100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
Solutions Manual for Core Concepts of Accounting Information Systems, 14th Edition by Mark Simkin, James Worrell, Arline Savage (All Chapters) A+$12.99
Add to cart
Core Concepts of Accounting Information Systems, 1
All documents for this subject (1)
Seller
Follow
ASolution
Reviews received
Content preview
Created By: A Solution
Solutions Manual for Core Concepts of Accounting Information
Systems, 14th Edition by Mark Simkin, James Worrell, Arline
Savage (All Chapters) A+
Chapter 1
ACCOUNTING INFORMATION SYSTEMS AND THE ACCOUNTANT
Discussion Questions
1-1. The answer to this question will vary with each university’s location. However, it is
likely most students will reveal that their parents are employed in non-manufacturing jobs.
Instructors may wish to emphasize that the large numbers of service sector employees and
knowledge workers reflect a trend.
1-2. This question encourages students to think about some of the information reporting
limitations imposed by the traditional accounting general ledger architecture. Other business
activities (or business events) that do not require journal entries include (1) obtaining a line of
credit, (2) issuing purchase requisitions or purchase orders, (3) signing contracts, (4) hiring a
new executive, and (5) sending financial information to investors or bank loan personnel.
Instructors may wish to point out that important information about a company’s business
activities may be included in an annual report outside the financial statements. The management
letters and footnotes in annual reports may reveal much about a company’s future prospects.
Managers have access to much more information than what is published in financial reports.
Whether or not they would like to have access to more non-financial information, or if they
would prefer that the accounting information system capture data about business events rather
1
,Created By: A Solution
than accounting transactions, is debatable. It may also be a function of the accounting system in a
particular company. Investors may wish to have more information available to them but the
downside is that too much information can be just as problematic as too little information.
1-3. The financial accounting systems we have known for more than 500 years are changing
dramatically as a result of advances in information technology and financial accounting software.
For example, databases allow accountants to collect and store all the data (accounting transaction
data and non-financial data) about a business activity or event in one system, allowing those
needing such information to retrieve it quickly, efficiently, and specifically in any format they
wish. Financial data can also be more easily linked to nonfinancial data because of database
technology. Thus, it is likely that financial reporting will undergo tremendous change in the next
few years as we learn to use technology, including artificial intelligence, more effectively in the
design of AISs.
ERP systems are another example of the information age's impact on financial accounting. Now,
organizations capture more financial and non-financial data and produce more information than
ever before. This allows companies to integrate their information systems, better forecast
everything from raw materials requirements to finished product production, and to perform more
sophisticated analyses of important business functions. For instance, sales can be examined at
many different levels and organized according to criteria such as geography, customer, product,
or salesperson.
One of the most important changes in AISs is the way these systems will gather financial
information in the future. Although many of these systems will continue to capture data in
2
,Created By: A Solution
traditional batch mode or at POS sites, we expect newer systems to collect more of it on mobile
devices—for example, cell phones, PDAs, and digital cameras. Because more employees and
working at home these days, ―digital commuting‖ may be another trend.
1-4. The objective of a company’s financial statements is to communicate relevant financial
information to such external parties as stockholders, investors, and government agencies. Issuing
financial statements in XBRL formats contributes to this objective by making such financial data
more searchable, comparable, informative, and therefore useful. Also, because XBRL enables
companies to use standard tags to identify specific accounting values, the language itself imposes
a greater degree of standardization in the informational content of the reports. Finally, XBRL
helps government agencies gather financial data that are more consistent, easier to understand,
self-checking, and more quickly communicated. Chapter 2 contains more about XBRL, including
the idea that the language also enables its users to verify accounting relationships as assets =
liabilities + stockholder equity.
1-5. The questions asked here about suspicious activity reporting (SAR) require opinions from
students. Regarding the first question, which asks if SAR activity should be a legal matter, there
is little room for disagreement because so much of SAR is mandated by federal legislation such
as the Annunzio-Wylie Anti-Money Laundering Act of 1992, the Bank Secrecy Act of 1996, and
the Patriot Act of 2001. Although there are statistics on the number of SAR filings, less is known
about how much of what appears to be suspicious are in fact violations of federal statutes.
3
, Created By: A Solution
1-6. The example given in the question demonstrates one way in which computerization has
refined cost estimation and thus has impacted managerial accounting. However, IT has impacted
almost every area of managerial accounting (and decision making). Consider, for example, the
emergence of such concepts as just-in-time systems, computer integrated manufacturing systems,
manufacturing resource planning systems, target costing, and activity based costing – all of these
require IT to support managerial decision making. Forecasting and budgeting are other areas of
managerial accounting impacted by advances in technology, as are the many applications of
spreadsheet software, decision support systems, and expert systems.
Universities are also impacted by the many advances in IT. You might have students type
―university use of scorecards‖ in their favorite browser to discover the many uses this tool offers
to administrators in an academic environment. The search results show a variety of uses at such
universities as The Ohio State University, CSU-Stanislaus, Clemson University, Colorado State
University, San Jose State University, and others. For example, the University of Denver adapted
a version of the Balanced Scorecard to evaluate their Student Life Assessment Plan (SLAP),
which focuses on Learning Outcomes. San Jose State University uses a Scorecard to evaluate
and continuously improve their online programs.
1-7. The AICPA website lists hundreds of potential assurance services for CPAs to offer.
These include Trust Services and Information Integrity, Guidance on Audit Data Analytics,
XBRL Assurance Services, and Systems and Organization Controls for Cybersecurity,
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ASolution. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
