PENGANTAR PERANCANGAN SISTEM AKUNTANSI Pertemuan 01 Matakuliah: F0642 / Perancangan Sistem Akuntansi Tahun: 2009

Bina Nusantara 2 Accounting Systems and Subsystems A system is a set of interdependent elements that together accomplish specific objectives. A subsystem is the interrelated parts that have come together, or integrated, as a single system, which we have named System 1.0.

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4 Comparison of Manual and Automated Systems

Bina Nusantara Information is data presented in a form that is useful in a decision making activity. The information has value to the decision maker because it reduces uncertainty and increases knowledge about a particular area of concern. Data are facts or figures in raw form. Data represent the measurements or observations of objects and events. To become useful to a decision maker, data must b transformed into information. DATA VERSUS INFORMATION 5

Bina Nusantara Input  Data Output  Information Transforming Data Into Information 6

Bina Nusantara Qualities of Information To provide output useful for assisting managers and other users of information, an information system must collect data and convert them into information that possesses important qualities. The effectiveness of information must be evaluated in relation to the purpose to be served (decision making). Effective information is information that is useful for the decision to be made

Bina Nusantara A Hierarchy of Information Qualities

Bina Nusantara A Hierarchy of Information Qualities Understandability : enables users to perceive the information’s significance. Valued from the user’s point of view, understandable information is presented in a form that permits its application by the user in the decision making situation at hand. Information capable of making a difference in a decision making situation by reducing uncertainty or increasing knowledge for that particular decision has relevance. Information that is available to a decision maker before it lses its capacity to influence a decision has a timeliness. Lack of timeliness can make information irrelevant.

Bina Nusantara A Hierarchy of Information Qualities Predictive value and feedback value improve decision maker’s capacity t predict, confirm, or correct earlier expectations. Information can have both types of value, since knowledge of the outcomes of actions already taken will generally improve a dicion maker’s abilities to predict the results of similar future actions. If there is a high degree of concensus about the information among independent measurers using the same measurement methods, the information has verifiability.

Bina Nusantara A Hierarchy of Information Qualities Neutrality or freedom from bias means that the information is not bias. Bias is tendency of information to fall more often on one side than on the other of the object or event that it represent. Comparability is the information quality that enables users to identify similarities and differences in two pieces of information. If we can compare information about two similar objects or events, the information is comparable. If on the other hand, we can compare information about the same object or event collected at two points in time, the information is consistent.

Bina Nusantara A Hierarchy of Information Qualities Information about actual events and actual objects has validity. For example, suppose that the IS records a sale and an account receivable for a shipment that didn’t occur. The recorded information describes a fictitious event; therefore, the information lacks validity. Accuracy is the correspondence or agreement between the information and the actual events or objects that the information represents. Completeness is the degree to which information includes data about every relevant object or event necessary to make a decision.

Bina Nusantara A Special journal is used to record similar types of transactions. Examples would be all sales of merchandise on account, or all cash receipts. What special journals a company uses depends largely on the types if transactions that occur frequently. If a transaction cannot be recorded in a special journal, it is recorded in the general journal. Correcting, adjusting, and closing entries are recorded in the general journal. Special journal permit greater division of labor because several people can record entries in different journal at the same time. The use special journal reduces the time needed to complete the posting process. Special Journal 13

Bina Nusantara Types of Special Journal Sales journal Cash receipts journal Purchases journal Cash payment journal

Bina Nusantara Sales Journal Sales journal  is used to record sales merchandise on account. Cash sales of merchandise are entered in the cash receipt journal. Credit sales of asset other than merchandise are entered in the general ledger. Layout :

Bina Nusantara Cash Receipts Journal Cash receipts journal  the most common types of cash receipts are cash sales or merchandise and collections of accounts receivable. Layout :

Bina Nusantara All purchases of merchandise on account are recorded in the purchases journal. Each entry in this journal results in a debit to merchandise inventory and a credit to accounts payable. Layout Purchases Journal 17

Bina Nusantara All disbursements of cash are entered in a cash payment journal. Entries are made from prenumbered checks. Because cash payments are made for various purposes, the cash payments journal has multiple columns. Layout Cash Payments Journal 18

Bina Nusantara An accounting system should be designed to provide information on the amounts due from various customers (account receivable) and amounts owed to various creditors (account payable). A separate account for each customer and creditor could be added to the ledger. However, as the number of customers and creditors increases, the ledger becomes awkward to use when it includes many customers and creditors. Subsidiary Ledger 19

Bina Nusantara A large number of individual accounts with a common characteristic can be grouped together in a separate ledger called a subsidiary ledger. The primary ledger, which contains all of the balance sheet and income statement accounts, is then called the general ledger. Definition 20

Bina Nusantara Each subsidiary ledger is represented in the general ledger by a summarizing account, called a controlling account. The sum of the balances of the accounts in subsidiary ledger must equal the balance of the related controlling account. Definition 21

Bina Nusantara Two common subsidiary ledgers are : 1.The account receivable (or customers’) subsidiary ledger, which collects transaction data of individual customers. 2.The accounts payable (or creditors’) subsidiary ledger, which collects transaction data of individual creditors Two common subsidiary ledgers 22

Bina Nusantara The Account Receivable (or customers’) Subsidiary Ledger The individual accounts with customers are arranged in alphabetical order in a subsidiary ledger ca..ed the accounts receivable subsidiary ledger or customer ledger. The controlling account in the general ledger that summarizes the debits and credits to the individual customer accounts is Accounts Receivable.

Bina Nusantara The individual accounts with creditors are arranged in alphabetical order in a subsidiary ledger called the accounts payable subsidiary ledger, or creditor ledger. The related controlling account in the general ledger is Accounts Payable. The Accounts Payable (or creditors’) Subsidiary Ledger 24

Bina Nusantara Example The example is based on the transactions listed below

Bina Nusantara Example The total debits ($12.000) and credits ($8.000) in Account Receivable in the general ledger are reconciliable to the detailed debits and credits in the subsidiary accounts. Also the balance of $4.000 in the control account agrees with the total of the balances in the individual accounts (Aaron Co. $ Branden Inc $0 + Caron Co. $2.000) in the subsidiary ledger.

Bina Nusantara Advantages of Subsidiary Ledgers Subsidiary ledgers have several advantages. They : 1.Show transactions affecting one customer or one creditor in a single account, thus providing up-to-date information n specific account balances. 2.Free the general ledger of excessive details. As a result, a trial balance of the general ledger does not contain vast numbers of individual account balances. 3.Help locate errors in individual accounts by reducing the number of accounts in one ledger and by using control accounts. 4.Make possible a division of labor in posting. One employee can post to the general ledger while someone else posts to the subsidiary ledger.

Bina Nusantara Definition of Internal Control From SAS 78 (1995) - adopted COSO definition: –INTERNAL CONTROL is a process-effected by a an entity’s board of directors, management, and other personnel-designed to provide reasonable assurance regarding the achievement of objectives in the following categories: Effectiveness & efficiency of operations Reliability of financial reporting Compliance with applicable laws & regulations.

Bina Nusantara Five Interrelated Components of Internal Control 1. Control environment- tone at the top 2. Risk assessment - identification/analysis of risks 3. Control activities - policies and procedures 4. Information & communication - processing of info in a form and time frame to enable people to do their jobs 5. Monitoring - process that assess quality of internal control over time

Bina Nusantara Business Process Control Goals Control Goals - ends to be obtained –Control goals of operations processes –Control goals of information processes –See Table 7.1 Control Goals (page 244)

Bina Nusantara Control Goals of the Operations Process Ensure effectiveness of operations Ensure efficient employment of resources Ensure security of resources

Bina Nusantara Control Goals of Operations Process Ensure effectiveness of operations –A measure of success in meeting one or more operations process goals which reflect the criteria used to judge the effectiveness of various business processes –Ex. Deposit cash receipts on the day received Ensure efficient employment of resources –A measure of the productivity of the resources applied to achieve a set of goals –Ex. What is the cost of people, computers, and other resources to deposit cash on the day received Ensure security of resources –Protecting an organization’s resources from loss, destruction, disclosure, copying, sale, or other misuse –Ex. Are cash and information resources available when required? –Are they put to authorized use?

Bina Nusantara Control Goals of the Information Process For business event inputs, ensure –Input validity –Input completeness –Input accuracy For master data, ensure –update completeness –update accuracy

Bina Nusantara Control Goals of Information Process Input validity –Input data approved and represent actual economic events and objects –Ex. Are all cash receipts input into the process and supported by customer payments Input completeness –Requires that all valid events or objects be captured and entered into the system –Ex. Are all valid customer payment captured on a customer remittance advice (RA) and entered into the process? Input accuracy (correct data entered correctly) Input Accuracy –Requires that events be correctly captured and entered into the system –Ex. Is correct payment amount and customer number on the RA? –Ex. Is the correct payment amount and customer number keyed into the system?

Bina Nusantara Control Goals of Information Process Update completeness –Requires all events entered into the computer are reflected in their respective master data –Ex. Are all input cash receipts recorded in the AR master data? Update accuracy –Requires that data entered into a computer are reflected correctly in their respective master data –Ex. Are all input cash receipts correctly recorded in the AR master data?

Bina Nusantara Business Process Control Plans Business Process Control Plans - reflect information processing policies and procedures that assist in accomplishing control goals –The Control Environment The fact that the control environment appears at the top of the hierarchy illustrates that the control environment comprises a multitude of factors that can either reinforce or mitigate the effectiveness of the pervasive and application control plans. –Pervasive control plans also relate to a multitude of goals and processes Like the control environment, they provide a climate or set of surrounding conditions in which the various business processes operate. They are broad in scope and apply equally to all business processes, hence they pervade all systems. –Business process control plans relate to those controls particular to a specific process or subsystem, such as billing or cash receipts, or to a particular technology used to process the data.

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Other Classifications of Control Plans Preventive Controls: Issue is prevented from occurring – cash receipts are immediately deposited to avoid loss Detective Controls: Issue is discovered – unauthorized disbursement is discovered during reconciliation Corrective Controls: issue is corrected – erroneous data is entered in the system and reported on an error and summary report; a clerk re-enters the data

Bina Nusantara A systems flowchart is a graphical representation of information processes (activities, logic flows, inputs, outputs, and data storage), as well as the related operations processes (entities, physical flows, and operation activities). Containing manual and computer activities, the systems flowchart presents a logical and physical rendering of the who, what, how, and where of operations and information processes. Reading Systems Flowcharts 39

Bina Nusantara Systems Flowcharting Symbols Standard Flowchart Symbols