1 accounting systems design & evaluation karen lau 25 feb 2002
TRANSCRIPT
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Accounting systems design & evaluation
Karen Lau
25 Feb 2002
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Learning outcomes
1. Identify and discuss the features and various parts of an information system
2. Discuss the management procedures in identifying and controlling the Systems Development Life Cycle (SDLC)
3. Describe the structure and alternative processing techniques for an AIS structured on a database
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Learning outcomes
4. Describe and prepare the documentation used in an AIS including the various types of flow charts, and their relevant symbols, data flow, diagrams, decision tables, and other techniques
5. Review and briefly describe the functions of various accounting information sub-system applications and any relevant system specifications and considerations
6. Review and discuss the procedures and management strategies for evaluating the complete information system.
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Teaching plan
1. System concepts2. System and subsystem
boundaries 3. Data processing &
storage4. SDLC5. Project planning (1) 6. Project planning (2)7. System specification8. Assessment
9. Documentation
10. Input & output design
11. Process design
12. System implementation
13. System evaluation
14. Case study - Preparation
15. Assessment
16. Case study - Presentation
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Class structure
• Lecture
• Multimedia
• Exercises
• Class participation
• Case studies
• Group discussion
• Assessments
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Assessment plan
Class participation 10%
Case studies 10%
Assessments 30%
Examination 50%
Total 100%
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System
• A set of parts coordinated to accomplish a set of goals 1
– Component parts– Process: parts are coordinated in a defined way– Goals: objectives toward which the component
parts are coordinated
1 C. West Churchman, The Systems Approach (NY: Dell, 1968) p 29
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Today’s lecture
• What is a Management Information System?• What are the marketing and customer orientation
priorities in establishing policies that affect the establishment of a MIS?
• What are the internal control and security requirements of a MIS?
• What are the information & reporting requirements of users of an AIS?
• What are the procedures that may be used to identify the users and their information requirements?
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Management information systems (MIS)
• The MIS or Information System (IS) is the combination of people, procedures, and machines intended to provide information for management decision making
• The objective of a MIS is to provide information to allow the organisation to meet its goal.
• Specialist sub-systems of MIS may include Accounting Information system (AIS), decision support system (DSS)
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Accounting information system
• AIS: a part of the MIS and performs two functions within an organisation:– Financial accounting: process transactions
– Management accounting : support managerial decision making
• Types of AIS: – Manual system
– Computer-based system
– Computer system
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Accounting information system
FinancialAccounting
ManagementAccounting
External regulatoryrequirements
Internal decision-Maker requirements
Accounting information system
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AIS – Internal requirements
• Produce quality information to support decision making
• Ensure that business activities are in accordance with organsiational goals and objectives: forecasting results necessary to achieve objectives and then measuring results against these forecasts
• Safeguard organisational assets including data and information: Internal control should include segregation of duties and documentation of systems and procedures.
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AIS – External requirements
• Meet requirements:– Regulators– Industry specific requirements– Customers– Suppliers– Financiers
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Why study AIS?
• Almost every organizations uses computer to process accounting transactions
• Continuous process improvement
• Computer audit – planning and execution
• System implementation – Users– Management consultants
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Data & information
Data Information
ProcessingInput Output
Feedback & control
Information system
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Data & information
TransformationProcess
Data inputOutput
Internal / ExternalSources
Organise, Sort,Calculate
Int/ ExtDecisionmakers
Storage
Database
MIS must collect, record and process data to produce information to support decision making.
Information system
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Users of information
• Internal– Senior management
– Middle management
– Operational management
• External– Financiers
– Stockholders
– Auditors
– Suppliers
– Customers
– Regulators
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Information requirement pyramid
DataReduction
StrategicplanningSenior management
ManagementControlMiddle
managementOperationControl
Organisation & Transaction Processing
Operationalmanagement
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Information requirements at different levels of management
Senior management • Aggregate data at corporate level
• Unstructured, flexible, adaptable, predictive
• External: industry and competitor
Middle management • Lower level responsibility areas
• Semi-structured
Operational management
• Structured, detailed, historical, accurate
• Performance reports for low-level responsibility areas
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Management decision continuum
Operations MiddleSeniorManagement
Structured Unstructured
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Information flows
A Top-down flow:originates from eventsthat occur at the top management level in an organisation.
A bottom-up flow: originates from eventsthat occur at the lower levels in the
organisation structure.
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Information requirements across the entire value chain
Planning
Perform sales
Customer service
Marketing
Supplier network Customer network
Manage logisticsDistributionProcurement
Source: PricewaterhouseCoopers
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Information - marketing & customers
• Historical trends and forecasts:– Sales– Market share
• Sales– By product or service– By Region
• Production - Inventory • Customer satisfaction
– Service– Quality
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Desired qualities of information
• Appropriate
• Dependable
• Available
• Corroborative
• Understandable
• Timely
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Implications to AIS
• Extent of data sharing among internal and external users
• Database integration & system interface• Forms of processing • Extent of automation (data retry, processing and
retrieval)• Scalability requirements• System architecture• Security and internal controls
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Roles of accountants in the financial information framework
Define needs and capture data
Establish data capture
processes
Define needs
Collect useable
information
Analyse information
Deliver information
Develop financial skills
Promote the use of financial
information
Interpret information
Improved performance
Collect, analyse an
dde
liver
info
rmat
ion
Useknow
ledge
tom
akedecisions
Source: Australian National Audit Office
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Procedures to identify information requirements
• Who are the stakeholders?
• What are the organisational objectives?
• What are their responsibilities
• What are the performance measures?
• How is data (budget, forecast & actual) to be collected?
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Sources to define information needs
• Interviews with stakeholders• Review documentation such as:
– Mission statement– Business plans– Annual reports– Accounting standards – Company policies and procedures– Organisation structure
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To summarise
• What is a Management Information System?• What are the marketing and customer orientation
priorities in establishing policies that affect the establishment of a MIS?
• What are the information & reporting requirements of users of an AIS?
• What are the procedures that may be used to identify the users and their information requirements?
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Exercise 1.1 – Develop a concept map
• A concept map helps show your understanding or interpretation of the key concepts in this course• For example:
Men Women
Boys Girls
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Exercise 1.1 – Develop a concept map
Men Women
Boys Girls
become become
love
Male Femalehate
Don’t play with