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 reality helmet that provided a totally immersive experience for gamers. The z/Helmet not only offered a stunning video and audio experience, as well as vibrations and other movement-simulating feedback that was synced to the action in the game. Additionally, it captured vital statistics data (heart rate, blood pressure, and the like) from the player and, using a complex server-side algorithm, utilized this data to augment the game’s action and scenarios. Blazer Interactive upgraded the system in 2015 with other “smart” accessories, and by 2017 the z/System2 had an almost cult following. However, there were issues. While a new z/System3 was due out later in the Fall, James and his staff were having difficulty estimating demand for the new system. There were also concerns about escalating warranty costs due to component failure. James worried about estimating product failure rates so that the company could properly accruing for warranty cost, and what effect, if any, social media buzz (either positive or negative) would have on demand. During a brainstorming session, one of Blazer Interactive’s new accountants had an idea. “You know, we’ve captured a ton of data on these systems since we introduced them in 2013. Even though we’ve innovated our products with regularity every year or so, the underlying hardware—motors and accelerometers and sensors and thingies—well, that hasn’t really changed. And don’t we have terabytes of data that is granular down to the individual unit level? Stuff like active use time, user vital stats—that junk? What would stop us from pairing that with data from our warranty service center software? We could actually predict when a console or z/Helmet was going to fail, couldn’t we?” The head of marketing chimed in as well. “Yeah, that’s cool! And we could probably do some analysis on social media buzz…you know, maybe look at the Twitter and Facebook buzz ahead of our previous product launches, and try to use that to extrapolate out what demand might be for the upgraded console?” Requirements: 1. What type of analytics do you feel would be most appropriate for Blazer Interactive to use (descriptive, predictive, prescriptive)? Why? 2. Are there other data sources that the team should be looking to for insights into product failure rates or to anticipate demand for a new console? 3. As an accountant, how comfortable are you with using non financial data (like sentiment analysis from social media) to augment or fine-tune product pricing and demand decisions? Do you think this will become mainstream practice in the short-term? 4. Do you have any concerns about the z/System3 capturing vital statistics on users and storing them on a network? How much privacy are you willing to trade for an enhanced and personalized user experience? 5. What additional service offerings do you thing Blazer Interactive might be able to offer given the data they are collecting? How might these data be monetized into other services or revenue streams?
> What do we mean when we talk about multifactor authentication? What are the examples of multifactor authentication in your personal life?
> Discuss the following statement: “The separation of duties control is very difficult in computerized accounting information systems because computers often integrate functions when performing data processing tasks. Therefore, such a control is not advisab
> What is the difference between logical access to the computer and physical access to the computer? Why is the security of both important?
> Explain how each of the following can be used to control the input, processing, or output of accounting data: (a) edit tests, (b) check digits, (c) passwords, (d) activity listings, and (e) control totals.
> Access the full case story of Mar-Bal Company (the AIS-at-Work for this chapter) at www.iqms.com. Then, respond to each of the following requirements: Requirements: 1. Review the items in Figure 5-10, which lists indicators that a company may need a new
> What is a security policy? What do we mean when we say organizations should have an integrated security plan?
> Discuss some of the advantages to an organization from using a voucher system and pre numbered checks for its cash disbursement transactions.
> How can separation of duties reduce the risk of undetected errors and irregularities?
> Why are competent employees important to an organization’s internal control system?
> Discuss what you consider to be the major differences between preventive, detective, and corrective control procedures. Give two examples of each type of control.
> Why are accountants so concerned about their organization having an efficient and effective internal control system?
> Briefly discuss the interrelated components that should exist within an internal control system. In your opinion, which component is the most important and why?
> Why are the COSO and COBIT frameworks so important?
> What were the primary drivers for the redesign of COSO’s ERM Framework? Briefly discuss the five components of effective ERM.
> Why did COSO think it was so important to issue the 2009 Report on monitoring?
> Neil Rogers is the controller for North Gate Manufacturing (NGM), a company with headquarters in College Station, Texas. NGM has seven concrete product plants located throughout the Southwest region of the United States. The company recently switched to
> Why is it important for managers to evaluate internal controls?
> What role does cost–benefit analysis play in an organization’s internal control system?
> What are the primary provisions of the 2013 COSO Internal Control—Integrated Framework?
> What are some of the benefits of a centralized database? What are some of the difficulties in moving from multiple databases or files to a centralized database structure?
> What are the four basic components of an ERP’s architecture? How do these components differ from a set of independent accounting systems—for example, separate systems for accounts payable, accounts receivable, inventory control, and payroll?
> Discuss some of the basic features of an ERP. How do these features distinguish an ERP from an integrated accounting software program?
> 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?
> 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?
> 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
> 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.
