Page 24 - Accounting Information Systems

Preface xxiii

• The chapter’s fourth section explains how multiple REA diagrams (revenue cycle,
purchases, cash disbursements, and payroll) are integrated into a global or
enterprisewide model. The enterprise model is then implemented into a relational
database structure, and user views are constructed.
• The chapter concludes with a discussion of how REA modeling can improve com-
petitive advantage by allowing management to focus on the value-added activities
of their operations.

Chapter 11, ‘‘Enterprise Resource Planning Systems’’
Chapter 11 presents a number of issues related to the implementation of enterprise
resource planning (ERP) systems. It is composed of five major sections and an
appendix.
• The first section outlines the key features of a generic ERP system by comparing the
function and data storage techniques of a traditional flat-file or database system to
that of an ERP.
• The second section describes various ERP configurations related to servers, data-
bases, and bolt-on software.
• Data warehousing is the topic of the third section. A data warehouse is a rela-
tional or multidimensional database that supports online analytical processing
(OLAP). Issues discussed include data modeling, data extraction from opera-
tional databases, data cleansing, data transformation, and loading data into the
warehouse.
• The fourth section examines risks associated with ERP implementation. These
include ‘‘big bang’’ issues, opposition to change within the organization, choosing
the wrong ERP model, choosing the wrong consultant, cost overrun issues, and dis-
ruptions to operations.
• The fifth section reviews several control and auditing issues related to ERPs. The
discussion follows the SAS 78/COSO framework.
• The chapter appendix provides a review of the leading ERP software products,
including SAP, Oracle E-Business Suite, Oracle | PeopleSoft, JD Edwards,
EnterpriseOne, SoftBrands, MAS 500, and Microsoft Dynamics.

Chapter 12, ‘‘Electronic Commerce Systems’’
Driven by the Internet revolution, electronic commerce is dramatically expanding and
undergoing radical changes. Although electronic commerce has brought enormous
opportunities for consumers and businesses, its effective implementation and control
present urgent challenges to organizations’ management teams and accountants. To
evaluate the potential exposures and risks in this environment properly, the modern
accountant must be familiar with the technologies and techniques that underlie elec-
tronic commerce. Chapter 12 and its associated appendix deal with several aspects of
electronic commerce.
• The body of the chapter examines Internet commerce including business-to-
consumer and business-to-business relationships. It presents the risks associated
with electronic commerce and reviews security and assurance techniques to reduce
risk and promote trust.
• The chapter concludes with a discussion of how Internet commerce impacts the
accounting and auditing profession.
• The internal usage of networks to support distributed data processing and traditional
business-to-business transactions conducted via EDI systems are presented in the
appendix.