Accounting Information Systems: The
Crossroads of Accounting and IT – 2nd
ST
Edition
UV
SOLUTIONS
IA
_A
MANUAL
PP
Donna Kay
RO
Ali Ovlia
VE
Comprehensive Solutions Manual for
D?
Instructors and Students
??
© Donna Kay & Ali Ovlia
All rights reserved. Reproduction or distribution without permission is prohibited.
©STUDYSTREAM
, TABLE OF CONTENTS
Accounting Information Systems: The Crossroads of
Accounting and IT – 2nd Edition
ST
Donna Kay & Ali Ovlia
UV
PART I. ENTERPRISE ACCOUNTING SYSTEMS: PEOPLE,
PROCESSES, AND TECHNOLOGY
IA
1. Accounting System Insights
2. Accounting Databases
3. Accounting Interface: Database Forms, Queries, and Reports
_A
4. Accounting Systems and Business Processes
5. Business Processes: Purchasing, Sales, and Payroll Cycles
6. Integrated Enterprise Systems and Cloud Computing
PP
PART II. ACCOUNTING AND INTELLIGENCE SYSTEMS
7. Accounting and Business Intelligence
8. Accounting and Sustainability Intelligence
9. XBRL: Intelligent Business Reporting
RO
PART III. SECURITY, CONTROLS, AND RISK
10. Fraud and Internal Control
11. Cybersecurity
12. The Risk Intelligent Enterprise: Enterprise Risk Management
VE
PART IV. DESIGNING AND DEVELOPING ACCOUNTING SYSTEMS
13. Accounting System Development
D?
14. Database Design: ERD, REA, and SQL
??
©STUDYSTREAM
, Solutions Manual For Accounting Information Systems The Crossroads of
Accounting and IT 2e Donna Kay Ali Ovlia
Active Review
14.1 Refer to the chapter opener, Meet Business Intelligence. In your opinion, how can business
intelligence create value using the accounting system?
ST
Students’ opinion may differ. However, their opinion should include: Increase profitability, improve
customer relationship, increase sales by targeting the right customer category, and in general improving all
aspects of business activities.
UV
14.2 Refer to the chapter opener, Meet Business Intelligence. Discuss the importance of sales
data in creating business intelligence for an organization.
Business intelligence allows organization to continuously monitor their sales transaction. By monitoring
sales, enterprise can fine-tune other business processes such as purchasing, production, advertising, and
customer service.
IA
14.3 Pick your favorite Accounting Insight from Chapter 1. Discuss why it’s your favorite.
The answer to this question depends on the student selection and his/her reason for selecting it.
14.4 What are the modules in the baseline accounting system model? Discuss the purposes and
_A
transactions associated with each module.
1. Vendors. This module encapsulates all data and business processes related to vendors. The transactions
associated with Vendors module are: Create purchase Order, Receive Items, and Enter Bills.
2. Customers. This module encapsulates all data and business processes related to customers. The
processes associated with Customers module are: Create Invoice, and Receive Customer Payments.
PP
3. Employees. This module encapsulates all data and business processes related to employees. The
processes associated with Vendor module are: Enter Time and Calculate Payroll.
4. Banking. This module encapsulates all data and business processes related to organization banking. The
processes associated with Banking module are: Pay Bills, Make Deposit, Pay Employees, and Pay
Payroll Liabilities.
RO
5. Financials. This module encapsulates all data and business processes related to the organization
financials. The processes associated with Financial module are: Adjusting Entries, Correcting Entries,
Closing, and ad-hoc financial activities.
6. Reports. This module encapsulates all data and business processes related to the accounting reports. The
processes associated with Reports module are: Management Reports, Tax Reports, External Financial
Reports, and Sustainability Reports.
VE
14.5 Discuss how the features of a spreadsheet and a database are similar and how they are different.
A spreadsheet shows rows and columns of a table and that is same as database table’s records and fields
features. Actually, a spreadsheet row is a record and a column is a field in a database table
D?
14.6 Discuss the potential risks if a company’s accounting system is not well secured.
Unauthorized access to the accounting data and software could result in valuable information being stolen
or damaged and virus or other malicious software damage accounting systems software.
??
14.7 Discuss the benefits of an integrated enterprise system.
, An integrated enterprise system allows data to be shared among various enterprise departments. For
ST
example, an advertising department can use data collected about sales to cluster customers into categories
and target customers-categories with different adverting methods.
14.8 Discuss how value chain activities are related to accounting transaction cycles.
The value chain facilitates coordination of activities with suppliers and customers, including purchasing
UV
and sales transactions.
14.9 Discuss the significance of information technology to the accounting professional.
Today, most accounting systems are computerized systems. These accounting systems are installed on the
enterprise computers and used on the enterprise internal networks as well as the Internet. To effectively
work with computers and use accounting systems, accountants must know enough about computers and
IA
networks to be able to use computerized accounting systems.
14.10 Discuss problems that enterprises may experience with shadow data.
_A
Shadow data little or lack of documentation and lack or inadequate security and control are two major
problems experienced by enterprises.
Key Terms Check
PP
d 1. An organizing framework for business processes,
14.11 Match the following terms and
beginning with vendors and ending with customers
definitions. h 2. Exchanges or transactions between an enterprise and
a. enterprise system its customers
RO
b. integrated enterprise system e 3. Accounting transactions related to specific business
c. business processes processes
d. value chain b 4. Shares data across functional areas within the
e. transaction cycles enterprise
f. purchasing cycle g 5. Transactions with employees
g. payroll cycle c 6. Related activities performed by an enterprise to
h. sales cycle create value by transforming input into output
VE
i. baseline accounting system a 7. A system that supports business activities throughout
the enterprise, including inputs, processing, and outputs
f 8. Transactions related to purchasing items from
vendors
i 9. A model that provides an enterprise-wide view of the
D?
firm’s accounting system
??
Crossroads of Accounting and IT – 2nd
ST
Edition
UV
SOLUTIONS
IA
_A
MANUAL
PP
Donna Kay
RO
Ali Ovlia
VE
Comprehensive Solutions Manual for
D?
Instructors and Students
??
© Donna Kay & Ali Ovlia
All rights reserved. Reproduction or distribution without permission is prohibited.
©STUDYSTREAM
, TABLE OF CONTENTS
Accounting Information Systems: The Crossroads of
Accounting and IT – 2nd Edition
ST
Donna Kay & Ali Ovlia
UV
PART I. ENTERPRISE ACCOUNTING SYSTEMS: PEOPLE,
PROCESSES, AND TECHNOLOGY
IA
1. Accounting System Insights
2. Accounting Databases
3. Accounting Interface: Database Forms, Queries, and Reports
_A
4. Accounting Systems and Business Processes
5. Business Processes: Purchasing, Sales, and Payroll Cycles
6. Integrated Enterprise Systems and Cloud Computing
PP
PART II. ACCOUNTING AND INTELLIGENCE SYSTEMS
7. Accounting and Business Intelligence
8. Accounting and Sustainability Intelligence
9. XBRL: Intelligent Business Reporting
RO
PART III. SECURITY, CONTROLS, AND RISK
10. Fraud and Internal Control
11. Cybersecurity
12. The Risk Intelligent Enterprise: Enterprise Risk Management
VE
PART IV. DESIGNING AND DEVELOPING ACCOUNTING SYSTEMS
13. Accounting System Development
D?
14. Database Design: ERD, REA, and SQL
??
©STUDYSTREAM
, Solutions Manual For Accounting Information Systems The Crossroads of
Accounting and IT 2e Donna Kay Ali Ovlia
Active Review
14.1 Refer to the chapter opener, Meet Business Intelligence. In your opinion, how can business
intelligence create value using the accounting system?
ST
Students’ opinion may differ. However, their opinion should include: Increase profitability, improve
customer relationship, increase sales by targeting the right customer category, and in general improving all
aspects of business activities.
UV
14.2 Refer to the chapter opener, Meet Business Intelligence. Discuss the importance of sales
data in creating business intelligence for an organization.
Business intelligence allows organization to continuously monitor their sales transaction. By monitoring
sales, enterprise can fine-tune other business processes such as purchasing, production, advertising, and
customer service.
IA
14.3 Pick your favorite Accounting Insight from Chapter 1. Discuss why it’s your favorite.
The answer to this question depends on the student selection and his/her reason for selecting it.
14.4 What are the modules in the baseline accounting system model? Discuss the purposes and
_A
transactions associated with each module.
1. Vendors. This module encapsulates all data and business processes related to vendors. The transactions
associated with Vendors module are: Create purchase Order, Receive Items, and Enter Bills.
2. Customers. This module encapsulates all data and business processes related to customers. The
processes associated with Customers module are: Create Invoice, and Receive Customer Payments.
PP
3. Employees. This module encapsulates all data and business processes related to employees. The
processes associated with Vendor module are: Enter Time and Calculate Payroll.
4. Banking. This module encapsulates all data and business processes related to organization banking. The
processes associated with Banking module are: Pay Bills, Make Deposit, Pay Employees, and Pay
Payroll Liabilities.
RO
5. Financials. This module encapsulates all data and business processes related to the organization
financials. The processes associated with Financial module are: Adjusting Entries, Correcting Entries,
Closing, and ad-hoc financial activities.
6. Reports. This module encapsulates all data and business processes related to the accounting reports. The
processes associated with Reports module are: Management Reports, Tax Reports, External Financial
Reports, and Sustainability Reports.
VE
14.5 Discuss how the features of a spreadsheet and a database are similar and how they are different.
A spreadsheet shows rows and columns of a table and that is same as database table’s records and fields
features. Actually, a spreadsheet row is a record and a column is a field in a database table
D?
14.6 Discuss the potential risks if a company’s accounting system is not well secured.
Unauthorized access to the accounting data and software could result in valuable information being stolen
or damaged and virus or other malicious software damage accounting systems software.
??
14.7 Discuss the benefits of an integrated enterprise system.
, An integrated enterprise system allows data to be shared among various enterprise departments. For
ST
example, an advertising department can use data collected about sales to cluster customers into categories
and target customers-categories with different adverting methods.
14.8 Discuss how value chain activities are related to accounting transaction cycles.
The value chain facilitates coordination of activities with suppliers and customers, including purchasing
UV
and sales transactions.
14.9 Discuss the significance of information technology to the accounting professional.
Today, most accounting systems are computerized systems. These accounting systems are installed on the
enterprise computers and used on the enterprise internal networks as well as the Internet. To effectively
work with computers and use accounting systems, accountants must know enough about computers and
IA
networks to be able to use computerized accounting systems.
14.10 Discuss problems that enterprises may experience with shadow data.
_A
Shadow data little or lack of documentation and lack or inadequate security and control are two major
problems experienced by enterprises.
Key Terms Check
PP
d 1. An organizing framework for business processes,
14.11 Match the following terms and
beginning with vendors and ending with customers
definitions. h 2. Exchanges or transactions between an enterprise and
a. enterprise system its customers
RO
b. integrated enterprise system e 3. Accounting transactions related to specific business
c. business processes processes
d. value chain b 4. Shares data across functional areas within the
e. transaction cycles enterprise
f. purchasing cycle g 5. Transactions with employees
g. payroll cycle c 6. Related activities performed by an enterprise to
h. sales cycle create value by transforming input into output
VE
i. baseline accounting system a 7. A system that supports business activities throughout
the enterprise, including inputs, processing, and outputs
f 8. Transactions related to purchasing items from
vendors
i 9. A model that provides an enterprise-wide view of the
D?
firm’s accounting system
??
