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AIS15General Ledger and Reporting System
AIS15General Ledger and Reporting System
Information
Systems
9th Edition
Marshall B. Romney
Paul John Steinbart
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Chapter 15
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Learning Objectives
1.
2.
3.
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Learning Objectives
4.
5.
6.
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Introduction
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Introduction
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Learning Objective 1
Describe the information
processing operations
required to update the
general ledger and to
produce other reports for
internal and external users.
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Accounting subsystems
The treasurer
2003 Prentice Hall Business
Publishing,
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Journal entry
Update the
general ledger
Journal
entry
Treasurer
Journal
voucher
2003 Prentice Hall Business
Publishing,
General
ledger
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Journal
voucher
Adjusting
entries
Adjusted trial
balance
Financial
statements
Controller
2003 Prentice Hall Business
Publishing,
Prepare
financial
statements
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Prepare Financial
Statements (Activity 3)
first.
The balance sheet is prepared next.
The cash flows statement is prepared
last.
2003 Prentice Hall Business
Publishing,
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operating budget
capital expenditures budget
2003 Prentice Hall Business
Publishing,
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It
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Learning Objective 2
Identify the major threats in
general ledger and reporting
activities, and evaluate the
adequacy of various internal
control procedures for dealing
with them.
2003 Prentice Hall Business
Publishing,
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Control: Objectives,
Threats, and Procedures
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Control: Objectives,
Threats, and Procedures
4.
5.
6.
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Threat
Errors
Applicable Control
Procedures
Input and processing
controls;
reconciliations and
control reports; audit
trail
Loss or
destruction of the
general ledger
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Field Checks
Zero-balance checks
Completeness test
Closed-loop verification
Calculation run-to-run
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Reconciliation and
Control Report
Reconciliations and control reports
can detect if any errors were made
during the process of updating the
general ledger. Examples include:
Preparation
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Reconciliation and
Control Report
The audit trail is the path of a
transaction through the accounting
system. The audit trail facilitates
these three tasks:
1.
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Reconciliation and
Control Report
The audit trail, continued
2. Trace any item appearing in a report
back through the general ledger to
its original source document
3. Trace all changes in general ledger
accounts from their beginning
balance to their ending balance
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Learning Objective 3
Read and explain an integrated
enterprise-wide REA data
model.
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Cash
disbursements
(1, 1)
(1, 1)
(1, N)
Cash
(1, N)
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Cash
(1, N)
(0, N)
(1, 1)
(0, N)
(0, N)
Issue
debt
(0, N)
(1, 1)
Pay
employees
(1, 1)
(1, 1)
Issue
stock
(1, 1)
Dividend
payment
(1, N)
Debt
payment
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Benefits of an
Integrated Data Model
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Benefits of an
Integrated Data Model
Visibility
Mirroring
Building new customer relationships
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Learning Objective 4
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Balanced Scorecard
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Learning Objective 5
Explain the relationship
between online transaction
processing systems and data
warehouses used to support
business intelligence.
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Data Warehouses
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Data Warehouses
The process of accessing data
contained in the data warehouse and
using it for strategic decision making
is referred to as Business Intelligence.
The two main techniques of business
intelligence are:
Online
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Learning Objective 6
Understand the implications of
new IT developments, such as
XBRL, for internal and external
reporting.
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Case Conclusion
What did Stephanie Cromwell and
Elizabeth Venko decide?
They decided that AOE needs to
switch to an online general ledger
system.
They agreed that AOE will first acquire
a general ledger package that is built
on a relational database.
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End of Chapter 15
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