Accounting Principles 1 by Speedy Publishing

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Business analysis cannot operate without considering the impact of technology. It never could . . Robert Scott, ‘‘Knowing the Tech Talk’’ Accounting Technology Vol. 20, No. 3 (April 2004), p. 4. INTRODUCTION In automated accounting systems, information technology (IT) serves as a platform upon which other system components rely. The purpose of this chapter is to discuss IT subjects in detail, especially as they relate to AISs. Because most students in AIS courses have already taken a survey computer class, the discussions here are brief.

2. In a decentralized organization such as this one, what would seem to be the best approach to performance evaluation? 3. What information would you include in a performance evaluation report for Mr. Eschenbrenner? 1-21. Ross, Sells, and Young, LLP (Information Technology and Auditing) Carrie Ross is the Managing Partner of Ross, Sells, and Young, LLP, a mid-sized CPA firm. She has just finished reviewing the firm’s detailed income statement for the previous quarter. The statement showed that auditing revenues were about 4% below last year’s value and tax revenues were about the same.

Without data to process, both the hardware and the software would be useless. Without procedures, accounting data could not be gathered accurately or distributed properly. And finally, without people, it is doubtful that the rest of the system could operate for long or be of much use. What all this means is that ‘‘information technology’’ is a fuzzy term that includes more than computer hardware. In this chapter, we concentrate on computer hardware (in the next three sections of the chapter) and software (in the final section).

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