A system is a system of systems.
A system is a series of work items that are arranged to create either a process or a finished product. A work item can be a document, a procedure, a person, a process, an idea, or even capital.
What is a system?
A system is not equivalent to a “computer system” Types of Systems
Simple or Complex
Formal or Informal
Brain Parallelism
If you pay close attention, you will note that our systems mirror our brain processes
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Data Processing Cycle
Input
Process
Output
Storage
http://www.youtube.com/watch?v=JSnB06um5r4
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The Data Processing Cycle Determines
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What data is stored?
Who has access to the data?
How is the data organized?
How can unanticipated information needs be met?? 2-6
Data Input—Capture
• As a business activity occurs data is collected about: 1. Each activity of interest
2. The resources affected
3. The people who are participating.
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Paper-Based Source Documents
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Data are collected on source documents – E.g., a sales/purchase-order form – The data from paper-based will eventually need to be transferred to the AIS
Turnaround document
– Usually paper-based
– Are sent from organization to customer – Same document is returned by customer to organization
– Examples of turnarounds??
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Org.
Cust.
Turnaround Document
Source Data Automation
• Source data is captured
– In machine-readable form (QR code, barcode)
– At the time of the business activity
• E.g., ATM’s; POS
• What other methods for source data capture exist?
– Walking around?
– Websites
– Voice recognition
– Body characteristics
– Last name??
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Data Input—Accuracy and Completeness
• Well-designed source documents can ensure that data captured is
– Accurate
• Provide instructions and prompts
• Check boxes
• Drop-down boxes
– Complete
• Internal control support
• Pre-numbered documents.
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Data Storage
• Types of AIS storage:
– Paper-based
• Ledgers
• Journals
– Computer-based
• Daily files
• Monthly files
• Legally required information.
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Ledgers
• General
– Summary level data for each:
• Asset, liability, equity, revenue, and expense
A/R
$1000
• Joe Smith
$250
• Patti Jones
$750
A/P
$600
• ACME Inc.
$150
• Jones, Inc
$450
• Subsidiary
– Detailed data for a General
Ledger (Control) Account that has individual subaccounts
• Accounts Receivable
• Accounts Payable.
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Journals
• General
– Infrequent or specialized transactions
– Adjusting entries
• Specialized
– Repetitive transactions
• E.g., sales transactions
• E.g., purchase transactions.
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Coding Techniques
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Sequence
– Items numbered consecutively
Block
– Specific range of numbers are associated with a category
• 10000–199999 = Electric
Range
Group
– Positioning of digits in code provide meaning
Mnemonic
– Letters and numbers
– Easy to memorize
– Code derived from description of item
Chart of accounts
– Type of block coding
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Digit Position
Meaning
1–2
Product Line, size, and so on
3
Color
4–5
Year of
Manufacture
6–7
Optional Features
1241000
12 = Dishwasher
4 = White
10 = 2010
00 = No Options