acc-303 discussion questions

Module 1 Discussion

Week 1 Discussion Question Instructor Barrett 6/8/2014 5:02:51 PM

Core Concepts Discussion Question 1-10 (Note. This is only one question Ch 1-Question 10).

This chapter stressed the importance of IT for understanding how AISs operate. But is this the only skill

valued by employers? How important do you think analytical thinking skills or writing skills are? Discuss.

There are a host of additional skills that would be of value to an employer, other than IT skills, such as:

Accounting skills or familiarity – these skills are important to performing the various accounting

processes pertaining to recordkeeping and analyzing data.

Management and/or business skills – analysis, decision‐making, data entry, database management

are a few of the skills that an employer would value as it relates to AIS.

Detail oriented – is another skill that would support the operation of the accounting information

system

Mathematical skills or the ability to work well with numbers are preferred for those with an

accounting background

Communication skills – whether oral or written, communication skills are key attributes when

demonstrating one’s proficiency in operating AIS.

Analytical thinking skills and writing skills are important for communications because it allows one to be

able to present a message with the comfort and clarity of knowing that the message was received in the

manner in which it was intended. After all, inadequate writing skills have the potential to give an

inadequate first impression which in turn could provoke a negative response or reaction.

It’s important for an accountant to use analytical thinking skills and logic in order to solve crucial issues

and problems, read and interpret data, while being able to determine what financial information is

pertinent to a specific or given situation. Analytical thinking skills allow one to adequately process the

information necessary to address complex issues or concerns. Once the relevant information is gathered,

the key issues are identified and organized, then the accountant is in a prime position to make a sound

and well‐informed decision in the problem‐solving process.

Respond to:

RE: Week 1 Discussion Question Mavin Busscher 7/1/2014 12:37:51 PM

IT skills that may be valued by employers are the ability to install an ASI program, use the

program to get the required information and fix parts of the program that may need be tweaked in

order to retrieve the desired data. Being able to use all the little parts of the ASIs would be valuable

as many people can operate a program, but not everyone can use that program to its fullest

potential.

There are many skills other than those dealing with IT that an employer would value. An

employee who can communicate with others well would be valuable as they will be able to

communicate information to others, both inside and outside the company, as needed. An employee

who pays attention to detail would be valued so they do not make endless mistakes with their work

and waste time having to redo work that has already been completed poorly. Also, an employee who

has the initiative to do the work when needed and not wait for the supervisor to tell them what

needs to be done next. For accountants, skills with numbers would be important, otherwise the

figures might not add up in the end.

Analytical reasoning skills would seem to be very important in accounting. This skill would

allow the accountant to gather information and then use that information in many different areas.

Without analytical reasoning, a person would need to be told what to do for each step in a process

instead of figuring out for themselves that given information for A you can also do B, C, and D.

Writing skills are necessary so that the employee can relay information in a manner which

can be used by others. If they cannot spell or write, the person receiving the information may not be

able to understand what is being conveyed.

Response:

Good afternoon Mavin. There are several very good points in your response to the discussion question, and I am in

agreement with them all. However, one in particular that stands out with me is the employee with the detail‐

oriented skill. This is a very important skill that’s most often overlooked or taken for granted. Oftentimes tasks are

viewed as common‐place or run‐of‐the‐mill when we are used to performing the same functions day in and day out.

However, if every detail pertaining to various tasks was considered to be equally important, than that would

eliminate a great deal of errors made while rushing through a given process and even performing repetitive

functions in the workplace.

Thanks much. Leona Davis

Respond to:

Week 1 Discussion Question Brittanie Vukovich 7/2/2014 1:27:18 PM

The study of accounting information systems ( AISs) is, in large part, the study of the application of information

technology ( IT) to accounting systems. Accounting information system is a collection of data and pro‐cessing

procedures that creates needed information for its users. Even though IT is very important for understanding how

accounting information systems operate, it is not the only skill that is valued by employers. Though you must be

computer literate to be able to compete in today’s job market, but there are also a lot more skill traits you must

have.

Some other traits that are valued by employers are good communication skills, good people interaction skills,

honest workers, passionate workers, and workers who can work well with others. Also both analytical thinking skills

and writing skills are also essential to compete in today’s business world. Having IT skills can only take you so far,

and then you must have other skills. You are almost useless if you can obtain and retrieve data, if you don’t thinking

skills to interpret the information. Furthermore, if you have no communication skills and are not able to

communicate the information and data with your peers or superiors, again it’s useless. Writing skills are a key part

of having good communication skills. You are always going to be passing on or sharing information and so it is key

that it is done in a clear and concise way. If there are grammar or spelling errors the message may not be clear and

in return misunderstood or delayed.

Simkin, M. G., Rose, J. M., & Norman, C. S. (2012). Core concepts of accounting information systems. (12th ed.).

New York, New York: John Wiley & Sons

Core Concepts of Accounting Information

Response:

Good afternoon Brittanie. Interpersonal skills and employees willing to demonstrate hard work and a passion for

their positions are few and far between, primarily because actions are taken for granted so much so in the

workplace. It is absolutely imperative that employees on all levels be able to interact with one another as we spend

more time in a day on a full time job, then we do with our families. Also, if you are one who’s passionate about

your performance and the employer appreciates it publicly, there are some who would envy the action and

consider the attribute to be that of “brown‐nosing.” Ultimately, these are very strong skills that are highly valued

by employers, and it would be a benefit to all that they not only be appreciated, but proudly demonstrated more

often.


Module 2 Discussion

Week 2 Discussion Instructor Barrett 6/8/2014 5:04:21 PM

Core Concepts Discussion Question 6‐7.

Look at the process map in Figure 6‐5. Trace the steps in the order fulfillment process. Do you think this figure is

more helpful than a narrative would be in understanding the flow of events in the process?

Unlike the physical data flow diagram which “does not give the reader a good idea of what these participants do

(174),” Figure 6‐5 illustrates a logical data flow diagram in that it demonstrates the system entity involved in the

process while also indicating a task that the system is expected to perform. In other words, the logical data flow

diagram breaks down the system entity to include a description of the distinct processing tasks that each

participant will perform. Having knowledge of a brief description of the system process is pertinent to the

comprehension of how the system is projected to perform a specific task, and has the potential of being more

relevant than knowing in great detail what the tasks are that the system performs (174).

Therefore, Figure 6‐5 is more helpful than a narrative in understanding the flow of events in the process as the

information is presented in a clear and concise manner which makes it simpler to read and follow through to the

final task performed. The process map provides an upfront explanation of the data with little to no supplementary

interpretation while also serving as an effective communication and educational tool. Whereas, narrative, being a

written account of a connected events presented to a reader in a specifically identified sequence, would no doubt

consists of extensive and lengthy detail providing a full description of what each task signifies and how it is

expected to be performed. Ultimately, utilizing narrative instead of the process map would make it more difficult

for system designers to maintain a limit for each level diagram to a desired five to seven processing symbols.

Simkin, M. G., Rose, J. M., & Norman, C. S. (2012). Core concepts of accounting information systems. (12th ed.).

New York, New York: John Wiley & Sons

Respond to:

RE: discussion 2 Helena Sutherland 7/9/2014 7:04:55 PM

More flexibility is available for updates in a flow diagram compared to a narrative. When a process changes the

effects of the change can be pinpointed in a process flow diagram more easily. All necessary updates can be

captured from data source through to the end of the process, data destination, as well as updating any

interrelationships evidenced in the diagram being updated. Using standardized symbols makes updates easier

since a symbol can replace several lines of text in a narrative describing the process. Viewing the changes in a

diagram format makes it easy to ensure a beginning to end flow of data continues to exist and no errors have been

made. A reason that updating narratives is more challenging is that narrations of a single data flow may reference

or link to other data flows within the overall process and to avoid missing an update all narrations should be

reviewed for possible changes. Hence a single change in a process flow diagram may require significantly more

time to update narratives as all documented narratives should be evaluated for potential updates.

Response:

Good afternoon Helena. You make a very good point, in that time is of the essence these days. After all, with

greater development of technology, and even systems such as AIS’s with the sole purpose of streamlining the

process, it is to the advantage of the developers and the users to focus more so on the data flow diagram for a

better understanding of the flow of events in the process. Narratives have the potential to be rather lengthy,

depending on the individual making the comments. Some provide complete explanation of a situation which can

sometimes be too much information for the average reader.


Respond to:

RE: D2: Response Pierce Dean 7/9/2014 5:44:32 PM

Modified:7/9/2014 5:47 PM

I believe there is no concrete answer because we all learn in different ways. Some people are visual

learners, some learn from hearing the information and also writing it down for themselves. I tend to learn mostly

from hearing, therefore the figure is slightly confusing to me. For example, I would like to get a more in depth

explanation on the interactions between the Payroll Master File, 3.0 Process paycheck, and the Employee; the lines

may show that the Process paycheck and the Payroll Master File interact but how many times does it cycle through

and why?

Now a pure visual learned would most likely love the diagram, and I myself could eventually learn from the

figure but I would rather have an individual give me some more insight. Real‐world experience would be a big help

from a professor as well, I know I have benefited from the real‐world knowledge given by the faculty at St. Leo that

has helped me with my current job. Since processes are always changing, learning how someone else dealt with the

changes in their work experience can bolster our own experience.

References

Simkin, M. G., Norman, C. S., Rose, J., & Bagranoff, N. A. (2012). Core concepts of accounting information systems

(12th ed.). Hoboken, NJ: John Wiley & Sons.

Response:

Good afternoon Pierce. I can appreciate the honesty in your comments. You have made a very good point that I

had not considered. You see, I am that visual learner. Not to say that other forms are not beneficial, because they

are. However, I simply did not think that the process map would be a difficult concept to grasp because it

resembles a road map in my view giving direction from start to finish. Ultimately though, the road map isn’t any

good if following the arrow doesn’t prove a clear explanation of what to expect once you get there. In that regard,

the narrative would be necessary.


Module 3 Discussion

Week 3 Discussion Question

Instructor Barrett 6/8/2014 5:06:02 PM

Core Concepts Discussion Question 7-11

Some businesses choose offshoring to solve the issue of expertise, especially for IT personnel. These companies

claim they simply cannot find enough qualified employees in the United States to do certain technology jobs. Do

you agree with this assessment? Why or why not?

In considering the scenario as presented, I would have to ask how many qualified employees in IT would any one

company really need to remain successfully competitive? To say that there are not enough qualified professions is

a bit of an exaggeration, in my opinion. Therefore, I do not agree with this assessment; especially since there are so

many individuals within the realm of IT expertise gaining the much needed education and training, then traveling to

the United States to take advantage of the wealth of opportunities available within the nation. There are likewise,

companies overseas vying for the attention and expertise of many United States citizens to support their

independent business ventures, and making every attempt to lure them and their knowledge, skills, and abilities

away. Therefore, I believe that the world is an even playing field. However, what I think it really boils down to is

how much the company is willing to invest for the expertise sought. Unfortunately, like most competitive services

made available through the business processes such as outsourcing and offshoring, it really equates to the bottom

line. How much more can the company acquire for much less in cost? It goes without saying, that a United States

citizen, being very consciously aware of the value and worth of their expertise, will most definitely require a

company to pay top dollar.

Respond to:

Discussion 3 Lexie Ragans 7/16/2014 2:18:49 PM

I would find it hard to believe there weren’t enough technology savvy people in the United States to work for a

company. But I do see why they would be going over seas to hire people because they would be able to cut costs

down and turn more profit. I think it can be both beneficial and non beneficial to move offshore with your

employees. One of the benefits would be the time difference and always having someone to talk to when

customers needed to contact someone. Now we could do that hear and just have someone working 24/7 but a lot

of times when you call someone after hours they sound like they could be from overseas. The downside is that

keeping up with another division of your company offshore wouldn’t be as easy as if it were in your country. But

since a lot of businesses are without boundaries and their employees are no longer under one‐roof technology

makes it easier to communicate with one another and keep up do date. I personally am not computer savvy but I

know so many people who are, and know there are a lot that go to school for it. So I think it would be possible, if

the company is willing, to find employees here to hire.

Response:

Good afternoon Lexie. I too believe that it is very unlikely that a company cannot find as many qualified IT

professionals as needed to accomplish their mission, tasks, goals, and objectives here in the United States. It simply

appears that where the most cost‐effective benefit is the priority, the company will make the decision based on

such. This is not to say that the company is wrong for doing so, or that their bottom line should not matter, as it is

expected that a business would make their decisions based on what’s most advantageous to their profitability.

However, the transparency of their integrity matters more so. If the company prefers to outsource or hire offshore,

than the reasons for doing so should be based on the facts of the matter. There are several benefits and incentives

in place to encourage businesses to do so for the sake of strengthening global relationships. Therefore, if it costs

less, acknowledge that rather than stating that the United States does not have the qualified individuals to do the

job.


Respond to:

discussion 3 Mavin Busscher 7/16/2014 4:55:06 PM

According to the Organisation for Economic Co‐operation and Development (OECD) the U.S. is not even in

the top 20 countries out of 65 countries that participate in their assessment of global education systems. The 2012

findings show the U.S. mean of top performers is below the OECD average. Business News Daily wrote an article

saying the Tech jobs are going to Southeast Asia, India, Eastern Europe and Russia. Half of the countries in Eastern

Europe scored higher than the U.S. on the OECD findings. Three of these countries scored above average.

If I want my company to be globally competitive then I would go to where the best technology support staff

would be. If that is here in the U.S. or another country, then that is where I will look. I don’t like the idea of jobs

being outsourced, but sometimes it may be necessary.

Where I work recently hired an IT support staff. When I asked the man a question about a program, I was

surprised to find I already knew more about the program than he did. When I asked him other questions he always

had to ask another person to help him fix the problem. If this is an example of the available workers in the IT

departments, no wonder companies offshore this department.

I think there has to be qualified IT personnel in this country, but probably the most qualified have been

snatched up by more prestigious companies and all that is left for the smaller companies is the bottom of the

barrel.

http://www.oecd.org/pisa/keyfindings/pisa‐2012‐results.htm

http://www.businessnewsdaily.com/4191‐more‐tech‐firms‐outsourcing‐jobs.html

Response:

Good afternoon Mavin. This is a really good point as well as a strong and somewhat frightening eye‐opener. I

would be interested to see what other organizational survey’s would have to say as to how the various countries

are rated. At the same time, I would be interested to know if the individual IT professionals rated were natives of

that particular country, or if they were included because of their presence. I say this, because businesses in the

United States with companies around the world oftentimes have expatriates performing the necessary tasks, rather

than those native to the area. Therefore, my curiosity lies with whether the numbers reflects individuals within a

particular nationality or present by nature of their position.


Module 4 Discussion



Why do businesses typically need to engage in business process reengineering when they adopt an ERP? Identify at

least four key aspects of a successful BPR project.

Since today’s ERP systems provide integration among many of an organization’s major business processes, it’s

oftentimes the ERP system that dictates when an organization adopt new ways of doing business as the current

system no longer has the ability to meet its changing needs. One reason is that large‐scale ERP software typically

forces companies to reengineer or redesign their business processes for maximum efficiency. Other reasons would

be an organization’s attempt to achieve the best practices of the industry as well as being able to properly

accommodate the necessary functions of the businesses, such as the role addressed by the customer relationship

management, human resources, order processing and fulfillment, manufacturing, or purchases, to name a few.

Key aspects of a successful BPR are as follows:

Allocation of time on project

Duration of average BPR project

Successful BPR teams – lists objectives

Use Consultants

Reference

Simkin, M. G., Norman, C. S., Rose, J., & Bagranoff, N. A. (2012). Core concepts of accounting information systems

(12th ed.). Hoboken, NJ: John Wiley & Sons.

Respond to:

RE: Week 4 Discussion Question Kenya Hill 7/24/2014 1:24:42 PM

Businesses need to engage in BPR because there are so many challenges that are associated with changing the ERP

system. Sometimes, the new ERP systems just do not work, some employees may have problems adapting to the

new change and they can be very costly. So it is wise for a company who may be considering an ERP system to first

conduct a BPR initiative before the new ERP is implemented. The four key aspects of a successful BPR project are:

1) Allocation of Time on Project

2) Duration of average BPR project

3) Excellent of very good Change Management that directly correlates with teams that meet or exceed project

objective

4) The use of consultants

Response:

Good afternoon Kenya. ERP systems can be very costly and present a number of challenges if the system is not

meeting the company’s needs. However, ERP systems have the potential of providing a business vast benefits

when implemented accordingly and used properly. Like most technology today, ERP systems are becoming more

and more sophisticated with the ability to be customized for specific industry needs. Therefore, even though some

systems are pricey, they can be very cost effective in the long run by allowing the business to function more

efficiently.


Respond to:

Discussion 4 Angela O'Brien‐Wheatle 7/23/2014 12:23:05 AM

When businesses adopt an ERP system they need to engage in Business Process Reengineering (BPR) even though

the cost of doing so is extremely expensive and time‐consuming. An ERP system will have new capabilities so

engaging in BPR will improve the practices and procedures of the business. Implementing BPR will ensure the

proper integration of the various business processes within the organization. This will help the business to operate

more efficiently thus increasing productivity and profitability while at the same time delivering customer

satisfaction. A successful BPR will result in a well designed information system.

Four key aspects of a successful BPR project are:

1. Top management support and commitment, as well as the involvement of the employees affected by the

process

2. A high‐level review of the current process which can be accomplished by utilizing consultants for IT or technical

systems advice and expertise.

3. Allocation of time on the project, 2/3 of which should be for planning and designing and 1/3 on the

development and implementation stages.

4. The duration of the project. The average BPR project is 13.8 months.

In response to Prof. Barrett, the BPR team should consist of top management, the consultants, the employees who

will be affected by the process, and the accountants.

Response:

Good afternoon Angela. I agree with the fact that the ERP systems have the ability to encompass the needs of an

entire organization by allowing large databases to interface with different business processes in order to

accommodate the various functions. Also, most large enterprises are realizing the benefits of integrating their

information systems in an effort to extend their ERP systems throughout the supply chain. Therefore, they also

realize the need to address the business process reengineering to determine whether new systems are needed to

improve processes.


Module 5 Discussion



What is the difference between logical access to the computer and physical access to the computer? Why is the security of both important? Logical security uses technology to limit access to only authorized individuals to the organization’s systems and information, such as password controls, e-IDs, system authentication, biometrics, log of logon attempts, application-level firewalls; anti-virus and anti-spyware software; intrusion detection systems; encryption for data in transit, and smart cards; whereas physical security refers to any measures that an organization uses to protect its facilities, resources, or its proprietary data that are stored on physical media, such as surveillance systems, access controls, alarm systems, shred sensitive documents, proper storage/disposal of hard drives and other electronic storage media, and secure storage of backup copies of data and master copies of critical software The U.S. government considers computer security a critical issue. Therefore, an integrated security system, supported by a comprehensive security policy, can significantly reduce the risk of attach because it increases the cost and resources needed by an intruder. According to security experts, convergence of physical and logical security is the single most overlooked gap in enterprise-wide security; that is, the most insidious security risks are those that slip between physical and logical systems. Reference

Simkin, M. G., Norman, C. S., Rose, J., & Bagranoff, N. A. (2012). Core concepts of accounting information systems (12th ed.). Hoboken, NJ: John Wiley & Sons. Respond to:

Response:

Good morning Ann. I would also add that logical security uses technology to limit access to only authorized

individuals to the organization’s systems and information, such as password controls, application-level firewalls; anti-virus and anti-spyware software; intrusion detection systems to name a few; whereas physical security refers to any measures that an organization uses to protect its facilities, resources, or its proprietary data that are stored on physical media, such as surveillance systems and alarm systems.


Respond to:

Response:

Good morning Rebecca. I can agree with your analogy. I would also add that logical security uses technology to

limit access to only authorized individuals to the organization’s computer systems and information with something as simple as password controls or application-level firewalls; whereas physical security refers to any measures that an organization uses to protect its facilities, resources, or its proprietary data that are stored on physical media, such as surveillance systems and alarm systems. Therefore, one can only hope that the physical layer of security holds up against any unlawful penetration.

Thanks much. Leona Davis Module 6 Discussion


What are data definition languages (DDL’s)? How are they related to DBMS’s? The primary objective of establishing data definition languages (DDL’s) is to ensure valid and accurate data entry. It enables users of the database management systems (DBMS’s) to define the record structure of any particular database table tab; DDL is the language that DBMS’s use to create data dictionaries which is a critical component of database documentation that describes the data fields in each database record. Basically it is a data file about the data itself. When records structures are properly conceived, it can serve as controls over the accuracy of critical accounting data.

Since a database is a large collection of organized data, it can be accessed by multiple users and used by many different computer applications. These massive databases store all of the data used by almost every function in the organization. Ultimately, the data in these databases are manipulated by specialized software packages referred to as DBMS’s. Reference

Simkin, M. G., Norman, C. S., Rose, J., & Bagranoff, N. A. (2012). Core concepts of accounting information systems (12th ed.). Hoboken, NJ: John Wiley & Sons. Respond to:

Module 6 Discussion Kenya Hill 8/7/2014 12:46:17 PM

The Data Definition Language (DDL) is used to create and destroy databases and database objects. These

commands will primarily be used by database administrators during the setup and removal phases of a database

project. Installing a database management system (DBMS) on a computer allows you to create and manage many

independent databases. In my opinion, you cannot create one without the other.

Response:

Good Kenya. What I got out of responding to this week’s discussion question was that DDL’s allows organizations to ensure valid and accurate data entry within their various operating systems. It also enables users of the database management systems (DBMS’s) to define the record structure of any particular database table tab; ultimately, DDL is the language that DBMS’s use to create data dictionaries which is a critical component of database documentation that describes the data fields in each database record. Thanks much. Leona Davis Respond to:

Discussion 6 Matthew Oswald 8/7/2014 9:19:12 PM

Data Definition Languages (DDLs) are part of a DBMS that enables its users to define the record structure of any

particular database table. They are related to DBMSs because DDL is the language that DBMSs use to create data

dictionaries. DDLs are used in a DBMS to cut down on mistakes and improve the accuracy when inputting important

data or information. Tools of DDL include Input Masks, Default Values, Drop‐Down Lists, Validation Rules, etc..

Response:

Good Matthew. You make a really good point in your post in that the DDL not only defines record structure, but it’s also useful in assisting with ensuring valid and accurate data entry, as well as being used by DBMS’s to create data dictionaries, which is basically a data file about the data itself. Ultimately, when records structures are properly conceived, it can serve as controls over the accuracy of critical accounting data. Thanks much. Leona Davis

Module 7 Discussion


A systems study team should understand three levels of corporate goals: general systems goals, top management systems goals, and operating management systems goals. If you had to select one of these categories of systems goals as the most important to the effective operation of organization’s information system, which one would you choose? Explain your reasons for your choice. Although each of the three have significant differences pertinent to the efficiency of an organization, I would venture to say that top management systems goals are the most important. This is my choice specifically because those in this position are the hub of the organization. They are the heart and the foundation of what makes the organization what it is in which both the general systems goals and operating management systems goals would stem. The top management systems goals would be imposed as the guiding force for the instructions that assist the general systems goals to accomplish contributing principles such as, awareness, concern, commitment, and flexibility; while also implementing various decisions pertaining to the company’s long‐range plan and strategies in which the operating managers systems goals are tasked to follow. In other words, it’s the top management systems goals that enact various regulations, guidelines, goals, and objectives that the organization’s employees will abide by. Ultimately, they’re responsible for ensuring that the strategic plans for future product and services are well‐defined and implemented, and that the operating managers are enforcing such. Respond to: discussion 7 Brittanie Vukovich 8/14/2014 8:19:13 PM Even though all of the three system goals (general systems goals, top management systems goals, and operating management systems goals) are all important, I think that the general system goals are the most important to the effective operation of an organizations information system. I feel that the general system goals are the most important because in order to also effectively achieve top management system and operating management system goals you must first have achieve the general system goals and then the only ones will be easier. This is due to the fact that the general system goals also apply to all the other part of the organization and are needed for effectiveness. Response: Good afternoon Brittanie. My response was that the top management systems goals are most important, as they would be the guiding force to putting the general systems goals and the operating management systems goals into place, while also implementing various decisions pertaining to the company’s long‐range plan and strategies in which the operating management systems goals are tasked to follow. In other words, it’s the top management systems goals that enact various regulations, guidelines, goals, and objectives that the organization’s employees will abide by. Thanks much. Leona Respond to: Discussion 7 Wendell Curry 8/14/2014 9:39:47 PM The study teams purpose is to (1) Understand the systems goals, (2) Perform a systems survey for identifying current problems within their current system , and (3) Prepare a report describing it's findings and suggest possible solutions to the current systems problems. Of the organization goals, I think that the general systems goals are

more important. To be effective, the team will have to know the current system fully and determine what objectives are not being met. It's the goal of any organization to be efficient and effective. They desire to meet all their goals and be an efficient organization. The goals of the organizations system should be (1) cost effective, (2) the output of the system should help management make better decisions for the organization, (3) it should be designed for easy access information for everyone, and (4) it should be able to adapt to changes in information needs. If any of these principles aren't being met, then the system isn't good for the organization. The goals of the organization is the reason for it's existence. If a system can't help in achieving the companies goals, it may be best to use a web‐based system. Response: Good afternoon Wendell. I have suggested that the top management systems goals are most important, as they would be the guiding force to putting the general systems goals and the operating management systems goals into place, while also implementing various decisions pertaining to the company’s long‐range plan and strategies in which the operating management systems goals are tasked to follow. The top management systems goals that enact various regulations, guidelines, goals, and objectives that the organization’s employees will abide by. Ultimately, it’s the top management systems goals that would ensure the drafting of the necessary general systems goals and operating management systems goals to result in achieving an overall efficient and effective organization. Thanks much. Leona Davis Module 8 Discussion

Week 8 Discussion Question

Instructor Barrett 6/8/2014 5:16:05 PM


How does information technology auditing differ from financial auditing? Make a list of the skills you think are important for financial auditors and for IT auditors. Do you think all auditors should have all the skills on both lists? Why or Why not?

IT auditing involves evaluating and understanding IT’s role in the efficiency and the internal control design of the information system in achieving audit and control objectives. The assurance aspect of IT auditing involves ensuring that data and information are reliable, confidential, secure, and available as needed. Traditional financial audit objectives are also present in information technology auditing. These include attest objectives, such as the safeguarding of assets and data integrity, and management objectives, such as operational effectiveness. The primary purpose is to make sure that the business is adhering to the Generally Accepted Accounting Principles that governs accounting standards and practices. IT audit function encompasses all components of a computer‐based AIS, that being, people, procedures, hardware, data communications, software, and databases. Whereas, financial auditing generally takes place as a result of an external audit in which the organization’s control procedures over computer processing are examined to see how they affect the financial statements. In either case, organizational, business, management, accounting, computer/information systems, analytical, and mathematical skills are needed to successfully conduct an audit whether for information technology or financial purposes. It’s not very likely that all auditors will have all the skills necessary to perform these types of audits, however, the ideal background includes a combination of the various skills indicated.

Respond to:

RE: Week 8 Discussion Question Ryan Daly 8/20/2014 7:56:41 PM

Information technology auditing differs from financial auditing in terms of what the audit being performed is

focused on. IT audits involve auditing IT's role in achieving audit and control objectives. IT audits are performed to

ensure data and information is reliable and safeguarded. Financial auditing objectives are present in an IT audit as

they are providing assurance to top management regarding the efficiency and effectiveness of that operation.

Skills that are important for financial auditors and IT auditors are similar. Auditors is general should have skills like

attention to detail, high level of integrity, investigative instincts, objectiveness, and interpersonal skills. IT auditors

also need a well rounded understanding of IT function and processes. All auditors should have the skills listed to be

successful in the ever changing technological business world. It is getting to be a necessity as the accounting field is

turning more to computer programs to understand IT processes. Financial audits will encompass IT functions at

some point of the audit and understanding AIS systems would help ensure a successful audit is performed.

Response:

Good afternoon Ryan. I agree that the skills to conduct audits for both information technology and financials are

very similar, especially a high level of integrity. Although the skills will differ, depending on individual opinion, and

not every auditor will possess all skills referenced, I would add that knowledge of information systems/computers,

accounting, management, business, analytical and mathematical are equally important in accomplishing the task of

assuring the company’s operational efficiency and effectiveness.


Respond to:

discussion 8 Mavin Busscher 8/20/2014 3:53:13 PM

IT auditing look at the risks associated with the information technology aspect of the business. Financial auditors

make sure businesses are following GAAP guidelines in their financial and accounting reporting.

Financial auditors need to know what GAAP guidelines are and how financial and accounting information should be

reported. Some knowledge about computers and financial software would be important as more and more

companies use technology to handle their finances.

Information technology auditors need to know about computers, how they work with hardware, software,

networks and processes. They should also have knowledge of accounting practices and a little about the type of

business they are auditing.

Both should be organized and detail oriented. People skills are important, but if you are working with a team, not

everyone on the team has to have excellent people skills. Analytical reasoning skills would come in handy if a

problem were found to figure out how to solve the problem. Communication skills are also important so the

auditors can communicate their findings to the appropriate people.

As businesses move to more technological systems to do their accounting and finances, both auditors will need all

the skills listed. As the accounting systems get more and more advanced the financial advisors will be forced to

learn about the computer systems to be able to do their jobs effectively. As it seems with most things now a days,

if you don’t know computers you may get left behind.

Response:

Good afternoon Mavin. The technological evolution is definitely the wave of the future. Therefore, I agree that it’s important to have as important for an auditor to have as much knowledge about automation and information systems as possible, especially since most accounting and bookkeeping is automated as well. Whether auditing information systems or financial, I think organizational, business, management, accounting, computer/information systems, analytical, and mathematical skills are needed to successfully conduct complete the process. Although it’s not very likely that all auditors will have all the skills necessary to perform these types of audits, the ideal background includes a combination of the various skills indicated as well as those that you mentioned in your response. Thanks much. Leona Davis

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