged to handle the
classification and recording tasks traditionally associated with the accounting function.
An AIS is a collection of resources which collect, process, and report information about business
events. AISs are important in an organisation as they provide information to users, such as
managers, to allow them to make decisions that will assist the organisation achieve its objectives.
AIS – has been changed by technology and cloud accounting. Accounting information is used when: •
Evaluating organisational performance • Assessing customers and bad debts • Assessing inventory
requirements • Evaluating staff performance
Data are facts that are collected, recorded, stored and processed. • 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 ‘data overload’ or ‘information
overload’..
Useful information relevant, timely, reliable, valid, complete, measurable, understandable,
verifiable, accessible
Data Processing Four Main Activities 1. Create new data records. 2. Read retrieve or view existing
data records. 3. Update existing stored data records. 4. Delete data or records.
Topic 2 – system documentation techniques
DFD- context DFD(shows inputs
and outputs), DFD L0(shows all
major activity steps of a
system), DFD L1(shows one
major activity divided into sub
activities)
FLOWCHART – document
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flowchart, systems flowchart and program flowchart
an auditor would want a document flowchart(shows audit trail) , but you would want multiple types
of documentation,
The relationship between the process map, data flow diagrams and system flowchart can be
explained as follows. Our overall concern is going to be the system of interest and its interaction
with external entities. This is specified by our context diagram. The remaining forms of systems
documentation represent an explosion of the context diagram bubble, providing us with more detail
about the inner workings of the process, with each form of documentation giving us a slightly
different perspective of the process’ operations.
For a description of the process using DFDs we must refer to our logical DFD, which describes the
major processes that constitute our business process. This form of DFD is independent of the
physical reality of the system – it does not matter who performs each process, we just want to know
what is being done. The level of detail in the level 0 logical DFD is minimal. Further detail can be
gained by reference to an exploded DFD at level 1, which describes the activities within our process.
The system flowchart is an encapsulation of all of these diagrams, telling us the entities involved
(physical) and the activities they perform (logical/process map). In doing so it also provides more
detail about how activities are performed – for example, are they computer processes or manual
processes? Such detail is obtainable from our system flowchart.
Crucial for systems development and systems review, serves as a memory device for the
organisation, useful for new staff and external auditors.
The auditor shall obtain an understanding of the information system, including the related business
processes, relevant to financial reporting. • Documentation assists in auditor understanding and
documentation of their understanding. • Documentation is easier to prepare and revise when a
software package is used e.g. Microsoft Office Visio,
Topic 3 – risk and controls
Internal controls (IC) control physical assets, information resources and human behaviours.
Safeguard assets. – Maintain records in sufficient detail to report company assets accurately and
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fairly. – Provide accurate and reliable information. – Prepare financial reports in accordance with
established criteria. – Promote and improve operational efficiency. – Encourage adherence to
prescribed managerial policies. – Comply with applicable laws and regulations.
a mixture of preventative, detective and corrective controls should always be used.
5 access controls
1. An authorisation activity.
2. A standard generation function that is generating some standard that allows a system to identify
authorised users.
3. A comparison function which enables one to compare those people wishing access to an
organisation with the standard.
4. An abort function where illegal entry is detected.
5. A review function to follow up illegal access attempts.
Sarbanes Oxley (2002) Designed to prevent financial statement fraud, make financial reports more
transparent, protect investors, strengthen internal controls, and punish executives who perpetrate
fraud.
ERM – enterprise risk management
COSO – committee of sponsoring organisations.
Five controls are: - Control environment - Control activities - Risk assessment - Information and
communication - Monitoring. COSO plus objective setting, event identification, risk response.
Control activities
Proper authorisation of transactions and activities. • Separation of duties. • Project development
and acquisition controls(having a master plan and system performance measurements). • Change
management controls. • Design and use of documents and records. • Safeguarding assets, records,
and data. • Independent checks on performance.
antivirus program = detective control.
Topic 4 – revenue cycle
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Document Summary
Topic 1 role of accounting information systems. The role of the accountant has changed as computer systems have emerged to handle the classification and recording tasks traditionally associated with the accounting function. An ais is a collection of resources which collect, process, and report information about business events. Aiss are important in an organisation as they provide information to users, such as managers, to allow them to make decisions that will assist the organisation achieve its objectives. Ais has been changed by technology and cloud accounting. Evaluating organisational performance assessing customers and bad debts assessing inventory requirements evaluating staff performance. Data are facts that are collected, recorded, stored and processed: 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 data overload" or information overload" Useful information relevant, timely, reliable, valid, complete, measurable, understandable, verifiable, accessible.
