...University Abstract As a result of massive accounting scandals in the United States between 2001 and 2002 involving notorious companies, such as Enron, Worldcom, Tyco, and various other recognized entities, President George W. Bush signed into legislation during 2002 the Sarbanes-Oxley Act of 2002. This historic piece of legislation has had a profound effect on the accounting profession. As a result of the act, the PCAOB was created. Since its inception, the PCAOB has created some of the most importing accounting standards that are used every day by auditors of public companies. This paper takes a look at the Sarbanes-Oxley Act of 2002 and its effect on internal controls and small businesses. Also, I will discuss the purpose and specific pronouncements related to accounting information systems and internal controls; as well as the impact of possible future pronouncements. Keywords: Sarbanes-Oxley, PCAOB, Accounting information systems The Sarbanes-Oxley Act and the PCAOB Massive accounting scandals in the United States between 2001 and 2002 involving notorious companies, such as Enron, Worldcom, Tyco, and various other recognized entities, led to the creation of the Sarbanes-Oxley Act of 2002. This historic piece of legislation has had a profound effect on the accounting profession since it was signed into law. As a result of the act, the PCAOB was created. Since its inception, the PCAOB has created some of the most importing accounting standards that are used every day by auditors...
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...Accounting Information Systems Research Paper Abstract The Sarbanes-Oxley Act of 2002 (SOX) was enacted into law in 2002 in the wake of corporation financial reporting scandals involving large publicly held companies. SOX instituted new strict financial regulations with the intent of improving accounting practices and protecting investors from corporate misconduct. SOX requires corporate executives to vouch for the accuracy of financial statements, and to institute and monitor effective internal controls over financial reporting. The cost of implementing an effective internal control structure are onerous, and SOX inflicts opportunity costs upon an enterprise as executives have become more risk adverse due to fears of incrimination. The Public Company Accounting Oversight Board (PCAOB) was created by SOX to oversee the accounting process and dictate independence requirements for auditors and auditing committees. The PCAOB proposed regulations must be approved by the SEC before they are enacted. Since the passage of SOX, the IT department has become critical in designing and implementing the internal controls in company accounting information systems. The Information Technology Governance Institute (ITGI) created a framework called Control Objectives for Information and Related Technology (COBIT) to provide guidance for companies to implement and monitor IT governance. Accounting Information Systems Research Paper The Sarbanes-Oxley Act of 2002 changed the...
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...Accounting Information Systems Research Paper Abstract The Sarbanes-Oxley Act of 2002 (SOX) was enacted into law in 2002 in the wake of corporation financial reporting scandals involving large publicly held companies. SOX instituted new strict financial regulations with the intent of improving accounting practices and protecting investors from corporate misconduct. SOX requires corporate executives to vouch for the accuracy of financial statements, and to institute and monitor effective internal controls over financial reporting. The cost of implementing an effective internal control structure are onerous, and SOX inflicts opportunity costs upon an enterprise as executives have become more risk adverse due to fears of incrimination. The Public Company Accounting Oversight Board (PCAOB) was created by SOX to oversee the accounting process and dictate independence requirements for auditors and auditing committees. The PCAOB proposed regulations must be approved by the SEC before they are enacted. Since the passage of SOX, the IT department has become critical in designing and implementing the internal controls in company accounting information systems. The Information Technology Governance Institute (ITGI) created a framework called Control Objectives for Information and Related Technology (COBIT) to provide guidance for companies to implement and monitor IT governance. Accounting Information Systems Research Paper The Sarbanes-Oxley Act of 2002 changed the...
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...transactions of a business entity in a chronological order. Accounting Accounting is the process of recording, classifying, reporting, analysing, interpreting and communicating of financial information to the stake holders. Accounting is the combination of all the 6 fields while bookkeeping is only a part of the accounting process. Double Entry System According to this system, every business transaction has a two-fold effect and that it affects two accounts in opposite directions. One of the two aspects is the benefit receiving aspect or “incoming aspect” (termed as Debit) and the other is the benefit giving aspect or “outgoing aspect” (termed as Credit). For every transaction, one account is to be debited and another account is to be credited in order to have a complete record of the transaction. The basic principle under this system is that for every debit, there must be a corresponding and equal credit and for every credit there must be a corresponding and equal debit. Following this principle, the arithmetical accuracy of the accounts can be checked by preparing a Trial Balance, where the total of Debits and Credits should tally. It is a scientific system maintaining a complete record of transactions which helps in the ascertainment of profit/loss and financial positionof the business while maintaining the accuracy of accounts Accounting Cycle The entire accounting cycle is based on the double entry system. Once a transaction occurs, it is recorded in the form of a...
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...Bookkeeping and Accounts (City & Guilds Level 2) Course Content: At the end of the course candidates should be able to to do the following at Level 2: * Ledger Accounting: Post ledger transactions, total and balance accounts, bringing down balances: sales ledger; purchase ledger; general ledger. * Control Accounts: Prepare and reconcile control accounts with individual ledger account balances in subsidiary ledgers for: sales ledger control account; purchase ledger control account. * Correction of errors: Identify different types of errors in ledger accounts: incorrect double entries, missing entries, numerical inconsistencies, incorrect calculations. Make appropriate adjustments in the Journal and the respective ledger accounts. Create and clear a suspense account where necessary. * Accounting for capital expenditure and depreciation: Distinguish between capital and revenue expenditure; Record depreciation using: straight line method, reducing balance method. Prepare accounts for depreciation and provision for depreciation. * Year end adjustments: Write off bad debts; Create and increase/reduce the provision for doubtful debts account; Account for accruals and prepayments in ledger accounts; Make appropriate adjustments in the journal; Prepare a trial balance from cash book and ledger balances; Prepare a revised trial balance from one initially drafted incorrectly. * Extended trial balance: Complete an extended trial balance making adjustments...
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...Over the last 500 years, the double-entry system of accounting has provided the accounting profession with a reliable and accurate way of tracking the economic events of companies. However, with the implementation of computer-based accounting systems over the last few decades, event based accounting has gained popularity. The theory behind event based accounting is that each business transaction can be broken down into one, or a combination of three types of events: economic, business, and information. An economic event is one in which the quantity of resources change, such as selling an item or purchasing a service. Events like receiving an invoice from a supplier, or sending out a purchase order to a vendor are examples of business events. They are necessary to the company even though they are not the monetary or physical transactions for goods or services. Tasks like creating reports and inputting new customers are considered information events. Information events provide the necessary data for the economic or business events that transpire. The double-entry system of accounting focuses on taking those separate events and aggregating them into journal entries. By aggregating them, a great deal of the total information of the event is left out. Under an event based accounting system each event is recorded with as much of the information as possible, and then stored in tables of data that allow the user to recall and compile this information into usable reports. This...
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... |Accounting Information Systems I | Copyright © 2009, 2007, 2005, 2004, 2003, 2001 by University of Phoenix. All rights reserved. Course Description This course is designed to provide accounting students with the proper mix of technical information and real-world applications. Areas of study include fundamental concepts and technologies (what computers can do for business), the Internet, intranets, electronic commerce, information systems development, basic project management principles, decision support systems, and the benefits of computer and human synergy. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Bagranoff, N. A., Simkin, M. G., & Strand, C. S. (2008). Core concepts of accounting information...
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...of Business ACC/340 Version 4 Accounting Information Systems I ACC/340 Schedule 10/10/2013 – 11/07/2013 Campus: Puerto Rico Campus Group ID: BA0913RE 3 Credits 36 Hours Copyright © 2009, 2007, 2005, 2004, 2003, 2001 by University of Phoenix. All rights reserved. Course Description This course is designed to provide accounting students with the proper mix of technical information and real-world applications. Areas of study include fundamental concepts and technologies (what computers can do for business), the Internet, intranets, electronic commerce, information systems development, basic project management principles, decision support systems, and the benefits of computer and human synergy. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Bagranoff, N. A., Simkin, M. G., & Strand, C. S. (2008). Core concepts of accounting information systems (10th ed.). New York, NY: John...
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...Accounting Cycle Description Paper Team A ACC/340 Accounting Cycle Description Paper The payroll processing cycle is very time consuming and tedious when done manually. Therefore, the ‘Mom and Pop’s Grocery Store’ has elected to integrate its payroll with a computer software program. With this implementation the payroll process will be more efficient and effective. This paper will explain how the payroll processing cycle for ‘Mom and Pop’s Grocery Store’ integrates onto an enterprise-wide accounting information system. An enterprise-wide accounting information system “focuses on the business process of the organization as a whole” (Bagranoff, Simkin, & Stand, 2008, p. 7). Business process reengineering (BPR) is a total re-design of processes used by an organization that are no longer effective or efficient (Braganoff et al, 2008, p. 163). The ‘Mom and Pop’s Grocery Store’ will use BPR to update the old payroll process to the new enterprise-wide AIS system. The Accounting Information System (ASI) is a system that is put in place for a company to maintain its accounting system. The input devices commonly associated with AIS systems include: “standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce” (Business Glossary, p. 1, 2005, 2000, 1995, 1987). In addition, many financial systems come with Internet settings...
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...Information System Proposal BIS / 220 5 September 2012 TABLE OF CONTENTS 1. Introduction 2. Scenario 3. Accounting Information System 4. Finance Information System 5. POM Information System 6. Marketing Information System 7. Human Resource Information System 8. Reference SCENARIO: I and my business partner are considering starting a small, brick & mortar, nostalgic record store. My friend does not have much experience with information systems or technology, and needs a basic understanding of the different types of information systems available to businesses. In this paper I will give a proposal of the types of information systems that would work well for my business, and their benefits and drawbacks. 1. ACCOUNTING INFORMATION SYSTEM When you hear the word accounting you immediately think of numbers, various paper ledgers, journals and long hours of work. That was years ago, today business owners and managers review their company's financial information using a new cost efficient technique that has improved financial information reporting. The Nostalgic Record Company will use automated function computers servers and intranets for electronically processing financial information. The system will allow our company to collect and gather financial...
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...COURSEWORK – ASSIGNMENT 1 |Year |TWO/2015 |MONTH |FEB 2015 | |Subject |FIN 3023 ACCOUNTING INFORMATION SYSTEMS | |Weight |20% |Submission Date |18TH MAR 2015 | |Student Name | |Student ID | | Regulations A. Late Submission • A 10% deduction per day of total coursework marks (excluding weekends and public holidays). • Late submission between 5 to 10 days, results in a 50% deduction of total coursework marks. • Late submission past 10 days results in an automatic 0% for coursework and the student will be barred from the final examination. B. Deliverables Students must submit all materials supporting their coursework listed in the deliverable section. ▪ The coursework must be done INDIVIDUALLY and must be entirely your own work. Please make sure that you are aware of the rules concerning plagiarism. If you are unclear about them, please consult your program coordinator/lecturer. ▪ The coursework should exhibit formal research skills i.e. with a table of content, proper citations, references, and appendixes. ▪ The coursework write...
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...BSA310 Week 3 Supporting Activity With the topic of accounting and finance it is important for business owners to know and understand the value of properly accounting for their cash flow, assets, and liability. This is especially true for new business owners who are just getting started. Accounting is one of the most important functions of a business because if done right the company will do fine and grow, but if done wrong or poorly, then the company will be in a virtual tailspin that will send the company out of business or even into bankruptcy. With accounting being such an important entity there are many options for an owner to choose from when it comes to accounting. Most options nowadays are accounting software applications of some kind, either web-based or stand-alone. However, some small businesses are still doing hard copy paper accounting, which is much more difficult in this day in age. Owner’s Equity One of the first concepts a new owner must understand is how he can determine his owner’s equity. This is a pretty simple business equation that can be best explained to be like the hands of justice, where they always need to be balanced. What happens on one end needs to happen on the other end to stay balanced. The equation is simply assets=liability+owners equity. This equation tells the owner where the company stands. The assets are what the company physically owns like work trucks and how much product. Where the liability is how much the company owes to place...
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...Accounting Information Systems; Riordan Manufacturing Accounting Information Systems; Riordan Manufacturing Looking at the company’s information page, you can observe almost anything that goes on within the company. With the shire size of a global company such as this one, you know that they have to use a lot of different systems just to remain profitable. Their web site states that “Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China”. From that information you can see that there are locations in San Jose, California, Albany, Georgia, Pontiac, Michigan, and Hangzhou, China. That many different locations require the company to use a comprehensive system just so they can communicate with each other, this is needed mostly to make sure each location is doing what it needs to, but also to keep productivity companywide at its peak. Looking at it that way there’s a need to upgrade the systems as business evolves, but the decision needs to be made at the appropriate time. The first system they have in place is called HRIS, the company profile describes the system as keeping...
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...CFOs role in the diffusion of management control systems 29 May 2015 CFOs role in the diffusion of management control systems Abstract Purpose – this paper aims to review the literature on CFOs and their role in diffusing management control systems. Design/methodology/approach – this paper identifies 41 studies from leading academic journals and evaluates 7 of these studies, which deal with CFOs role in diffusing management control systems. The author analyze both research design and actual findings in the field. Findings – The analysis finds that even though characteristics such as education and tenure is shown to have an effect on the innovation of management control systems, there are also contradictions on which characteristics have a significant effect which opens for further research on the subject. Originality/value – the author synthesize the findings and derive a future research agenda. Keywords – CFO, management control systems, upper echelons, literature review Paper type – literature review 1. Motivation Recent papers (Burkert and Lueg, 2013; Hiebl, 2014) suggests that CFOs have become more powerful in recent years and that they are responsible for the diffusion of management control systems across organizations. To examine the role of the CFO in diffusing management control systems, I review literature with a focus on upper echelon characteristics of CFOs and management control systems, which will allow me to clarify the influence CFO characteristics...
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...LP1 Assignment: Accounting System Structure End of Chapter - Question #1 A.) An accounting information system is a computer-based method for tracking accounting activity storage by collecting the data, processing it, and reporting the information back to use internally and externally within a company. B.) The FASB conceptual framework is a guide for the accounting principles that I follow on a daily basis in every class I am taking. The FASB works as more of a building block for the AIS. The constraints, principles, assumptions, qualitative characteristics, elements of financial statements, and objective to financial reporting is what builds the AIS. Every business works with an AIS, you just may not see it. Any place you go to has a working AIS that functions from the FASB conceptual framework. With that said, the financial reporting is then consistent. This gives way for faithful representation in an organization. C.) Inputs - revenues, receipts, checks, payroll, etc.. Processes - how the AIS is going to be processes the inputs into vital information. Outputs - financial statements for internal and external reporting purposes. Storage - whether it is paper form, electronically, or both, it is easily able to be pulled up for analysis if a problem should arise. Also, it includes information for inventory, customers, and vendors. Lastly, Internal Controls - having daily backups of data and making sure there is separation of duties. One person working with processes the...
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