ACCT 3310/3313 Business Processes and Internal Controls

Proposed Syllabus (3 credit hours, 50 minutes per credit hour per week)

Course Prerequisites P/C., ACCT 3110 or ACCT 3113, and junior standing. General Content and Objectives

This course will extend what students have learned in earlier accounting courses by developing knowledge of business processes, accounting for those business processes, and the internal controls surrounding such processes, both in a manual and computerized environment. Texts and other resources

• Arens & Ward: Systems Understanding Aid (7e) [ISBN: 978-0-912503-27-1] • Arens & Ward: Computerized Accounting using Peachtree [ISBN: 978-0-912503-30-1] • Hall, James. A: Accounting Information Systems (7e) [ISBN: 978-1-4390-7857-0] • Cases:

o Savage, A., Norman, C.S., and K. A. Lancaster. (2008). Using a Movie to Study the COSO Internal Control Framework: An Instructional Case. Journal of Information Systems, 22(1), 63-76. [Rogue Trader]

o Kiger, J., and A. Rose. (2004). Internal Control Evaluation of a Restaurant: A Teaching Case. Issues in Accounting Education, 19(2), 229-237. [Restaurant Case]

Course Content

• Overview of accounting information systems o Transaction processing o Internal control

• Business Processes (focus first on manual processes, then computer based systems) o Order to cash o Procure to pay o Payroll o Conversion o Financial reporting

Course Administration: Each chapter in Accounting Information Systems (devoted to business processes) is divided between manual processes and computerized processes. During the first half of the semester, focus will be on the manual process portion of the chapters with students completing the manual Systems Understanding Aid. The second half of the semester will utilize the second half of each chapter with students working on the company with the same transactions, only this time in a computerized environment (Computerized Accounting using Peachtree). This allows the instructor to compare and contrast the information flow as well as similarities and differences of the control environment.

Class announcement and handouts will be posted on Canvas.

School of Accountancy Policy Regarding Distance Learning Programs: Please note that the accounting programs at Auburn University are accredited by The Association to Advance Collegiate Schools of Business (AACSB International) which is the “gold standard” of business and accounting education. As such, our distance learning programs are identical to the on-campus programs regarding rigor, standards, and student accountability. The only difference is that you are not physically here on-campus. You are required to follow guidelines and meet deadlines set forth by your faculty members in their course syllabi. Distance Learning Students: Accessing your Lectures: The on-campus lectures are videotaped, and the distance learning students have access to the same lectures within minutes of the on-campus lectures ending. Below are steps for accessing your lectures: Step 1: Synchronize your password (use the same password that you use for your Tiger i account). To synchronize your password, go to https://oitapps.auburn.edu/myaccount/ Step 2: To access the Streaming Server, go to https://edge.eng.auburn.edu/index.php Step 3: Enter your AU user ID and Password, just as you would in Canvas. (You will no longer log on through Canvas to view your lectures, and you will log on only one time per session.) You will see all your courses in alphabetical order, current semester then previous semester. Notice that you have four choices - stream, podcast, audio only, and download. If you choose to download the video, choose “save,” not “run,” when prompted. In order to view the streaming video you must have the program Silverlight installed on your system. This is a free one-time download and is available for all platforms. Silverlight may already be installed on your computer if you watch any videos from the internet. If not, you’ll be prompted on how to get it when you try to run one of the videos. You will want the latest version of Silverlight (for PCs and MACs), and Moonlight for Linux (available on sourceforge.net) Advantages of the Delivery System for Distance Learning Lectures: ● The streaming video will run on any computer - PC, Mac, Linux. ● You may be able to get the streaming video even behind your military or corporate

firewall. ● It’s downloadable, and the download time is very, very short. Depending on your

connection speed, it could be less than a minute for a full class. The download feature should also work behind firewalls.

If you have problems or need help, please send an email to edgehelp@auburn.edu.

Course Requirements/Evaluation Cases (2) 100 points (50 each) Projects (2) 200 points (100 each) Midterm Examination 100 points Final Examination (comprehensive) 150 points Total 550 points Exam Proctors for Distance Learning Students: All distance learning students are required to have an exam proctor. This person is usually someone at the student’s place of employment. AN EXAM PROCTOR MUST BE AT LEAST ONE LEVEL ABOVE THE STUDENT OR A HUMAN RESOURCES, TRAINING, DEVELOPMENT REPRESENTATIVE FROM THE STUDENT'S COMPANY. If a test proctor cannot be secured from within the student's company, a local librarian, or a community college testing service department may be utilized. A test proctor must be willing and able to:

• Receive examination material from Auburn University. • Administer examinations according to instructor guidelines included with each exam. • Sign each exam cover sheet, attesting to the proper administration of the examination. • Return tests to the address provided on the exam cover sheet. • Give prior written notification (e-mail is acceptable) of discontinuation of Proctor Status.

Any changes of proctor status should be addressed to Becky Young (Academic Evaluator)

• Maintain a file copy of all completed tests. This will serve as a back-up in the event of a test being lost and are to be held until a grade is assigned for the course. After a grade has been assigned for the course, the test files are to be destroyed.

• Communicate test due dates to students in a timely manner so any potential conflicts may be resolved prior to the due date.

Special note to distance students regarding exams: The School of Accountancy policy regarding deadlines for the distance students is that examinations, cases, etc. must be postmarked within 3 working days of the on-campus examination deadline. Cases Students will be assigned to groups to develop a solution to each of the cases. The primary deliverable for the “Rogue Trader” case is a professionally prepared memo discussing the control issues found at Barings Bank (the subject of the movie) as described in detail within the case requirements. Ensure the memo is free from spelling and grammatical errors. The primary deliverable for the “Restaurant” case will be a group presentation. Each member of the group shall participate in a presentation that is at least 10 minutes but no more than 15 minutes. The presentation should include the following: Overview of the order-to-cash process (in flowchart form) Internal control weaknesses identified within said process All team members both on-campus and distance will be required to complete an evaluation form documenting each team member’s participation in preparing the case deliverables.

Case Instructions for Distance Learning Students: Distance learning student groups will be required to submit the written deliverable of the Rogue Trader case to the professor via email. All team members both on-campus and distance will be required to evaluate each other’s participation in preparing the deliverable. Distance learning student group members will be required to post a You Tube video of their portion of their group’s presentation for the “Restaurant” case. In advance of posting each You Tube video, the distance groups must submit an outline of the presentation to the professor via exam in order to clearly identify the outline and order of the presentations. Projects Students will complete two individual projects. The first project (Systems Understanding Aid) consists of a student assuming the role of three employees in a small sporting goods distributor in order to conduct two week’s worth of transactions as well as ‘closing the books’. The first project focuses on a company that uses manual business processes. The second project utilizes the same company, yet instead of manual processes, the company uses a common accounting information system for transaction processing. By completing both projects, students will be exposed to similarities and differences in the internal control environment and how transactions are processed when businesses are either manual or computerized. Each project has specific deliverables that are specified within the project materials. Any deviations will be expressly discussed in class. All team members both on-campus and distance will be required to complete an evaluation form documenting each team member’s participation in preparing the project deliverables. Project Instructions for Distance Learning Students: Distance learning students will be required to submit the Systems Understanding Aid (SUA) project by U.S. mail to the professor. The SUA project must be postmarked within 3 business days of the deadline specified on the syllabus. Distance learning students will be required to submit the second project (computerized accounting information system project) via email to the professor. The project deliverable must be emailed within 3 business days of the deadline specified on the syllabus. Course Policies Attendance: Although attendance is not required, students are expected to attend all classes, and will be held responsible for any content covered in the event of an absence. Excused Absences: Students are granted excused absences from class for the following reasons: illness of the student or serious illness of a member of the student's immediate family, the death of a member of the student's immediate family, trips for student organizations sponsored by an academic unit, trips for university classes, trips for participation in

intercollegiate athletic events, subpoena for a court appearance, and religious holidays. Students who wish to have an excused absence from class for any other reason must contact the instructor in advance of the absence to request permission. The instructor will weigh the merits of the request, and render a decision. When feasible, the student must notify the instructor prior to the occurrence of any excused absences, but in no case shall such notification occur more than one week after the absence. Appropriate documentation for all excused absences is required. Please consult the Student Policy eHandbook for more information on excused absences. Make-Up Policy: Arrangement to make up a missed major examination (e.g.:hour exams, mid-term exams) due to properly authorized excused absences must be initiated by the student within one week of the end of the period of the excused absence(s). Except in unusual circumstances, such as the continued absence of the student or the advent of university holidays, a make-up exam will take place within two weeks of the date that the student initiates arrangements for it. Except in extraordinary circumstances, no make-up exams will be arranged during the last three days before the final exam period begins. Academic Honesty Policy: All portions of the Auburn University student academic honesty code (Title XII) found in the Student Policy eHandbook will apply to university courses. All academic honesty violations or alleged violations of the SGA Code of Laws will be reported to the Office of the Provost, which will then refer the case to the Academic Honesty Committee. Disability Accommodations: Students who need accommodations are asked to electronically submit their approved accommodations through AU Access and to arrange a meeting during office hours the first week of classes, or as soon as possible if accommodations are needed immediately. If you have a conflict with my office hours, an alternate time can be arranged. To set up this meeting, please contact me by e-mail. If you have not established accommodations through the Office of Accessibility, but need accommodations, make an appointment with the Office of Accessibility, 1228 Haley Center, 844-2096 (V/TT).

ACCT 3313 Business Process and Internal Controls Schedule of Topics and Assignments* - Fall 2013

Date In Class Prepare for Today The Accounting Information System and Business Processes

Aug 22

Week 1 Course overview Introduction

Aug 27

How accountants gain information Hall Chapter 1

Aug 29

Week 2 Introduction to Business Processes Hall Chapter 2

Sept 3

Documentation In Class Exercise on Flowcharting

Sept 5

Week 3 Introduction to Systems Understanding Aid Read Instructions and skim Reference Chapters 1-4.

Sept 10

Introduction to Internal Controls Hall Chapter 3

Sept 12

Week 4 "Rogue Trader" Assign: Rogue Trader Case

Sept 17

Finish Rogue Trader: Class discussion

Sept 19

Week 5 Order to Cash: Manual Process Focus Hall Chapter 4 (pp 153-716) Assign: Restaurant Case ROGUE TRADER CASE DUE

Sept 24

Procure to Pay: Manual Process Focus Hall Chapter 5 (pp 217-234)

Sept 26

Week 6 Group presentations: Restaurant Case

Oct 1

Group presentations: Restaurant Case GROUP PRESENTATIONS DUE

Oct 3

Week 7 Midterm Examination

Oct 8

Payroll: Manual Process Focus Hall Chapter 6 (pp 265-277)

Oct 10

Week 8 Conversion Cycle: Manual Process Focus Hall Chapter 7 (305-320)

Oct 15

Financial Reporting Hall Chapter 8

Oct 17

Week 9 In class SUA Work

Oct 22

In class SUA Work

Oct 24 Week 10

Introduction to Computerized Accounting using Peachtree

Read Instructions and skim Reference Chapters 1-4. (SUA DUE)

Oct 29

Getting familiar with Peachtree Accounting

Oct 31

Week 11 Order to Cash: Computerized Process Focus Hall Chapter 4(177-end)

Nov 5

Procure to Pay: Computerized Process Focus Hall Chapter 5 (pp 234-end)

Nov 7

Week 12 Payroll: Computerized Process Focus Hall Chapter 6 (pp 277-end)

Nov 12

Conversion Cycle: Computerized Process Focus Hall Chapter 7 (320 - end)

Nov 14

Week 13 Introduction to IT Controls Hall Chapter 15

Nov 19

IT Controls: Security and Access Hall Chapter 16

Nov 21

Week 14 In class: Computerized Accounting work

Dec 3

In class: Computerized Accounting work

Dec 5

Week 15 IT Controls: System Development, Program Changes, and Application Controls

Hall Chapter 17 (Computerized Accounting Project Due)

TBD Final Exam