You are a staff accountant at a large firm and are assigned to work with the IT department to update the current systems throughout the organization. An accounting intern is assigned to help with the project. The intern wants to document the current processes using an REA diagram.

Conduct a preliminary search and:

1- According to the above scenario, how do you explain to the intern why the REA diagram is not appropriate?

2- Discuss the four rules for designing an REA diagram? Include a definition for each?

3- Discuss how adopting a value chain perspective reveals advantages of adopting an REA approach to information system development?

Answer rating: 100% (QA)

Answer Part1 An REA diagram is an ER diagram that is designed using the REA data model to identity the three basic kinds of entities relevant to transaction processing systems the resources controlled ... View the full answer