Solution Manual Accounting Information Systems 11e by Romney 03 chapter PDF

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CHAPTER 3 SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 3.1

Data Flows: merchandise, payment, cash and register tape Date Source: customer Processes: capture sales and payment, give cash and register tape to manager Storage: sales file (register tape), cash register

3.2

It is usually not sufficient to use just one documentation tool. Every tool documents a uniquely important aspect of a given information system. For example, system flowcharts are employed to understand physical system activities including inputs, outputs, and processing. In contrast, data flow diagrams provide a graphic picture of the logical flow of data within an organization. Each alternative is appropriate for a given aspect of the system. As a result, they work together to fully document the nature and function of the information system.

3.3

Similar design concepts include the following: Both methods require an initial understanding of the system before actual documentation begins. This insures that the system is properly represented by the diagram. Both measures require the designer to identify the elements of the system and to identify the names and relations associated with the elements. Both methods encourage the designer to flowchart only the regular flows of information and not to be concerned with unique situations. Both approaches require more than one “pass” through the diagramming or flowcharting process to accurately capture the essence of the system. The product of both methods is a model documenting the flow of information and/or documents in an information system. Both documentation methods are limited by the nature of the models they employ, as well as by the talents and abilities of the designer to represent reality.

3-1 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Formatted: Font: 12 pt

Ch. 3: Systems Development and Documentation Techniques

3.4

The major flowcharting symbols and their respective categories are shown in Fig. 3.8 in the text. With respect to how the symbols are used, student answers will vary. Possible examples include the following: Input/Output Symbols Document: an employee time card, a telephone bill, a budget report, a parking ticket, a contract Display: student information monitors, ATM monitors, the monitor on your microcomputer. Manual input: cash registers, ATM machines Processing Symbols Processing: processing a student payroll program, assessing late fees Manual operation: writing a parking ticket, preparing a report, collecting and entering student payments Storage Symbols Magnetic disk: alumni information data base, a report stored on your PC hard disk Magnetic tape: archival student information On-line storage: a student information data base or an airline reservation data base stored on-line. File: purchase order file for a department, a student housing contract file Flow (Miscellaneous) Communication link: a telephone linkage that connects you to Prodigy or some other on-line data base.

3-2 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Accounting Information Systems

SUGGESTED ANSWERS TO THE PROBLEMS 3.1

Assorted Flowcharting Segments: a. Formatted: Font: 12 pt Formatted: Font: 12 pt

Transactions

Old Master File

File Update

Transactions

File Update

New Master File

b. Formatted: Font: 12 pt Formatted: Font: 12 pt Data base

c. Formatted: Font: 12 pt OCR Source Documents

Conversion of Documents to Tape by OCR

Source Data

Formatted: Font: 12 pt

d. Formatted: Font: 12 pt OCR Source Documents

Update Data base

Formatted: Font: 12 pt Data base

3-3 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 3: Systems Development and Documentation Techniques

3.1 (continued)

Assorted Flowcharting Segments

e. Formatted: Font: 12 pt Formatted: Font: 12 pt

Data File

Report

Report Generation

f. Formatted: Font: 12 pt Source Documents

Store data on disk

Data File

Key Data

Formatted: Font: 12 pt

g. Formatted: Font: 12 pt

Invoices

Sort

Invoices

File

h.

3-4 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Formatted: Font: 12 pt

Accounting Information Systems

Formatted: Font: 12 pt Terminal

Online Processing System

Formatted: Font: 12 pt Data base

Source Data

3.1 (continued)

Assorted Flowcharting Segments

i. Formatted: Font: 12 pt

Internal Hard Drive

Scheduled Automatic Backup

External Hard Drive

Formatted: Font: 12 pt

j. Formatted: Font: 12 pt Formatted: Font: 12 pt

Display Query Customer Sales Data

Enter Query

3-5 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Database

Ch. 3: Systems Development and Documentation Techniques

3.1 (continued)

Assorted Flowcharting Segments

k.

3-6 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Accounting Information Systems

Formatted: Font: 12 pt Formatted: Font: 12 pt

Payroll Transaction File

Time Card

Record time card data on the payroll transaction file and match to wage data maintained on the payroll master file

Enter Time Card Data

Payroll Master File

3.1 (continued)

Assorted Flowcharting Segments

l. 3-7 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 3: Systems Development and Documentation Techniques

Formatted: Font: 12 pt Formatted: Font: 12 pt

Purchase Order (electronic)

To Vendor

Access Price List, create electronic purchase order & print a paper backup copy

Price Data

Purchase Order (paper)

A

m. Formatted: Font: 12 pt

Update online airline reservation from home computer

Revise reservation data on web-based airline reservation system

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Reservation File

Accounting Information Systems

3.2

Happy Valley Utility Company

a.

Billing operations Formatted: Font: 12 pt Formatted: Font: 12 pt

Customer Master File

Meter Form Preparation

Meter Forms

Sort By Cust #

Enter Current Reading

Completed Meter Forms

Customer Meter Data

Customer Meter Data

Customer Master File

File Update and Billing

Error List & Summary Report

Customer Bills

Mail to Customers

3-9 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Mark-Sense Document Reader

Ch. 3: Systems Development and Documentation Techniques

3.2

b.

Customer payments processing Checks

Remittance Stubs

Correct Stubs

OCR Document Reader

Formatted: Font: 12 pt

Compare & Separate

Checks

To Cashier

Incorrect Stubs

List of Other Receipts

Type Correct Stubs

Type Correct Stubs

Corrected Stubs

Corrected Stubs

Payments Posting Run

Report of Past-Due Accounts

Error List & Summary Report

Customer Master File

3-10 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Formatted: Font: 12 pt

Accounting Information Systems

3.3

Payroll Processing for Dewey Construction Company: Formatted: Font: 12 pt

Job Time Tickets

Key to Tape Encodings

Job Time Records Tape

Payroll Master File

Work in Process Master File

Payroll Processing System

Earnings Statement Payroll Register

Paycheck

3-11 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Error Transactions and Summary

3.4

Document Flowchart: Insurance Claims Processing ADJUSTER

CLAIMS DEPARTMENT START

Notice of Loss

From Claimant

Prepare proof of loss, claim recored

Formatted: Font: 12 pt

DATA PROCESSING

From Claimant

1 Proof of Loss Form

2 3 4

1 Proof of Loss Form

Notice of Loss

Claim Record

3 Claim Record

4 Assist Claimant with Form

Notice of Loss

2

Prepare Separate Report

2 Proof of Loss

N Adjuster's Report

To Claimant Adjuster's Report

1 1 Proof of Loss

Proof of Loss

2

2

Authorize Claim Payment

3

2 Proof of Loss

Prepare Check & Disbursement list

Disbursement List

4 To Accounting 1

Adjuster's Report

Check

Proof of Loss

To Claimant

A To Claimant

Formatted: Font: 12 pt

3-12 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

N

3.5 Adapted from the June 1980 CMA Exam (Part 5, Question 2) Note: this flowchart does not follow the conventions discussed in the chapter. When the authors use this problem they have the students critique the CMA exam solution, based upon the conventions discussed in Focus 3.2.

3-13 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 3: Systems Development and Documentation Techniques

Formatted: Font: 12 pt

3.6

a.

Context Diagram for the payroll processing system at No-Wear Products 3-14 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Formatted: Font: 12 pt

Accounting Information Systems

Formatted: Font: 12 pt

Employee Time Card Data Operating Documents

Payroll Processing System

Human Resources Department

Employee Paychecks

Internal Reports

Personnel Data Withholding Reports

Management

Governmental Agencies

3-15 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 3: Systems Development and Documentation Techniques

3.6

a. (continued.) Level 0 Data Flow Diagram for the payroll processing system at No-Wear Products. Formatted: Font: 12 pt

Operating Departments

Time Card Data

Formatted: Font: 12 pt

Human Resources Department

Personnel Changes 1.0 Process Employee Timecards

2.0 Update Payroll File

Payroll File

4.0 Generate Payroll Reports

3.0 Generate Paycheck Internal Reports

Employee

Withholding Reports

Pay check Management

3-16 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Governmental Agencies

Accounting Information Systems

3.6

b.

Document Flowchart for the payroll processing system at No-Wear Products Formatted: Font: 12 pt

No-Wear Products-Payroll Employees in Functional Department

Formatted: Font: 12 pt

Payroll

Time Card

Record Time Data

Record Time

Completed Time Card

Enter Time Data

Process Payroll Changes

Completed Time Card

Enter Payroll Changes

Payroll File

From Human Resource Dept

Payroll Changes

N

Process Payroll, Prepare Checks and Reports

Paycheck

N

Employee

Management Report

Management

Federal Tax Report

Stat Tax Report

3-17 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Goverrnment

Ch. 3: Systems Development and Documentation Techniques

3-18 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Accounting Information Systems

3.7

a.

Context Diagram of S&S Accounts Payable Formatted: Font: 12 pt Formatted: Font: 12 pt

Purchasing

Receiving Purchase Order Receiving Report

S&S Accounts Payable Invoice

Vendor

Accounts Payable Report

Payment & Remittance Advice

3-19 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Management

Ch. 3: Systems Development and Documentation Techniques

3.7

a. (continued.)

Level 0 Data Flow Diagram of S&S Accounts Payable Formatted: Font: 12 pt Formatted: Font: 12 pt

Vendor

Receiving

Purchasing

Invoice Purchase Order

1.0 Record Payable

2.0 Collect & Store Purchase Orders & Receiving Reports

Receiving Report

Purchase Orders Accounts Payable

Vendor Invoices

Receiving Reports

Cash Disbursements Journal

3.0 Make Payment

Accounts Payable Report

4.0 Prepare Management Reports

Payment & Remittance Advice

Paid Invoices

Management

3-20 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Vendor

Accounting Information Systems

3.7

b.

Document Flowchart of S&S Accounts Payable

Formatted: Font: 12 pt

S&S Accounts Payable

Formatted: Font: 12 pt Accounts Payable

Controller

Owner/Manager Purchase Order

B

From Purchasing

From Receiving

From Vendor

A

Purchase Order

Receiving Report

Vendor Invoice

Purchase Order

Receiving Report Invoice

Receiving Report

Check 2

Invoice A

A

Record Accounts Payable

Accounts Payable Ledger

Vendor Invoice

Prepare Monthly Accounts Payable

Check 1

Prepare Vendor Checks

Match Purchase Order, Receiving Report, Invoice

Review and Sign Checks

Check 1

Cash Disburseme nts Journal

A Accounts Payable Report

To Vendor

Purchase Order Receiving Report C

D

Purchase Order

Invoice

Receiving Report

Check 1

Invoice Purchase Order Purchase Order

Check 1 Check 2

Receiving Report

Receiving Report Invoice

C

Invoice Accounts Payable Report

Check

D

B A A Review Accounts Payable Report

3-21 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

D

Ch. 3: Systems Development and Documentation Techniques

3.8 a. Company:

Context Diagram for the Acquisition/Payment System at Oriental Trading

Purchase Requisition

Formatted: Font: 12 pt

Purchase Order

Vendor

Vendor Acknowledgement

Formatted: Font: 12 pt

Inventory System

Acquisition/ Payment System

Receiving Payment

Purchase Invoice

Vendor Payment

3-22 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Accounting Information Systems

3.8

a. (continued) Level 0 Data Flow Diagram: Acquisition/Payment System at Oriental Trading:

3-23 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 3: Systems Development and Documentation Techniques

Formatted: Font: 12 pt

Inventory File

Vendor File

Formatted: Font: 12 pt

1.0 Prepare Purchase Order & Notification Purchase Order

Vendor

Purchase Requisition

Vendor Acknowledgement

Inventory System

P.O. Notification Vendor Invoice

Receiving Report 2.0 Update Accounts Payable

Accounts Payable Master File Check

Payment Authorization

3.0 Pay Vendor General Ledger

3-24 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Accounting Information Systems

3.8 b. Company:

Document Flowchart for the Acquisition/Payment System at Oriental Trading

Formatted: Font: 12 pt

Oriental Trading Acquisition/Payment System

Formatted: Font: 12 pt Purchasing

Accounts Payable

B

From Inventory Purchase Requisition

Accounting Department

D

Inventory File

A

From Receiving Department

From Vendor

Purchase Order Notification

Receiving Report

Invoice

D

D

Prepare Purchase Order

Payment Authorization

D

Enter Purchase Requisition

Enter payment Authorization

Vendor File

Purchase Order

Match Purchase Order, Receiving Report, and Invoice. Prepare Payment Authorization

D

Prepare Check, Update Accounts Payable and General Ledger

Payment Authorization

B To Vendor

Check

From Vendor Purchase Order

D

Vendor Acknowledgment

Receiving Report Invoice

Enter Vendor Acknowledgment

Prepare Purchase Order Notification

Purchase Order Notification

Enter Accounts Payable Data for Update

To Vendor

Update Accounts Payable Master File

D

Accounts Payable Master File

A

3-25 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

General Ledger Master File

Ch. 3: Systems Development and Documentation Techniques

3.9

a.

Context Diagram of the Cash Receipts System at S&S:

Formatted: Font: 12 pt Formatted: Font: 12 pt

Bank Deposit

Payment at Sale Cash Receipts System

Customers Remitances on Account

Cash Receipts Report

Management

Aged Trial Balance Credit and Collections

3-26 © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Accounting Information Systems

3.9

a. (continued) Level 0 Data Flow Diagram of the Cash Receipts System at S&S:

Formatted: Font: 12 pt

Customers

Remittance File

Payments at Sale Remittances on Account

1.0 Process Payments

Remittance Slips

2.0 ...