ACTG 321: Accounting Information Systems I (AIS)
Autumn 2010-TR 9:40-11:00; 11:10-12:30.
The class meets in the GBB Building, Room L13.
Instructor: Ronald F. Premuroso, Ph.D., CPA.
3/8/2016
E-mail: ronald.premuroso@umontana.edu Webpage: www.business.umt/faculty/premuroso/
Office: GBB 341. Office Phone: (406)-243-6464. My Office Hours: TR: 8:30-9:30; 12:30-2:00; 3:30-4:30
Course Learning Goals
I will provide you with a broad overview of accounting information systems (including related
technologies, where appropriate) and basic internal control issues and practices as they relate to the
accounting profession. Given the dynamic nature of technology, my focus is on developing problem
solving skills, creative thinking skills, and learning tools students can apply to future technologies.
Accounting professionals are required to identify, evaluate, implement and/or test internal controls
related to financial reporting.
Internal controls are a key component of this course. Transaction cycles and the impact of
transactions on the general ledger and the financial reporting process are additional key components
of this course. Your ability to master these internal control concepts and transaction cycles are critical to
your future success in the accounting profession.
The course is broken into three sections to meet the above course learning goals: Introduction to and
Foundations of AIS, including an overview of AIS and system development and documentation
techniques (first two chapters); Relational Databases (1 chapter) and AIS Development Strategies (1
chapter), including outsourcing, business process reengineering, and custom software; Internal Controls
and Auditing of AIS (the next five chapters, and a very challenging section of the course), including
COSO; COBIT; SOX; the PCAOB; ERM; Audit Committees and Corporate Governance; Computer Fraud
and Abuse; Controls and AIS; Controls for IS System Reliability; and Auditing Computer-Based IS; and
finally AIS Applications: transaction cycles, including the revenue, expenditure, production, human
resources/payroll, and general ledger/financial reporting transaction cycles (5 chapters).
At the same time, you will have a choice to complete either a Group software project the entire
semester using either (1) Computerized Accounting Using Microsoft Dynamics GP 10.0, which will give
you “hands on” experience capturing financial transactions, analyzing company performance, and
instituting the internal controls learned during this course in a general ledger software environment, or
(2) QuickBooks Pro 2010, the most commonly used accounting software package used by small firms in
the US today ; or choices from a series of Group Case Study Projects, which is also explained further
below. Whichever choice you make, the completion of the Group Project (software or case study) will
be a good item to add to your professional resume. I will discuss both choices in class so you can decide
which project fits your particular goals and objectives in or outside the accounting profession. By or
preferably before September 30, please let me know your choice and your group members.
Your ability to communicate effectively what you learn in this course, both in writing and verbally, is also
part of the Mission Statements of the School of Business Administration and the Accounting Program,
which are shown later in this syllabus.
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All accounting majors must take this course. This course is also listed in a basket of courses IS majors
may take. For those of you planning to take the CPA exam, internal controls, communication, and
reporting comprises about 30% of the Auditing & Attestation (AUD) section of the exam. Information
technology and related communication comprises about 25% of the Business Environment & Concepts
(BEC) section. I include CPA exam-type questions on my examinations so you can get some practice
tackling these types of questions. I have a CPA exam tab on Blackboard for your information.
You will also practice using various common software programs used in both business and in accounting,
including Excel, Access, PowerPoint, Word, and Visio.
Required Course Materials and Prerequisites
•Textbook: Customized version of: Accounting Information Systems, 11th edition, Romney & Steinbart,
Prentice-Hall (2009). (Note: I have created a customized soft cover version of the original textbook
specifically for this course which is on sale in the bookstore containing the chapters I will cover during
the semester; it is the same textbook I have used to teach this class since the Autumn 2008 semester.
This customized textbook is MUCH CHEAPER than buying the original textbook, but it has limited resale
value. On the other hand, if you plan to take the CPA Exam in the future, this textbook is THE textbook
reference for many of the questions on the CPA exam related to AIS. Please note: a new edition of this
textbook will be out early in 2011 which I plan to use starting Spring 2011.
•An active, University of Montana (firstname.lastname@umontana.edu) email account, and access to
the University of Montana blackboard server to obtain readings posted on Blackboard.
•Access to a computer, the Internet, printing capability, and Word, Excel, Access, Visio, PowerPoint, and
pdf files (for pdf files, you can download for free on the Adobe website the related software). The above
software is installed on the desktops in the SOBA computer labs on the 2nd Floor of the GBB building, or
you can ask the computer lab personnel for a license for about $10 per software package to install the
related software on your home desktop or laptop. If you only own an Apple desktop or laptop, software
capability with Microsoft is very important; otherwise, for course homework assignments requiring the
use of Microsoft software, you will need to use the SOBA computer lab to complete these assignments.
As the classroom and lab computers have Office 2007 installed on them, you must be able to view and
use Office 2007 files. The SOBA no longer supports Office 2003 as of the Autumn 2008 semester.
•Prerequisites: Junior status in the School of Business and having completed all lower business core
courses. Prerequisites will be checked the first week of class. If you do not have the prerequisites or
otherwise have permission to take the course, you must either drop the course or receive a grade of F.
You must be taking the Accounting Lab (ACTG 203), either at the same time you are taking this course,
or have completed the Systems Understanding Aid (SUA) in the past when you took and passed
Intermediate Accounting I, formerly ACCT 311, now called Corporate Reporting I or ACTG 305, now
ACTG 321-both ACTG 305 and ACTG 321 are called Accounting Information Systems.
Course Activities
Unannounced Quizzes/Collection of Homework-20% of Your Grade
I will have unannounced quizzes testing you on either the materials I covered the previous class or the
materials I am scheduled to cover that class meeting or special readings I assign to you. I do not take
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attendance-missing the quizzes provides me with some indication of your level of class attendance and
participation in class activities. The quizzes will be fill in the blank, multiple choice, and definition-type
short answer questions. Missed quizzes count zero toward your grade and cannot be made up. In lieu
of giving a quiz, I may decide randomly to collect the homework or portions of the homework assigned
for a particular class meeting.
The Group Software Project or The Case Study Options-15% of Your Grade
•The Software Option: Computerized Accounting Using Microsoft Dynamics GP 10.0. Fifth Edition.
Arens and Ward. ISBN#: 978-0-912503-32-5. This product is produced and marketed by Armond Dalton
Publishing, but they do not sell the product directly to students-I have to order it for you through the
UM bookstore. Note: this is not the same Microsoft Dynamics student educational software product I
used during the 2009-2010 school year-it is from another publisher entirely. The educational (student)
version includes software with a 120-day expiration period from the date you activate the software and
has basically the same functionality as the Microsoft Dynamics software version sold to businesses.
Microsoft Dynamics is highly respected computerized accounting software for medium-sized businesses.
This product was originally developed by Great Plains, which Microsoft purchased in 2001. The software
is more sophisticated than QuickBooks, and less sophisticated than SAP software. A typical Microsoft
Dynamics installation will cost a business several thousand dollars to install. Getting experience with
using Microsoft Dynamics is relevant for accounting or IS majors who will be working with a CPA firm or
in industry. Note: the software included in the package requires storage (hard drive) capacity of 4 GB.
I checked at Staples recently in Missoula, and the prices for a 4GB or 10GB thumb drive are coming
down almost every month. You or at least one of your group members must install the software on
your own desktop or laptop (it can only be installed one time on one desktop or laptop, so proceed with
care…..). Ten assignments are required to be completed if you choose this software option for your
course group case study. The assignments include working in a computerized software environment
with recording transactions and adjustments, performing month-end and year-end closing procedures, a
series of exercises working with internal controls in a software environment, and some advanced
features, including setting up records for a new company within the software. If you choose this option,
you will not be making a Group Presentation at the end of the semester to class. The ten assignments
are due to me no later than 10 days before classes end. Estimated completion time is 25-30 hours.
Here is the website link to this software option if would like to analyze the product:
http://www.armonddalton.com/greatplains4.html or you can come to my office, where I have a review
copy of the product for you to evaluate first. For technical support on this software, please check the
following site and following the instructions: http://www.armonddalton.com/techdynamics.html. or
•The Software Option: Learning QuickBooks Pro 2010: A Practical Approach. 4th Edition. Brunsdon.
2011. ISBN#: 978-013-2166614. Learning QuickBooks Pro 2010 is a comprehensive approach to
applying accounting concepts in a software environment. The text includes Sample Company data files
designed to simulate real-world businesses so that students gain hands-on experience with initiating
transactions, performing accounting activities, producing financial statements, and analyzing company
performance. The Companion Web Site for all of the products of the author, Brunsdon, where you can
download the Student Resources for this product and also buy the book for $130.67, FOB Shipping
Point, is: http://www.pearsonhighered.com/brunsdon/. Again, make sure it is the 4e, as you will see
several editions on that web page.
You need to have installed the WinZip utility
(http://www.winzip.com/index.htm) to open the Student Resource files which you download.
QuickBooks is accounting software used by more businesses in the US than any other particular
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accounting software, and is used mainly by small and medium sized businesses. If you are going to work
for a Montana, Idaho, or a Dakota’s based CPA firm, for example, many of your audit and tax clients will
be using QuickBooks software. QuickBooks is supplied by the publicly-traded Company, Intuit
(http://www.intuit.com/). If you come to me, I will give you an electronic copy of the PowerPoint’s
which are available for each Chapter in the textbook to assist you with your work. The textbook
contains 12 chapters. You must perform Chapters 1 through 3 and 12. For the remaining Chapters, you
need to choose either Chapters 4 through 7 (which teach you about a Service Business using Job
Costing-sound familiar from ACTG 202….) or Chapters 8 through 11 (which teach you about a
Merchandising Business working with inventory), plus take the Comprehensive Exam at the end of the
respective section. Chapter 12, which has to be performed no matter what route you choose, provides
you with the opportunity of creating a merchandising business from scratch and then recording a month
of transactions for the new business. It is also very important that you read and understand Appendix’s
A through E. I recommend you complete Chapters 1 through 3 first before working on either the
service-based or the merchandising business tracks. I recommend that you complete the Practice Set at
the end of Chapter 1, where you load sample data files, customize data files with your initials, and
backup the files, for use in the later chapters. Here is the link to the website where you can get basic
information on the product:
http://www.pearsonhighered.com/educator/product/LearningQuickbooks-2010-and-QuickBooks-2010-Software/9780132166584.page, or you can come to my office
to review a copy of the product and textbook. If you choose this option, you will not be making a Group
Presentation at the end of the semester to class. The chapter assignments are due to me no later than
10 days before classes end. Estimated completion time is 25-30 hours.
For both of the software options above, each group must consist of 5 students performing the software
option together as a group; the students can be from both sections of this class.
•The Case Study Option. I realize all students have different career goals and different dreams about
what they wish to do in the future. So, in addition to the Software Options above, I have posted on
Blackboard a variety of case studies. One case study is called Assessing Information Technology
General Control Risk: An Instructional Case Study. This case study helps students to assess overall IT
General Control risk within an organization’s information system within the context of an integrated
audit. If you are an IS major, or if you are an accounting/IS major, this case study may be for you.
The Robert Half 2010 Salary Guide for accounting majors suggests strongly that businesses and the
larger CPA firms are seeking to hire new accounting staff that are proficient with the eXtensible Business
Reporting Language (XBRL), which I will cover at the end of this class. To respond to this need, another
case study which you could choose to perform is called Interactive Financial Reporting: An
Introduction to eXtensible Business Reporting Language (XBRL). This case study exposes you to XBRL
and provides you with hands-on experience in using the related tools, including the underlying
mechanics of XBRL, using a programmed learning approach to analyze financial information using the
SEC’s free interactive financial viewer, and includes discussion questions related to XBRL and this and
other accounting classes.
Blackboard contains a tab containing both of the above case studies where you can evaluate them and
decide if you are interesting in performing either one of these two case studies.
A third case study option is the Financial Statement Risk Assessment Following the COSO Framework:
An Instructional Case Study. This case study, originally designed by KPMG and refined by me, is a
formal COSO financial statement risk assessment which is both challenging and very complex, but
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simulates a real-world financial statement risk assessment including the consideration and evaluation of
both Entity-Level and Process-Level Internal Controls in various industries (for example, automotive,
retail, or software). Students taking my classes in the past have performed this case study, and have
found it very challenging but very rewarding when completed at the end of the semester. There is a
separate tab on Blackboard for this Case Study option.
Last, a final case study option is to perform a complete transaction cycle review at either a Company you
know of or work for, flowcharting the current transaction cycle today, formally identifying internal
control strengths and weaknesses in the current transaction cycle and the potential ramifications of
each, and preparing a list of recommendations to improve the policies, procedures, and controls in that
transaction cycle, including the benefits of your recommendations and a revised proposed transaction
cycle flowchart. Please come see me if you are interested in this option, which is a real-world
application of what you are learning throughout this course, for the ground rules and advice you need to
do this type of study successfully. Do not proceed on this option without my approval or guidance.
Each of the Group Case Studies are to be started right after Exam 2 and completed as indicated on the
Course Schedule. The reason the Group Case Studies cannot be started before then is I will be teaching
you various concepts and lecturing on various material which you will need to successfully complete the
case studies except for the XBRL case study. For the XBRL case study, the lecture is actually right at the
end of the semester, so you will have to do this case study early enough and on your own and not wait
for that class lecture on XBRL. For each of the Group Case Studies, the Group will present the results to
me and representatives I will invite from both national and regional accounting firms. The case studies
are to be performed by 5 students per group; combining students from different sections of this class is
again acceptable.
Group pages will be set up for those of you performing one of the Case Studies in Blackboard, where
you can post drafts, email each other, or hold online meetings together, as well as post your final
submissions for grading at the end of the semester.
All Group Work in this course requires each group participant to fill out and return to the Instructor a
hard copy (only) of a confidential evaluation survey of each Group Member’s contribution to group
project. This helps to reduce the incidences of “slacking”. Penalties will be significant for slacking.
Course Policies
Grading: I will assess your mastery of the course material primarily through exams, the quizzes and
homework, the Dynamics assignments, and the Group Case Study. Course grades are determined as
follows:
Exams 1, 2, and 3
45% (15, 15, 15, respectively)
Comprehensive Final
20%
Group Case Study/SW Option
15%
Quizzes and Homework
20% (each unannounced)
Course grades are final and are not negotiable. Basic grading standards are: 93% and above: A; 9092.9=A-; 87-89.9% = B+; 83-86.9% = B; 80-82.9% = B-; 77-79.9% = C+; 73-76.9% = C; 60-72.9% = D; below
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60% = F. There is no C- in this course. The professor reserves the right to adjust a student’s final grade
down a letter grade in this course if you miss more than 3 out of the 20 quizzes and/or homework
assignments for any reason during the semester, or if you do not actively participate in the Group
Case Study or Software Project. I do not discuss grades by email due to privacy concerns, so please do
not ask; please come see me if you wish to discuss your grades.
Course Flexibility: The course schedule at the end of the syllabus is an outline for the course, but it is
tentative, including the test dates. Assignments may change to incorporate recent developments
relevant to both the accounting profession and to AIS. It is your responsibility to attend class and be
aware of the course schedule. I do not accept late submissions for any reasons.
Incompletes, Drops and Grading Options: This course must be taken for a letter grade. Incompletes are
only given in extreme circumstances that are serious and unavoidable. The last day to drop a course is
available at the Registrar’s web site - note this date is too late for a refund of your fees. After this date, a
petition is required. I abide by University and departmental policy and do not approve petitions to drop
after the drop date unless you document written justification for your special circumstance as required
by the University. Very limited circumstances are permitted for petitioning, and these circumstances do
not include prior poor academic performance or its consequences. Examples that may merit approval
are: registration errors; accident or family illness; family emergency; change in work schedule; or other
circumstances beyond the student’s control. Please note that University Policy forbids dropping a class
for any reason after the last day of classes. Please check the Registrar’s web site for all important dates
and policies regarding incompletes, drops, and grading options.
Classroom Policies. You should consider each class meeting as a business meeting; this means (and I
am very serious about this):
-all personal electronic devices should be turned off during class;
-if you leave class, please do not return during that class meeting; and
-arrive on time and prepared for each class. Arriving late or departing early is disrespectful.
-you should expect to spend a minimum 6-10 hours each week outside of class preparing/doing
homework assignments for this course. I can assure you, this class will be very challenging and timeconsuming, but your learning experience in this class will be vast!
-check Blackboard (under the “Course Documents” tab) for additional readings, videos, etc. for each
course topic which you are also responsible to read/listen to for the related lecture session.
If you need to leave class early, let me know before class starts. Class attendance in this course is
extremely important to succeed (ask any of my past classes this question yourself). This course has a
relatively high failure (retake) rate, as students mistakenly do not take my warnings seriously.
Exams-Exams are administered during regular class time; students are therefore required to take each
exam at the announced time and date. I do not administer either make-up exams or early exams.
Working, being out of town, or being late in returning from out of town are not excuses for missing an
exam. I retain all exam materials in my office, and you are invited to come by my office to review and
discuss your exam at any time during the semester. Exams are generally multiple choice.
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You may not use any outside materials, including language dictionaries, during an exam. You may not
leave the room during an exam until you complete your exam. Cell phones, PDA’s, and iPods and iPads
must remain in your backpacks or purses during the exam.
Blackboard-I will make heavy use of Blackboard to administer this course. You can access Blackboard
using any Internet browser and the appropriate password. Blackboard at the University uses the
students’ University email accounts. I will post course materials, readings, etc. on Blackboard. Please
change your password at least once during the semester to ensure you will not be locked out of
Blackboard without notice. If you have trouble using your Blackboard account, please check the Tech
Support tab in the course Blackboard site.
Email-Beginning July 1, 2007, the University has a new policy regarding student email accounts. Faculty
members may only correspond with students regarding academic issues using official University email
addresses. I will therefore only reply to emails using umconnect.umt.edu addresses in this course. It is
the student’s responsibility to ensure the functionality of his or her umconnect account (e.g., not full).
Student Responsibilities, including Quizzes and Homework-You have responsibilities when you enroll in
this course, including: (1) show up, (2) keep up, and (3) speak up. The overall class experience is greatly
enriched if you come to class both prepared and willing to participate in classroom discussions. This
means you should have read the assigned text book reading or other reading assignments, and must
have done any assigned homework before coming to class. You should bring your textbook to every
class meeting. I will make announcements via email (university email addresses only), so please check
your email regularly. I retain the option to give quizzes at the start or the end of class; I will pick up
homework either at the start or at the end of class, at random. I will also call you at random during class
to explain the homework assigned for that particular class meeting.
Office Hours-I hold regularly scheduled office hours every week, and any changes are announced in
advance on Blackboard. I encourage you to seek my help and guidance throughout the course, whether
it relates to the course materials, academics, or career counseling. Drop-in visits are welcome.
Students with Disabilities-Students with disabilities may request reasonable modifications by contacting
me. The University of Montana assures equal access to instruction through collaboration between
students with disabilities, instructors, and Disability Services for Students (DSS). “Reasonable” means the
University permits no fundamental alterations of academic standards or retroactive modifications. (For
other options see http://www.umt.edu/disability).
Academic Misconduct-The accounting profession is held to the highest standards of ethical conduct.
Research shows students who cheat in college are likely to cheat in their job after college. Do not do it.
Period. Academic misconduct will result in a grade of “F” in this course. Academic misconduct includes,
but is not limited, to the following:
•Disclosing exam content to other students after you have taken the exam;
•Copying any material from another student, including written assignments, spreadsheets, data files, or
exam answers;
•Utilizing a previous student’s materials from this or other courses;
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•Plagiarism (i.e., copying someone else’s work without making appropriate reference to the source);
•Obtaining complete or portions of pre-written papers from any source, including the Internet;
•Misconduct during an examinations; and/or
•Facilitating any type of academic dishonesty.
I will retain all exam materials; taking exam materials outside of the classroom or my office for any
length of time without my permission is considered academic misconduct. The Student Conduct Code
for
the
University
of
Montana
is
available
online
at:
http://www.umt.edu/SA/VPSA/index.cfm/page/1321. I reserve the right to include in your
examinations in this course materials from the Student Conduct Code.
Career Development Activities-I have a Career Development tab on Blackboard for your convenience.
School of Business Administration Mission Statement
The University of Montana’s School of Business Administration is a collegial learning community
dedicated to the teaching, exploration, and application of the knowledge and skills necessary to
succeed in a competitive marketplace.
Accounting Program Mission Statement
The undergraduate accounting program is committed to preparing students to apply accounting and
business knowledge in organizations.
Assessment and Assurance of Learning Goals
As part of our assessment process and assurance-of-learning standards, the School of Business
Administration has adopted five learning goals for all undergraduate students, and the accounting
program has adopted four additional learning goals for accounting majors.
SoBA graduates will:

Possess fundamental business knowledge and integrated business knowledge;

Be effective communicators;

Possess problem solving skills;

Have an ethical awareness; and

Be proficient users of technological skills.

Accounting majors will:
1)
2)
3)
4)
Possess fundamental accounting knowledge;
Be effective communicators;
Critically analyze and solve problems, using technology where appropriate; and
Understand the importance of ethics to the accounting profession and demonstrate ethical
decision making.
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ACTG 321-Accounting Information Systems I (AIS)-Tentative Course Schedule
1. Introduction to and Foundations of AIS.
Week 1
August 31-Course Introduction; AIS: An Overview.
September 2-AIS-An Overview; Discussion Question 8; Problems 6, 8 (8h using Excel), 9.
Week 2
September 7-System Development and Documentation Techniques; Problems 2, 6, 7.
September 9-Above Chapter continued; Problems 12, 13, 18 (18 using Visio software).
Week 3
September 14-Relational Databases.
September 16-Relational Databases. Homework Assignments Posted on Blackboard.
Week 4
September 21-AIS Development Strategies; Problems 1, 2.
September 23-AIS Development Strategies; Problems 11, 12
Week 5
September 28-Exam 1-Above 4 Chapters.
2. Internal Controls and Auditing of AIS.
September 30-Computer Fraud and Abuse; Problems 14, 15, 16 and 17.
Listen to video (1-hour long): www.pbs.org Frontline: The Madoff Affair.
www.pbs.org/video/video/1122731028/search/Madoff
Week 6
October 5-Computer Fraud and Abuse; Problems 4, 5, 13.
October 7-Control and AIS; Problems 8, 11.
Handouts on Blackboard under Course Documents: Controls and AIS;
ERM Framework; etc..
Week 7
October 12-IS Controls for System Reliability-Part I; Problems 1, 2, 4.
Handouts on Blackboard under Course Documents: Cloud Computing; Specifics of IT
General Controls; Testing of IT Application Controls and CAAS.
October 14-IS Controls for System Reliability-Part II; Problems 2, 3, 11, 12.
Same handouts as above for Part I, continued.
Week 8
October 19-Auditing Computer-Based IS; Problems 2, 11.
Review Cases Illustrating Inherent Financial Statement Risks, Entity-Level and
Process-Level Controls-Posted on Blackboard under Course Documents.
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October 21-Auditing Computer-Based IS; Problems 12, 13.
Audit Committees and Corporate Governance;
Week 9
October 26- Exam 2; The 5 Chapters covered since Exam 1.
3. AIS Applications: Transaction Cycles (Revenues; Expenditures; Production; Human Resources and
Payroll; General Ledger and Reporting). Updated October 25, 2010
October 28-The Revenue Cycle; Problems 3 and 5.
Week 10
November 2-Election Day-No Class
November 4-The Revenue Cycle; Problems 8, 9, 10, 12.
Week 11
November 9- The Expenditure Cycle; Problems 1, 2, 7.
November 11-Veterans Day-No Class
Week 12
November 16-The Expenditure Cycle; Problems 11, 12, 15.
November 18- The Production Cycle; Problems 1, 2, 4.
Week 13
November 23-Human Resources and Payroll Cycle; Problems 1, 3, 4, 10.
November 25-28: Thanksgiving Holiday weekend.
Week 14
November 30: General Ledger and Reporting Cycle-Managerial Reports, XBRL, and
Management Information Needs (readings on Blackboard); Problems 1, 2, 3.
December 2: Exam 3: Above 5 Chapters.
December 3-Friday: Final Group Projects Due & Presentations posted on Group Page.
Week 15
December 7: Review Exam 3. Review for Final Examination. Course Evaluation.
Supplemental Evaluations using Survey Monkey linked from Blackboard. Meet in Lab.
December 9: All Group Case Study Presentations: 9:40-12:30.
Week 16
Comprehensive Final Examination:
Class Meeting starting at 9:40am: Final Examination is Wednesday, December 15 from
10:10am-12:10pm.
Class Meeting starting at 11am: Final Examination is Thursday, December 16 from
10:10am-12:10pm.
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