Accounting Information Systems

Leslie D. Turner is retired from his position as Dean and a professor of accounting at Palm Beach Atlantic University. He previously taught at Northern Kentucky University and the University of North Carolina at Greensboro. He earned a DBA in accounting from the University of Kentucky, an MBA from Wheeling Jesuit University, and a BBA in accounting from Ohio University. Andrea B. Weickgenannt is an assistant professor in the Department of Accountancy at Xavier University. She earned a DBA in Accounting from Kennesaw State University and also holds an MBA from the University of Maryland and a BBA from the University of Cincinnati. She is a Certified Public Accountant (CPA) and has over 13 years of experience with Ernst & Young LLP (Cincinnati and Baltimore). Mary Kay Copeland, PhD, MBA, CPA, is the director of a Microsoft Dynamics practice with Wipfli, LLP and a professor of accounting and enterprise systems at Palm Beach Atlantic University. She previously taught at St. John Fisher College, the University of Buffalo, and Bowling Green State University. She earned a BS/MBA in Accounting from the University of Buffalo and a PhD from Regent University. Dr. Copeland is a Certified Public Accountant and has over 30 years of professional experience including 5 years with KPMG and 20 years in consulting and CFO positions where she implemented ERP and Accounting Information Systems and assisted with business process improvements at many companies.

About the Authors v

Preface vii

Acknowledgments xi

To the Students xiii

List of Real-World Examples xv

Module 1: Introduction Defines business processes, AIS, and all foundational concepts. This module provides the knowledge building blocks to support the remaining chapters.

1 Introduction to AIS 1

2 Foundational Concepts of the AIS 34

Module 2: Control Environment Describes the proper control environment to oversee and control processes.

3 Fraud, Ethics, and Internal Control 72

4 Internal Controls and Risks in IT Systems 110

5 IT Governance 157

6 Enterprise Resource Planning (ERP) Systems 192

7 Auditing Information Technology-Based Processes 224

Module 3: Business Processes The sets of business processes and the internal controls in organizations. With process maps, document flowcharts, and data flow diagrams, the core business processes are described and the necessary controls to manage risk are discussed.

8 Revenue and Cash Collection Processes and Controls 264

9 Expenditures Processes and Controls—Purchases 323

10 Expenditures Processes and Controls—Payroll and Fixed Assets 383

11 Conversion Processes and Controls 428

12 Administrative Processes and Controls 461

Module 4: It Infrastructure To Enable Processes The hardware, software, and systems that support business processes.

13 Data and Databases 490

14 E-Commerce, E-Business, and Digital Transformation 524

Index I-1