General Ledger and Reporting eXtensible Business Reporting Language (XBRL): Without:

Primary function is to collect and organize The accounting cycle activities Financing activities Investing activities Budget activities Adjustments General Ledger and Reporting General Threats Inaccurate or invalid general ledger data Unauthorized disclosure of financial statement Loss or destruction of data General Ledger and Reporting General Controls Data processing integrity controls Restriction of access to general ledger Review of all changes to general ledger data Access controls Encryption Backup and disaster recovery procedures Post Adjusting Entries Controls Data entry processing integrity controls Spreadsheet error protection controls Standard adjusting entries Reconciliations and control reports Access controls Audit trail creation and review -

With:

Instance Document o Contains data from financial statements Marked up or tagged with data describing the data o Each piece of data in XBRL is an element Taxonomy o Set of files defining the various elements and the relationships between them A schema Contains the definitions of every element that could appear in an instance document Linkbases o Describes relationships between elements Reference Identifies relevant authoritative pronouncements Calculation Specifies how to combine elements Presentation How to group elements Label Associates human-readable labels with elements

Transaction Processing and ERP Systems 4 major steps in the data processing cycle:

ERP Systems

As a business activity occurs data is collected about: 1. Each activity of interest 2. The resources affected 3. The people who are participating Types of AIS storage: Paper-based: Ledgers; Journals Computer-based Coding Techniques Sequence o Items numbered consecutively Block o Specific range of numbers are associated with a category 10000199999 = Electric Range Group o Positioning of digits in code provide meaning Mnemonic o Letters and numbers o Easy to memorize o Code derived from description of item Chart of accounts o Type of block coding Data Processing four (4) main new activities: Create new records Read existing records Update existing records Delete records or data from records Data output types: Soft copy Displayed on a screen Hard copy Printed on paper

Enterprise Resource Planning (ERP) Integrate an organizations information into one overall AIS ERP modules: o Financial o Human resources and payroll o Order to cash o Purchase to pay o Manufacturing o Project management o Customer relationship management o System tools ERP Advantages Integration of an organizations data and financial information Data is captured once Greater management visibility, increased monitoring Better access controls Standardizes business operating procedures Improved customer service More efficient manufacturing ERP Disadvantages Cost Time-consuming to implement Changes to an organizations existing business processes can be disruptive Complex Resistance to change

Conversion Cycle Key Terms direct labour cost direct material cost job order costing just-in-time inventory system material requirements planning overhead cost process costing work in process Conversion cycle business activities Transactions in the conversion process: acquisition of materials acquisition of labour transfer of materials, labour and overheads into production transfer of finished goods to inventory Major groups in the conversion cycle 1. Inventory 2. Payroll 3. Cost accounting Inventory Main activity is to keep records of inventory levels: Raw materials Finished goods Valuation methods used: Periodic inventory method Perpetual inventory method Inventory processing

Internal control procedures for the conversion cycle: Material requisitions properly authorised Approved production schedules Finished goods transferred to storepersons care Inventory records checked for accuracy Physically verify stocks to check for losses and accuracy of records Investigate differences in physical and accounting records and take appropriate action Monitor defective production Investigate customer complaints

Payroll System Records labour transactions Payroll system interfaces with conversion cycle providing information on labour transactions Cost Accounting Records transactions of conversion cycle classifying three major elements: 1. Direct material costs 2. Direct labour costs 3. Overhead costs These are recorded in a Work in process account