AIS ppt - Lecture notes 10-11 PDF

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Summary

Accounting Information System chapter 10 and 11 by Richard dull
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Description

Application of Control Framework

Control Goals 

Effectiveness of operations

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Efficient employment of resources

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Resource security

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Information Process Control Goals 

Input Validity (IV)

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Input Completeness (IC) and Input Accuracy (IA)

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Update Completeness (UC) and Update Accuracy (UA) 3

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Control Goals of the OE/S Business Process

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Control Goals of the OE/S Business Process

Billing/ Accounts Receivable/ Cash Receipts Process

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Learning Objectives ×

Describe the relationship between the B/AR/CR process and its business environment.

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Illustrate the potential of the B/AR/CR process to assist management decision making.

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Summarize how enterprise systems, e-business and other technologies can improve the effectiveness of the B/AR/CR process.

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Depict the logical and physical characteristics of the B/AR/CR process.

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Prepare a control matrix for some typical billing and cash receipts processes, including an explanation of how business process control plans can accomplish operations and information process control goals.

Introduction The billing/accounts receivable/cash receipts (B/AR/CR) process is an interacting structure of people, equipment, methods, and controls designed to create information flows and records that accomplish the following:

Support the repetitive work routines of the credit department, the cashier, and the accounts receivable department. Support the problem-solving processes of financial managers.

Assist in the preparation of internal and external reports.

Horizontal View B/AR/CR 1. Shipping department informs the accounts receivable department (billing section) of shipment.

Horizontal View B/AR/CR 2. Accounts receivable department (billing) sends invoice (2a) to customer, accounts receivable department (cash applications [2b]), and general ledger process (2c).

Horizontal View B/AR/CR 3. Customer makes payment on account.

Horizontal View B/AR/CR 4. Cashier sends deposit to bank (4a) and informs accounts receivable department (cash applications [4b]) and general ledger process (4c) of payment.

Horizontal View B/AR/CR 5. Accounts receivable (cash applications) informs general ledger process of payment....