,Accounting
Information
Systems
SEVENTH EDITION
JAMES A. HALL
Peter E. Bennett Chair in
Business and Economics
Lehigh University
http://avaxhome.ws/blogs/ChrisRedfield
,Accounting Information Systems, ª 2011, 2008 Cengage Learning
Seventh Edition
James A. Hall ALL RIGHTS RESERVED. No part of this work covered by the copy-
right herein may be reproduced, transmitted, stored or used in any form
or by any means graphic, electronic, or mechanical, including but not
VP/Editorial Director: Jack W. Calhoun limited to photocopying, recording, scanning, digitizing, taping, Web
distribution, information networks, or information storage and retrieval
Editor-in-Chief: Rob Dewey
systems, except as permitted under Section 107 or 108 of the 1976
Sr. Acquisitions Editor: Matt Filimonov United States Copyright Act, without the prior written permission of the
Editorial Assistant: Lauren Athmer publisher.
Developmental Editor: Maggie Kubale
Marketing Manager: Natalie King For more information about our products, contact us at:
Marketing Coordinator: Heather McAuliffe Cengage Learning Academic Resource Center,
1-800-423-0563
Associate Content Project Manager: Jana Lewis
For permission to use material from this text or product, submit a
Manager of Technology, Editorial: Matt McKinney
request online at http://www.cengage.com/permissions.
Media Editor: Bryan England
Sr. Manufacturing Buyer: Doug Wilke
Production Technology Analyst: Starratt Alexander South-Western Cengage Learning, a part of Cengage Learning.
Production House: Cadmus Communications Cengage, the Star logo, and South-Western are trademarks used
herein under license.
Printer: Edwards Brothers
Art Director: Stacy Jenkins-Shirley Library of Congress Control Number: 2009938064
Marketing Communications Manager: Libby Shipp ISBN-13: 978-1-4390-7857-0
Permissions Acquisition Manager: Roberta Broyer ISBN-10: 1-4390-7857-2
Cover Designer: Itzhack Shelomi
Cover Image: iStock Photo Cengage Learning
5191 Natorp Boulevard
Mason, OH 45040
USA
Printed in the United States of America
1 2 3 4 5 13 12 11 10 09
, Brief Contents
Preface xvii
Part I Overview of Accounting Information
Systems 1
Chapter 1 The Information System: An
Accountant’s Perspective 3
Chapter 2 Introduction to Transaction
Processing 41
Chapter 3 Ethics, Fraud, and Internal Control 111
Part II Transaction Cycles and Business
Processes 151
Chapter 4 The Revenue Cycle 153
Chapter 5 The Expenditure Cycle Part I:
Purchases and Cash Disbursements
Procedures 217
Chapter 6 The Expenditure Cycle Part II: Payroll
Processing and Fixed Asset
Procedures 265
Chapter 7 The Conversion Cycle 305
Chapter 8 Financial Reporting and Management
Reporting Systems 349
Part III Advanced Technologies in Accounting
Information 395
Chapter 9 Database Management Systems 397
Chapter 10 The REA Approach to Database
Modeling 459
Chapter 11 Enterprise Resource Planning Systems
489
Chapter 12 Electronic Commerce Systems 523
iii
Information
Systems
SEVENTH EDITION
JAMES A. HALL
Peter E. Bennett Chair in
Business and Economics
Lehigh University
http://avaxhome.ws/blogs/ChrisRedfield
,Accounting Information Systems, ª 2011, 2008 Cengage Learning
Seventh Edition
James A. Hall ALL RIGHTS RESERVED. No part of this work covered by the copy-
right herein may be reproduced, transmitted, stored or used in any form
or by any means graphic, electronic, or mechanical, including but not
VP/Editorial Director: Jack W. Calhoun limited to photocopying, recording, scanning, digitizing, taping, Web
distribution, information networks, or information storage and retrieval
Editor-in-Chief: Rob Dewey
systems, except as permitted under Section 107 or 108 of the 1976
Sr. Acquisitions Editor: Matt Filimonov United States Copyright Act, without the prior written permission of the
Editorial Assistant: Lauren Athmer publisher.
Developmental Editor: Maggie Kubale
Marketing Manager: Natalie King For more information about our products, contact us at:
Marketing Coordinator: Heather McAuliffe Cengage Learning Academic Resource Center,
1-800-423-0563
Associate Content Project Manager: Jana Lewis
For permission to use material from this text or product, submit a
Manager of Technology, Editorial: Matt McKinney
request online at http://www.cengage.com/permissions.
Media Editor: Bryan England
Sr. Manufacturing Buyer: Doug Wilke
Production Technology Analyst: Starratt Alexander South-Western Cengage Learning, a part of Cengage Learning.
Production House: Cadmus Communications Cengage, the Star logo, and South-Western are trademarks used
herein under license.
Printer: Edwards Brothers
Art Director: Stacy Jenkins-Shirley Library of Congress Control Number: 2009938064
Marketing Communications Manager: Libby Shipp ISBN-13: 978-1-4390-7857-0
Permissions Acquisition Manager: Roberta Broyer ISBN-10: 1-4390-7857-2
Cover Designer: Itzhack Shelomi
Cover Image: iStock Photo Cengage Learning
5191 Natorp Boulevard
Mason, OH 45040
USA
Printed in the United States of America
1 2 3 4 5 13 12 11 10 09
, Brief Contents
Preface xvii
Part I Overview of Accounting Information
Systems 1
Chapter 1 The Information System: An
Accountant’s Perspective 3
Chapter 2 Introduction to Transaction
Processing 41
Chapter 3 Ethics, Fraud, and Internal Control 111
Part II Transaction Cycles and Business
Processes 151
Chapter 4 The Revenue Cycle 153
Chapter 5 The Expenditure Cycle Part I:
Purchases and Cash Disbursements
Procedures 217
Chapter 6 The Expenditure Cycle Part II: Payroll
Processing and Fixed Asset
Procedures 265
Chapter 7 The Conversion Cycle 305
Chapter 8 Financial Reporting and Management
Reporting Systems 349
Part III Advanced Technologies in Accounting
Information 395
Chapter 9 Database Management Systems 397
Chapter 10 The REA Approach to Database
Modeling 459
Chapter 11 Enterprise Resource Planning Systems
489
Chapter 12 Electronic Commerce Systems 523
iii
