BA 378: Accounting Information Systems Instructor: Dr. James R. Coakley

Learning Outcomes College of Business Specific Learning Outcomes – Each student must understand and be able to use team building, collaborative behaviors and project management in the accomplishment of group tasks. – Each student shall demonstrate information technology skills as they apply to today’s business environment – Each student shall have an appreciation of ethical issues in economic competition, managing organizations and participating in the community.

Learning Outcomes Accounting Option Specific Learning Outcomes – Each student shall be able to apply accounting concepts, principles, standards, and processes. – Each student shall demonstrate information technology skills as they apply to today’s business environment to solve business problems and to communicate those solutions. – Each student must demonstrate analytical skills through finding, organizing, assessing and, analyzing data appropriate to a given situation. – Each student shall be able to impart the knowledge and skills listed above to provide insightful advisory judgments and recommendations regarding the accounting for and the business implications of events, conditions, circumstances, and transactions that give rise to business opportunities or problems. – Each student must demonstrate strong organizational skills and a capacity for responsive and timely work.

Internal Control Process Bridge, Mike and Ian Moss. “COSO back in the limelight”

Apply Risk Assessment Framework What is threat? What is likelihood that threat will occur? What is potential damage from threat? What controls can be used to minimize damage? – Prevent – Detect – Correct What is the cost of implementing the control?

Information and Communication Need to understand: – How transactions are initiated – How data are captured in machine-readable form (or converted from source documents into machine-readable form) – How computer files are accessed and updated – How data are processed – How information is reported to internal and external users

Monitoring Effective Supervision Responsibility Accounting Monitor System Activities – Review computer and network security – Detect illegal entry – Test for weaknesses and vulnerabilities – Monitor for viruses, spyware, span, pop-ups, etc. – Track purchased software

Course Topics What is an information system (Chp 1) – Major types of computer-based information systems – Major components in a transaction processing cycle – What is internal control, and why is it an important part of an information system – What are the advantages and disadvantages of End- User Computing

Course Topics – cont’d Data Management Concepts (Chp 12) – Distinguish the traditional file approach from the database approach. What are the primary differences in terms of how they store data? – What are the advantages and disadvantages of the following types of database models: hierarchical, network, and relational? – What alternative file-access methods are available to implement a database at the physical level? What factors should you consider when choosing among these alternative methods? – What is a DBMS and what are some of the key components of a DBMS

Course Topics – cont’d Internal Control – Chp 4 – What are the common exposures within a computer-based information system? How would you ascertain the likelihood that a given exposure will exist? – How do you determine whether the impact of an exposure will be material? – What is the COSO framework? Discuss the extent to which each layer within the COSO framework is implemented within the Coffee Roasting Company. – Which of the General and Application Transaction Processing Controls should be applied to the AOPS of the Coffee Roasting Company? Develop an Application Controls Matrix (similar to Fig 4.9, pg 133)

Course Topics – cont’d Telecommunications – Chp 3 – What are the components of a telecommunications system? – What is the difference between an “analog” signal and a “digital” signal? – What are the advantages and disadvantages of the different types of communication media? – What does the term “bandwidth” mean? What are the implications of greater bandwidth for telecommunications? – What are some of the common options in telecommunications services? – What is a LAN? What is a network topology? – What is a WAN? How is a WAN different from a LAN and why are WANs used? – What is the role of telecommunications protocols?

Course Topics – cont’d Telecommunications – Chp 3 – cont’d – What is the internet? How does the internet work? How did the Internet evolve? – What is the difference between the internet and the World Wide Web (WWW)? How does the WWW work? – Regarding the Intranet: What is an "intranet"? How is an intranet different from the Internet? Why benefits do intranets offer organizations? What types of "traditional" networking problems may be overcome through the use of an intranet? – Regarding Extranets: What is an "extranet"? Provide an example. How is an extranet different from the Internet? Why are benefits do extranets offer organizations? – What are the primary classifications for e-commerce? Provide examples of each type of e-commerce site.

Course Topics – cont’d Security – Chp 5 – What are the threats that affect information security? For each threat, identify controls that can be used to mitigate risks. – What are the security risks associated with the Internet, intranet, extranet? – Contrast public-key encryption with secret-key encryption. What are the advantages and risks of encryption? – Explain and contrast digital certificates, digital cash, and virtual cash

The Traditional SDLC A waterfall approach (1) Systems Investigation (2) Systems Analysis (3) Systems Design (4) Programming (5) Testing (6) Implementation (7) Operation (8) Maintenance Go Back to a previous Stage or Stop An eight-stage systems development life cycle (SDLC)

Course Topics – cont’d Systems Development Life Cycle – Chps 10 & 11 – Understand the major phases of the Systems Development Life Cycle What is prototyping? How does prototyping affect the SDLC What is outsourcing? How does outsourcing affect the SDLC? What are the advantages and risks associated with outsourcing? Why do companies purchase software applications? How does the decision to purchase a software application affect the SDLC? What are the advantages and risks associated with purchasing applications? What is an application service provider (ASP)? How does the use of an ASP differ from purchasing a software application? What are the advantages and risks associated with using an ASP? What is end-user application development? What are the risks and advantages of end-user development?

Course Topics – cont’d IT Audit – Chp 13 – Distinguish between Auditing with, through and around the computer – What techniques are commonly used to audit around the computer? What techniques are commonly used to audit through the computer?

Course Topics Design a database system to capture business transactions – Tables, Referential Integrity, Validation Controls – Forms and Reports Describe how transactions affect an AIS within a company

Projects Project 1: Team Assignment – Database Design and Normalization Project 2: Individual Assignment – Database Development in Access Project 3: Individual Assignment – Incorporate Internal Controls in Access Project 4: Team Assignment – Control Matrix