Accounting Information Systems

Welcome to ACT B304 Accounting Information Systems.

ACT B304 Accounting Information Systems is a five-credit, higher-level course within the Bachelor of Business Administration programme (BBA), the BBA in Accounting, the BBA (Hons) in Accounting, and the BBA (Hons) in Corporate Administration. The expected duration of the course is 16 weeks. Students are advised to have completed BIS B123 Business Computing Applications, ACT B211 Introduction to Accounting I and ACT B212 Introduction to Accounting II before commencing the study of ACT B304.

The contents of ACT B304 include the management and application of accounting information systems to modern business organisations. Issues such as the applications of new information and communication technologies to business transactions, business ethics, risk management and legal compliance are also discussed.

This course forms an excluded combination with ACT B304F, ACT B304C, ACT B431X and ACT B431. Only one of these courses can count towards an HKMU award. You may wish to refer to the current Prospectus for details.

Course aims

This course aims to develop students' awareness on the management and applications of accounting information systems to modern business organisations. More specifically, this course aims to:

• provide students with an overview of the general structure of information systems from an accounting perspective;
• equip students with the knowledge of information and communication technology (ICT) on corporate strategies and business processes;
• enable students to analyse the risks of accounting information systems and assess the adequacy of internal controls in the framework of enterprise risk management;
• provide students with a general picture of the development process of an accounting information system and the graphical tools that accountants will use during the system development process; and
• enable students to analyse the role of e-commerce in modern business.

Course learning outcomes

After working through ACT B304 Accounting Information Systems, you should be able to:

• explain how information technology can be used in data analysis and decision-making, and e- commerce (LO1);
• justify the environment of corporate information systems and solve common issues in system development life cycle (LO2); and
• analyse the risks of accounting information systems and develop solutions to improve accounting information system securities and controls (LO3).

Course overview

The following table gives a general overview of the course structure. It suggests the amount of time you should allow for completing units and provides a broad schedule for you to plan your work. This estimation includes time for reading the units and custom textbook, completing activities, self-tests and assignments, attending live online tutorials, and preparing for your final examination.

In this course's custom textbook-based approach, the course learning modules are selected from a textbook in management information systems.

Your study pathway through the custom textbook is set out in an HKMU-produced Study Guide. In addition to the instruction of textbook reading, the Study Guide will provide guided activities, self-tests and supplementary materials. You will also have access to multimedia materials on HKMU's Online Learning Environment (OLE), and regular learning support sessions.

This course's combination of selected chapters of textbooks, plus the Study Guide, and multimedia and online learning opportunities, will provide you with a thorough introduction in accounting information systems.

The custom textbook

A custom textbook will be provided to you as an integral part of your course package. The title of the custom textbook is ACT B304 Accounting Information Systems. The chapters are selected from the following textbook:

Laudon, K. C., & Laudon, J. P. (2022). Management information systems: Managing the digital firm (17th ed.). Pearson.

The Study Guide will indicate at which point you should read each chapter of the custom textbook.

Introductory video

To start off, you should watch the introductory video for the course in the ePub version of this Course Guide or on the OLE. Then turn to the Study Guide for further guidance through the course.

The Study Guide

The Study Guide is divided into five units. It serves two functions. First, it provides you with information on the aims, learning outcomes, assessment strategies, and means of support for this course. Second, it sets out your study pathway through the customised textbook and other course learning resources, and provides supplementary materials and additional self-assessment opportunities.

Supplementary video lectures

A series of pre-recorded supplementary video lectures will be provided for this course, which aim to provide an overview of the major concepts covered in each unit. These videos will be uploaded to the OLE in due course. You are advised to watch them for an overview of the unit's topics before you start studying the unit. Please also download and skim through the related PowerPoint slides, which are also available on the OLE.

The Online Learning Environment (OLE)

A dedicated area for ACT B304 Accounting Information Systems students has been set up on HKMU's OLE. You will need to log on regularly to the OLE to access the course discussion board and online supplementary learning components. You will also need to go online to access various video cases that are referred to in the Study Guide.

Learning support

You will be supported throughout the course by regular meetings in the form of live online tutorials and a live online surgery.

Assessment

This course is designed to assist you to move easily from the stated objectives, through the study units, readings and other learning materials, to the assignments and examination. During the course, you will have your progress assessed both formally and informally.

Formative assessment includes various activities and self-tests that you will undertake while working your way through the custom textbook, Study Guide and readings.

Summative assessment consists of two assignments and a final examination.

Assignments

There are two assignments for the course. You will be expected to apply concepts and techniques acquired during the course when completing assignments.

Assignment 1, worth 20% of the total marks for the course, evaluates material covered in Units 1 and 2.

Assignment 2, worth 20%, evaluates material covered in Units 3 and 4. The assignment due dates are marked on each assignment.

How to submit assignments

You must use word processing software (such as Microsoft Word) to prepare them, and submit the assignments via the Online Learning Environment (OLE). All assignments must be uploaded to the OLE by the due date.

Failure to upload an assignment in the required format to the OLE may result in the score of the assignment being adjusted to zero.

Assignment submission extension policy

The assignment policy of the University as stated in the Student Handbook should be observed. You are required to submit assignments for this course in accordance with the dates communicated by your Course Coordinator. You may apply for a submission extension on the grounds of illness, accident, disability, bereavement, or other compassionate circumstances.

Applications for extensions must be submitted online via the OLE. Please note the following:

• Supporting documents must be submitted to justify applications for extensions of over seven days.
• Applications for extensions should normally be lodged before or on the due date.
• Applications are considered by:
  • your tutor for extensions of up to seven days;
  • the Course Coordinator for extensions of 8 to 21 days; and
  • the Dean for extensions of over 21 days.

After an assignment is submitted via the OLE, it is your responsibility to check that the assignment has been successfully submitted. Extension applications due to any problem with uploading will not be accepted. The University cannot accept any responsibility for assignments that are not received by your tutor due to any problem with submission via the OLE. As a precaution, you are advised to keep a copy of each assignment you submit.

According to the University's policy, no extension of the due date will be allowed for the final assignment. This policy will be strictly enforced. Any late submission of the final assignment will result in the score of the assignment being adjusted to zero.

Examination

The final examination for ACT B304 Accounting Information Systems will be two hours long and account for 60% of the total course grade. The questions in the examination will reflect the achievement of LOs 1 to 3.

Course assessment summary

The following table summarises the assessment requirements for this course. In order to pass this course, you must pass both the assignments component and the examination.

Case studies are a useful and increasingly popular form of learning and assessment in the Lee Shau Kee School of Business and Administration. In this section, we will look at why case studies are used and then suggest some learning strategies that you can use to approach case studies. We will also briefly discuss some problems that you may encounter as you learn from case studies.

What is a case study approach to learning

One main purpose of a case study is to explore an issue or a number of issues in relation to an organisation. The intention is to get you to carefully diagnose an organisation; to focus on key problems, and to suggest how these might be resolved. Often the case is a real-life account of an organisation that you are required to analyse in order to focus on a problem. Usually, the information provided is incomplete and you are often expected to observe developments in the organisation over a period of time. The case study approach is an excellent opportunity to actively apply material that you have read and conceptual knowledge to the reality of an organisation.

At the HKMU, case studies may be used as part of assignments, exams, study units, or day school exercises. You normally are given some information about a company (this could be both text and graphical information, such as figures and tables). You are then asked to think about some problems related to the company and to use concepts and apply theories that you have learnt in your course to propose possible solutions for the company.

Let's have a look at two kinds of case study questions that you might be asked to work through in your courses. The first example is quite structured, while the second is much more open-ended.

Two examples of case study questions

1. Read the case study entitled 'ABC Consultants' and consider the following issues:
   • Using your understanding of the resource-based model, what measures could be taken to improve ABC's returns?
   • Drawing on your broad understanding of the consultancy industry, assess ABC's relative competitiveness and its profit potential.
   • To what extent do internal factors account for ABC's financial weaknesses?
   • Based on your assessment of ABC's financial weaknesses, formulate a new strategic intent and develop a mission statement for ABC.
2. Read the case study entitled 'XYZ Industries'.
   • Identify the key problems that are currently faced by XYZ's management.
   • Propose viable solutions to these problems.

Why case studies

As you can see from the above examples, a case study approach to learning requires a great deal of thinking and often will not easily yield a quick 'right' or 'wrong' answer. However, case studies are also good preparation for dealing with real-life business problems. Cases may be short and relatively simple, or longer and complex. The purpose is the same for both types: to give you an opportunity to develop your skills in analysing the strengths and weaknesses of the organisation under examination, to consider the processes at work within the organisation, and to make decisions about future actions.

Case studies are not meant to replace textbooks, but rather to ask you to draw connections between theories and practice and to apply abstract ideas, concepts, and principles to specific concrete situations. Consequently, case analysis develops a number of skills that are crucial in business. In particular, it helps you to:

• analyse complex, unstructured, sometimes ambiguous situations;
• identify critical issues and problems;
• question your own and others' assumptions;
• improve your problem-solving skills;
• develop your ability to find alternatives and make informed decisions;
• make decisions with incomplete information and think strategically;
• self-educate yourself and draw on a broad range of resources and knowledge; and
• present and justify recommendations in writing.

You may find that there are many possible 'right' answers to the questions in a case study. This illustrates that there is often no single best way to responsibly manage and solve real-life business problems.

Some guidelines for analysing case studies

The following strategies should help you to successfully analyse case studies:

1 Read the case and become familiar with the facts

First, skim read the case to obtain a general understanding of the main point(s). Highlight or underline the pertinent points as you read.

Read the case again, and this time note down critical facts (such as names, time sequences, and where events occurred). Try to understand how events have influenced decisions. Identify the important individuals or stakeholders, and try to assess the importance of supporting information in the case. How reliable is this supporting information? Are there any gaps in the information that is given?

Make a note of any questions that you have as you read the case.

2 Assess the context of the case

Try to understand the environment of the organisation and the wider context of the case. Ask yourself questions about:

• The state of the organisation: What is the state of this organisation: good, bad or in-between? Usually this involves thinking about interpersonal relationships, and assessing production or financial problems.
• Key players and systems: How do systems and people operate in this organisation? Why do they operate like this? Are the systems undergoing change? How successful are the changes? Is there someone who could sabotage any future strategy? Is there someone who can ensure the success of a future strategy?
• Significant trends: How does this industry operate? What are the main or unique characteristics of the industry? What were they five or ten years ago, and what are they likely to be in the future? What impact are trends likely to have on the organisation under investigation? How does this organisation's performance compare with that of competitors?
• Constraints: Clearly identify all constraints in the case. A constraint may be viewed as anything (usually beyond the control of the organisation) that may prevent an otherwise feasible course of action from becoming a success. What is outside the control of individuals in the case study? For example, it is unlikely that any company or individual in Hong Kong could prevent a foreign government from imposing tariff barriers on imports.

A SWOT analysis is a good way to get a better understanding of the organisation and the context or environment in which it is operating. A SWOT analysis considers the Strengths and Weaknesses of the organisation, and the Opportunities and Threats, which the organisation faces in the external environment.

3 Recognize the case's symptoms

Read the case again and as you read, try listing all the symptoms of the case. The symptoms of a case are not the problems, but they may help you to identify the problems. Symptoms are all the things that are undesirable or that are not as expected. For example, falling sales could be a symptom of several problems such as poor market segmentation, poor product quality, or problems in a supply chain. At this stage of your analysis, you should just try to observe all the symptoms, and avoid prematurely identifying problems or suggesting solutions. Like a doctor who consults a patient, you first need to observe and note all the symptoms before you can give a definite diagnosis of the problem. Think about how the symptoms may be interrelated.

Relationship diagrams, like the one below, may help you to see the relationships between symptoms.

4 Diagnose the case's problems

After you have a good sense of the symptoms, you're ready to determine key issues that need to be analysed more closely. You are now diagnosing the situation, like a doctor diagnosing a patient's symptoms. Ask yourself 'what seems to be the trouble in this organisation?' and make a list of what you now perceive to be the key problem(s). You will probably need to go back to the details of the case and as you do this, you may add to or refine your list of potential problems.

If there are several problems, you need to order and prioritise them. You might want to number problems according to how you perceive their importance, or make a matrix, like the one below, which shows relationships between various criteria and each problem.

Also try to establish if there are relationships or themes in common among the various problems. Perhaps different problems in your list are actually variations of a broader central problem.

Ask yourself what assumptions you have made about the case. Are these assumptions reasonable, and are they supported by the facts? Would other people objectively suggest the same problems, based on the facts that you have? Are you suggesting problems that are not supported by the facts of the case?

After you have considered and put into order the possible problems and questioned your assumptions relating to these problems, you should write a statement of the problems as you perceive them. Avoid suggesting solutions at this stage.

Once you have a problem statement, you need to find evidence in the case to support your problem diagnosis. Also, try to identify ideas, concepts and theories from your textbook and course units which help to explain what is happening in the case.

5 Formulate criteria for a 'good' solution and identify possible constraints to solutions

Before you propose a solution, you need to consider the characteristics of a 'good' solution. Obviously, your solution should bring benefits such as improved productivity, reduced costs or greater profits. However, it also needs to be viable and to accommodate the constraints that you have already identified, i.e. Is the solution legal? Is there a budget for this solution? Does it conflict with the organisation's culture?

Try to brainstorm alternative solutions. Aim to generate a broad and creative range of options and then try to rate each according to various criteria.

The following matrix demonstrates how this can be done.

Also, refer to ideas, concepts and theories from your course materials as you consider and assess each possible solution.

It is often wise to propose solutions that allow for plausible alternatives if they fail. Managers use the term satisfice when they are considering acceptable alternative solutions, that is, the solution is able to satisfy the situation while also making some realistic sacrifices to existing constraints. Therefore, it is a satisficing rather than a maximising solution.

Finally, do not forget to consider the possibility of taking no actions. What will actually happen if no actions are taken? Are any (or all) of the solutions less viable than taking no actions at all?

6 Recommend a viable solution

After you have assessed the merits and pitfalls of each solution, select the best one for the situation.

Remember that the solution needs to be viable. Can the recommended solution be introduced? Are there the resources and the willingness to implement it? Be realistic about what may work.

Explain why it is the best solution within the constraints of the existing context and explain how it can be applied to the organisation. Suggest a time-frame for the implementation of the solution.

Outline possible strategies for implementing your solution, either partially or completely. As many feasible courses of action as possible should be considered before you choose the one that seems the most likely to succeed. The more ideas you have, the greater your chance will be of finding a solution that will work well. The complexity of most organisational problems means that it is highly unlikely that one idea alone will correct the situation. Usually a combination of actions is required, and these need to be funded differently, timed carefully and staffed as necessary.

7 Present your solution as a written recommendation

Review your final solutions and then prepare a set of written recommendations. These should clearly outline your proposed solution in relation to the problems that you have identified. Your recommendations should also include details of why these solutions are the most appropriate given the circumstances and constraints of the case. Finally, you need to state clearly how and when your proposals will be implemented.

Your tutor and your course Assignment File can provide some guidelines on how to present your recommendations.

Some mistakes to avoid as you analyse cases

When you first tackle case studies, you should be careful to guard against the following mistakes:

1. One of the most common mistakes made in case analysis is repeating or simply summarising the facts of the case. Your tutor is already very familiar with the case details, so you do not have to restate them. You are required to use and analyse the facts, not repeat them. Your analysis should contain only enough case material to support your arguments. Therefore, be analytical!
2. You may often be tempted to just deal with symptoms and ignore the causes of the problem. It is very important to analyse the background of the case (and the climate in which the events of the case unfold).
3. Avoid discussing problems in isolation and do not overlook their interrelatedness. If you try to think in terms of 'systems' rather than in terms of individual problems, you are more likely to avoid this pitfall.
4. Students often fail to state the assumptions underlying their analysis. If any important assumptions have been made, have you questioned them and are they reasonable and appropriate? Avoid selectively using and interpreting case material in order to justify a preconceived solution.
5. Practical limitations and constraints sometimes may be overlooked. For example, a recommendation of firing a whole team is probably unrealistic.
6. A very common mistake is poor integration of the facts in the case with the concepts, principles, and theories in the textbook. Such integration is vital. Ask yourself if relevant theories from your course have been fully and constructively applied.
7. Finally, recommendations are too often not spelt out in detail or are unrealistic. A timetable for implementing them is also often not given.

Analysing cases poses many challenges, and this is one reason the case study method is so rewarding. It is a very active form of learning. It offers you a risk-free opportunity to gain managerial and organisational experience and it should greatly increase your confidence to make informed decisions in the real world.

Good luck and we hope you enjoy working through the cases that you encounter!

ACT B304 Accounting Information Systems is designed to develop your awareness on the management and applications of accounting information systems to modern business organisations.

The course is presented through a mixture of printed and multimedia materials. As you work through ACT B304, you will need to refer to your Study Guide, custom textbook and the OLE, and you are also provided with support through regular learning sessions.

The course is assessed through two assignments and an examination. We hope you will enjoy the course.

If you wish to defer your studies of this course until a later date, you should apply for deferment of studies. For the regulations governing deferment of studies, please refer to your Student Handbook. If you have applied for deferment of studies, you should continue with your studies of this course and submit the required assignments until formal approval is given by the University. 

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