Solution Manual for Core Concepts of Accounting Information Systems

2-1. An AIS is best viewed as a set of interacting components that must all work together to accomplish data gathering, storage, processing, and output tasks. For example, computer hardware runs software, and each would be "lost" without the other. Similarly, software must have data to provide useful information. And all these components would be useless without people and procedures to maintain them, gather them, run them, and use them properly. 2-2. An understanding of information technology (IT) is important to accountants for many reasons. Some examples: a) Much of today's accounting tasks are performed with computers. Thus, it is essential that the modern accountant possess a basic understanding of a computer's functions, capabilities, and limitations. b) Accountants often help clients make hardware and software decisions. A knowledge of IT concepts is critical to these efforts. c) Accounting information systems that are computerized must still be audited. It is impossible to audit such systems without a firm understanding of IS concepts. d) Accountants are often asked to sit on evaluation committees when changes to existing accounting systems are contemplated. An understanding of how a computer operates enables the accountant to participate more intelligently in such committees. e) Accountants are often asked to assist in the design of new computerized accounting information systems. Computer technology often plays an important role in this design work. f) Most accounting systems require controls to assure the accuracy, timeliness, and completeness of the information generated by such systems. An understanding of how computer technology contributes to these objectives, and also how computer technology can thwart these objectives, enables the accountant to evaluate computer controls in an automated accounting environment. g) Those accountants who understand how to use computer hardware and software will have the easiest time in performing such tasks as auditing, budgeting, database use, and so forth. Thus, the more accountants understand about information technology, the easier it is to get hired, noticed, and/or promoted. h) A great deal of accounting data are gathered, transmitted, processed, and distributed via the Internet. A fundamental understanding of the information technology that drives these activities is therefore essential to the accountants that help perform these activities. 2-3. Data transcription refers to the transformation of data from source documents into machine-readable "computerized" input. Data transcription is unnecessary in manual accounting information systems because there is no computer. However, data transcription is critical to those computerized accounting information systems that collect data with manually-prepared source documents. Data entry personnel typically transcribe data by copying them onto computerreadable media such as CDs, or more commonly, keying data directly into computers (e.g., when a bank clerk helps a customer make a deposit). Thus, data transcription is usually labor intensive and therefore costly. Data transcription also has the potential to insert errors into data and/or to delay or “bottle-neck” operations. Designers of effective accounting information systems are willing to incur such costs because the benefits of the computerized processing from these systems make them cost-effective. However, data-preparation time and costs can be saved, and transcription delays avoided, if an AIS gathers data that are already in machine readable form (e.g., through automatic tag readers, bar codes, or magnetized-strip cards). 2-4. Computer input equipment includes computer keyboards, computer mice, bar code readers, POS devices, MICR readers, OCR readers, magnetic strip readers, and such specialized microcomputer input devices as computer mice, joysticks, web cams, and microphones. A growing amount of accounting data is also now input via mobile devices such as cell phones and PDAs. The chapter describes the functioning of each of these devices in detail. 2-5. This question asks students to voice their personal opinions about redlight cameras—the ones that automatically issue traffic tickets when drivers run red lights. This question should therefore generate lively discussion. Many drivers hate them—for example, arguing that winter conditions made it difficult to stop or that such systems are more motivated by ticket revenues than by concerns for safety. Local government officials typically argue the opposite—i.e., that such systems merely enforce driving laws already on the books, serve a safety function, and save local residents money by generating revenues that could otherwise only be raised by other taxes. 2-6. The three components of the central processing unit are: (1) primary memory, (2) arithmetic/logic unit, and (3) control unit. As its name suggests, the primary memory of the CPU temporarily stores data and programs for execution purposes. The arithmetic-logic units of most central processors have special-purpose storage memories called registers that perform arithmetic operations (such as addition, subtraction, multiplication, division and exponentiation) and logical operations (such as comparisons and bit-manipulating functions). Finally, the control sections of central processing units act as an overseer of operations, interpreting program instructions and supervising their execution.