Office Hours:
Mondays 1:00- 1:20
4:30-530
and by appointment
MIKLOS VASARHELYI
315A Ackerson Hall
201-648-5002
miklosv@andromeda.rutgers.edu
Scope and Objectives
During
the fall and spring semesters, we will cover both information systems and
auditing, alternating
between two textbooks. While textual materials
are separate, some degree of integration will emerge.
On
the side of information systems, we will study design, development, implementation,
evaluation, and
selection. Technical aspects of computing
and data processing will be discussed in appropriate contexts, but management
will be emphasized.
On the auditing
side, we will examine the processes of attestation and verification that
facilitate and review
the preparation of data, operation of systems
and disclosure of financial information.
Course Administration
Student
grades will be based on four equally weighted components:
(1) participation in discussion, participation
in the class listserv and virtual activities,
individually and as part of a team,
(2) written homework assignments,
(3) midterm exam, and (4) final exam.
All homework assignments must be prepared
using a word processor. They will not be accepted late.
They may be submitted prior to class by
e-mail.
Books
The following books are required for
the course; they are available at both the Rutgers Bookstore and
New Jersey Books:
• Marshall B. Romney, Paul Steinbart, & Barry E. Cushing (1996)
Accounting Information
Systems, Seventh Edition. Addison-Wesley. (Romney, Steinbart
& Cushing)
• Arens, Alvin A., and James K. Loebbecke (1997). Auditing:
An Integrated Approach. Seventh
Edition. Prentice-Hall. (Arens & Loebbecke)
• Hoyle,
Jon Ben, John Trussel, and Richard A. Scott (1995). The Lakeside
Company. 13 Case Studies
in the Life-Cycle of an Audit. Sixth Edition. Prentice-Hall.
(Hoyle et al.)
• Kogan, Alexander,
Fred Sudit, and Miklos A. Vasarhelyi (1997). The Internet Guide for
Accountants:
a
living book. First Edition. Prentice-Hall. 1997 (KSV)
OTHER REQUIRED READINGS
The articles and chapters for each class should be read in advance; individual
students may be asked questions on these articles during the lecture. It
is the responsibility of each student to be prepared by reading
the assigned items and to search for related
literature in professional publications and over the Web. We will
be creating a resource database over the
Web to support the course. Student chosen reading should be at least
15% of the total preparation.
Schedule
1. Wednesday, February 11, 1997 The Technology and the Industry
This lecture will cover computer history and basic aspects of the technology.
The first part of the lecture will cover
the scenario of computing from its inception, through
the current world to some prospective
of future computing.
The second part of the lecture will cover
the basic architecture of PCs, Networks, and the Internet.
Slides from this lecture will be posted
on the Internet after the lecture.
2. Wednesday, February 18 Surfing the Internet
uniform resource locators (URL), information
browsing (World Wide Web), Web browsers
and servers, automated search, technologies
that enable electronic commerce.
* (KSV) CH. 2 – Surfing the Web
*(KSV) CH. 4 – Basic Internet Services
*(KSV) CH. 5 – Personal Publishing
on the Internet
Homework Assignments:
* Send Professor Vasarhelyi an e-mail message
with your name and a description of your previous
experience with computers and information
systems. Let him know if you have had special experiences
the class might profit from hearing about.
Discuss you views of the effect of technology on accounting
and auditing. Make a prediction on the
future world of accounting and auditing.
3. Monday, March 2 Electronic Commerce
Creating Value
Over the Internet: definition and the future, the emergence of
electronic commerce
as a legitimate forum for business, industries
and the impact of electronic commerce, security and electronic commerce,
person to business, business to business electronic commerce, the current
status of e-commerce,
platforms for e-commerce, e-commerce in
banking, brokerage, and retail sales.
* (KSV) CH. 8 – Electronic Commerce
* (KSV) CH. 7 – Security over the
Internet
*(KSV) CH. 5 – Some Legal aspects
of the Internet
Homework Assignments:
* Define an objective for a trip over the Internet (e.g. a potential trip to the Bahamas, the purchase of a car, finding articles on cultivating pearls). Log every page that you visited until you reach your objective (or fail to do so) and state the conclusions of your search over the Internet. Your trip log should have the URLs you visited so others can follow your itinerary.
*Write
a one/two page critical evaluation of the above exercise with observations
about the nature of the
medium, features that you would like to
see over the internet and ideas of products that may eventually emerge.
4 Wednesday, March 4 Systems Development Methodologies
• RSC Chapter 10 - Systems Development an
Overview
• Reengineering Work: Don’t Automate,
Obliterate. Harvard Business Review. July-
August 1990. 9 pp.
• Outsourcing (find a reference)
Sales and Collection Cycle
R: Arens & Loebbecke, Chapter
11.
R: Romney, Steinbart & Cushing, Chapter
17..
Audit Sampling for Tests of Controls and
Substantive Tests of Transactions
R: Arens & Loebbecke, Chapter
12.
H: Case Analysis: hand in group report
5. Monday, March 9
Completing the tests in
the Sales and Collection Cycle :
accounts receivable
R Arens & Loebbecke, Chapter 13.
R Higby, Mary A., and Badie
N. Farah. The status of marketing information systems,
decision support systems and expert systems
in the marketing function of U.S. firms.
Information & Management. Vol.
20, 1991, pp. 29-35.
6. Monday, March 16
(session may be rescheduled to next week)
Audit Sampling for Tests of Details of Balances
R Arens & Loebbecke, Chapter 14.
Audit Complex EDP Systems
R Arens & Loebbecke, Chapter 15.
R Vasarhelyi, Audit Implications of Client Server Architecture and
Access to the
Internet, working paper, Rutgers University, 1995.
7. Monday, March 23 Audit of the Payroll and Personnel Cycle
R Arens & Loebbecke, Chapter 16.
R Romney, Steinbart & Cushing, Chapter 20.
Audit of the Acquisition and Payment Cycle
R Arens & Loebbecke, Chapter 17.
R Romney, Steinbart & Cushing, Chapter 18.
8. Monday, March 30
Midterm Examination
Audit of the Acquisition and Payment Cycle:
verification of selected accounts
R Arens & Loebbecke, Chapter 18.
9. Monday, April 6 Audit of the Inventory and Warehousing Cycle
R Arens & Loebbecke, Chapter 19.
R Romney, Steinbart & Cushing, Chapter 19.
H: Case Analysis: hand in group report (for
extra credit)
The Lakeside Company: Cases 6 & 8 Testing
and observing Inventory
10. Monday, April 13
Audit of the Capital Acquisition and
Repayment Cycle
R Arens & Loebbecke, Chapter 20.
R Romney, Steinbart & Cushing, Chapter 18..
Audit of Cash Balances
R Arens & Loebbecke, Chapter 21.
R Romney, Steinbart & Cushing, Chapter 18.
11. Monday, April 20 Completing the Audit
R Arens & Loebbecke, Chapter 22.
H:
Case Analysis: hand in group report (for extra credit)
The Lakeside Company: Cases 9 & 10 Resolving Audit Problems, Review of Subsequent Events
Other Audit, Attestation Services, and Compilation
Engagements
R Arens & Loebbecke, Chapter
23.
12. Monday, April 27
Internal and Governmental
Financial Auditing and
Operational Auditing
R Arens & Loebbecke, Chapter 24
H: Case Analysis: hand in group report (for extra credit)
The Lakeside Company: Cases 9 & 10
Resolving Audit Problems, Review of Subsequent Events
KPMG’s BMP process
R read the KPMG book
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Monday, May 4
Final Examination |