Solution Manual for Accounting I
Solutions for Chapter 1
SOLUTIONS FOR CHAPTER 1
Discussion Questions
DQ 1-1 “I just want to be a good accountant, technology does not interest me.”
Comment on this statement, considering today’s technology environment.
ANS. Possible points that could be ...
Solution Manual for Accounting Information
Systems 11th Edition Gelinas
, Solutions for Chapter 1
SOLUTIONS FOR CHAPTER 1
Discussion Questions
DQ 1-1 “I just want to be a good accountant, technology does not interest me.”
Comment on this statement, considering today’s technology environment.
ANS. Possible points that could be made:
a. Distinguish between an accountant and a bookkeeper. An understanding of
accounting software and related technology would enable one to advance
beyond entry-level positions.
b. Without knowledge of computer technology, an accountant can be a
bookkeeper/accountant for a small firm that does not use computers at all.
(With the ubiquitous nature of computers, this has become a weak argument,
at best.) More realistically, with the low cost of accounting software, only
very select organizations may not benefit from automation. Examples of those
organizations would include businesses that sell a low volume of unique
products.
c. Because the ability to access data, present data for decision making, audit an
accounting system, and so on are all affected by computer technology, the
career path for an accountant will be severely limited by a lack of knowledge
of computer technology.
d. The public accounting profession is competitive and the effective use of
technology helps maintain a competitive edge. For example, an auditor can
usually complete an audit engagement in less time—and be surer of the
findings—than he/she would be without using technology in the audit. This
will permit the auditor to charge less for the work and to obtain more clients.
And, if the auditor’s findings can be supported, he/she will be less likely to
experience legal ramifications (e.g., from the SEC, from stockholders, and so
on).
e. The Sarbanes-Oxley Act of 2002 requires that the CFO (and CEO) sign the
financial statements and attest to their accuracy, that companies notify the
Securities and Exchange Commission of material events within two days, and
that companies file their earnings statements within 35 days of the end of a
quarter. All of these requirements have implications for the organization’s
accounting information system and the ability of the CFO to understand and
monitor its operation.
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