Accounting Information Systems, 6th Edition by James Hall

By James Hall

The 6th version of ACCOUNTING details structures presents thorough and up to date assurance of accounting details platforms and similar applied sciences. It positive aspects an early presentation of transaction cycles, in addition to an emphasis on ethics, fraud, and the fashionable production surroundings. The e-book makes a speciality of the desires and duties of accountants as finish clients of structures; platforms designers; and auditors. This version offers entire built-in insurance of Sarbanes-Oxley because it impacts inner controls and different suitable issues suffering from this laws, in addition to reorganized dialogue of transaction cycles that make the stability among guide- and computer-based platforms extra obvious.

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Example text

Personnel Competent and reliable employees are a valuable resource to a business. The objective of the personnel function is to effectively manage this resource. A well-developed personnel function includes recruiting, training, continuing education, counseling, evaluating, labor relations, and compensation administration. Finance The finance function manages the financial resources of the firm through banking and treasury activities, portfolio management, credit evaluation, cash disbursements, and cash receipts.

On the other hand, when a nonvital subsystem fails, the primary objective of the overall system can still be met. For instance, if the radio (a subsystem of the electrical system) fails, the automobile can still convey passengers. Designers of all types of systems need to recognize the consequences of subsystem failure and provide the appropriate level of control. For example, a systems designer may provide control by designing a backup (redundant) subsystem that comes into play when the primary subsystem fails.

Organizational Structure The structure of an organization reflects the distribution of responsibility, authority, and accountability throughout the organization. These flows are illustrated in Figure 1-7. Firms achieve their overall objectives by establishing measurable financial goals for their operational units. For example, budget information flows downward. This is the mechanism by which senior management conveys to their subordinates the standards against which they will be measured for the coming period.

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