Lecture Accounting information systems: Basic concepts and current issues (4/e): Chapter 14 - Robert L. Hurt

Chapter 14 - Other business processes. When you''ve finished studying this chapter, and completing the activities at its conclusion, you should be able to: Explain its role and purpose, explain how the generic structure of most AIS applies, identify and process common transactions, design and critique internal controls based on common risk exposures, develop and interpret process-related systems documentation.

Chapter 14 Other Business

Processes

Learning

objectives

1. Explain its role and purpose

2. Explain how the generic

structure of most AIS applies

3. Identify and process common

transactions

4. Design and critique internal

controls based on common risk exposures

5. Develop and interpret

process-related systems documentation

6. Appropriately use terminology

common to each process

7. Explain how each process is

related to Porter's value chain

process

discussed in

this chapter:

• While at least as important as the sales /

collection & acquisition / payment

processes, they do not generalize as well.

Processes overview

and manufacturing overhead into finished

products

• Job order

• Process

• Hybrid

human resource management

• The following slides will

explore the five generic

AIS elements within the

context of each business

process:

• Conversion

• Financing

• Human resources

• Job cost sheet

• Production cost report

– Purchase raw materials

– Issue raw materials to production

• Junction file

Issue raw materials / raw materials

AIS elements

• Equipment maintenance schedule

• Adequate training and supervision

• Video surveillance

• Quality testing

• And a host of others!

AIS elements

• Initial public offering

• Bond issuance

• Dividend payments

• Stock splits

• Principal & interest payments on bonds

• Purchase of treasury shares

– Issue capital stock

– Pay bond interest

• Junction file

Bonds payable / pay bond interest

AIS elements

– Input & output documents

• Payroll register

AIS elements

• Hiring new employees

• Evaluating employee performance

• Terminating employees

• Paying employee pensions

• Depositing withholdings

AIS elements

• Written performance reviews

• Code of ethics / code of conduct

• Separate payroll bank account

• Separation of duties

• Adequate supervision

• And many others!

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