cooCORE CONCEPTS OF

AccountingInformation

SystemsEleventh Edition

Nancy A. Bagranoff, DBAProfessor

Dean, College of Business and Public AdministrationOld Dominion University

Mark G. Sinikin. Ph.D.Professor

Department of Accounting and Information SystemsUniversity of Nevada

Carolyn Strand Norman, Ph.D., CPAAssociate Professor

Department of Accounting/Virginia Commonwealth University

WILEY

JOHN WILEY & SONS, INC

CONTENTS

PART ONE AN INTRODUCTION TO ACCOUNTING INFORMATION SYSTEMS/ 1

CHAPTER 1 Accounting Information Systems and the Accountant/ 3Introduction/ 4What are Accounting Information Systems?/ 4What's New in Accounting Information Systems?/ 9Accounting and IT/ 14Careers in Accounting Information Systems/ 21

CHAPTER 2 Information Technology and AISs/ 35Introduction/ 36The Importance of Information Technology to Accountants/ 36Input, Processing, and Output Devices/ 38Secondary Storage Devices/ 48Data Communications and Networks/ 52Computer Software/ 60

CHAPTER 3 Documenting Accounting Information Systems/ 73Introduction/ 74Why Documentation is Important/ 74Document and System Flowcharts/ 77Process Maps and Data Flow Diagrams/ 85Other Documentation Tools/ 93End-User Computing and Documentation/ 98

PART TWO DATABASES/ 113

CHAPTER 4 Data Modeling/ 115Introduction/ 116

'An Overview of Databases/ 116Steps in Creating a Database Using REA/ 123Creating Database Tables and Records/ 132

CHAPTER 5 Organizing and Manipulating the Data in Databases/ 153Introduction/ 154Normalization/ 154Validating the Data in Databases/ 158Extracting Data From Databases: Data Manipulation Languages (DMLs)/ 162Object-Oriented Databases, Multimedia Databases, and Data Warehouses/ 171

CHAPTER 6 Database Forms and Reports/ 187Introduction/ 188?Forms/ 188Reports/ 196

PART THREE USING ACCOUNTING INFORMATION/ 215

CHAPTER 7 Accounting Information Systems and Business Processes: Part 1/ 217Introduction/ 218Business Process Fundamentals/ 218Collecting and Reporting Accounting Information/ 221The Sales Process/ 225The Purchasing Process/ 230Current Trends in Business Processes/ 237

CHAPTER 8 Accounting Information Systems and Business Processes: Part 11/ 249Introduction/ 250The Resource Management Process/ 250The Production Process/ 256

IX

X Contents

The Financing Process/ 262Business Processes in Special Industries/ 265Business Process Reengineering/ 271

CHAPTER 9 Accounting and Enterprise Software/ 281Introduction/ 282Integrated Accounting Software Programs/ 282Enterprise-Wide Information Systems/ 287Selecting a Software Package/ 298

PART FOUR CONTROLS, SECURITY, PRIVACY, AND ETHICS FOR ACCOUNTING INFORMATIONSYSTEMS/ 311

CHAPTER 10 Computer Crime, Ethics, and Privacy/ 313Introduction/ 314Computer Crime, Abuse, and Fraud/ 314Three Examples of Computer Crime/ 321Mitigating Computer Crime and Fraud/ 326Ethical Issues, Privacy, and Identity Theft/ 333

CHAPTER 11 Introduction to Internal Control Systems/ 347Introduction/ 348Internal Control Systems/ 348Types of Controls/ 356Control Activities/ 358Evaluating Controls/ 365

CHAPTER 12 Computer Controls for Organizations and Accounting Information Systems/ 377Introduction/ 378General Controls for Organizations/ 378General Controls for Information Technology/ 390Application Controls for Transaction Processing/ 395

PART FIVE SPECIAL TOPICS IN ACCOUNTING INFORMATION SYSTEMS/ 413

CHAPTER 13 Developing and Implementing Effective Accounting Information Systems/ 415Introduction/ 416Systems Development Life Cycle/ 416Systems Planning/ 418Systems Analysis/ 420Systems Design/ 425Implementation, Follow-Up, and Maintenance/ 433

CHAPTER 14 Information Technology Auditing/ 449Introduction/ 450The Audit Function/ 450The Information Technology Auditor's Toolkit/ 457Auditing Computerized Accounting Information Systems/ 460Information Technology Auditing Today/ 467

CHAPTER 15 Accounting on the Internet/ 481Introduction/ 482The Internet and World Wide Web/ 482XBRL: Financial Reporting on the Internet/ 486Electronic Commerce/ 489Privacy and Security on the Internet/ 494Privacy Statement/ 506

Disclosure of Business Practices, Shipping, and Billing/ 506

Glossary/ 511

Index/ 523