CHAPTER 2: OVERVIEW OF ACCOUNTING DATA PROCESSING

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CHAPTER 2 OVERVIEW OF ACCOUNTING DATA
PROCESSING

• I. Introduction
• II. Data processing
• A. Data processing systems
• B. Manual systems
• C. Keydriven systems
• D. Punched card machines (Exhibit 2.1)
• E. Computers and outsourcing

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• II. Data processing (continued)
• F. Data processing tasks
• G. Data gathering and recording
• H. Data manipulation
• 1. Classifying
• 2. Sorting
• 3. Calculating
• 4. Summarizing
• I. Data storage

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• II. Data processing (continued)
• J. Data storage
• K. Document preparation
• L. Characteristics of data processing
• 1. Adherence to standards
• 2. Emphasis on details
• 3. Historical focus
• 4. Problem solving information

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• III. Traditional accounting data processing
• A. Transaction processing systems
• B. The accounting information system

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IV. The business cycle (Exhibit 2.2 )
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IV. The business cycle (continued)

• A. Sales order processing - input, process,
• output cycle for sales order processing
• (Exhibit 2.4)
• B. Accounts receivable - input, process,
  output of accounts receivables (Exhibit 2.5)
• C. Accounts payable - input, process, output
  of accounts payable (Exhibit 2.6)
• D. Payroll - input, process, output of payroll
• E. General ledger
• F. Other accounting applications
• G. Manufacturing

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• V. Enterprise resource planning
• VI. File processing and edit tests
• A. File processing (Exhibit 2.7)
• B. Validity tests
• 1. Completeness
• 2. Form
• 3. Range
• 4. Reasonableness
• 5. Statistical
• 6. Relational

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• VI. File processing and edit tests (continued)
• C. Computer controls - general and
  application
• VII. Form design (Exhibit 2.8)
• IIX. Coding techniques
• 1. Basic coding concepts
• 2. Chart of accounts
• 3. Coding design considerations