ABSTRACT: It is challenging for students taking the introductory accounting information systems (AIS) course to envision how to apply the topics and concepts learned during the course in real-world situations. The motivation for this case study is to have groups of students apply the many topics and concepts learned in the first AIS course to a hypothetical real-world company situation, with particular emphasis on developing a proposed new and improved system for the revenue transaction cycle. The study is also designed to help meet several of the competencies listed under the AICPA’s Core Competency and Framework for Entry into the Accounting Profession.
The case study involves analyzing three different types of revenue cycle transactions—sales by a direct sales force, retail store sales, and e-commerce website sales. Each student group is required to prepare a system analysis and design report, including addressing a list of requirements encompassing topics covered during the introductory AIS course. The requirements include preparation of data flow diagrams or system flowcharts using Microsoft Visio®, a balanced scorecard report, and the design of specification of internal controls appropriate to the revenue transaction cycle. Each group makes a presentation at the end of the semester to the class of their system recommendations using PowerPoint®. Each group also submits a written report containing their system recommendations, including responses to a list of case study questions and requirements posed by the instructor.
The experiential learning process and benefits of using such a case in the introductory AIS course are discussed. Teaching methods, including Teaching Notes on how to administer the case, and suggested answers for the case study questions and requirements (both summarized and in detail) are presented. Evidence of teaching effectiveness of the case is also included.