Accounting Information Systems and Internal Control

Eddy Vaassen is Professor of Accounting Information Systems at Maastricht University and the University of Amsterdam, where he is the director of the international Executive Master of Finance and Control program. He has co-authored various texts and papers on accounting information systems, internal control, management control and auditing. Roger Meuwissen is Professor of Control and Auditing and the vice-dean of education at the School of Business and Economics at Maastricht University. He is co-author of several textbooks on Internal Control and Accounting Information Systems. Caren Schelleman is an assistant Professor at Maastricht University. She develops, coordinates and teaches courses on Internal Control and Auditing at both undergraduate and graduate levels.

About the Authors vii

Preface ix

PART I Foundations of Internal Control 1

1 Organizations and their Systems 3

2 Internal Control 27

3 Bridging the Gap between Internal Control and Management Control 57

4 The Dynamics of Control and IT 77

5 Documenting and Evaluating Internal Control Systems 119

PART II Internal Control in Various Organizational Processes 141

6 Organizational Processes 143

7 The Purchasing Process 149

8 The Inventory Process 163

9 The Production Process 175

10 The Sales Process 187

11 Secondary Processes 201

PART III Internal Control in Various Types of Organizations 213

12 Typology of Organizations 215

13 Trade Organizations 229

14 Production Organizations 247

15 Service Organizations with a Limited Flow of Goods 277

16 Service Organizations that Put Space and Electronic Capacity at their Customers’ Disposal 297

17 Service Organizations that Put Knowledge and Skills at their Customers’ Disposal 321

18 Governmental and Other Not-for-profi t Organizations 351

Bibliography 363

Glossary 365

Index 377