Accounting Information Systems
SOLUTION MANUAL FOR ACCOUNTING
INFORMATION SYSTEMS 15TH EDITION
MARSHALL B. ROMNEY PAUL JOHN
STEINBART SCOTT L. SUMMERS DAVID A.
WOOD 2025/2026 A+
3-1
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
table of contents
part i: conceptual foundations of accounting information systems
1. accounting information systems: an overview
2. overview of transaction processing and enterprise resource planning systems
3. systems documentation techniques
part ii: data analytics
4. relational databases
5. introduction to data analytics in accounting
6. transforming data
7. data analysis and presentation
part iii: control of accounting information systems
8. fraud and errors
9. computer fraud and abuse techniques
10. control and accounting information systems
11. controls for information security
12. confidentiality and privacy controls
13. processing integrity and availability controls
part iv: accounting information systems applications
14. the revenue cycle: sales to cash collections
15. the expenditure cycle: purchasing to cash disbursements
16. the production cycle
17. the human resources management and payroll cycle
18. general ledger and reporting system
part v: the rea data model
19. database design using the rea data model
20. implementing an rea model in a relational database
21. special topics in rea modeling
part vi: the systems development process
22. introduction to systems development and systems analysis
23. ais development strategies
24. systems design, implementation, and operation
3-2
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
chapter 1
accounting information systems: an
overview
suggested answers to discussion questions
1.1 the value of information is the difference between the benefits realized from
using that information and the costs of producing it. would you, or any
organization, ever produce information if its expected costs exceeded its
benefits? if so, provide some examples. if not, why?
most organizations produce information only if its value exceeds its cost. however,
there are two situations where information may be produced even if its cost exceeds
its value.
a. it is often difficult to estimate accurately the value of information and the
cost of producing it. therefore, organizations may produce information that
they expect will produce benefits in excess of its costs, only to be
disappointed after the fact.
b. production of the information may be mandated by either a government
agency or a private organization. examples include the tax reports required
by the irs and disclosure requirements for financial reporting.
1.2 can the characteristics of useful information listed in table 1-1 be met
simultaneously? or does achieving one mean sacrificing another?
several of the criteria in table 1.1 can be met simultaneously. for example, more
timely information is
3-3
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
also likely to be more relevant. verifiable information is likely to be more accurate.
however, achieving one objective may require sacrificing another. for example,
ensuring that information is more complete may reduce its timeliness. similarly,
increased verifiability and accuracy may reduce its timeliness.
the decision maker must decide which trade-offs are warranted in each situation.
1.3 you and a few of your classmates decided to become entreprene urs. you
came up with a great idea for a new mobile phone application that you think
will make lots of money. your business plan won second place in a local
competition, and you are using the $10,000 prize to support yourselves as you
start your company.
a. identify the key decisions you need to make to be successful entrepreneurs,
the information you need to make them, and the business processes you
will need to engage in.
b. your company will need to exchange information with various external
parties. identify the external parties, and specify the information
received from and sent to each of them.
the author turns this question into an in-class group activity. students are
divided up in groups, told to close their books, and given 15 minutes to:
a. think through the business processes, key decisions, and information needs
issues in their group.
b. identify the external users of information and specify the information
received from and sent to each of them.
one group is selected to present their answers to the class. the other groups are told
to challenge the group‘s answers, provide alternative answers, and chip in with
additional answers not provided by the selected group. since the group that
presents is not selected until after the time has expired, students are motivated to do
a good job, as they will be presenting to their peers.
the value of this activity is not in arriving at a
3-4
Copyright (c) 2021 Pearson Education, Inc.
SOLUTION MANUAL FOR ACCOUNTING
INFORMATION SYSTEMS 15TH EDITION
MARSHALL B. ROMNEY PAUL JOHN
STEINBART SCOTT L. SUMMERS DAVID A.
WOOD 2025/2026 A+
3-1
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
table of contents
part i: conceptual foundations of accounting information systems
1. accounting information systems: an overview
2. overview of transaction processing and enterprise resource planning systems
3. systems documentation techniques
part ii: data analytics
4. relational databases
5. introduction to data analytics in accounting
6. transforming data
7. data analysis and presentation
part iii: control of accounting information systems
8. fraud and errors
9. computer fraud and abuse techniques
10. control and accounting information systems
11. controls for information security
12. confidentiality and privacy controls
13. processing integrity and availability controls
part iv: accounting information systems applications
14. the revenue cycle: sales to cash collections
15. the expenditure cycle: purchasing to cash disbursements
16. the production cycle
17. the human resources management and payroll cycle
18. general ledger and reporting system
part v: the rea data model
19. database design using the rea data model
20. implementing an rea model in a relational database
21. special topics in rea modeling
part vi: the systems development process
22. introduction to systems development and systems analysis
23. ais development strategies
24. systems design, implementation, and operation
3-2
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
chapter 1
accounting information systems: an
overview
suggested answers to discussion questions
1.1 the value of information is the difference between the benefits realized from
using that information and the costs of producing it. would you, or any
organization, ever produce information if its expected costs exceeded its
benefits? if so, provide some examples. if not, why?
most organizations produce information only if its value exceeds its cost. however,
there are two situations where information may be produced even if its cost exceeds
its value.
a. it is often difficult to estimate accurately the value of information and the
cost of producing it. therefore, organizations may produce information that
they expect will produce benefits in excess of its costs, only to be
disappointed after the fact.
b. production of the information may be mandated by either a government
agency or a private organization. examples include the tax reports required
by the irs and disclosure requirements for financial reporting.
1.2 can the characteristics of useful information listed in table 1-1 be met
simultaneously? or does achieving one mean sacrificing another?
several of the criteria in table 1.1 can be met simultaneously. for example, more
timely information is
3-3
Copyright (c) 2021 Pearson Education, Inc.
, Accounting Information Systems
also likely to be more relevant. verifiable information is likely to be more accurate.
however, achieving one objective may require sacrificing another. for example,
ensuring that information is more complete may reduce its timeliness. similarly,
increased verifiability and accuracy may reduce its timeliness.
the decision maker must decide which trade-offs are warranted in each situation.
1.3 you and a few of your classmates decided to become entreprene urs. you
came up with a great idea for a new mobile phone application that you think
will make lots of money. your business plan won second place in a local
competition, and you are using the $10,000 prize to support yourselves as you
start your company.
a. identify the key decisions you need to make to be successful entrepreneurs,
the information you need to make them, and the business processes you
will need to engage in.
b. your company will need to exchange information with various external
parties. identify the external parties, and specify the information
received from and sent to each of them.
the author turns this question into an in-class group activity. students are
divided up in groups, told to close their books, and given 15 minutes to:
a. think through the business processes, key decisions, and information needs
issues in their group.
b. identify the external users of information and specify the information
received from and sent to each of them.
one group is selected to present their answers to the class. the other groups are told
to challenge the group‘s answers, provide alternative answers, and chip in with
additional answers not provided by the selected group. since the group that
presents is not selected until after the time has expired, students are motivated to do
a good job, as they will be presenting to their peers.
the value of this activity is not in arriving at a
3-4
Copyright (c) 2021 Pearson Education, Inc.
