Transcription
Accounting Information Systems, 9e1SOLUTIONS FOR CHAPTER 4Discussion QuestionsDQ 4-1“Data flow diagrams and systems flowcharts provide redundant pictures of aninformation system (or business process). We don’t need both.” Discuss fully.ANS.Logical data flow diagrams (DFDs) present only the logical elements of aninformation system. By excluding the physical elements, the logical DFD allowsus to concentrate on what a system is doing without being distracted by how thefunctions are being performed and by whom.Physical DFDs present the physical elements of an information system. Theyconcentrate on who or what is acting on the data flowing through the system.Physical DFDs allow us to concentrate on the entities involved in processinginformation. We can also see how much work is done by an entity by observingthe flows into and out of an entity and whether those flows change names, whichis an indication that they have been transformed within the entity.Finally, a systems flowchart presents the logical and the physical details of aninformation system’s functions and related operations activities. It shows thedetails of how a process is accomplished and also shows the organizational unitthat performs the process. As we will see in Chapter 9, these details are necessaryto permit evaluation of a system’s controls.In conclusion, all of these diagrams are needed to get a complete picture of aninformation systems (or business process). As noted previously, however, eachdiagram has its function and, depending on our purpose, all may not be needed.
2Solutions for Chapter 4DQ 4-2“It is easier to learn to prepare data flow diagrams, which use only a fewsymbols, than it is to learn to prepare systems flowcharts, which use a number ofdifferent symbols.” Discuss fully.ANS.Compare the DFD symbols in Figure 4.1 to the flowcharting symbols in Figure4.6 and you will probably conclude that it is easy to learn the DFD symbols.Examine Figure 4.7 and see that there are several standard routines used inflowcharts. We believe that constructing DFDs presents fewer problems indetermining layout and placement of symbols. But determining logical groupingsfor a logical DFD might be difficult for you. We conclude, however, that DFDsare easier to construct than are flowcharts. You might have a different opinion.DQ 4-7“If we document a system with a system flowchart and data flow diagrams, wehave overdocumented the system.” Discuss fully.ANS.We don’t agree with this statement. Each tool depicts different aspects of a systemand is used for different purposes.A systems flowchart depicts a system’s information and operations activities (i.e.,a business process) and superimposes those activities onto the organization’sstructure. We use the flowchart to understand the system’s activities—bothinformation and operations—and to analyze the system’s controls.Data flow diagrams concentrate on the data, the entities that act on the data, andthe information systems functions being performed by a system. We use the DFDsto analyze each of these elements of a system. Also, we use the logical DFDextensively in the development of new systems.
Accounting Information Systems, 9eShort ProblemsSP 4-5 ANS.a. 3h. 8b. 10i. no matchc. 2j. 4d. no matchk. 1e. 5l. 6f. 7m. 9g. no matchn. no match3
4Solutions for Chapter 4ProblemsProblems 4 through 7 Solutions for Good Buy, Inc.P 4-4 ANS.a. Table of Entities and Activities for Good Buy, Inc.EntitiesParaActivitiesCustomer11.Log on to Web site.Web server12.Request current catalog.ERP system13.Send current catalog (assumes read and format catalog data).Web server14.Display catalog.Customer15.Select items and quantities.Web server16.Edit customer input (items and quantities) for accuracy.17.Send requested items and quantities to ERP system.18.Allocate inventory.19.Send allocated items and quantities to Web server.Web server110. Display allocated items and quantities on customer screen.Customer111. Verify that order is correct.112. Enter shipping and credit card information.113. Edit customer input (shipping and credit card information) foraccuracy.114. Send credit card information and amount of sale to credit cardcompany.Credit card company115. Send verification number to Web server.Web server116. Display confirmation number on customer screen.117. Notify ERP system that sales have been completed.118. Change inventory status from allocated to sold.119. Print picking ticket/packing slip in warehouse.120. Record sale and accounts receivable.ERP systemWeb serverERP systemWarehouse
Accounting Information Systems, 9eFIGURE SM-4.5Problem 4 part b solution—context diagram—for Good Buy, Inc.FIGURE SM-4.6Problem 5 solution—physical DFD—for Good Buy, Inc.5
6Solutions for Chapter 4P 4-6 ANS.a. Annotated Table of Entities and Activities for Good Buy, Inc.EntitiesParaActivitiesCustomer11.Log on to Web site.Web server12.Request current catalog.ERP System13.Send current catalog (assumes read andformat catalog data).Web server14.Display catalog.Customer15.Select items and quantities.Web server16.Edit customer input (items and quantities)for accuracy.ERP System18.Allocate inventory.Web server110. Display allocated items and quantities oncustomer screenCustomer111. Verify that order is correct.112. Enter shipping and credit cardinformation.Web server113. Edit customer input (shipping and creditcard information) for accuracy.ERP System118. Change inventory status from allocated tosold.120. Record sale and accounts receivable.Process1.0 Enter order.2.0 Verify order andcustomer credit.3.0 Complete sale.
Accounting Information Systems, 9eFIGURE SM-4.7Problem 6 part b solution—logical DFD—for Good Buy, Inc.7
8Solutions for Chapter 4FIGURE SM-4.8Problem 7 solution—systems flowchart—for Good Buy, Inc.
Accounting Information Systems, 9eProblems 4 through 7 Solutions for Millennium Insurance CompanyP 4-4 ANS.a. Table of Entities and Activities for Millennium InsuranceEntitiesParaActivitiesCustomer11.Send request for auto insurance.Sales office (sales clerks)12.Prepare policy request form.13.File policy request form (copy 2).14.Forward completed policy request form (copy 1) to inputpreparation section.15.Key policy request forms.16.Key-verify policy request data.27.Retrieve policy request data from the network.28.Edit policy request data.29.Sort policy request data.310. Print a summary report listing edited request data.311. Send summary report to sales office.312. Compare summary report to file copy of policy request forms.313. Notify computer operations to go ahead with processing (ifeverything checks out).314. When notified, process policy request data against the policyholdermaster data to create a new policy record.315. Create disk for printing.316. Print premium notices.317. Send notices to customer.Data preparation section(data entry clerks)Computer operations(computer)Sales office (sales clerks)Computer operations(computer)9
10Solutions for Chapter 4FIGURE SM-4.9Problem 4 part b solution—context diagram—for Millennium InsuranceFIGURE SM-4.10Problem 5 solution—physical DFD—for Millennium Insurance
Accounting Information Systems, 9eP 4-6 ANS.11a. Annotated Table of Entities and Activities for Millennium InsuranceEntitiesSales office (sales clerks)Input preparation section(data entry clerks)Computer operations(computerSales office (sales clerks)Computer operations(computer)Computer operations(computer)ParaActivities12.Prepare policy request forms.33.File policy request form (copy 2).15.Key policy request forms.16.Key-verify policy request data.28.Edit policy request data.29.Sort policy request data.310. Print a summary report listing editedpolicy request data.312. Compare summary report to copy 2 ofpolicy request forms.313. Notify computer operations to go aheadwith processing (if everything checksout).314. When notified, process policy requestdata against the policyholder master datato create a new policy record.315. Create disk for printing.316. Print premium notices.Process1.0 Capture PolicyRequests.2.0 Edit Policy Requests.3.0 Record PolicyRequests.4.0 Prepare PremiumNotices.
12Solutions for Chapter 4FIGURE SM-4.11Problem 6 part b solution—logical DFD—for Millennium Insurance
Accounting Information Systems, 9eFIGURE SM-4.12Problem 7 solution—systems flowchart—for Millennium Insurance13
14Solutions for Chapter 4SOLUTIONS FOR CHAPTER 5Discussion QuestionsDQ 5-11Demonstrate your understanding of some of the coding schemes discussed inTechnology Summary 5.2 by indicating which type of code is represented by eachof the following. You should be prepared to explain and defend your answers.ANS.The following coding schemes apply:a. The student ID codes used at your college: This answer, of course, will varyfrom institution to institution. For example, the student IDs at Bentley Collegeare assigned in straight sequential order.We know of some universities that use social security numbers as the studentID. A social security number (SSN) is an example of a block code, comprisingthe following groups of digits:The first three digits are an area code. Currently, these three digits indicatethe state in which the holder lived when applying for the SSN. The state isderived from the holder’s postal ZIP code. Formerly, these three digitsindicated the specific social security field office that issued the card.The middle two digits are a group number that has no geographic or datasignificance. Rather, this block breaks the SSNs into conveniently sizedblocks for use in internal operations and order of issuance.The last four digits are a sequential serial number that is assigned instraight numerical sequence from 0001 to 9999 within each group.b. MICR codes used by the banking industry: MICR codes that are imprinted onbank checks and deposit slips evidence aspects of several different codingschemes: significant digit, self-checking digit, and sequential.For instance, bank checks typically have a nine-digit significant digit code,located in the lower-left corner of the check, which is used for routing andsorting the check. Assuming that these nine digits are 021302268, you couldanalyze this code as follows:The first four digits, 0213, are assigned as follows:o The first two digits, 02, identifies Blank Bank’s Federal Reservedistrict; 01 might stand for New England, 02 for New York, and so on.o The third digit identifies the Federal Reserve Office (head office orbranch) or a special collection arrangement.
Accounting Information Systems, 9e15o The fourth digit shows Blank Bank’s state or a special collectionarrangement.The next four digits, 0226, represent the bank’s unique institutionalidentifier.The ninth digit, 5, is a self-checking digit (or check digit), which,combined with the first eight digits, verifies the routing number’s accuracyin computer processing.The account number (let’s assume number 123407889 for our example) wouldtypically be another significant digit code, where the first two digits, 12, showthe account type and the next seven digits, 3407889, represent the specificaccount.Finally, the check number is an example of a sequential code.c. The customer codes used in Figure 5.3: These codes, consisting entirely ofalphabetic characters, are examples of a mnemonic coding method. The codeETC stands for Bikes Et Cetera, and so forth. In this example, the alphacharacters are taken in some way from the full names of the customers, adevice that certainly aids a human operator in quickly identifying thecustomer, but one that is practical only where the number of differentcustomers is reasonably small.DQ 5-12What are the comparative advantages of the various data coding types discussedin Technology Summary 5.2 when applied to each of the following? Discuss fully.Note: In the following answer, we do not separate the discussion of employee,vendor, and customer ID numbers because the factors that one would consider indesigning a coding scheme for each would be similar. Only when a particularconsideration would apply to one of the three and not to the others will wemention it.ANS.Some of the key points (in no order of importance) that students might haveincluded in their answers are the following:Computers manipulate numeric data more efficiently than they handle alphacharacters. On the other hand, humans usually find alphabetic codes easier toremember. This point is a factor to discuss in connection with the relativeadvantages of mnemonic coding.Another design consideration is the size of the database. For instance, amnemonic coding scheme might have some merit where the number ofcustomers (or vendors or employees) is small but probably is impractical forlarge databases.Sequential, block, and mnemonic coding methods provide limited ability toclassify objects in the database according to common attributes. A principal
16Solutions for Chapter 4advantage of significant digit and hierarchical codes is that they facilitate theclassification of data.The general ledger chart of accounts is an application for which a hierarchicalcoding scheme is especially germane.A check digit is often used in practice in the case of customer codes. The mainpurpose of the self-checking digit code is to ensure that the ID number iskeyed in accurately. When the customer is doing the keying (e.g., through abank’s ATM terminal), the check digit is advantageous. Check digits areparticularly helpful when the master data is not available for comparison tothe input code. If the master data is available, the master record that matchesthe code can be retrieved from the master data table and presented to the dataentry clerk for comparison to the input source data. This should ensure that thecorrect code has been entered. When master data is available, the importanceof controls such as check digit is diminished.
Customer 1 1. Log on to Web site. Web server 1 2. Request current catalog. ERP system 1 3. Send current catalog (assumes read and format catalog data). Web server 1 4. Display catalog. Customer 1 5. Select items and quantities. Web server 1 6. Edit
