IMPLEMENTATION OF THE EEPAD FRAMEWORK OF BUSINESS PROCESSES IN AN ACCOUNTING INFORMATION SYSTEMS COURSE Developments in Business Simulation and Experiential Learning, Volume 31, 2004 IMPLEMENTATION OF THE EEPAD FRAMEWORK OF BUSINESS PROCESSES IN AN ACCOUNTING INFORMATION SYSTEMS COURSE Scott Leong Illinois State University sleong@ilstu.edu ABSTRACT Given the broad content coverage of accounting information systems (AIS) classes, many accounting instructors are faced with the challenge of producing a cohesive set of class projects that provide students with integrated and practical experience. This paper describes how a set of projects can be integrated using the EEPAD framework and simulating business processes through a computerized market. The simulation complements the theoretical concepts presented in AIS textbooks by providing practical experience. Based upon the encouraging results, comments are given related to the possible adoption and/or adaptation by other AIS instructors. Key Words: AIS, simulation, education INTRODUCTION One of the main goals of the accounting information systems (AIS) course is to better acquaint students with the inputs, processes, and outputs (along with the associated technologies) of business systems. Moscove, et al. (2003) provide a distillation of recommended AIS content areas (see Table 1, Panel A) detailed in reports by the American Accounting Association (1987) and International Federation of Accountants (1996, 2003). A review of popular AIS textbooks (e.g., Gelinas & Sutton 2002; Moscove, et al. 2003) suggests these content areas are adequately addressed from a theoretical standpoint. However, in order to enhance student learning there is a need to complement the theoretical aspects with additional course materials that provide a semblance of practical experience desired by IFAC (2003) and embodied by the Association for Business Simulation and Experiential Learning (Gentry [Ed.] 1990). Panel A: Suggested AIS course content area coverage Content Area 1 Database Concepts 2 Internal Control 3 Technology of Information Systems 4 Use of Systems Technology 5 AIS Applications 6 Management Use of Information 7 Management of Information Systems 8 Systems Development Work 9 Auditing Panel B: EEPAD layers relation to AIS content area EEPAD Layer Content Area Environment 2, 3, 6, 7, 9 Entities 2, 3, 4, 6, 7, 8, 9 Processes 1, 2, 4, 5, 8, 9 Accounting 1, 2, 5 Data 1, 2, 5, 8, 9 TABLE 1 ACCOUNTING INFORMATION SYSTEMS COURSE CONTENT AREA COVERAGE 259 mailto:sleong@ilstu.edu Developments in Business Simulation and Experiential Learning, Volume 31, 2004 These seemingly disparate content areas often result in accounting instructors (who do try to implement these recommendations) using course materials that are an ad hoc selection from various sources. The class assignments that result often comprise a set of unconnected or disjointed projects. Such a situation does little to foster an environment conducive for the student to obtain an adequate mental representation of AIS. An inadequate mental representation is thought to limit the opportunity for knowledge acquisition in students. As I contemplated this problem I came to the realization that these seemingly diverse content areas could be embedded into a framework that would guide the accounting instructor in creating interrelated student projects. This framework can be described as layers (or views) of the same business processes (from a macro to micro perspective). The major layers of the business processes that I propose are the following: Environments (e.g., markets and industries), Entities (e.g, companies, and functional areas within companies), Processes (i.e., business processes existing in the environments and entities), Accounting (i.e., transactions of the entity), and Databases (i.e., storage mediums of the transactions); henceforth described as EEPAD. As detailed later I’ll demonstrate how EEPAD can be used by AIS instructors (and students) to explore various business processes from the perspective of these five layers. I do not believe discussing EEPAD by itself will enable students to grasp AIS material; two other requirements are needed. First there must be a mapping of AIS content areas with EEPAD. Table 1, Panel B provides an example of such a mapping. Although other mappings are possible; any discussions on the preciseness of the mappings are beyond the scope of this paper. I believe a sufficient purpose of the mapping is to provide the AIS instructor with an understanding of the content areas covered when describing business processes from the various layers. This understanding of coverage is important to the second requirement; the creation of a set of projects appropriate for the EEPAD layers. I believe that a set of integrated projects allows students to view the same business processes from the different EEPAD layers which in turn will facilitate learning AIS concepts. The rest of this paper focuses on a set of three integrated projects and how they fit the EEPAD framework. These projects are derived from a business simulation I wrote for an AIS course. STUDENT PROJECTS DESCRIPTION The three integrated projects are a simulation, financial statement preparation, and database creation/query. The simulation is a real time transaction based market where students act as companies in this market and are responsible for decisions related to buying (and therefore selling) of various products. The base simulation project consists of one class session (minimum 50 minutes) in a computer lab. Students would be given brief instructions on the use of the computer simulation (see Figure 1) with a demonstration version (approximately 10 minutes). The students would then use a different URL to access the actual simulation; they may also be given additional requirements (e.g., they must make at least 28 purchases, and they must make at least 21 cash payments for their purchases). The students would spend the remainder of the class session fulfilling these requirements. Subsequent debriefings of the simulation project with students (during other class periods) are expected to provide understanding on the EEPAD levels of environment, entities, and processes. FIGURE 1. SCREENSHOT OF SIMULATION MAIN MENU. Finance Human Resources Marketing Production Main Menu Select one of the functional areas above Sales 2,000 COGS 200 Gross Profit 1,800 Expenses Accounting 150 Advertising 80 Labor 100 Leasehold 200 Machinery 78 Management 33 Total Expenses 641 Net Income (Loss) 1,159 Exit Market 260 Developments in Business Simulation and Experiential Learning, Volume 31, 2004 For example one class period could be devoted to providing an understanding of the environment, or the market context, of the simulation. Discussions could focus on the similarities and differences between the simulation and “real” world. Another class period could focus on the entities (other companies and functional areas within companies) and their desired and actual interactions during the simulation. An example discussion could focus on problems and solutions to generating sales and cash receipts between companies in the simulation and the world at large. Finally another class period could focus on processes evident in the simulation and how these processes compare and contrast to business processes depicted in AIS text and with actual companies. The ability of the simulation to capture transactional data entered by the students into the system allows for later dissemination of that same data back to the students for the purpose of financial statement production (the accounting level of EEPAD). Sales, purchases (see Figure 2) and inventory journals would be provided to students, along with additional information, with which they would then create a full set of financial statements (including the appropriate audit trail, see Figure 3). It is expected that students would have a better understanding of the data because they had invested time and effort in the initial generation of the data. The use of a computerized accounting package could be mandated with the assignment. FIGURE 2. EXCERPT OF PURCHASES REPORT GIVEN TO STUDENT. FIGURE 3. EXCERPT OF FINANCIAL STATEMENT PROJECT INSTRUCTIONS GIVEN TO STUDENTS. The third project would require students to use a text-based SQL interface (see Figure 4) to query the database generated during the simulation (the database level of EEPAD). The students would be given meta-tables (see Figure 5) of the database and instructions on the SQL select command. Using this knowledge they would perform queries on the database to answer pre-specified questions (see Figure 6). Because students had previously invested time in the creation of the data it is expected that they would be able to compare the actual results of their SQL query with their representation of their expected results and possibly with results previously generated through the financial statement preparation project. Your PPE has a useful life of 4 years and a salvage value of $200. Purchases related to L/H imp and Mach are items being rented and not capital assets. A count of ending inventory shows a balance equal to 15% of all raw materials purchased. PREPARE THE FOLLOWING DOCUMENTS: 1. A sales invoice for one of your sales. 2. A purchase order for one of your purchases. 3. A monthly billing statement for one of your customers. 4. A check for payment to one of your suppliers. Purchases buyerID 105 timeChange sellerID Price 1048618253517 106 100.00 1048618283971 100 95.00 1048618294176 101 100.00 1048618658309 117 75.00 1048618908119 118 65.00 261 Developments in Business Simulation and Experiential Learning, Volume 31, 2004 FIGURE 4. SQL INTERFACE. FIGURE 5. EXCERPT OF META-TABLE. FIGURE 6. EXCERPT OF SQL QUERY EXERCISE. In addition to the above projects, discussions relating back to the simulation could be useful in presenting software and hardware issues, internal controls and system design and analysis. For example a program flowchart and program code related to the simulation could be used to enhance understanding of software design issues. Because of the repetitive nature of the use of the simulation and its derivative data, students should begin to understand that the various content areas in AIS are in essence different layers of the business process. It is expected that students would be able to integrate their understanding of the various topics in AIS gained from these projects into the EEPAD framework resulting in a fuller understanding of business processes and periphery topics related to these business processes. 1. How many records have revenue greater than $50? 2. List revenue greater than $50 sorted by dollar. 3. List only records with revenue greater than $50 sorted by time. Database Table: Purchase History Name Type Description Index AutoNumber Primary key buyerID Number Numeric value associated with buyer sellerID Number Numeric value associated with seller Price Number Price purchased (also sold) at timeChange Number Time when item purchased (sold) 262 Developments in Business Simulation and Experiential Learning, Volume 31, 2004 CONCLUSIONS In summary, this paper demonstrates that an integrated set of projects combined with the EEPAD framework provides a basis for students to view and experience seemingly disparate topic areas of AIS in a cohesive approach. This understanding is thought to be useful for students to enhance their representation of AIS. Testing of the projects and the EEPAD framework are ongoing; preliminary results appear to indicate some support for the expectations previously discussed. In terms of adoption I believe that the projects described would be appropriate for a one course AIS curriculum, or the first AIS course in a multiple AIS course curriculum. Adoption and usage of the projects and simulation in any AIS course does require various resources including access to this simulation (current distribution alternatives are being pondered), a web server supporting active server pages (ASP) and database extensions, and computer lab time during class to run the simulation. Furthermore, an understanding of ASP, DHTML, Jscript, MS Access, and data handling in a web environment is needed to prepare and process the financial statement and database projects, as well as use the simulation as a basis to discuss related AIS topics. REFERENCES American Accounting Association (AAA). (1987). Report of the AAA Committee on Contemporary Approaches to Teaching Accounting Information Systems. The Journal of Information Systems, 1(2):127-156. Gelinas, U. J., Jr., & Sutton, S. G. (2002). Accounting Information Systems, (5th ed.) Cincinnati, South-Western. Gentry, J. W. (Ed.). (1990). Guide to business gaming and experiential learning. London: Nichols/GP Publishing. International Federation of Accountants (IFAC). (1996). Implementing International Education Guideline 11 Information Technology in the Accounting Curriculum: Strategies of the American Institute of Certified Public Accountants. New York: International Federation of Accountants. International Federation of Accountants (IFAC). 2003. International Education Guideline 11: Information Technology for Professional Accountants. New York: International Federation of Accountants. Moscove, S., Simkin, M., & Bagranoff, N. (2003). Core Concepts of Accounting Information Systems (8th ed.). New York: John Wiley & Sons, Inc. 263 Table of Contents Volume 31, 2004 Controlling the Complexity and Orenting Target Groups by a Modular, Server-Based Business Game System Learning Network Demonstration: Delivering Business Education in a Distance Learning Environment Economic Evolution, Human Capital Investment, and Adult Distributed Electronic Learning: A Literature Review Designing a Globalization Simulation to Teach Corporate Social Responsibility Developing and Teaching an Online / In-Class Hybrid: A Demonstration A Model for Evaluating Online Instruction An Evaluation of a Distributed Learning Course: A Students'-Eye Perspective Blended Learning Strategy Improved Business Writing Skills How to Receive and Process Attachemnts while Greatly Reducing the Risk of Viruses and Trojans Introducing Online Components to a Class: How to Increase teh Likelihood of Success Teaching Strategic Communications Online: Using Learning Outcomes to Develop a Case-Based Course Implementing Distance Approaches to Education: A Panel Discussion for ABSEL: Las Vegas, 2004 MANDI: Learning Management Through Field Sales Experience An International Capital budgeting Experiential Exercise A Primer To Combating Terrorism: Playing It Safe While On Overseas Assignment (An Experiential Exercise) Integrating The Business Curriculum With A Comprehensive Case Study: A Prototype The Case Brief: A Model For Case Analysis, Writing And Discussion Technology Infused Pedagogy And Delivery – A Sure Bet? A Proposal For Panel Discussion Absel Conference 2004 Research Strategy And The Bkl: Getting The Most From The Absel Archives Simple But Effective: Rediscovering The Class Discussion Needle And Thread: An Activity For Examining Various Management Behaviors A Customized Excel Data Analysis System For Use In Undergraduate Marketing Research Team Leader Selection - Does It Matter? The Power Of Perspective: Reframing Your Framing Skills For Innovative Instruction In Leadership And Influence Exercise: How Should Merit Raises Be Allocated? An Online Situation For Problem-Based Learning In A Junior-Level Management Course The Eden Alternative As A Roadway For Change: A Service Learning Quality Improvement Project Avoiding Catastrophe: The Role Of Individual Accountability In Team Effectiveness Omega Systems: A Change Management Exercise The Risks And Rewards Of Providing Students A Structured Cheating Opportunity Experimentation With Assessment Techniques: A Proposal For Panel Discussion Using A 2 - Page Case To Introduce Concepts Of Business Strategy Interactive Session The Integration Of Appreciative Inquiry And Experiential Learning For Peak Performance Appreciative Inquiry Case Story: New York City Leadership Challenge Individual Achievement Versus Team Performance: An Empirical Study With Business Games Some Strategists Don't Learn Or Can't Learn Computer Simulation: A Design Architectonic On The Value Of Bugs In Simulation Environments Online Sales Forecasting With The Multiple Regression Analysis Data Matrices Package Simulation Exercises And Problem Based Learning: Is There A Fit? A Study Of Business Game Stock Price Algorithms Assessing Individual Performance In A Total Enterprise Simulation Information Use In A Business Game Determining The Value Of A Firm Unsorting Algorithms For An Ordered List And Its Application To Business Simulations Teaching Public Finance Management Through Simulation Antecedents Of Game Performance Student Expectations Of Classroom Teaching Practices In Developing And Presenting Course Information In Hong Kong Implementation And Impacts Of The Balanced Scorecard: An Experiment With Business Games Impact: Shocking The Legacy Mindset Implementation Of The Eepad Framework Of Business Processes In An Accounting Information Systems Course Are Business Games Really Delivering What Students Are Led To Believe?? Reporting Lessons Learned: What Gets Reported; Who Gains Value Teacher Expectations Of Classroom Teaching Practices In Developing And Presenting Course Information In Hong Kong Student Reactions To The Use Of A Computer-Based Simulation As An Integrating Mechanism For A Mba Curriculum A Cognitive Investigation Of The Internal Validity Of A Management Strategy Simulation Game The Casino Challenge: Making Simulation Delivery A Safe Bet! Accounting For Company Reputation: Variations On The Gold Standard Foreign Currency Hedging: A Simulation The Influence Of Variables Easily Controlled By The Instructor/Administrator On Simulation Outcomes: In Particular, The Variable, Reflection. Absel Awareness Among Business School Faculty Validating Business Simulations: Does High Market Share Lead To High Profitability? Simulation Debriefing Procedures Coaching And Business Simulations: A Formula For Success? A Seminal Inventory Of Basic Research Using Business Simulation Games The Influence Of Scorecard Evaluation On Decisions And Outcomes