Solutions Manual, Accounting Information Systems

1 Solutions manual Solutions manual , Accounting Information Systems SEVENTH EDITION James A. Hall _____ Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States 2011, 2008 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, Information networks, or Information storage and retrieval Systems , except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher except as may be permitted by the license terms below.

2 For product Information and technology assistance, contact us at Cengage Learning Academic Resource Center, 1-800-423-0563. For permission to use material from this text or product, submit all requests online at Further permissions questions can be emailed to ISBN-13: 978-1-4390-7912-6 ISBN-10: 1-4390-7912-9 South-Western Cengage Learning 5191 Natorp Boulevard Mason, OH 45040 USA Cengage Learning is a leading provider of customized learning Solutions with office locations around the globe, including Singapore, the United Kingdom, Australia, Mexico, Brazil, and Japan. Locate your local office at: Cengage Learning products are represented in Canada by Nelson Education, Ltd.

3 For your course and learning Solutions , visit Purchase any of our products at your local college store or at our preferred online store NOTE: UNDER NO CIRCUMSTANCES MAY THIS MATERIAL OR ANY PORTION THEREOF BE SOLD, LICENSED, AUCTIONED, OR OTHERWISE REDISTRIBUTED EXCEPT AS MAY BE PERMITTED BY THE LICENSE TERMS HEREIN. READ IMPORTANT LICENSE Information Dear Professor or Other Supplement Recipient: Cengage Learning has provided you with this product (the Supplement ) for your review and, to the extent that you adopt the associated textbook for use in connection with your course (the Course ), you and your students who purchase the textbook may use the Supplement as described below.

4 Cengage Learning has established these use limitations in response to concerns raised by authors, professors, and other users regarding the pedagogical problems stemming from unlimited distribution of Supplements. Cengage Learning hereby grants you a nontransferable license to use the Supplement in connection with the Course, subject to the following conditions. The Supplement is for your personal, noncommercial use only and may not be reproduced, posted electronically or distributed, except that portions of the Supplement may be provided to your students IN PRINT FORM ONLY in connection with your instruction of the Course, so long as such students are advised that they may not copy or distribute any portion of the Supplement to any third party.

5 Test banks and other testing materials may be made available in the classroom and collected at the end of each class session, or posted electronically as described herein. Any material posted electronically must be through a password-protected site, with all copy and download functionality disabled, and accessible solely by your students who have purchased the associated textbook for the Course. You may not sell, license, auction, or otherwise redistribute the Supplement in any form. We ask that you take reasonable steps to protect the Supplement from unauthorized use, reproduction, or distribution. Your use of the Supplement indicates your acceptance of the conditions set forth in this Agreement.

6 If you do not accept these conditions, you must return the Supplement unused within 30 days of receipt. All rights (including without limitation, copyrights, patents, and trade secrets) in the Supplement are and will remain the sole and exclusive property of Cengage Learning and/or its licensors. The Supplement is furnished by Cengage Learning on an as is basis without any warranties, express or implied. This Agreement will be governed by and construed pursuant to the laws of the State of New York, without regard to such State s conflict of law rules. Thank you for your assistance in helping to safeguard the integrity of the content contained in this Supplement.

7 We trust you find the Supplement a useful teaching tool. Printed in the United States of America 1 2 3 4 5 6 7 13 12 11 10 iii Table of Contents Chapter 1 THE Information system : AN ACCOUNTANT S Chapter 2 INTRODUCTION TO TRANSACTION PROCESSING ..19 Chapter 3 ETHICS, FRAUD, AND INTERNAL Chapter 4 THE REVENUE Chapter 5 THE EXPENDITURE CYCLE PART I: PURCHASES AND CASH DISBURSEMENTS PROCEDURES ..131 Chapter 6 THE EXPENDITURE CYCLE PART I: PAYROLL PROCESSING AND FIXED ASSETS PROCEDURES ..191 Chapter 7 THE CONVERSION Chapter 8 FINANCIAL REPORTING AND MANAGEMENT REPORTING Systems ..269 Chapter 9 DATABASE MANAGEMENT Systems ..293 Chapter 10 THE REA APPROACH TO DATABASE MODELING.

8 329 Chapter 11 ENTERPRISE RESOURCE PLANNING Systems ..343 Chapter 12 ELECTRONIC COMMERCE Systems ..365 Chapter 13 MANAGING THE Systems DEVELOPMENT LIFE CYCLE ..385 Chapter 14 CONSTRUCT, DELIVER, AND MAINTAIN Systems PROJECTS ..397 Chapter 15 IT CONTROLS PART I: SARBANES-OXLEY AND IT GOVERNANCE ..421 Chapter 16 IT CONTROLS PART II: SECURITY AND ACCESS ..441 Chapter 17 IT CONTROLS PART III: Systems DEVELOPMENT, PROGRAM CHANGES, AND APPLICATION CONTROLS ..457 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 1 THE Information system : AN ACCOUNTANT S PERSPECTIVE REVIEW QUESTIONS 1.

9 Operational, operations management, middle management, and top management. Horizontal flows support operation-level tasks. The Information is highly detailed about the day-to-day operations. Vertical flows distribute summarized Information to managers at all levels, and this Information flows upward. Instructions, quotas, and budgets also flow downward. 2. Natural Systems stem from the atom, while artificial Systems are put together by humans. 3. Multiple components, relatedness, subsystems, purpose, and interdependency. 4. system decomposition is the process of dividing the system into smaller subsystem parts, while interdependency is the interaction between the subsystems.

10 They are related by the degree and nature of the interaction between the subsystems. If a vital subsystem fails, the entire system will most likely fail. 5. Data are facts that are collected in a raw form and made meaningful through processes such as sorting, aggregating, classifying, mathematically manipulating, and summarizing. The meaningful data is considered to be Information . 6. AISs process financial transactions and certain nonfinancial transactions that directly affect the processing financial transactions. The external financial reporting documents of AIS are subject to legal and professional standards. Consequently, management and accountants have greater legal responsibility for AIS applications than for MIS applications.