1. ACTG 313 September 14, 2015

2. Self-Assessment 5

4. -OK- does not mean “okay”.

7. Data Organization Business Activity Data Transmission Query Data Capture Formatting/PresentationInformation Selection Storage User

8. Data Organization Business Activity Data Transmission Query Data Capture Creating the Report Storage User Information

9. Data Organization Business Activity Data Transmission Query Data Capture Formatting/Presentation Selection Storage User Information

10. The Accounting Information System is responsible for capturing, transporting, organizing, storing, retrieving, formatting and presenting the data so that it ends up as usable information reported to those who need it. Practically everyone in the organization uses the Accounting Information System.

11. Data Organization Business Activity Data Transmission Query Data Capture Formatting/PresentationReport Selection Storage User

12. noun

15. Data Organization Business Activity Data Transmission Query Data Capture Formatting/Presentation Selection Storage User Information

16. Who accounts for the inventory spoilage? How do they do it? Who accounts for damage in forklift accident? Who should be notified when a spare part is taken from the parts storeroom and put in service? How does the gate guard know to expect a truck? Who provides the truck seal number to the customer?

17. Who credits the receivable when we file an insurance claim? Who makes the entry to record unearned revenue? How do we ensure that customer payments all actually make it all the way to the bank? Who handles the errors on a customer’s bill?

22. Who?

23. Where?

24. noun verb

28. Data Flow Diagram (DFD) shows data flow, but does not give much information about activities, assignments, chronological sequence, job responsibilities, documentation, etc.

29. Entity-Relationship (E-R) Diagram shows specific data elements, cardinalities, and other essential information for database creation… but still gives no information about activities, assignments, chronological sequence, job responsibilities, documentation, etc.

30. Business Process Diagram (BPD) Similar to a flowchart, but (originally) used only 2-3 symbols. Relies on extensive text within the symbols to explain what’s happening. Has been revised to use several “versions” of the symbols, and now is more complicated than flowcharting.

31. Flowcharting Uses symbols to represent: –People performing job titles/responsibilities –Outside entities, banks, vendors, trucking cos. –Processes, Operations, and Activities –Decision points, logic branches –Computer input, output, transmission –Storage: online, offline, and physical –Documents: online and paper

44. Flowcharting Uses symbols to represent: –People performing job titles/responsibilities –Outside entities, banks, vendors, trucking cos. –Processes, Operations, and Activities –Decision points, logic branches –Computer input, output, transmission –Storage: online, offline, and physical –Documents: online and paper

45. Flowcharting Uses symbol position to represent relationships: chronological, physical, etc. Uses arrows to denote direction of data/information flow

46. When Done Correctly, Flowcharting… Shows the business activities generating the data, and who is taking part in that activity. Shows where (within the organization) the data is captured, and who (or what process) is capturing data. Shows where the data is transmitted (from and to). Shows where the data is organized and stored. Shows who uses the information derived from the data.

47. When Done Correctly, Flowcharting… Can indicate internal controls, control points, control weaknesses, threats, and other potential problems Describes the “route” the numbers take, and… Can indicate “threats” to those numbers

48. The PURPOSE of Flowcharting is COMMUNICATION

49. $$$ Goods & Services BUYERSELLER TRANSACTION … over time … many activities and events CYCLE

50. $$$ Goods & Services BUYERSELLER

51. JOB TITLES Requisitioner Manager Purchasing Agent Vendor

52. Requisitioner Purchasing Receiving Management Vendor What gets debited and what gets credited? Accts Payable

53. JOB TITLES Requisitioner Manager Purchasing Agent Vendor Receiving Dock Clerk Accounts Payable Clerk

54. JOB TITLES Cashier Controller Treasurer

55. JOB TITLES Vendor Trucking Company Post Office Bank Collection Agency Court

56. DOCUMENTS Purchase Requisition RFP, RFQ, RFB Purchase Order Order Acknowledgement Packing Slip Shipping Manifest Bill of Lading Receiving Voucher Vendor Invoice Payment Voucher Statement of Account Dunning Notice Check (payables check) Signature Card (at the bank) Check Register Bank Statement

57. PROCESSES Completing forms Approval (for information purposes) Unloading merchandise Inspecting, Opening, Checking Mdse Transporting to the warehouse? Opening the mail Printing, mailing, transmitting forms to outside parties?

58. DECISIONS Management approval or disapproval Is merchandise damaged? Is merchandise what was ordered? Is 3-way match complete? Is invoice due? Does check require second signature?

59. $$$ Goods & Services BUYERSELLER TRANSACTION … over time … many activities and events CYCLE

60. $$$ Goods & Services BUYERSELLER VENDOR

61. $$$ Goods & Services BUYERSELLER Purchase Raw Materials Inventory for Sale Supplies Services LT Assets Etc. etc. etc. VENDOR

62. Purchasing Cycle Procurement Cycle Acquisition Cycle Expenditure Cycle Disbursements Cycle Payables Cycle

63. Homework Assignment 6 Video from HW5: Introduction to AIS Reading & Study. Come up with your own names for steps. Optional: group discussion on names of the steps Recommend: Group review of terms – Units 4, 5, 6, 7 Two Big Group Homework Assignments coming up