Description
Book SynopsisTable of ContentsFROM THE AUTHORS vi
ABOUT THE AUTHORS vii
OUR APPROACH viii
PREPARING FOR THE CPA EXAM xv
ACKNOWLEDGEMENTS xvi
Part I: Foundations of AIS
1 Accounting as Information
1.1 Why Is Accounting Information Important? 1-2
1.2 How Have Accounting Information Systems Evolved? 1-12
1.3 How Does Management Use Information? 1-18
1.4 What Is the Relationship Between Accounting and Data Analytics? 1-23
2 Risks and Risk Assessments
2.1 How Do We Understand Risk? 2-2
2.2 What Are the Types of Risks? 2-7
2.3 How Do We Prioritize Risk? 2-13
2.4 How Do We Respond to Risk? 2-18
3 Risk Management and Internal Controls
3.1 How Do Internal Controls Mitigate Risk? 3-2
3.2 How Are Controls Classified? 3-8
3.3 How Do We Assess Internal Controls? 3-16
3.4 Why Are Internal Control Frameworks Important? 3-21
4 Software and Systems
4.1 How Do Systems Capture and Process Data? 4-2
4.2 How Do Startups and Small Businesses Use Technology? 4-10
4.3 What Are the Characteristics of Information Systems for Growing Companies? 4-15
4.4 Why Are Enterprise Resource Planning (ERP) Systems Considered Ideal? 4-22
5 Data Storage and Analysis
5.1 What Is Data? 5-2
5.2 How Is Data Stored? 5-8
5.3 What Makes Data “Big Data”? 5-11
5.4 How Do Accounting Professionals Use Data? 5-15
6 Designing Systems and Databases
6.1 How Are Systems Developed? 6-2
6.2 Which Methodology Should Be Used? 6-9
6.3 What Type of Database Should Be Used? 6-15
6.4 How Are Relational Databases Designed? 6-20
6.5 How Do We Interact with Data in a Database? 6-29
7 Emerging and Disruptive Technologies
7.1 How Do Companies Approach Emerging and Disruptive Technologies? 7-2
7.2 How Do Disruptive Technologies Provide Business Opportunities? 7-7
7.3 How Does Robotic Process Automation (RPA) Benefit Accounting Professionals? 7-12
7.4 What Is Blockchain? 7-23
7.5 Why Should Accountants Care About Blockchain? 7-30
8 Documenting Systems and Processes
8.1 Why Do We Document Systems and
8.2 How Do We Know Which Type of Documentation to Use? 8-6
8.3 How Do Flowcharts Illustrate Systems or Business Processes? 8-12
8.4 How Do Data Flow Diagrams Show Information Flow? 8-19
Part II: Business Processes
9 Human Resources and Payroll Processes
9.1 How Are Human Resources and Payroll Related? 9-2
9.2 How Are New Employees Hired? 9-6
9.3 What Happens When an Employee Is Terminated? 9-13
9.4 How Do We Compensate Employees for Their Work? 9-19
9.5 How Can Human Resources and Payroll Data Be Used to Identify Risks? 9-28
10 Purchasing and Payments Processes
10.1 What Is the Relationship Between Purchasing, Inventory Management, and Supply Chain Management? 10-2
10.2 How Are Inventory and Other Goods and Services Purchased? 10-9
10.3 What Makes Fixed Assets Unique to Purchasing and Payments? 10-17
10.4 How Do We Evaluate the Credit Payments Process? 10-24
10.5 How Does the AIS Capture Purchasing and Payments Data? 10-28
11 Conversion Processes
11.1 What Is the Relationship Between Conversion Processes, Inventory, and Supply Chain Management? 11-2
11.2 Why Is Cost Accounting Important to the Accounting Information System? 11-14
11.3 What Is Digital Manufacturing? 11-22
11.4 How Is Data Collected and Used? 11-26
14.5 How Do We Make Changes to Systems? 14-27
12 Marketing, Sales, and Collections Processes
12.1 How Do Marketing, Sales, and Collections Complete the Business Model? 12-2
12.2 Why Are Business Credit Sales More Complex Than Consumer Cash Sales? 12-12
12.3 How Do We Ensure That Revenue Is Correctly Recognized? 12-24
12.4 How Are Customer Payments Collected? 12-29
12.5 Which Reports and Analytics Give Insights into These Processes? 12-36
13 Financial Reporting Processes
13.1 How Is an AIS Involved in Financial Reporting? 13-2
13.2 How Are Financial Statements Generated by an AIS? 13-6
13.3 How Does XBRL Create Efficient Financial Reporting? 13-16
13.4 Are There Other Important Financial Accounting Reports? 13-20
13.5 How Is Financial Reporting Data Used for Insights and Decision Making? 13-25
Part III: Risk Assurance
14 Information Systems and Controls
14.1 What Framework Can We Use to Mitigate Risk Around Our Systems? 14-2
14.2 How Do We Decide Who Can Access Systems? 14-6
14.3 How Do We Physically Protect Our Systems? 14-13
14.4 How Do We Keep Our Systems Running? 14-18
15 Fraud
15.1 What Is Fraud? 15-2
15.2 How Do We Manage Fraud Risk? 15-8
15.3 How Does Asset Misappropriation Result in Fraud? 15-14
15.4 What Are the Characteristics of Financial Statement Fraud? 15-22
16 Cybersecurity
16.1 How Is Cybersecurity Relevant to the Accounting Profession? 16-2
16.2 How Do Cybercriminals Plan Attacks? 16-8
16.3 How Do Hackers Gain Unauthorized Access? 16-15
16.4 How Do Attackers Shut Down a System? 16-21
Part IV: Technology and Analytics
17 Data Analytics
17.1 How Is Data Analytics Changing the Accounting Profession? 17-2
17.2 How Do We Explore a Data Set? 17-7
17.3 How Do We Investigate Interesting Occurrences in a Data Set? 17-13
17.4 Which Analytics Techniques Are Gaining Popularity in the Accounting Profession? 17-18
18 Data Visualization
18.1 How Does Visualization Tell a Story with Data? 18-2
18.2 What Are the Fundamentals of Design? 18-7
18.3 How Do Visualizations Help Us Explore Data? 18-13
18.4 When Should Explanatory Visualizations Be Used for Storytelling? 18-25
GLOSSARY G-1
INDEX I-1
Online Chapter
19 Audit Assurance
19.1 What Is the Difference Between Internal Audit and External Audit? 19-2
19.2 How Are Internal Audits Performed? 19-8
19.3 How Is Testing Performed? 19-13
19.4 What Happens After an Audit? 19-21
