Implementation of a new AIS went smoothly, for the most part. It is 15 years later, and now HMC is interested in mapping a variety of their business processes to determine whether improvements can be made and whether business process reengineering should be considered. Hammaker asked Denise to work with the consulting firm analysts to determine the feasibility of these two options and also to consider the possibility of outsourcing. Denise does not know much about outsourcing and she is not sure which process (or processes) Dick might want to outsource. Denise discovers that a number of developing countries have the capacity and the labor to make the parts that HMC is currently producing and at much cheaper prices. Further, Denise discovers that many companies are outsourcing and offshoring a number of processes that used to be accomplished by company employees. Denise makes a note to herself to check the number of employees in each of the following departments: HR, computer support, accounting, and janitorial services. She also decides to query the AIS to determine what performance measures are available to assess the efficiency and effectiveness of each of these departments. Denise places a call to Lloyd Rowland to discuss this issue with him. HMC is not unionized, but Denise ponders the legal and social issues associated with outsourcing jobs, since many of the 365 employees at Hammaker Manufacturing have been with the company for well over a decade. Requirements: 1. Identify tools that would help Denise and Rowland map HMC’s business processes. Which processes do you think they should work on first? Why those processes? 2. Identify at least six reasons why companies choose to outsource a business process. Which of these reasons might Dick use to make his decision to outsource or to attempt BPR? 3. Is producing automotive parts a “core” business process for Hammaker manufacturing? Explain. 4. Do companies ever outsource “core” business processes? Search the Internet to see if you can find an example of a company or an industry that outsources core business processes. What are they? Why are they doing this? 5. What social or legal issues might Denise consider? Be specific and explain why these issues might be important to Hammaker manufacturing. 6. What would you recommend if you were one of the analysts at the consulting firm? Explain.
> Discuss the differences between traditional ERP and extended enterprise systems.
> The difference in price for middle-market accounting software versus for an ERP system can be millions of dollars. What can these high end systems do that the less-expensive enterprise accounting packages cannot?
> What are some of the advantages of the cloud computing feature of integrated accounting software? What are some of the disadvantages of a hosted solution?
> What features should a small organization look for when thinking about acquiring a new integrated accounting package? Would it make any difference if the organization were a not-for profit concern?
> The annual report is considered by some to be the single most important printed document that companies produce. In recent years, annual reports have become large documents. They now include sections such as letters to the stockholders, descriptions of t
> How are the integrated accounting systems for small businesses like those for larger businesses? How are they different?
> What is a dashboard? What is a mashup? Discuss how these items relate to ERPs and how they might help a business manager in his or her job.
> 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.
> What are some of the consequences to a company that makes a poor decision in selecting a new AIS?
> While you are likely to purchase a middle end accounting software package from a value added reseller (VAR), why should you be cautious about hiring one to recommend a software package for your business?
> Find an article about a company that has adopted a business application suite. Identify the company and its basic characteristics (such as location, products, number of employees). What are some cost savings realized by the company? Were there specific ef
> A new company will have no business processes in place. How would the owner go about selecting an appropriate AIS for the new company? Should the owner consider acquiring an ERP package immediately?
> What are some important features of integrated accounting software for small businesses? Why are they important?
> What is image processing? How is image processing used in AISs?
> What is the function of secondary storage? Describe three types of secondary storage media, and describe the advantages and disadvantages of each type.
> Robert Berry is the managing partner for Berry & Associates (B&A), LLP. He was recently reviewing the firm’s income statement for the previous quarter, which showed that auditing revenues were about 5% below last year’s totals while tax revenues were abou
> 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?
> Identify several types of printers. What are the advantages and disadvantages of each type?
> Identify the three sections of a CPU, and describe the functions of each component. How are microprocessor speeds measured? Why are such speeds rarely important to AISs?
> How do you feel about red-light cameras? Should cities be allowed to use them? Why or why not?
> Name several types of computer input devices, and explain in general terms how each one functions.
> Why do most AISs try to avoid data transcription?
> Why is information technology important to accountants?
> The Business Software Alliance (www.BSA.org) is a non profit organization dedicated to fighting illegal software copying (software piracy). The organization estimates that one in five software programs is unlicensed and therefore illegal. Is copying a sprea
> What are computer programming languages? Name some specific languages, and describe briefly an advantage of each.
> Name some general classes of application software. What tasks do each of your software classes perform?
> What are windowing operating systems, multitasking operating systems, and graphical user interfaces? Why are they useful to AISs?
> Blazer Interactive is a software company that focuses on first-person player video games. In 2013, Blazer’s CEO, Alexander James, introduced a revolutionary new gaming console to his company’s product line. The z/Station’s primary draw was a virtual reali
> What are the names of some current cloud computing vendors other than those discussed in the text? Should all firms use cloud vendors, or are there some reasons why they should be avoided?
> What is client/server computing? How does it differ from host/mainframe computing? What are some of the advantages and disadvantages of client/server systems?
> What are local area networks? What advantages do LANs offer accounting applications?
> What are data communication protocols? Why are they important?
> Why is it important to view an AIS as a combination of hardware, software, people, data, and procedures?
> What is EDI? Why do companies use EDI?
> Describe some important uses of electronic commerce and explain why electronic commerce is important to accountants.
> How does XBRL compare to the IDEA database?
> What is HTML? How does it differ from XML and XBRL? (Note: For a more comprehensive description of the differences, you may want to search the Internet.)
> How are the comments on social media sites useful to businesses? How are these sites useful to accountants?
> Mattie and Jaime have been friends since grammar school, but they now both attend State University. As agreed, they met under the big tree—a common meeting place for students. “How did your interview go at Forest Meadows?” asked Mattie as they both sat d
> Is bitcoin still a viable currency? Use an Internet search engine to find out. If so, what is the exchange rate for one bitcoin in the currency of your country? Would you buy a bitcoin? If so, why? If not, why not?
> What are blogs? How are they used? Who is using them?
> What is click fraud? Who benefits and who loses when click fraud occurs?
> Most retail sales websites require customers to use their credit cards to make purchases online. How comfortable are you in providing your credit card number in such applications? Why do you feel this way?
> Analysts claim that businesses can increase sales on the Internet, but not profits. What evidence does this chapter provide to support or refute this claim? Discuss.
> What are digital signatures? Why do businesses use them? How can businesses use a digital certificate for Internet security?
> Describe and contrast the three types of authentication. Can you think of a business situation where someone would need to use a combination of all three levels to gain access to information?
> What is data encryption? What techniques are used for data encryption?
> What are Internet firewalls and proxy servers? How are they created? How do businesses use them for Internet security?
> What is spamming? How is spam related to accounting information systems? Should all spamming be illegal? Why or why not?
> In this chapter we talked about predictive analytics and big data. Using the Internet and your research skills, identify the skills and abilities accounting majors might need (i.e., what type of courses should you take while at your university) to levera
> 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.
> This chapter described several career opportunities available to students who combine a study of accounting with course work in information systems, and/or computer science. Can you think of other jobs where these skill sets would be desirable?
> What are electronic payments? How are they different from credit card payments?
> Would you rather use the Report Wizard to create the format of a report or design one yourself from scratch? Why?
> Do you think that we will still use hard-copy reports in the future, or will they be replaced with soft-copy ones? Defend your answer.
> The chapter suggested that it is important to design the format of a report before creating the report itself. Do you agree or disagree?
> What is the purpose of a database report? What information do such reports contain?
> Why do database developers customize forms? Why isn’t it sufficient to use the form as initially created by the Form Wizard?
> What is a sub form? Why do forms have sub forms? How do you create sub forms in Access?
> Dick Hammaker has been fascinated with Corvette cars, especially convertibles, since he was a teenager. Dick grew up in Michigan and worked part-time through his high school and college years at a car manufacturer, so he knew the business well. Not surpr
> To create a form, would you rather use the Form Wizard in Access or create the form from scratch? Why?
> Would you rather use a form or a datasheet for entering data into a database table? Why?
> Why are calculated fields created with database queries? Why not create them directly with reports?
> What is a calculated field in a report? Provide some examples. Why do reports contain calculated fields?
> What are some of the advantages and disadvantages of database forms?
> What is SQL? How is SQL like an Access query? How is it different?
> What are data manipulation languages? How are these languages related to database management systems? How are these languages related to databases?
> A data-entry clerk at Watanabe and Associates recently questioned the need for validation rules in database tables. “After all,” he stated, “if you make a mistake entering data, you can always go back and fix it later—if someone discovers your mistake.” D
> What is data validation? Why is it important? Give some examples of how to validate data inputs using Access.
> Why do database developers link tables together? How is this done using Access?
> Bill Barnes and Tom Freeman opened their BSN bicycle shop in 2010. Not counting Jake—a friend who helps out occasionally at the store—Bill and Tom are the only employees. The shop occupies a small commercial space that was once a restaurant. The former k
> What are data definition languages (DDLs)? How are they related to DBMSs?
> What are database management systems? Are they the same as databases?
> Identify the different data types available for creating data fields in Microsoft Access. Similarly, identify the different types of numbers (e.g., Long integer) you can use if you define a field as a number. (Hint: Create a data field in a throwaway databas
> Suppose that a data modeler creates a database that includes a Sales table and a Salesperson table. Would you be likely to need a relationship table to link these two entities? Why or why not?
> What is the REA model? How does REA differ from more traditional accounting views of data collection and storage? Hint: Would a traditional accounting database store data about personnel matters?
> Describe each of the following database issues that are relevant to accounting systems, and give an example of each: (1) data integrity, (2) transaction accuracy and completeness, (3) concurrency processing, and (4) security.
> Name some specific accounting files and a potential primary key for each one.
> What are primary keys in accounting databases and what purpose(s) do they serve?
> What is the hierarchy of data in databases? Provide an example for a particular accounting application.
> Amazon designed its Echo devices to listen, and respond to, voice commands. But in December of 2016, police in Arkansas sought the audio recordings of Victor Collins for another reason—to help them solve his murder. As the case unfolded, it because clear
> Jason Saving is an IT auditor for a large, public accounting firm. His manager has assigned him to the Consolidated Company audit. The IT auditors must complete several evaluating and testing procedures in order to help determine the scope of financial aud
> What is the process of normalization? What levels are there, and why do database developers seek to normalize data?
> Why are databases important for accounting information systems? Describe some concerns, and explain why each one is important.
> Three methods for implementing a new system in an organization are direct conversion, parallel conversion, and modular conversion. Discuss the advantages and disadvantages of using each of these three systems implementation methods.
> When implementing a new computer system, two activities required are to (1) establish controls and (2) convert data files. What is the rationale for performing activity 1 before activity 2?
> What is the purpose of a systems specifications report? In what ways, if any, do the data included in this report differ from the data accumulated by the design team during their feasibility evaluation work?
> What is prototyping? Under what circumstances should prototyping be used? Under what circumstances should it not be used?
> Discuss some of the annual cash benefits and annual cash costs that a company might have when it creates an online ordering system on the World Wide Web.
> What is the purpose of a systems feasibility evaluation? Should this activity precede or follow the preparation of a systems specifications report for computer vendor evaluation? Explain.
> 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 th
> What is a steering committee? Discuss its role in a systems study performed by a consulting firm.
> Tiffany Martin is an audit manager in a medium-sized public accounting firm. Tiffany graduated from college 7 years ago with a degree in accounting. She obtained her CPA certification soon after she joined the firm where she currently works. Tiffany is a fin
> What is the difference between “outsourcing” and “off shoring?” Why might this difference be important to managers?
> What is the difference between business process outsourcing (BPO) and knowledge process outsourcing (KPO)? Why do many organizations outsource at least some of their accounting functions?
> Discuss the two major ways that a company’s software can be acquired. Which of these ways for acquiring software do you recommend? Explain your reasoning.
> What is the purpose of follow-up in a systems study? Describe some of the specific activities that the management implementation team would perform in their follow-up work.
> What is a PERT chart? What is a Gantt chart? Discuss the advantages and disadvantages of using PERT network diagrams versus Gantt charts for planning and controlling the activities involved in implementing an information system.
> Discuss the major differences between the planning, analysis, and design phases of a systems study.
> What are CASE tools? How are they used? How do CASE tools create documentation for AISs? If you were a systems analyst, would you use a CASE tool?
