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0.04 Saturated Throughput Per Device, Si /ni 0.035 0.03 0.025 0.02 0.015 0.01 0.005 0 5 10 15 20 25 30 35 40 45 Num ber of class 0 devices, n0 (=n1)

public void debit(double amount) throws InsufficientBalanceException { if (balance - amount < 0) throw new InsufficientBalanceException(); balance -= amount; } public void credit(double amount) { balance += amount; } public String getFirstName() { return firstName; }

The basic modules typically required by a firm and often integrated in an accounting software package include the following: general ledger, accounts receivable and invoicing, accounts payable and purchase order processing, inventory, payroll, job costing, and fixed assets. GENERAL LEDGER The general ledger is the heart of the accounting system. It contains the chart of accounts of the business. A general ledger module should contain a sample chart of accounts that can be customized to a particular business. In addition, it should contain predefined reports that support budget data and prior year comparisons that can be tailored to a firm s specific needs. Other essential features include the capability to generate automatic reversing and recurring

Figure 12-14

Steve Balentine (650) 919-5717

direct # (1, 4, 7); M = 1; (p #) move_clean; repeat( or(g #; grasp(M == nil; M = 1)); (p #) move_clean )

Real-time reporting: As you have seen in the DexCo case, reporting of transactions within each accounting period is part of the entire internal controls process as outlined in COSO Now, if you are one of those people who believes that there is no such thing as real-time processing in IT, then I will grant you that computer system operations tend to be unpredictable and indeed somewhat slower than real time Yes, software processes, especially those occurring between more than one system in a distributed environment are prone to pauses, latency, batching of data in transfers, and buffering Yet, in terms of internal controls, a well-configured system will usually be able to deliver information in a suitable time frame for financial reporting Transaction thresholds and tolerance levels: IT systems that enable COSO controls should be able to monitor transactions and alert system managers if a situation occurs that requires investigation.

Linda hands the markers to Sebastian, who now begins to draw the IT architecture that supports flex-acturing s process flow. As I mentioned in 1, DexCo relies on a centralized financial general ledger system at the corporate level. An interface connects the financial system to the ERP system used by the wholesale and original equipment manufacturer (OEM) divisions. It is this enterprise resource planning (ERP) system that is most critical to controlling the flex-acturing process. DexCo s sales teams will prepare their forecasts for the products made by flex-acturing using the wholesale division s customer resource management (CRM) systems. Currently, this is a manual process, although it has the potential to be integrated system-to-system, as shown in Figure 9-4.

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For example, if the DexCo web site booked an individual consumer s order for $50 million worth of monitors, then a well-configured accounting system should be able to flag the transaction as suspicious Some people refer to this process as an Exception Alert The causes of the large dollar figure might be a user input error, a computational error, or a fraud Whatever it is, the internal controls should catch it so the financial reports are not compromised Yet, like so many other aspects of IT controls, the system managers themselves must be under a control framework of their own, or else there is the potential for them to override the exception alert and either ignore it or hide it from auditors.

For most people who are new to teaching or have never done it before, the task of finding a point to teach and then working out how to package the information into an effective lesson is rather overwhelming. In these chapters I break the lesson down into different stages, known as Presentation, Practice and Production so that there is a clear structure for learning. There is also advice on how long the stages should last and who should be doing the talking. I include lots of examples and suggestions for classroom activities, whether you use a course book or design your own materials. You find out when and how to correct the students errors and keep them in check during the lesson through good classroom management.