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 Contents

Preface  xix

PART I Conceptual Foundations of Accounting Information

Systems  1

CHAPTER 1 Accounting Information Systems: An Overview   2

Introduction  3
Information Needs and Business Processes   4
Information Needs  5
Business Processes  6
Accounting Information Systems   10
How an AIS Can Add Value to an Organization   11
The AIS and Corporate Strategy   13
The Role of the AIS in the Value Chain   13
Summary and Case Conclusion   15 ■ Key Terms  16
AIS IN ACTION: Chapter Quiz   16 ■ Discussion Questions  17 ■ Problems  18
CASE 1-1 Ackoff’s Management Misinformation Systems   21
AIS IN ACTION SOLUTIONS: Quiz Key   22

CHAPTER 2 Overview of Transaction Processing and Enterprise

­Resource Planning Systems   24
Introduction  25
Transaction Processing: The Data Processing Cycle   26
Data Input  26
Data Storage  27
Data Processing  33
Information Output  33
Enterprise Resource Planning (ERP) Systems   35
Summary and Case Conclusion   38 ■ Key Terms  38
AIS IN ACTION: Chapter Quiz   38 ■ Discussion Questions  39 ■ Problems  40
CASE 2-1 Bar Harbor Blueberry Farm   46
AIS IN ACTION SOLUTIONS: Quiz Key   47

CHAPTER 3 Systems Documentation Techniques   50

Introduction  51
Data Flow Diagrams   52
Subdividing the DFD   54

vii

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 viii CONTENTS

Flowcharts  58
Types of Flowcharts   58
Program Flowcharts  63
Business Process Diagrams   63
Summary and Case Conclusion   65 ■ Key Terms  66
AIS IN ACTION: Chapter Quiz   66 ■ Comprehensive Problem  67 ■ Discussion Questions  67 ■
Problems  68
CASE 3-1 Dub 5  75
AIS IN ACTION SOLUTIONS: Quiz Key   76 ■ Comprehensive Problem Solution   78

CHAPTER 4 Relational Databases  84

Introduction  84
Databases and Files   85
Using Data Warehouses for Business Intelligence   86
The Advantages of Database Systems   87
The Importance of Good Data   87
Database Systems  88
Logical and Physical Views of Data   88
Schemas  88
The Data Dictionary   90
DBMS Languages  90
Relational Databases  90
Types of Attributes  90
Designing a Relational Database for S&S, Inc.   92
Basic Requirements of a Relational Database   94
Two Approaches to Database Design   95
Creating Relational Database Queries   95
Query 1  97
Query 2  99
Query 3  100
Query 4  100
Query 5  102
Database Systems and the Future of Accounting   102
Summary and Case Conclusion   103 ■ Key Terms  104
AIS IN ACTION: Chapter Quiz   104 ■ Comprehensive Problem  105 ■
Discussion Questions  106 ■ Problems  106
CASE 4-1 Research Project  113
AIS IN ACTION SOLUTIONS: Quiz Key   114 ■ Comprehensive Problem Solution   115 ■
Appendix: Data Normalization   118 ■ Summary  121 ■ Second Normalization Example   121

PART II Control and Audit of Accounting Information

Systems  125

CHAPTER 5 Fraud  126
Introduction  127
AIS Threats  128
Introduction to Fraud   130
Misappropriation of Assets  131
Fraudulent Financial Reporting   132
SAS No. 99 (AU-C Section 240): The Auditor’s Responsibility to Detect Fraud   133
Who Perpetrates Fraud and Why   133
The Fraud Triangle  134

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 CONTENTS ix

Computer Fraud  138
The Rise in Computer Fraud   138
Computer Fraud Classifications   140
Preventing and Detecting Fraud and Abuse   142
Summary and Case Conclusion   143 ■ Key Terms  144
AIS IN ACTION: Chapter Quiz   144 ■ Discussion Questions  145 ■ Problems  146
CASE 5-1 David L. Miller: Portrait of a White-Collar Criminal   150
CASE 5-2 Heirloom Photo Plans  152
AIS IN ACTION SOLUTIONS: Quiz Key   153

CHAPTER 6 Computer Fraud and Abuse Techniques   156

Introduction  156
Computer Attacks and Abuse   157
Social Engineering  165
Malware  170
Summary and Case Conclusion   179 ■ Key Terms  180
AIS IN ACTION: Chapter Quiz   181 ■ Discussion Questions  182 ■ Problems  182
CASE 6-1 Shadowcrew  192
AIS IN ACTION SOLUTIONS: Quiz Key   193

CHAPTER 7 Control and Accounting Information Systems   196

Introduction  197
Why Threats to Accounting Information Systems are Increasing   197
Overview of Control Concepts   198
The Foreign Corrupt Practices and Sarbanes–Oxley Acts   199
Control Frameworks  200
COBIT Framework  200
COSO’S Internal Control Framework   202
COSO’S Enterprise Risk Management Framework   202
The Enterprise Risk Management Framework Versus the Internal Control
Framework  204
The Internal Environment   204
Management’s Philosophy, Operating Style, and Risk Appetite   205
Commitment to Integrity, Ethical Values, and Competence   205
Internal Control Oversight by the Board of Directors   206
Organizational Structure  206
Methods of Assigning Authority and Responsibility   206
Human Resources Standards that Attract, Develop, and Retain
Competent Individuals  206
External Influences  208
Objective Setting and Event Identification   208
Objective Setting  208
Event Identification  209
Risk Assessment and Risk Response   209
Estimate Likelihood and Impact   210
Identify Controls  211
Estimate Costs and Benefits   211
Determine Cost/Benefit Effectiveness   211
Implement Control or Accept, Share, or Avoid the Risk   211
Control Activities  212
Proper Authorization of Transactions and Activities   212
Segregation of Duties   213

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 x CONTENTS

Project Development and Acquisition Controls   215

Change Management Controls   216
Design and Use of Documents and Records   216
Safeguard Assets, Records, and Data   216
Independent Checks on Performance   217
Communicate Information and Monitor Control Processes   218
Information and Communication   218
Monitoring  218
Summary and Case Conclusion   221 ■ Key Terms  222
AIS IN ACTION: Chapter Quiz   222 ■ Discussion Questions  224 ■ Problems  224
CASE 7-1 The Greater Providence Deposit & Trust Embezzlement   232
AIS IN ACTION SOLUTIONS: Quiz Key   233

CHAPTER 8 Controls for Information Security   236

Introduction  237
Two Fundamental Information Security Concepts   238
1. Security Is a Management Issue, Not Just a Technology Issue   238
2. The Time-Based Model of Information Security   239
Understanding Targeted Attacks   240
Protecting Information Resources   241
People: Creation of a “Security-Conscious” Culture   242
People: Training  242
Process: User Access Controls   243
Process: Penetration Testing  246
Process: Change Controls and Change Management   247
IT Solutions: Antimalware Controls   247
IT Solutions: Network Access Controls   247
IT Solutions: Device and Software Hardening Controls   251
IT Solutions: Encryption   254
Physical Security: Access Controls   254
Detecting Attacks  255
Log Analysis  255
Intrusion Detection Systems   256
Continuous Monitoring  256
Responding to Attacks  257
Computer Incident Response Team (CIRT)   257
Chief Information Security Officer (CISO)   257
Security Implications of Virtualization, Cloud Computing,
and the Internet of Things   258
Summary and Case Conclusion   259 ■ Key Terms  260
AIS IN ACTION: Chapter Quiz   260 ■ Discussion Questions  261 ■ Problems  262
CASE 8-1 Assessing Change Control and Change Management   266
CASE 8-2 Research Project  267
AIS IN ACTION SOLUTIONS: Quiz Key   267

CHAPTER 9 Confidentiality and Privacy Controls   270

Introduction  271
Preserving Confidentiality  271
Identify and Classify Information to Be Protected   272
Protecting Confidentiality with Encryption   272
Controlling Access to Sensitive Information   272
Training  274

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 CONTENTS xi

Privacy  274
Privacy Controls  274
Privacy Concerns  275
Privacy Regulations and Generally Accepted Privacy Principles   277
Encryption  278
Factors That Influence Encryption Strength   279
Types of Encryption Systems   280
Hashing  282
Digital Signatures  282
Digital Certificates and Public Key Infrastructure   284
Virtual Private Networks (VPNS)   285
Summary and Case Conclusion   285 ■ Key Terms  286
AIS IN ACTION: Chapter Quiz   286 ■ Discussion Questions  288 ■ Problems  288
CASE 9-1 Protecting Privacy of Tax Returns   292
CASE 9-2 Generally Accepted Privacy Principles   293
AIS IN ACTION SOLUTIONS: Quiz Key   293

CHAPTER 10 Processing Integrity and Availability Controls   296

Introduction  296
Processing Integrity  297
Input Controls  297
Processing Controls  299
Output Controls  300
Illustrative Example: Credit Sales Processing   301
Processing Integrity Controls in Spreadsheets   302
Availability  303
Minimizing Risk of System Downtime   303
Recovery and Resumption of Normal Operations   304
Summary and Case Conclusion   308 ■ Key Terms  309
AIS IN ACTION: Chapter Quiz   309 ■ Discussion Questions  310 ■ Problems  311
CASE 10-1 Ensuring Systems Availability  318
CASE 10-2 Ensuring Process Integrity in Spreadsheets   319
AIS IN ACTION SOLUTIONS: Quiz Key   320

CHAPTER 11 Auditing Computer-Based Information Systems   322

Introduction  323
The Nature of Auditing   324
Overview of the Audit Process   324
The Risk-Based Audit Approach   326
Information Systems Audits  327
Objective 1: Overall Security   327
Objective 2: Program Development and Acquisition   329
Objective 3: Program Modification   330
Objective 4: Computer Processing   331
Objective 5: Source Data   334
Objective 6: Data Files   335
Audit Software  336
Operational Audits of an AIS   338
Summary and Case Conclusion   338 ■ Key Terms  339
AIS IN ACTION: Chapter Quiz   339 ■ Discussion Questions  340 ■ Problems  341
CASE 11-1 Preston Manufacturing  348
AIS IN ACTION SOLUTIONS: Quiz Key   348

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 xii CONTENTS

PART III Accounting Information Systems Applications   351

CHAPTER 12 The Revenue Cycle: Sales to Cash Collections   352

Introduction  354
Revenue Cycle Information System   356
Process  356
Threats and Controls   356
Sales Order Entry   359
Taking Customer Orders   359
Credit Approval  362
Checking Inventory Availability  364
Responding to Customer Inquiries   365
Shipping  366
Pick and Pack the Order   367
Ship the Order   368
Billing  371
Invoicing  371
Maintain Accounts Receivable  373
Cash Collections  377
Process  377
Threats and Controls   378
Summary and Case Conclusion   380 ■ Key Terms  381
AIS IN ACTION: Chapter Quiz   381 ■ Discussion Questions  382 ■
Problems  382
CASE 12-1 Research Project: How CPA Firms Are Leveraging
New Developments in IT   391
AIS IN ACTION SOLUTIONS: Quiz Key   391

CHAPTER 13 The Expenditure Cycle: Purchasing to Cash

­Disbursements  394
Introduction  395
Expenditure Cycle Information System   396
Process  396
Threats and Controls   399
Ordering Materials, Supplies, and Services   402
Identifying What, When, and How Much to Purchase   402
Choosing Suppliers  405
Receiving  409
Process  409
Threats and Controls   410
Approving Supplier Invoices   411
Process  411
Threats and Controls   413
Cash Disbursements  415
Process  415
Threats and Controls   415
Summary and Case Conclusion   417 ■ Key Terms  418
AIS IN ACTION: Chapter Quiz   418 ■ Discussion Questions  419 ■
Problems  420
CASE 13-1 Research Project: Impact of Information Technology on Expenditure Cycle Activities,
Threats, and Controls   429
AIS IN ACTION SOLUTIONS: Quiz Key   429

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 CONTENTS xiii

CHAPTER 14 The Production Cycle   432

Introduction  433
Production Cycle Information System   435
Process  436
Threats and Controls   436
Product Design  437
Process  437
Threats and Controls   439
Planning and Scheduling   439
Production Planning Methods   439
Key Documents and Forms   439
Threats and Controls   443
Production Operations  444
Threats and Controls   444
Cost Accounting  446
Process  446
Threats and Controls   447
Summary and Case Conclusion   452 ■ Key Terms  453
AIS IN ACTION: Chapter Quiz   453 ■ Discussion Questions  454 ■ Problems  455
CASE 14-1 The Accountant and CIM   459
AIS IN ACTION SOLUTIONS: Quiz Key   459

CHAPTER 15 The Human Resources Management and

Payroll ­Cycle  462
Introduction  463
HRM/Payroll Cycle Information System   464
Overview of HRM Process and Information Needs   464
Threats and Controls   466
Payroll Cycle Activities  469
Update Payroll Master Database   470
Validate Time and Attendance Data   471
Prepare Payroll  474
Disburse Payroll  477
Calculate and Disburse Employer-Paid Benefits, Taxes, and Voluntary
Employee Deductions  479
Outsourcing Options: Payroll Service Bureaus and Professional
Employer Organizations  479
Summary and Case Conclusion   480 ■ Key Terms  481
AIS IN ACTION: Chapter Quiz   481 ■ Discussion Questions  482 ■ Problems  483
CASE 15-1 Research Report: HRM/Payroll Opportunities for CPAs   489
AIS IN ACTION SOLUTIONS: Quiz Key   489

CHAPTER 16 General Ledger and Reporting System   492

Introduction  493
General Ledger and Reporting System   494
Process  495
Threats and Controls   495
Update General Ledger   497
Process  497
Threats and Controls   497
Post Adjusting Entries  501
Process  501
Threats and Controls   502

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 xiv CONTENTS

Prepare Financial Statements   502

Process  502
Threats and Controls   507
Produce Managerial Reports   508
Process  508
Threats and Controls   508
Summary and Case Conclusion   513 ■ Key Terms  514
AIS IN ACTION: Chapter Quiz   514 ■ Discussion Questions  515 ■ Problems  515
CASE 16-1 Exploring XBRL Tools  520
CASE 16-2 Evaluating a General Ledger Package   521
CASE 16-3 Visualization Tools for Big Data   521
AIS IN ACTION SOLUTIONS: Quiz Key   521

PART IV The REA Data Model   525

CHAPTER 17 Database Design Using the REA Data Model   526

Introduction  526
Database Design Process   527
Entity-Relationship Diagrams  528
The REA Data Model   529
Three Basic Types of Entities   530
Structuring Relationships: The Basic REA Template   530
Developing an REA Diagram   533
Step 1: Identify Relevant Events   533
Step 2: Identify Resources and Agents   535
Step 3: Determine Cardinalities of Relationships   536
What an REA Diagram Reveals About an Organization   540
Business Meaning of Cardinalities   540
Uniqueness of REA Diagrams   541
Summary and Case Conclusion   542 ■ Key Terms  543
AIS IN ACTION: Chapter Quiz   543 ■ Comprehensive Problem  546 ■
Discussion Questions  546 ■ Problems  547
CASE 17-1 REA Data Modeling Extension   551
AIS IN ACTION SOLUTIONS: Quiz Key   552 ■ Comprehensive Problem Solution   556

CHAPTER 18 Implementing an REA Model in a Relational

Database  560
Introduction  561
Integrating REA Diagrams Across Cycles   561
Merging Redundant Resource Entities   564
Merging Redundant Event Entities   565
Validating the Accuracy of Integrated REA Diagrams   566
Implementing an REA Diagram in a Relational Database   566
Step 1: Create Tables for Each Distinct Entity and M:N Relationship   566
Step 2: Assign Attributes to Each Table   568
Step 3: Use Foreign Keys to Implement 1:1 and 1:N Relationships   569
Completeness Check  570
Using REA Diagrams to Retrieve Information from a Database   571
Creating Journals and Ledgers   571
Generating Financial Statements   572
Creating Managerial Reports   573
Summary and Case Conclusion   573 ■ Key Term  574

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 CONTENTS xv

AIS IN ACTION: Chapter Quiz   574 ■ Comprehensive Problem  575 ■

Discussion Questions  575 ■ Problems  576
CASE 18-1 Practical Database Design  578
AIS IN ACTION SOLUTIONS: Quiz Key   579 ■ Comprehensive Problem Solution   581

CHAPTER 19 Special Topics in REA Modeling   584

Introduction  585
Additional Revenue and Expenditure Cycle Modeling Topics   585
Additional Revenue Cycle Events and Attribute Placement   585
Additional Expenditure Cycle Events and Attribute Placement   587
Sale of Services   590
Acquisition of Intangible Services   590
Digital Assets  591
Rental Transactions  591
Additional REA Features   593
Employee Roles  593
M:N Agent–Event Relationships  593
Locations  593
Relationships Between Resources and Agents   593
Production Cycle REA Model   594
Additional Entities—Intellectual Property   594
Production Cycle Events   596
New REA Feature   596
Combined HR/Payroll Data Model   597
HR Cycle Entities   597
Tracking Employees’ Time  598
Financing Activities Data Model   599
Summary and Case Conclusion   600
AIS IN ACTION: Chapter Quiz   603 ■ Discussion Questions  604 ■ Problems  605
CASE 19-1 Practical Database Assignment  610
AIS IN ACTION SOLUTIONS: Quiz Key   610 ■ Appendix: Extending the REA Model to Include
I­nformation About Policies   614

PART V The Systems Development Process   617

CHAPTER 20 Introduction to Systems Development and Systems

­Analysis  618
Introduction  619
Systems Development  621
The Systems Development Life Cycle   621
The Players  622
Planning Systems Development   623
Planning Techniques  623
Feasibility Analysis  625
Capital Budgeting: Calculating Economic Feasibility   626
Behavioral Aspects of Change   628
Why Behavioral Problems Occur   628
How People Resist Change   628
Preventing Behavioral Problems   629
Systems Analysis  630
Initial Investigation  630
Systems Survey  631

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 xvi CONTENTS

Feasibility Study  633
Information Needs and Systems Requirements   633
Systems Analysis Report  635
Summary and Case Conclusion   636 ■ Key Terms  637
AIS IN ACTION: Chapter Quiz   638 ■ Comprehensive Problem  639 ■
Discussion Questions  639 ■ Problems  640
CASE 20-1 Audio Visual Corporation  648
AIS IN ACTION SOLUTIONS: Quiz Key   649 ■ Comprehensive Problem Solution   652

CHAPTER 21 AIS Development Strategies   654

Introduction  655
Purchasing Software  655
Selecting a Vendor  656
Acquiring Hardware and Software   656
Evaluating Proposals and Selecting a System   657
Development by In-House Information Systems Departments   659
End-User-Developed Software  659
Advantages and Disadvantages of End-User Computing   660
Managing and Controlling End-User Computing   661
Outsourcing the System   662
Advantages and Disadvantages of Outsourcing   662
Methods for Improving Systems Development   663
Business Process Management   664
Prototyping  665
Agile Methodologies  667
Computer-Aided Software Engineering   670
Summary and Case Conclusion   671 ■ Key Terms  671
AIS IN ACTION: Chapter Quiz   672 ■ Comprehensive Problem Freedom from
Telemarketers—the Do Not Call List   673 ■ Discussion Questions  673 ■
Problems  674
CASE 21-1 Wong Engineering Corp.  678
AIS IN ACTION SOLUTIONS: Quiz Key   679 ■ Comprehensive
Problem Solution  681

CHAPTER 22 Systems Design, Implementation, and Operation   682

Introduction  683
Conceptual Systems Design   683
Evaluate Design Alternatives  683
Prepare Design Specifications and Reports   685
Physical Systems Design   685
Output Design  686
File and Database Design   686
Input Design  687
Program Design  688
Procedures and Controls Design   689
Systems Implementation  690
Implementation Planning and Site Preparation   690
Selecting and Training Personnel   691
Complete Documentation  692
Testing the System   692
Systems Conversion  693
Operation and Maintenance   694

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 CONTENTS xvii

Summary and Case Conclusion   695 ■ Key Terms  696

AIS IN ACTION: Chapter Quiz   696 ■ Comprehensive Problem Hershey’s Big Bang ERP   697 ■
Discussion Questions  698 ■ Problems  699
CASE 22-1 Citizen’s Gas Company  704
AIS IN ACTION SOLUTIONS: Quiz Key   705 ■ Comprehensive Problem Solution   707

Glossary  708
Index  729

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This page intentionally left blank
 Preface

To the Instructor
This book is intended for use in a one-semester course in accounting information systems at
either the undergraduate or graduate level. Introductory financial and managerial accounting
courses are suggested prerequisites, and an introductory information systems course that cov-
ers a computer language or software package is helpful, but not necessary.
The book can also be used as the main text in graduate or advanced undergraduate man-
agement information systems courses.
The topics covered in this text provide information systems students with a solid under-
standing of transaction processing systems that they can then build on as they pursue more in-
depth study of specific topics such as databases, data warehouses and data mining, networks,
systems analysis and design, cloud computing, virtualization, computer security, and informa-
tion system controls.

ENHANCEMENTS IN THE FOURTEENTH EDITION

We made extensive revisions to the content of the material to incorporate recent developments,
while retaining the features that have made prior editions easy to use. Every chapter has been
updated to include up-to-date examples of important concepts. Specific changes include:
1. We discuss the new revision to the COSO framework and have updated the discussion of
IT controls to reflect the new distinction between governance and management that was
introduced in COBIT 5.
2. Updated discussion of information security countermeasures, including the security and
control implications associated with virtualization and cloud computing.
3. Updated end-of-chapter discussion questions and problems, including Excel exer-
cises that are based on articles from the Journal of Accountancy so that students can
­develop the specific skills used by practitioners. Most chapters also include a problem
that consists of multiple-choice questions that we have used in our exams to provide
students with an additional chance to check how well they understand the chapter
material.
4. Many new computer fraud and abuse techniques have been added to help students under-
stand the way systems are attacked.
5. Chapter 21 includes a new section on agile development technologies that discusses
scrum development, extreme programming, and unified process development.

CUSTOMIZING THIS TEXT

Pearson Custom Library can help you customize this textbook to fit how you teach the course.
You can select just the chapters from this text that you plan to cover and arrange them in the
sequence you desire. You even have the option to add your own material or third party content.
xix

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 xx PREFACE

In addition, you may choose an alternate version of the REA material presented in
Chapters 17–19 that uses the Batini style notation instead of the crows feet notation featured in
this book.
To explore how to create a customized version of the book you can contact your Pearson
representative.

SUPPLEMENTAL RESOURCES
As with prior editions, our objective in preparing this fourteenth edition has been to simplify
the teaching of AIS by enabling you to concentrate on classroom presentation and discussion,
rather than on locating, assembling, and distributing teaching materials. To assist you in this
process, the following supplementary materials are available to adopters of the text:
●● Solutions Manual prepared by Marshall Romney at Brigham Young University and Paul
John Steinbart at Arizona State University
●● Instructors Manual prepared by Robyn Raschke at University of Nevada–Las Vegas
●● Test Item File prepared by Lawrence Chui at University of St. Thomas
●● TestGen testing software, a computerized test item file
●● PowerPoint Presentation slides developed by Robyn Raschke at University of Nevada–
Las Vegas
The fourteenth edition includes an entirely new set of PowerPoint slides that make exten-
sive use of high-quality graphics to illustrate key concepts. The slides do not merely consist
of bullet points taken verbatim from the text, but instead are designed to help students notice
and understand important relationships among concepts. The large number of slides provides
instructors a great deal of flexibility in choosing which topics they wish to emphasize in class.
In addition, you can access all these supplements from the protected instructor area of
www.pearsonhighered.com.
We recognize that you may also wish to use specific software packages when teaching
the AIS course. Contact your Pearson representative to learn about options for bundling this
text (or a customized version) with software packages or other texts such as Computerized
Practice Set for Comprehensive Assurance & System Tool (CAST); Manual Practice Set for
Comprehensive Assurance and Systems Tool (CAST); Comprehensive Assurance & System
Tools (CAST): An Integrated Practice Set; or Assurance Practice Set for Comprehensive As-
surance & System Tool (CAST), all written by Laura R. Ingraham and J. Gregory Jenkins, both
at North Carolina State University.

REVEL™
Educational Technology Designed for the Way Today’s Students Read, Think, and Learn
When students are engaged deeply, they learn more effectively and perform better in their
courses. This simple fact inspired the creation of REVEL: an interactive learning environment
designed for the way today’s students read, think, and learn.
REVEL enlivens course content with media interactives and assessments—integrated di-
rectly within the authors’ narrative—that provide opportunities for students to read, practice, and
study in one continuous experience. This immersive educational technology replaces the text-
book and is designed to measurably boost students’ understanding, retention, and preparedness.
Learn more about REVEL http://www.pearsonhighered.com/revel/

To the Student
As did previous editions, the fourteenth edition of Accounting Information Systems is designed
to prepare you for a successful accounting career whether you enter public practice, industry,
or government. All of you will be users of accounting information systems. In addition to being
users, some of you will become managers. Others will become internal and external auditors,
and some of you will become consultants. Regardless of your role, you will need to understand
how accounting information systems work in order to effectively measure how cost-effectively

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 PREFACE xxi

they perform, to assess their reliability and that of the information produced, or to lead the
redesign and implementation of new and better systems. Mastering the material presented in
this text will give you the foundational knowledge you need in order to excel at all those tasks.
This text discusses important new IT developments, such as virtualization and the move to
cloud computing, because such developments affect business processes and often cause organi-
zations to redesign their accounting systems to take advantage of new capabilities. The focus,
however, is not on IT for the sake of IT, but on how IT affects business processes and controls.
Indeed, new IT developments not only bring new capabilities, but also often create new threats
and affect the overall level of risk. This text will help you understand these issues so that you
can properly determine how to modify accounting systems controls to effectively address those
new threats and accurately assess the adequacy of controls in those redesigned systems. We also
discuss the effect of recent regulatory developments, such as the SEC mandate to use XBRL and
the pending switch from GAAP to IFRS, on the design and operation of accounting systems.
In addition to technology- and regulatory-driven changes, companies are responding to the
increasingly competitive business environment by reexamining every internal activity in an ef-
fort to reap the most value at the least cost. As a result, accountants are being asked to do more
than simply report the results of past activities. They must take a more proactive role in both
providing and interpreting financial and nonfinancial information about the organization’s ac-
tivities. Therefore, throughout this text we discuss how accountants can improve the design and
functioning of the accounting information system (AIS) so that it truly adds value to the organi-
zation by providing management with the information needed to effectively run an organization.

Key Learning Objectives

When you finish reading this text, you should understand the following key concepts:
●● The basic activities performed in the major business cycles
●● What data needs to be collected to enable managers to plan, evaluate, and control the
business activities in which an organization engages
●● How IT developments can improve the efficiency and effectiveness of business processes
●● How to design an AIS to provide the information needed to make key decisions in each
business cycle
●● The risk of fraud and the motives and techniques used to perpetrate fraud
●● The COSO and COSO-ERM models for internal control and risk management, as well as
the specific controls used to achieve those objectives
●● The Control Objectives for Information and Related Technology (COBIT) Framework
for the effective governance and control of information systems and how IT affects the
implementation of internal controls
●● The AICPA’s Trust Services framework for ensuring systems reliability by developing
procedures to protect the confidentiality of proprietary information, maintain the privacy
of personally identifying information collected from customers, assure the availability of
information resources, and provide for information processing integrity
●● Fundamentals of information security
●● Goals, objectives, and methods for auditing information systems
●● Fundamental concepts of database technology and data modeling and their effect on an AIS
●● The tools for documenting AIS work, such as REA diagrams, data flow diagrams, busi-
ness processing diagrams, and flowcharts
●● The basic steps in the system development process to design and improve an AIS

Features to Facilitate Learning

To help you understand these concepts the text includes the following features:
1. Each chapter begins with an integrated case that introduces that chapter’s key con-
cepts and topics and identifies several key issues or problems that you should be able

A01_ROMN4021_14_SE_FM.indd 21 02/11/16 4:00 PM

 xxii PREFACE

to solve after mastering the material presented in that chapter. The case is referenced
throughout the chapter and the chapter summary presents solutions to the problems and
issues raised in the case.
2. Focus Boxes and real-world examples to help you understand how companies are using
the latest IT developments to improve their AIS.
3. Hands-on Excel exercises in many chapters to help you hone your computer skills.
Many of these exercises are based on “how-to” tutorials that appeared in recent issues of
the Journal of Accountancy.
4. Numerous problems in every chapter provide additional opportunities for you to dem-
onstrate your mastery of key concepts. Many problems were developed from reports in
current periodicals. Other problems were selected from the various professional examina-
tions, including the CPA, CMA, CIA, and SMAC exams. One problem consists of a set of
multiple-choice questions in order to provide practice in answering exam-style questions.
Each chapter also has one or more cases that require more extensive exploration of
specific topics.
5. Chapter quizzes at the end of each chapter enable you to self-assess your understanding
of the material. We also provide detailed explanations about the correct answer to each
quiz question.
6. Extensive use of Full-Color Graphics. The text contains hundreds of figures, diagrams,
flowcharts, and tables that illustrate the concepts taught in the chapters. Color is used to
highlight key points.
7. Definitions of key terms are repeated in the glossary margins in each chapter. In addi-
tion, a comprehensive glossary located at the back of the book makes it easy to look up
the definition of the various technical terms used in the text.
8. Extensive on-line support at Pearson’s content-rich, text-supported Companion Website
at www.pearsonhighered.com/romney/.

Excel Homework Problems

Accountants need to become proficient with Excel because it is a useful tool for tasks related
to every business process. That is why each of the chapters in the business process section
contains several homework problems that are designed to teach you new Excel skills in a con-
text related to one of the business processes discussed in the chapter.
As with any software, Microsoft regularly releases updates to Microsoft Office, but not
everyone always immediately switches. Eventually, however, during your career you will pe-
riodically move to a newer version of Excel. When you do, you will find that sometimes you
need make only minor changes to existing spreadsheets, but other times you may have to
make more significant changes because the newer version of Excel now incorporates different
features and functions.
So how do you keep abreast of changes? And how can you learn new Excel skills “on
the job” to simplify tasks that you now find yourself doing repeatedly? You could pay to
take a course, but that can be costly, time-consuming and may not always be timely. Alter-
natively, you can develop life-long learning skills to continuously update your knowledge.
One important way to do this is to begin now to save copies of two types of articles that reg-
ularly appear in the Journal of Accountancy. The first is the monthly column titled “Tech-
nology Q&A,” which often contains answers to questions about how do you do something
in a newer version of Excel that you know how to do in an older version. The second type
of article is a complete tutorial about a powerful way to use one or more Excel functions to
automate a recurring task. Often, this second type of article has an online spreadsheet file
that you can download and use to follow along with the example and thereby teach yourself
a new skill.
The Journal of Accountancy web site maintains an archive of these articles that you can
search to see if there is one that addresses a task that is new for you. Even if the article ex-
plains how to do something (such as create a pivot table) in an older version of Excel, in most
cases you will find that many of the steps have not changed. For those that have, if you read

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 PREFACE xxiii

the old way to do it as described in the article, you can then use Excel’s built-in help feature to
see how to do the same task in the newer version that you are now using.
The Excel homework problems in the five business process chapters in this textbook let
you practice using Journal of Accountancy articles to help you develop new skills with Excel.
Many of the problems reference a Journal of Accountancy tutorial article. Some are written
for the version of Excel that you currently use, in which case it will be straightforward to
follow the article to solve the problem. Others, however, were written for earlier versions of
Excel, which gives you an opportunity to practice learning how to use Excel’s help functions
to update the steps in the tutorial.

Content and Organization

This text is divided into five parts, each focused on a major theme.

PART I: CONCEPTUAL FOUNDATIONS OF ACCOUNTING

INFORMATION SYSTEMS
Part I consists of four chapters which present the underlying concepts fundamental to an un-
derstanding of AIS. Chapter 1 introduces basic terminology and provides an overview of AIS
topics. It discusses how an AIS can add value to an organization and how it can be used to help
organizations implement corporate strategy. It also discusses the types of information compa-
nies need to successfully operate and introduces the basic business processes that produce that
information. It concludes by describing the role of the AIS in an organization’s value chain.
Chapter 2 introduces transaction processing in automated systems, presenting basic in-
formation input/output, processing, and data storage concepts. You will see the wide range
of data that must be collected by the AIS. This information helps you to understand what
an AIS does; as you read the remainder of the book, you will see how advances in IT affect
the manner in which those functions are performed. Chapter 2 also introduces you to Enter-
prise Resource Planning (ERP) systems and discusses their importance and uses in modern
business.
Chapter 3 covers three of the most important tools and techniques used to understand,
evaluate, design, and document information systems: data flow diagrams, business process
diagrams, and flowcharts. You will learn how to read, critique, and create systems documenta-
tion using these tools.
Chapter 4 introduces the topic of databases, with a particular emphasis on the relational
data model and creating queries in Microsoft Access. The chapter also introduces the concept
of business intelligence.

PART II: CONTROL AND AUDIT OF ACCOUNTING INFORMATION SYSTEMS

The seven chapters in Part II focus on threats to the reliability of AIS and applicable controls
for addressing and mitigating the risks associated with those threats. Chapter 5 introduces
students to the different kinds of threats faced by information systems, primarily focusing on
the threat of fraud. The chapter describes the different types of fraud and explains how fraud is
perpetrated, who perpetrates it, and why it occurs.
Chapter 6 discusses computer fraud and abuse techniques. Three major types of computer
fraud are discussed: computer attacks and abuse, social engineering, and malware. The chap-
ter explains the dozens of ways computer fraud and abuse can be perpetrated.
Chapter 7 uses the COSO framework, including the expanded enterprise risk manage-
ment (COSO-ERM) model, to discuss the basic concepts of internal control. It also introduces
the COBIT framework which applies those concepts to IT, thereby providing a foundation for
effective governance and control of information systems.
Chapter 8 focuses on information security. It introduces the fundamental concepts of de-
fense-in-depth and the time-based approach to security. The chapter provides a broad survey
of a variety of security topics including access controls, firewalls, encryption, and incident
detection and response.

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 xxiv PREFACE

Chapter 9 discusses the many specific computer controls used in business organizations to
achieve the objectives of ensuring privacy and confidentiality, and includes a detailed explana-
tion of encryption.
Chapter 10 addresses the controls necessary to achieve the objectives of accurate pro-
cessing of information and ensuring that information is available to managers whenever and
wherever they need it.
Chapter 11 describes principles and techniques for the audit and evaluation of internal
control in a computer-based AIS and introduces the topic of computer-assisted auditing.

PART III: ACCOUNTING INFORMATION SYSTEMS APPLICATIONS

Part III focuses on how a company’s AIS provides critical support for its fundamental business
processes. Most large and many medium-sized organizations use enterprise resource planning
(ERP) systems to collect, process, and store data about their business processes, as well as to
provide information reports designed to enable managers and external parties to assess the or-
ganization’s efficiency and effectiveness. To make it easier to understand how an ERP system
functions, Part III consists of five chapters, each focusing on a particular business process.
Chapter 12 covers the revenue cycle, describing all the activities involved in taking cus-
tomer orders, fulfilling those orders, and collecting cash.
Chapter 13 covers the expenditure cycle, describing all the activities involved in ordering,
receiving, and paying for merchandise, supplies, and services.
Chapter 14 covers the production cycle, with a special focus on the implications of recent
cost accounting developments, such as activity-based costing, for the design of the production
cycle information system.
Chapter 15 covers the human resources management/payroll cycle, focusing primarily on
the activities involved in processing payroll.
Chapter 16 covers the general ledger and reporting activities in an organization, discuss-
ing topics such as XBRL, the balanced scorecard, the switch from GAAP to IFRS, and the
proper design of graphs to support managerial decision making.
Each of these five chapters explains the three basic functions performed by the AIS: ef-
ficient transaction processing, provision of adequate internal controls to safeguard assets (in-
cluding data), and preparation of information useful for effective decision making.

PART IV: THE REA DATA MODEL

Part IV consists of three chapters that focus on the REA data model, which provides a con-
ceptual tool for designing and understanding the database underlying an AIS. Chapter 17 in-
troduces the REA data model and how it can be used to design an AIS database. The chapter
focuses on modeling the revenue and expenditure cycles. It also demonstrates how the REA
model can be used to develop an AIS that can not only generate traditional financial state-
ments and reports but can also more fully meet the information needs of management.
Chapter 18 explains how to implement an REA data model in a relational database sys-
tem. It also shows how to query a relational database in order to produce various financial
statements and management reports.
Chapter 19 explains how to develop REA data models of the production, HR/payroll, and
financing cycles. It also discusses a number of advanced modeling issues, such as the acquisi-
tion and sale of intangible products and services and rental transactions.

PART V: THE SYSTEMS DEVELOPMENT PROCESS

Part V consists of three chapters that cover various aspects of the systems development pro-
cess. Chapter 20 introduces the systems development life cycle and discusses the introduc-
tory steps of this process (systems analysis, feasibility, and planning). Particular emphasis is
placed on the behavioral ramifications of change.
Chapter 21 discusses an organization’s many options for acquiring or developing an AIS
(e.g., purchasing software, writing software, end-user-developed software, and outsourcing)
and for speeding up or improving the development process (business process reengineering,
prototyping, agile methodologies, and computer-assisted software engineering).

A01_ROMN4021_14_SE_FM.indd 24 02/11/16 4:00 PM

Another Random Scribd Document
with Unrelated Content
believe you to be innocent!"
"And may that same Almighty Power bless you for this assurance!"
exclaimed Katherine, pressing our hero's hands with the most
grateful warmth.
"Although in asserting my conviction of your innocence,
Katherine," continued Richard, "I leave the deed itself enveloped in
the darkest mystery, still I do believe that you are innocent—and I
will not desert you."
Richard remembered how grateful to his ears had once sounded
those words, "I believe that you are innocent,"—when Thomas
Armstrong uttered them in the prison of Newgate.
"Yes, Katherine—you are, you must be innocent," he continued;
"and I will labour unceasingly to make your innocence apparent. I
will provide the ablest counsel to assist in your defence; and all that
human agency can effect in your behalf shall be ensured at any
cost."
The poor girl could not find words to express her deep gratitude to
this young man who so generously constituted himself her
champion, and on whom she had not the slightest claim;—but her
looks and her tears conveyed to our hero all she felt.
"Has your uncle been to see you?" he inquired.
"No, sir—nor my cousin," replied Katherine, with melancholy
emphasis upon the latter words.
"Perhaps they are unaware of your situation. I will call and
communicate to them the sad tidings. As your relatives, it is right
that they should know the truth."
He then took leave of the young creature, who now felt less
forlorn since she knew that she possessed at least one friend who
would not only exert himself in her behalf, but who also believed in
her innocence.
From the New Prison Richard proceeded to Saint Giles's, and
knocked at the door of the Public Executioner's abode.
But his summons remained unanswered.
He repeated it again: all was silent within.
At length a neighbour,—a man who kept a coal and potato shed,—
emerged from his shop, and volunteered some information
concerning the hangman and his son.
"It's no use knocking and knocking there, sir," said the man:
"Smithers and his lad left London early yesterday morning for some
place in the north of Ireland—I don't know the name—but where
there's some work in his partickler line. The postman brought
Smithers a letter, asking him to start off without delay; and he did
so. He took Gibbet with him to give him another chance, he said, of
trying his hand. Smithers told me all this before he went away, and
asked me to take in any letters that might come for him, or answer
any one that called. That's how I came to know all this."
"Do you happen to be aware when he will return?" asked Richard.
"I've no more idea than that there tater," answered the man,
indicating with his foot a specimen of the vegetable alluded to.
Richard thanked the man for the information which he had been
enabled to give, and then pursued his way towards the chief police
station in the neighbourhood.
Arrived at that establishment, he inquired for Morris Benstead.
The officer happened to be on the premises at the moment.
Markham led him to a short distance, and then addressed him as
follows:—
"You have doubtless heard of the extraordinary position in which
poor Katherine Wilmot is placed. I, for one, firmly believe her to be
innocent."
"So do I, sir," exclaimed the officer, emphatically.
"Then you will prove the more useful to my purposes in
consequence of that impression," said Richard. "When I saw you on
a former occasion, you offered me your services if ever I should
require them. Little did I then suppose that I should so soon need
your aid. Are you willing to assist me in investigating this most
mysterious affair?"
"With pleasure, sir—with the sincerest pleasure," answered
Benstead. "You know the respect I entertain for Miss Kate."
"And I know your goodness of heart," said our hero. "You must
then aid me in collecting proofs of her innocence. Spare no expense
in your task: hesitate not to apply to me for any money that you
may need. Here are ten pounds for immediate purposes. To-morrow
I will let you know whom I shall decide upon employing to conduct
the poor girl's defence; and you can then communicate direct with
the solicitor and barrister retained. Are you willing to undertake this
task?"
"Need you ask me, sir?" cried the policeman. "I would do any
thing to serve Miss Kate."
"Prudence renders it necessary for me to keep myself in the back-
ground in this affair," said Richard; "for fear lest scandal should
attach an unworthy motive to my exertions in her behalf, and thus
prejudice her cause by injuring her character. Upon you, then, I
throw the weight of the investigation."
"And I accept it cheerfully," returned Benstead.
Markham then took leave of the officer, and having paid a visit to
Mr. Gregory, returned home.
 CHAPTER CLV.

PATRIOTISM.

It was late in the evening of the day on which Richard adopted

the measures just recorded to ensure the most complete
investigation into the case of Katherine Wilmot, that a foreigner
called at Markham Place and requested a few moments' private
conversation with our hero.
The request was immediately acceded to; and the foreigner was
shown into the library.
He was a man of middle age, with a dark complexion, and was
dressed with considerable taste. His air was military, and his
manners were frank and open.
He addressed Richard in bad English, and tendered an apology for
thus intruding upon him.
Markham, believing him, by his accent and appearance, to be an
Italian, spoke to him in that language; and the foreigner immediately
replied in the same tongue with a fluency which convinced our hero
that he was not mistaken relative to the country to which his visitor
belonged.
"The object of my visit is of a most important and solemn nature,"
said the Italian; "and you will excuse me if I open my business by
asking you a few questions."
"This is certainly a strange mode of proceeding," observed our
hero; "but you are aware that I must reserve to myself the right of
replying or not to your queries, as I may think fit."
"Undoubtedly," said the Italian. "But I am a man of honour; and
should our interview progress as favourably as I hope, I shall entrust
you with secrets which will prove my readiness to look upon you in
the same light."
"Proceed," said Richard: "you speak fairly."
"In the first place, am I right in believing that you were once most
intimate with a certain Count Alteroni who resides near Richmond?"
"Quite right," answered Richard.
"Do you, or do you not, entertain good feelings towards that
nobleman?"
"The best feelings—the most sincere friendship—the most devoted
attachment," exclaimed our hero.
"Are you aware of any particulars in his political history?"
"He is a refugee from his native land."
"Does he now bear his true name?"
"If you wish me to place confidence in you," said Richard, "you
will yourself answer me one question, before I reply to any farther
interrogatory on your part."
"Speak," returned the Italian stranger.
"Do you wish to propose to me any thing whereby I can manifest
my attachment to Count Alteroni, without injury to my own character
or honour?" demanded Richard.
"I do," said the stranger solemnly. "You can render Count Alteroni
great and signal services."
"I will then as frankly admit to you that I am acquainted with all
which relates to Count Alteroni," said Richard, dwelling upon the
words marked in italics.
"With all which relates to Prince Alberto of Castelcicala?" added
the stranger, in a significant whisper. "Do we understand each
other?"
"So far that we are equally well acquainted with the affairs of his
Highness the Prince," answered Richard.
"Right. You have heard of General Grachia?" said the foreigner.
"He is also an exile from Castelcicala," returned Markham.
"He is in England," continued the foreigner. "I had the honour to
be his chief aide-de-camp, when he filled the post of Minister of
War; and I am Colonel Morosino."
Richard bowed an acknowledgment of this proof of confidence.
 "General Grachia," proceeded Morosino, "reached England two
days ago. His amiable family is at Geneva. The general visited Prince
Alberto yesterday, and had a long conversation with his Highness
upon the situation of affairs in Castelcicala. The Grand Duke is
endeavouring to establish a complete despotism, and to enslave the
country. One province has already been placed under martial law;
and several executions have taken place in Montoni itself. The only
crime of the victims was a demand for a Constitution. General
Grachia represented to his Highness Prince Alberto the necessity of
taking up arms in defence of the liberties of the Castelcicalans
against the encroachments of despotism. The reply of the Prince
was disheartening to his friends and partizans. 'Under no pretence,'
said he, 'would I kindle civil war in my native country.'"
"He possesses a truly generous soul," said Richard.
"He is so afraid of being deemed selfish," observed the Colonel;
"and no one can do otherwise than admire that delicacy and
forbearance which shrink from the idea of even appearing to act in
accordance with his own personal interests. The Prince has every
thing to gain from a successful civil war: hence he will not
countenance that extremity."
"And what does General Grachia now propose?" asked Markham.
"You are aware that when Prince Alberto was exiled from
Castelcicala for having openly proclaimed his opinions in favour of a
Constitution and of the extension of the popular liberties, numbers
of his supporters in those views were banished with him. We know
that there cannot be less than two thousand Castelcicalan refugees
in Paris and London. Do you begin to comprehend me?"
"I fear that you meditate proceedings which are opposed to the
wishes of his Highness Prince Alberto," said Markham.
"The friends of Castelcicalan freedom can undertake what in them
would be recognised as pure patriotism, but which in Prince Alberto
would be deemed the result of his own personal interests or
ambition."
"True," said Richard: "the distinction is striking."
"The Prince, moreover, in the audience which he accorded to
General Grachia yesterday evening, used these memorable words:
—'Were I less than I am, I would consent to take up arms in defence
of the liberties of Castelcicala; but, being as I am, I never will take a
step which the world would unanimously attribute to selfishness.'"
"Those were noble sentiments!" ejaculated Markham: "well worthy
of him who uttered them."
"And worthy of serving as rules and suggestions for the patriots of
Castelcicala!" cried Colonel Morosino. "There are certain times, Mr.
Markham," he continued, "when it becomes a duty to take up arms
against a sovereign who forgets his duty towards his subjects. Men
are not born to be slaves; and they are bound to resist those who
attempt to enslave them."
"Those words have often been uttered by a deceased friend of
mine—Thomas Armstrong," observed Richard.
"Thomas Armstrong was a true philanthropist," said the Colonel;
"and were he alive now, he would tell you that subjects who take up
arms against a bad prince are as justified in so doing as the prince
himself could be in punishing those who violate the laws."
"In plain terms," said Richard, "General Grachia intends to
espouse the popular cause against the tyranny of the Grand Duke?"
"Such is his resolution," answered Colonel Morosino. "And now
that you have heard all these particulars, you will probably listen
with attention to the objects of my present visit."
"Proceed, Colonel Morosino," said Richard. "You must be well
aware that, as one well attached to his Highness Prince Alberto, I
cannot be otherwise than interested in these communications."
"I shall condense my remarks as much as possible," continued the
officer. "General Grachia purports to enter into immediate relations
with the Castelcicalans now in London and Paris. Of course the
strictest secresy is required. The eventual object will be to purchase
two or three small ships which may take on board, at different
points, those who choose to embark in the enterprise; and these
ships will have a common rendezvous. When united, they will sail for
Castelcicala. A descent upon that territory would be welcomed with
enthusiasm by nine-tenths of the population; and the result," added
Morosino, in a whisper,—"the inevitable result must be the
dethronement of the Grand Duke and the elevation of Alberto to the
sovereign seat."
"That the project is practicable, I can believe," said Markham;
"that it is just, I am also disposed to admit. But do you not think that
a bloodless revolution might be effected?"
"We hope that we shall be enabled successfully to assert the
popular cause without the loss of life," returned Morosino. "But this
can only be done by means of an imposing force, and not by mere
negotiation."
"You consider the Grand Duke to be so wedded to his despotic
system?" said Markham interrogatively.
"What hope can we experience from so obstinate a sovereign, and
so servile an administration as that of which Signor Pisani is the
chief?" demanded the Colonel. "And surely you must allow that
patriotism must not have too much patience. By allowing despots to
run their race too long, they grow hardened and will then resist to
the last, at the sacrifice of thousands of lives and millions of
treasure."
"Such is, alas! the sad truth," said Richard. "At the same time a
fearful responsibility attaches itself to those who kindle a civil war."
"Civil wars are excited by two distinct motives," returned the
Colonel. "In one instance they are produced by the ambition of
aspirants to power: in the other, they take their origin in the just
wrath of a people driven to desperation by odious tyranny and
wrong. The latter is a sacred cause."
"Yes—and a most just one," exclaimed Markham. "If then, I admit
that your projects ought to be carried forward, in what way can my
humble services be rendered available?"
"I will explain this point to you," answered Colonel Morosino.
"General Grachia, myself, and several stanch advocates of
constitutional freedom, met to deliberate last evening upon the
course to be pursued, after the General had returned from his
interview with the Prince at Richmond. We sat in deliberation until a
very late hour; and we adopted the outline of the plans already
explained to you. We then recognised the necessity of having the co-
operation of some intelligent, honourable, and enlightened
Englishman to aid us in certain departments of our preliminary
arrangements. We must raise considerable sums of money upon
certain securities which we possess; we must ascertain to what
extent the laws of this country will permit our meetings, or be
calculated to interfere with the progress of our measures; we must
purchase ships ostensibly for commercial purposes; and we must
adopt great precautions in procuring from outfitters the arms,
clothing, and stores which we shall require. In all these proceedings
we require the counsel and aid of an Englishman of honour and
integrity."
"Proceed, Colonel Morosino," said Richard, seeing that the Italian
officer paused.
"We then found ourselves at a loss where to look for such a
confidential auxiliary and adviser; when one of our assembly spoke
in this manner:—'I came to this country, as you well know, at the
same time as his Highness the Prince. From that period until the
present day I have frequently seen his Highness; and I became
aware of the acquaintance which subsisted between his Highness
and an English gentleman of the name of Richard Markham, who
was introduced to his Highness by the late Thomas Armstrong. I am
also aware that a misunderstanding arose between the Prince and
Mr. Markham: the nature of that misunderstanding I never learnt;
but I am aware that, even while it existed, Richard Markham
behaved in the most noble manner in a temporary difficulty in which
his Highness was involved. I also know that the motives which led to
that misunderstanding have been completely cleared away, and that
the Prince now speaks in the highest terms of Mr. Richard Markham.
Address yourselves, then, to Mr. Markham: he is a man of honour;
and with him your secret is safe, even if he should decline to meet
your views.'—Thus spoke our friend last night; and now the cause
and object of my visit are explained to you."
"You have spoken with a candour and frankness which go far to
conquer any scruples that I might entertain in assisting you," said
Richard. "At the same time, so important a matter demands mature
consideration. Should I consent to accept the office with which you
seek to honour me, I should not be a mere lukewarm agent: I
should enter heart and soul into your undertaking; nor should I
content myself with simply succouring you in an administrative
capacity. Oh! no," added Richard, enthusiastically, as he thought of
Isabella, "I would accompany you on your expedition when the time
came, and I would bear arms in your most righteous cause."
"Generous young man!" cried the Colonel, grasping our hero's
hand with true military frankness: "God grant that your answer may
be favourable to us. But pray delay not in announcing your decision."
"This time to-morrow evening I will be prepared to give you an
answer," returned Markham.
The Colonel then took his leave, saying, "To-morrow evening I will
call again."
 CHAPTER CLVI.

THE DECISION.

Richard Markham retired to rest, but not to immediate slumber.

The proposal of Colonel Morosino was of a most perplexing
nature.
Our hero longed to be enabled to show his devotion to Isabella by
exerting himself in what must eventually prove her father's cause;
but he was afraid of acting in a manner which might displease the
Prince.
Then he reflected that the Prince had uttered those expressive
words, "Were I less than I am, I would consent to take up arms in
defence of the liberties of Castelcicala."
The more Richard pondered upon these words, the more was he
inclined towards the service proposed to him; and when he
remembered that he should be associated with some of the most
gallant and disinterested of Italian patriots, he felt a generous
ardour animate his bosom.
"Oh! if I could but achieve some deed that would render me
worthy of Isabella," he thought, "how should I bless the day when I
adopted the cause of those brave exiles who now seek my aid! Yes—
I will join them, heart and soul; and in me they shall have no
lukewarm supporter! The die is cast;—and this resolution must
either make or mar me for ever!"
Richard then gradually fell into a profound slumber: but the
subjects of his latest thoughts became the materials of which his
dreams were woven.
 Imagination carried him away from his native land, and whirled
him on board a vessel which was within sight of the Castelcicalan
coasts. Presently a descent upon the land was effected; and then
Richard fancied himself to be involved in the thickest of a deadly
fight. Next he saw himself entering Montoni at the head of a
victorious army; and it seemed to him as if he were the object of
attraction—as if the salutations of countless multitudes were
addressed to him—and as if he returned them! Then the scene
changed, by one of those rapid transitions so peculiar to dreams;
and he found himself standing at the altar, the lovely Isabella by his
side. A tiara of diamonds adorned her brow and on his own was a
princely coronet. Then the ceremony was completed; and friends
with smiling countenances gathered around to congratulate him and
his lovely bride; and the swelling words "Your Highness" and "My
Lord" echoed upon his ears. He turned to address his thanks to
those who thus felicitated him—and awoke!
"A dream—a dream!" he exclaimed, as the gay pageantry of the
vision yet dwelt vividly in his mind: "but will the most happy episode
therein ever be fulfilled?"
Richard rose with depressed spirits; for a dream of that nature—
by raising us to the highest eminence to which our aspirations ever
soared, and then dashing us back again to the cold realities of earth
—invariably leads to a powerful reaction.
The day passed without any incident of importance; and by the
time the evening arrived, Richard had recovered his mental serenity.
Punctual to his appointment, Colonel Morosino made his
appearance.
He came in a chaise, accompanied by another individual; but the
latter did not alight from the vehicle.
"Mr. Markham," said the Colonel, when he was alone with our
hero, in the library, "have you made up your mind?"
"I have," answered Richard, in a decided tone.
"And your decision——"
"Is to join you, heart and soul—to throw myself with enthusiasm
into your cause—to co-operate with you as if I were a Castelcicalan
subject," said Richard, his handsome countenance glowing with
animation, his fine dark eyes flashing fire, and his nostrils dilating
with the ardour which filled his soul.
"I am no prophet, if you ever repent this decision," said Colonel
Morosino, pressing Richard's hands warmly. "Will you now permit me
to introduce a gentleman who has accompanied me?"
"With much pleasure," answered Markham.
The Colonel stepped out, and at the expiration of a few moments
returned, accompanied by a tall, thin, military-looking man, whose
lofty bearing and eagle eye bespoke him as one who had been
accustomed to command.
"Mr. Markham," said the Colonel, "may you soon become better
acquainted with General Grachia."
The veteran proffered Richard his hand with true military
frankness, and observed, "I rejoice to find that your decision is
favourable to our views."
"You will also find that I shall be zealous and unwearied in your
service," rejoined Markham.
"Our proceedings," continued General Grachia, "must be
conducted with caution, so that no rumour prejudicial to our
measures may reach Castelcicala."
"I believe it to be understood," said Markham, "that should the
Grand Duke change his policy to such an extent that the
Castelcicalans may obtain their just rights and privileges by means of
his concessions, before our own projects shall be ripe for execution,
—that, in this case, we at once abandon them."
"Assuredly," replied General Grachia. "God knows the purity of my
motives, and that I would not plunge my country into civil war
without the pressure of a dire necessity. Neither am I adopting
extreme measures from vindictive motives because the Grand Duke
has banished me not only from office but also from the territory. Had
I assented to his despotic decrees I might have retained my high
position in the cabinet, and aggrandized my own fortunes at the
same time. As a proof of my integrity, Mr. Markham, read this
document."
The General produced from his pocket-book a letter which had
been sealed with the ducal signet, and was addressed "To His
Excellency General Grachia, Minister Secretary of State for the
Department of War."
This document he handed to Richard, who found that it was an
autograph letter from the Grand Duke to the General, written at the
time when the military disturbances occurred at Montoni. It
remonstrated with General Grachia for refusing to countersign the
ordinance decreeing the disbandment of the three regiments, and
promising him the rank of Marquis and the Premiership if he would
but consent to aid his Serene Highness in carrying out the proposed
rigorous measures.
"To this letter I replied by sending in my resignation," said General
Grachia; "and thus I wrecked my own fortunes, and made my wife
and children exiles."
"You acted nobly—like a true patriot," cried Markham,
contemplating the veteran with admiration. "If for one instant I
entertained a scruple in embracing your cause, it is now annihilated;
for you have honoured me with the most convincing proofs of your
patriotism."
"I served the Grand Duke faithfully," said the General; "and I
cannot reproach myself for any measure which I ever recommended
to his Serene Highness. Although deeply attached to Prince Alberto,
I did not oppose the marriage of the Grand Duke; because I believed
that, upon principle, sovereigns are entitled to as much freedom in
affairs so nearly touching their domestic happiness, as any of their
subjects. I saw in the present Grand Duchess an amiable lady; and I
knew that she was a virtuous one from the strong recommendations
which she received from his Highness Prince Alberto and the Earl of
Warrington to myself and my family. I supported, then, that
marriage upon principle—upon a conviction which I entertain. I
believe that sovereigns have a right to consult their own happiness
in marriage; but I never will admit that they have a right to enslave
their subjects. I will maintain the privileges of princes, when I
consider them encroached upon by the people: with equal readiness
will I protect the people against the tyranny of princes."
Richard listened with admiration to these noble sentiments; and
he could not help exclaiming, "How blind sovereigns often seem to
the merits and honesty of those who would counsel them wisely!"
"Such is too frequently the case," observed Colonel Morosino.
"The plan upon which I propose to act is simply this," resumed
General Grachia:—"one of the most humble, but not the least
sincere, of those refugees who support us, will take a house in
London in his own name; and there shall our head-quarters be fixed.
There shall we hold our meetings; and thence will our
correspondence be expedited to those whom we can trust, and on
whose support we can rely. In order to avoid all cause of suspicion, I
shall take a house for myself and suite at the West End, where I
shall, however, lead a comparatively secluded life. Fortunately, the
greater portion of my property consisted in money in the public
funds of Castelcicala; and for that I obtained securities which may
be easily realised in London. My friend Morosino stands in the same
position. Between us we can muster some twenty thousand pounds;
and other exiles, who are favourable to our views, can throw ten
thousand more into the common stock."
"To which I shall also be permitted to contribute my quota,"
interrupted Richard.
"Not if we can manage without it," answered General Grachia;
"and I have no doubt that pecuniary resources will not be wanting in
this good cause."
The General then proceeded to a more detailed development of
his plans; but as we shall have to deal with them fully hereafter, we
will take leave of the subject for the present.
Before we conclude this chapter we must record two or three little
incidents that maintain the continuous thread of our narrative.
A week after the demise of Miss Gregory, the funeral took place at
a suburban cemetery. The bereaved father and afflicted brothers
were the chief mourners; but Richard also followed the remains of
the departed girl to the tomb. An elegant but chaste and
unassuming monument marks the spot where she reposes in her
narrow bed.
At the expiration of the seven days during which she had been
remanded, Katherine was examined a second time before the
magistrate, and was fully committed for trial.
 A Coroner's Inquest had in the meantime recorded a verdict of
Wilful Murder against her.
She was accordingly conveyed to Newgate.
But Richard Markham did not neglect her interests; and Morris
Benstead was busy in adopting every possible measure to fathom
the deep mystery in which the awful deed was still shrouded.
 CHAPTER CLVII.

THE TRIAL OF KATHERINE WILMOT.

The March sessions of the Central Criminal Court commenced

upon a Monday morning, as usual.
On the Wednesday Katherine Wilmot was placed in the dock, to
take her trial for the murder of Matilda Kenrick.
The particulars of the case had produced a great sensation; and
the door-keepers of the gallery of the court reaped a rich harvest by
the fees for admission.
Katherine was deadly pale; but she had made up her mind to
conduct herself with fortitude; and her demeanour was resigned and
tranquil.
Richard Markham was in the gallery of the court; but his manner
was uneasy and anxious:—he had heard nothing of Benstead, the
policeman, for the preceding forty-eight hours; and not a fact had
that individual communicated to the counsel for the prisoner which
might tend to prove her innocence or even throw a doubt upon her
guilt!
When called upon to answer to the indictment, Katherine pleaded,
in a firm tone, "Not Guilty."
The counsel for the prosecution then stated the case, which was
supported by the following testimony:—
Henry Massey deposed: "I am a surgeon, and reside in Great
Coram Street. One evening, early in February, a young female came
to my shop and purchased two ounces of laudanum. She brought no
phial with her. I gave it to her in a phial of my own, which I labelled
Poison. On the following evening I was summoned to the house of
the Rev. Mr. Tracy. I was introduced into the kitchen, where I found
the deceased lying back in her chair quite dead. A young female was
there; and I recognised her to be the one who had purchased the
poison at my shop. She is the prisoner at the bar. From this
circumstance and others which transpired, I suspected her to have
poisoned the deceased; and I had her given into custody. The Rev.
Mr. Tracy was in the kitchen when I arrived. He was doing all he
could to recover the deceased. He was deeply affected. On the
following day I examined the deceased, and found that she had died
by poison. That poison was laudanum. I discovered so large a
quantity in her, by the usual tests, that she must have experienced a
deep lethargy almost immediately after taking the poison, and could
not have lived many minutes. I cannot say that she did not take it
voluntarily, and with the object of committing suicide. There was
nothing upon the table near her—no cup, glass, nor any drinking
vessel. The phial produced is the one in which I sold the poison."
Thomas Parker deposed: "I am footman to the Rev. Mr. Tracy. On
the morning of the day when the housekeeper was poisoned, I
overheard a conversation between her and Katherine Wilmot. The
deceased informed Katherine that she must leave the house, but
would not assign any reason. The deceased, however, said that she
would provide for Katherine at a sister's in the country. Katherine
objected to leave London, because her relations live here. I thought
Mrs. Kenrick was jealous of Katherine, and wished to get rid of her. I
mean that deceased thought that Katherine would perhaps be
entrusted to fulfil some of her duties as housekeeper. I came out of
the pantry, where I was cleaning the plate, and observed that I
supposed Mrs. Kenrick was jealous of Katherine. The housekeeper
cut the matter short by saying that Katherine should leave. Katherine
was very miserable all day afterwards. In the evening my master
sent me with a letter to a gentleman at Holloway. When I came
back, I found the housekeeper dead. The first witness was there, in
the kitchen. So were my master, Katherine, and the groom. I alluded
to the conversation which had taken place between the deceased
and the prisoner in the morning. The surgeon mentioned about
Katherine having bought the laudanum at his house. Katherine
seemed very much confused. She was then given into custody."
James Martin deposed: "I am groom and coachman to the Rev.
Mr. Tracy. On the evening in question I heard screams in the yard. I
was in the stable adjoining. There is a communication between the
yard of the house and the stable yard. I hastened to the yard of the
house where the screams came from. I saw Katherine wringing her
hands and crying. I asked her what was the matter? She said, 'Mrs.
Kenrick is dead.' I hurried into the kitchen. Almost immediately
afterwards Mr. Tracy came in. He had been alarmed by the screams
too, he said. I found the housekeeper lying forward on the table,
with her face resting on her arms, as if she had fallen asleep. I
raised her, and laid her back in her chair. She seemed quite dead. Mr.
Tracy was greatly affected. Katherine did not offer to help, but
withdrew to the farther end of the kitchen. She cried very much. Mr.
Tracy sent me for a surgeon. When I came back with the first
witness, we found Mr. Tracy bathing deceased's head with vinegar,
and doing all he could to recover her. Katherine was not assisting
him." This witness then confirmed the previous statement relative to
the immediate circumstances which led to Katherine's arrest. He
concluded his testimony thus: "When I first went into the kitchen,
there were no cups, nor glasses, nor any drinking vessels on the
table. All the tea-things had been washed and put into their proper
place."
The Rev. Reginald Tracy deposed: "I received the prisoner into my
service through charity. I had no character with her. I had known her
before, because she had attended the St. David's Sunday Schools. I
considered her to be a most exemplary young person. I was not
aware that Mrs. Kenrick intended to send her away. Mrs. Kenrick had
the power, if she chose to do so, as she managed my household for
me. I cannot say that Katherine had done any thing to offend Mrs.
Kenrick. She had done nothing to offend me. In the evening I was
alarmed by screams. I went down into the kitchen, and found the
housekeeper in the position described by the last witness. I sent him
for a surgeon, and adopted all the remedies within my reach to
recover the housekeeper. I think I had observed that something had
been preying upon the mind of the deceased. She had lately been
melancholy and abstracted."
Cross-examined: "I am not aware that Katherine went out on the
evening in question. I do not know that she visited her uncle on that
evening. I cannot say that she did not. She would not have asked
me for permission to do so. She would have applied to Mrs. Kenrick.
I was unwell all day, and did not leave my room until I heard the
screams. I was very loath to believe that Katherine could have
perpetrated such a deed. I told the surgeon so."
A policeman deposed: "I was summoned to Mr. Tracy's house on
the evening in question. I took the prisoner into custody. When I
had conveyed her to the station-house, I returned to Mr. Tracy's
house. I searched the kitchen. I found the phial, produced in court,
upon a shelf. It was empty."
This testimony closed the case for the prosecution.
The general impression which prevailed amongst the auditory was
unfavourable to the prisoner.
Richard Markham trembled for her: still his confidence in her
innocence was unshaken.
But time wore on: the case was drawing to a close;—and not a
sign of Morris Benstead!
Markham knew not what to think.
The manner in which Reginald Tracy gave his evidence was the
subject of much comment in the gallery.
"What an amiable man he appears to be!" said one.
"How he endeavoured to create an impression in favour of the
prisoner," observed another.
"He said that he was loath to believe her guilty," remarked a third,
"and considered her to be an exemplary young person."
"Hush! hush!" said the first speaker: "the case is about to be
resumed."
This was the fact. The Judges, having retired for a few minutes,
had now returned to the bench.
The counsel for the defence rose.
He began by calling upon the jury to dismiss from their minds any
prejudice which the statements in the newspapers in connexion with
the case might have created. He then dissected the evidence for the
prosecution. He insisted much upon the importance of the fact that
the poison had been purchased the evening before the conversation
took place between the deceased and the prisoner, relative to the
removal of the latter from the house. His instructions were that the
prisoner had purchased that poison by order of the deceased, and,
as the prisoner understood at the time, for the use of her master
who had returned home unwell. There was no proof that Katherine
had done any thing wrong, and that she might have anticipated
receiving warning from the housekeeper, and thus have actually
contemplated murder when she procured the laudanum. It was
stated that there was no cup nor glass upon the table—no drinking
vessel in which poison could be traced. The inference thence drawn
by the counsel for the prosecution was that the prisoner must have
administered the poison—most probably in deceased's tea, and had
then washed the cup. But might not the deceased have taken the
poison with the intention of committing suicide, by drinking it from
the phial which was found upon the shelf? Would not the prisoner
have concealed or destroyed the phial, had she really administered
the poison? The prisoner's account of the case was this. Mrs. Kenrick
of her own accord had given her permission to visit her friends for
an hour on the fatal evening. The prisoner availed herself of this
kindness, and proceeded to her uncle's residence in St. Giles's. He
(the counsel) hoped to have been able to prove the important fact of
this visit, because it would show that the housekeeper had purposely
sent Katherine Wilmot out of the way: but, unfortunately, the
prisoner's uncle had not yet returned to town; and although a letter
had been sent to the place whither it was supposed that he had
proceeded——
At this moment a great bustle was observed in the body of the
court; and a man, elbowing his way through the crowd, advanced
towards the learned counsel for the defence.
Richard's heart leapt within him: at the first glance he recognised,
in that man, his agent, Morris Benstead, dressed in plain clothes.
Benstead whispered to the barrister for some minutes, and then
handed him a letter which the learned gentleman perused rapidly.
 The most breathless suspense prevailed throughout the court.
"My lords," at length exclaimed the barrister, retaining the letter in
his hand, and addressing the Judges, "this case is likely to take a
most unexpected turn."
"Heaven be thanked!" murmured Richard to himself: "the poor
creature's innocence will be made apparent—I feel that it will!"
Meantime Morris Benstead again forced his way through the
crowd, and took his stand close by Reginald Tracy.
Poor Katherine knew not what all this meant; but her heart beat
violently with mingled emotions of hope, uncertainty, and
apprehension.
"My lords," continued the barrister, "I need not continue my
speech in defence of the prisoner. I shall at once proceed to call my
witnesses."
The anxiety of the audience grew more and more intense.
"Jacob Smithers!" cried the barrister.
The Public Executioner instantly ascended into the witness-box.
He deposed as follows: "The prisoner is my niece. She called at
my house on the evening alluded to. She remained with me at least
half an hour. She did not complain of Mrs. Kenrick; nor did she say
that she was to leave the Rev. Mr. Tracy's house. I remember that I
was very low-spirited myself that evening; and so I suppose she did
not choose to annoy me by saying that she was to leave. Or else,
perhaps, she thought that I should wish her to return home to me if
I knew that she was to leave Mr. Tracy's service. I have been to
Belfast where I was detained some days: then I accepted an
engagement to go to the Isle of Man. I never received any letter
informing me of what had occurred to my niece. The fact is, I do not
go by my right name when I travel in that way, because I have to
stop at inns, and do not like to be known. That is probably the
reason why a letter addressed to me by the name of Smithers did
not reach me. I did not see the account of this business in the
newspapers until a few days since, when I was in the Isle of Man;
and I returned home as quick as possible. I only reached London an
hour ago."
 "You may stand down," said the barrister: then, after a pause, he
exclaimed, "Rachel Bennet!"
An elderly woman, decently attired in mourning, but evidently in a
very sickly state of health, slowly ascended into the witness-box.
She deposed: "I am the sister of the deceased, and reside about
three miles from Hounslow. I received a letter from my sister early in
February. The letter now shown me is the one." (This was the same
letter which Benstead had given to the barrister.) "On the following
day I received a letter from Mr. Tracy informing me of my sister's
death, and stating that it was supposed she had been poisoned by a
young person then in custody. I was bed-ridden with illness at the
time, and was supposed to be dying. I could not therefore come to
London, or take any steps in the matter. Some one came to me
yesterday, and induced me to come to town."
The counsel for the defence then passed the letter, which had
been placed in his hands by Benstead, to the clerk of the court, by
whom it was read.
Its contents were as follow:—
"My dear Rachel,

"I hope this will find you much improved in health: at the same time I am
somewhat anxious at not having heard from you. My present object in writing
to you is to request you to receive at your house a young person in whom I
am interested, and who is at present in Mr. Tracy's service. Katherine Wilmot
is a pretty and interesting girl; and it would be unsafe for her to remain here.
You know, dear Rachel, that you and I have never had any secrets between
us; and I am not now going to break through that rule of mutual confidence
which has been the basis of our sincere attachment. The truth is, Mr. Tracy is
not what he was. He has fallen from the pinnacle of virtue which he once so
proudly occupied; and it was only this morning that I had the most convincing
proof of his weakness and folly! O Rachel—I met him and his mistress face to
face upon the stairs! But I will not dwell upon this: I sincerely pray to heaven
that he may repent, and become the good man he once was. I know that this
secret will be sacred with you. But I am determined to remove from him all
temptations, as far as lies in my humble power; and you may now
comprehend my motives for sending Katherine Wilmot away from this house.
In a word, I shall despatch her to you by to-morrow's coach; and will write at
greater length by her.
 "Your affectionate Sister,

"MATILDA KENRICK."

This letter produced a most extraordinary sensation in the court.

The Judges, the barrister, the prisoner, and the audience were
astounded at this revelation of the weakness of that man whom the
world almost worshipped as a saint.
"Ellen was right!" murmured Richard Markham to himself: "he is a
hypocrite! But I never could have thought it!"
And what of Reginald himself?
The moment the clerk reached that paragraph which proclaimed
the astounding fact of his unworthiness, a cold perspiration broke
out upon his forehead; and he turned to leave the court.
But Morris Benstead caught him by the arm, and pointing to a
seat, said, "You must remain here, if you please, sir: I am an officer."
The rector cast a look of unutterable dismay upon the policeman,
and fell upon the bench in a state of mind bordering on distraction.
Meantime the case proceeded.
The counsel for the prosecution said that he should like to ask
Rachel Bennet a few questions.
That witness accordingly returned to the box.
"Why did you not empower some one to produce that letter when
the prisoner was examined before the magistrate?" inquired the
prosecuting counsel.
"Because, sir, I did not conceive that it could be of any use. I
never for a moment suspected that any other person besides the
one accused could have taken away my poor sister's life. My
husband proposed to send the letter to the magistrate; but as my
sister had written to me in strict confidence, I would not consent to
that step. And now, since you have asked me, sir, I will tell you what
I really did think; and God forgive me if I have been unjust."
"We do not want to hear what you thought," exclaimed the
prosecuting counsel. "You may stand down."
"No," cried the barrister for the defence: "as we are upon the
subject, we will have the witness's impressions."
 "I really thought, sir," continued the woman, "that the Katherine
Wilmot alluded to was perhaps no better than she should be, and
had become more intimate with Mr. Tracy than my poor sister
suspected. That, I thought, was the reason why she had poisoned
my sister in order to get her out of the way, and for herself to
remain at Mr. Tracy's house. But I did not think that Mr. Tracy himself
had any hand in the murder; and so I did not see the good of
producing a letter which would only expose Mr. Tracy."

"Now you may stand down," said the counsel for the prisoner:
then, in a loud tone, he called, "John Smithers!"
And Gibbet entered the witness-box.
 His first glance was towards the dock; and that look, rapid, and
imperceptible to others, conveyed a world of hope to the bosom of
poor Katherine.
Richard Markham was at a loss to conceive what testimony the
hump-back could bring forward in the prisoner's favour.
Every one present felt the deepest interest in the turn given to the
proceedings.
The hump-back stood upon a stool that there was in the witness-
box; and even then his head was alone visible. His hideous
countenance, pale and ghastly through his intense feelings for
Katherine's situation, was nevertheless animated with confidence
and hope.
Amidst a dead silence of awe-inspiring solemnity, he deposed as
follows:—
"I am the prisoner's cousin. She has ever been most kind to me;
and I was always happy in her society. When she went to live at Mr.
Tracy's house, I thought that I should be able to see her every
evening; but on one occasion Mr. Tracy met me, and said that I
might only visit her on Sundays. I had, however, discovered an
obscure corner in his yard, where I could hide myself and see all
that passed in the kitchen of his house. I went to that corner
regularly every evening, Sunday excepted; and remained there an
hour—sometimes more. I did not want to pry into what was going
on in Mr. Tracy's house: all I cared about was to see Katherine."
A murmur, expressive of deep feeling—mingled surprise,
sympathy, and admiration—on the part of the audience, followed
this ingenuous announcement. Many an eye was moistened with a
tear; and even the Judges did not look angrily when that murmur
met their ears.
Gibbet continued:—
"One evening when I was concealed in the corner, I saw Mrs.
Kenrick address something to Katherine, which I could not hear; but
immediately afterwards Katherine put on her bonnet and went out.
As I had sometimes seen her do so before, and return very shortly
afterwards, I thought she had merely gone to execute some little
commission; and I remained where I was. Although Katherine used
to pass through the yard, and close by me, when she went out in
that manner, I never spoke to her, for fear she should reprove me for
what she might think was watching her actions. Immediately after
she was gone, Mrs. Kenrick laid the tea things; and in a few minutes
Mr. Tracy entered the kitchen. He and the housekeeper sate down to
tea. Mrs. Kenrick was pouring out the tea, when Mr. Tracy said
something which made her pause. She then put down the tea-pot,
fetched a coffee-biggin, and made some coffee. She filled two cups,
and then turned towards the shelves to fetch a small jug, which I
thought contained milk. But while her back was turned, I saw Mr.
Tracy hastily put his hand into his waistcoat pocket, and then as
rapidly advance his hand to Mrs. Kenrick's cup. All that was the work
of only one moment; and I could not distinctly see why he did so. In
fact I did not think much of it, until afterwards. Mrs. Kenrick
resumed her seat; and she and Mr. Tracy drank their coffee. I
observed that Mrs. Kenrick took no milk, and drank hers very quickly.
In a short time I saw her head begin to nod as if she was sleepy:
she got up, and walked about. Then she sate down again, and
placed her arms on the table as if to support herself. In a short time
her head fell forward on her arms. I felt a little alarmed; but still
scarcely knew why. Mr. Tracy watched her for some minutes after
she had fallen forward in that manner, and then bent down his head
to look at her face. In another moment he rose, and to my surprise
washed up all the things on the table and placed them upon the
shelves. Then I began to fear that something was wrong; and I stole
away. When I got home I found my father rather cross with me for
staying out; and I was afraid to tell him what I had seen. Early the
next morning we left for Ireland; and I never had courage to speak
to my father upon this subject until we read the account of the
murder and of Katherine's arrest. That was in the Isle of Man."
The reader may imagine the profound sensation which this
narrative created.
Richard Markham was literally astounded.
Katherine Wilmot wept abundantly.
Reginald Tracy was crushed, as it were, to the very dust, by this
overwhelming exposure of his guilt.
 The jury whispered together for a few moments; and the foreman
rose and said, "My lords, it is rather as a matter of form than as the
result of any deliberation, that we pronounce a verdict of Not
Guilty."
"The prisoner is discharged," said the senior judge. "It will be the
duty of the police to take charge of Reginald Tracy."
"I have him in custody, my lord," exclaimed Morris Benstead in a
loud tone.
 CHAPTER CLVIII.

A HAPPY PARTY.

In a private room up stairs, at a tavern nearly opposite the Court-

house of the Old Bailey, a happy party was assembled.
And yet the group was somewhat motley.
It consisted of Richard Markham, Katherine Wilmot, the Public
Executioner, Gibbet, Rachel Bennet, and Morris Benstead.
The best luncheon which the house afforded was spread upon the
table.
"And so you really thought I was lost, sir?" said Benstead. "I am
not the man to neglect the business that is entrusted to me; neither
do I excite hopes unless I know that they'll be realised."
"But you have not yet told me how you came to bring all your
witnesses into court at one and the same moment," said Richard
Markham.
"Well, sir, I'll soon satisfy your curiosity on that head," returned
the policeman. "I made every exertion to sift the entire matter to the
bottom; but the farther I went into it, the more mysterious it
seemed. At last I was pretty nearly inclined to give it up in despair.
One of the principal measures that I adopted was to endeavour to
trace, step by step, all that either Mrs. Kenrick or Katherine did on
the day when the murder took place. I have seen, in my time, so
much important evidence come out of the most trivial—really the
most ridiculous things, that I resolved to glean every minute
particular I could relative to the motions of both the deceased and
the accused on that day. My firm idea was that the housekeeper had
committed suicide—saving your presence, ma'am," added Benstead,
turning towards Mrs. Bennet. "Well, I found out the principal shops
where Mr. Tracy dealt; and I visited them all to ascertain if Mrs.
Kenrick had been there on that day; and if so, whether her words or
manner had betrayed any thing strange. But I could learn nothing
material. Various other schemes I thought of, and put into
execution; but as they all failed, there's no use in mentioning them.
At length, yesterday evening I happened to call at the post-office
near Mr. Tracy's house. I got into conversation with the post-
mistress, who seemed to be well acquainted with the late Mrs.
Kenrick. In the course of comment and observation upon the
mysterious event, the post-mistress said, 'I do really think there's
some ground for supposing that the poor dear woman committed
suicide; for she came here to pay a letter to her sister only a few
hours before she was found dead; and then I saw that she wasn't as
she usually was. Something appeared to hang upon her mind.'"
"That was no doubt the sorrow she experienced at having
discovered the hypocrisy of her master," observed Richard.
"Most likely, sir," said Benstead. "Well, the moment I heard that
Mrs. Kenrick had written to her sister only a few hours before her
death, I felt more convinced than ever that it was a case of suicide.
It was then nine o'clock; but I was determined to start off at once to
investigate the business. The post-mistress knew that Mrs. Bennet
lived at Hounslow; and this was fortunate. I thanked her for this
information, and hurried away. I was obliged to go to St. Giles's,
before I started for the country, to ask my Inspector's leave. As I
passed by Mr. Smithers' house, I knocked to see if he had come
home. But the green-grocer next door answered me, as on several
former occasions when I had called. He told me that Mr. Smithers
had not come back. I knew it was important for Miss Kate to prove
that she had visited her uncle on the night of the supposed murder;
and so I scribbled a note to Mr. Smithers, desiring him, in case he
should return home in time to-day, to lose not a minute in coming to
this very tavern and sending over into the Old Court to fetch me.
This note I left with the green-grocer; and I then hastened to the
station. I obtained permission to absent myself, and lost no time in
hiring a post-chaise. But it was midnight before I reached Hounslow;
and then I learnt that Mrs. Bennet lived three miles away from that
town. So I was obliged to wait till the first thing this morning before
I could see her. Then a great deal of time was wasted, because Mrs.
Bennet and her husband could not rightly understand why I came,
or on whose side I was engaged. I do not blame them for their
caution:—I only mention the fact to account for our being so late in
court. At length I succeeded in persuading Mrs. Bennet to show me
her sister's letter to her; and when I read it, the whole affair wore
another appearance in my mind. I saw through it in a moment. Then
I resolved upon bringing Mrs. Bennet up to London with me; and to
her credit, she did not hesitate an instant to accompany me, when I
had communicated to her the suspicions which that letter had
awakened in my mind, and impressed upon her the necessity of
hastening to save an innocent person from the weight of an unjust
accusation. To conclude this long and rambling story, we came up in
the post-chaise; and, as luck would have it, just as we drove up to
this tavern, Mr. Smithers and his son were stepping out of a cab at
the door."
"Ah! Mr. Markham," said Katherine, "how can I ever sufficiently
express my gratitude towards you; for it was by means of your
generosity that Mr. Benstead was enabled to make those exertions
which led to this happy result."
"I felt convinced of your innocence from the first," returned our
hero; "and it was not probable that I should abandon you when such
were my sentiments."
"A life devoted to your service, sir, could not repay the debt which
I owe you," said Kate. "And you, my dear cousin," she continued,
turning towards Gibbet, who was seated next to her,—"you also have
been no unimportant instrument in rescuing me from infamy and
death."
"Do not speak of it, Kate," said the hump-back, whimpering like a
mere child. "I hope you won't scold me for watching you like a cat
every evening as I did."
"Scold you, John! Oh! how can you make use of such words to me
—and after the service you have rendered me?" exclaimed Kate,
tears also streaming down her own cheeks. "I ought to bless God—
and I do—to think that your friendship towards me led you to adopt
a step to see me, which has turned so wonderfully—so providentially
to my advantage."
"And now, Kate," said the executioner, "tell me one thing: why
didn't you mention to me that evening when you called, that you
were going to leave the rector's service?"
"Because, my dear uncle," answered the young maiden, "you
made one observation to me which showed that you were pleased at
the idea of me being in Mr. Tracy's service; and as you were so dull
and low-spirited, I did not like to tell you any thing that might
occasion you additional vexation. You said—oh! I shall never forget
your words—they made me weep as I followed you from the street
door into the parlour——"
"Yes—because I so seldom spoke kindly to you, poor Kate,"
exclaimed the executioner, as if struck by a sudden remorse.
"Do not say that, dear uncle! I owe so much—so very much to
you, that even if you have been harsh to me now and then, I never
think of it—and then, perhaps I have deserved it," she added slowly;
for the amiable girl was anxious to extenuate her uncle's self-
accusation in the eyes of those present.
"No—you did not deserve it, Kate!" cried the executioner, with
resolute emphasis; "you are a good girl—too good ever to have been
in such a den as mine!"
Smithers threw himself back in his chair, and compressed his lips
together to restrain his emotions.
But nature asserted her empire.
A tear trickled from each eye, and rolled slowly down the cheeks
of that man whose heart had been so brutalized by his fearful
calling.
Kate rose from her chair, and threw herself into his arms,
exclaiming, "Uncle—dear uncle, if you speak kindly to me, I am
indeed happy!"
Gibbet cried, and yet laughed—sobbed, and yet smiled, in so
strange a manner, as he contemplated that touching scene, that the
result of his emotions presented the most ludicrous aspect.
 "Sit down, Kate dear," said Smithers: "I am not used to be
childish;—and yet, I don't know how it is, but I don't seem ashamed
of dropping a tear now. I know I'm a harsh, brutal man: but what
has made me so? God, who can read all hearts, has it written down
in his book that I was once possessed of the same kind feelings as
other people. However—it's no use talking: what I am I must remain
until the end."
"Believe me," exclaimed Richard Markham, who was ever sensibly
alive to the existence of generous feelings in others,—"believe me,"
he cried, grasping Smithers' hand, "society lost a good man when
you undertook your present avocation."
"What, sir!" ejaculated Smithers, unfeignedly surprised; "do you
shake hands with the Public Executioner?"
"Yes—and unblushingly would I do so before the whole world,"
replied Markham, "when I discover at the bottom of his soul a spark
—aye, even the faintest spark of noble and exalted feeling yet
unquenched."
The Public Executioner fixed upon the animated and handsome
countenance of our hero a glance of the deepest gratitude—a glance
of respect, almost of veneration!
He then cast down his eyes, and appeared to plunge into
profound rumination.
"You were going to tell us, Miss Katherine," said Benstead, "what
observation it was that prevented you from communicating to your
uncle the notice Mrs. Kenrick had given you to leave."
"Oh! I remember," exclaimed the young maiden, upon whose
heart the noble conduct of Richard Markham towards her despised
and degraded relative had made a deep impression: "my uncle said
to me, 'I am almost sorry that I ever parted with you; but as you are
now in a place that may do you good, I shall not interfere with you.'"
"Ah! my dear young friend," exclaimed Mrs. Bennet, "how fatal
might that place have been to you after all? But where are you going
to live now? If you can make yourself happy with me, I will offer you
a home and show you the kindness of a mother."
Katherine turned a look of deep gratitude upon the good woman
who made her this generous offer; and then she glanced timidly
towards her uncle and Richard Markham.
"If I may be allowed to speak my thoughts in this matter," said our
hero, "I should counsel Katherine to accept a proposition so kindly,
so frankly made; and it shall be my duty to see that she becomes
not a burden upon the friend who will provide her with a home."
"I can give no opinion in the matter, sir," observed the
executioner: "there is something about you which compels me to
say, 'Deal with me and my family as you will.' Command, sir, and we
will obey."
"I never command—but I advise as a friend," said Richard,
touched by the strange gentleness of manner which was now
evinced by one lately so rude, so brutal, so self-willed. "Katherine,
then, has your consent to accompany Mrs. Bennet to Hounslow?"
"And I sincerely thank Mrs. Bennet for her goodness towards that
poor girl who has undergone so much," said the executioner.
Mrs. Bennet now suggested that her husband would be uneasy if
she remained long absent from home; and Richard immediately
summoned the waiter, to whom he gave orders to procure a post-
chaise.
This command was speedily executed. Katherine took leave of her
relatives, Markham, and Benstead, with streaming eyes.
"God bless you, my girl," said the executioner, in a tone the
tremulousness of which he could not altogether subdue.
Gibbet could say nothing: his voice was choked with sobs.
Katherine, however, whispered words of kindness in his ears; and
the poor hump-back smiled as he wrung her hand with all the
fervour of his affection.
"To you, Mr. Markham," said Kate, "no words can convey the
gratitude—the boundless gratitude and respect which I entertain for
you."
"Be happy, Katherine," returned Richard, shaking her warmly by
the hand; "and remember that in me you have a sincere friend,
always ready to aid and advise you."
The young maiden then tendered her thanks to the good-hearted
policeman for the interest he had manifested in her favour.
 The farewells were all said; good wishes were given and returned;
and Mrs. Bennet hurried Katherine from the room. Those who
remained behind, watched their departure from the window.
The moment the post-chaise had rolled away from the door of the
tavern, Smithers accosted our hero, and said, "I am no great hand
at making speeches, sir; but I can't take my leave of you, without
saying something to convince you that I'm not ungrateful for what
you've done for my niece. Your goodness, sir, has saved her from
death; and more than that, has proved her innocence. You are the
best man I ever met in my life: you are more like an angel than a
human being. I didn't think that such men as you could be in
existence. It makes me have a better opinion of the world when I
look upon you. How happy would a country be if it had such a
person as yourself for its sovereign! I cannot understand my own
feelings in your presence: I seem as if I could fall at your feet and
worship you. Then I think that I am unworthy even to breathe the
same air that you do. But your words have made me happy to some
extent: for years I have not felt as I feel to-day. I can say no more,
sir: I don't know how I came to say so much!"
And the executioner turned abruptly aside; for he was weeping—
he was weeping!
Markham had not interrupted him while he spoke, because our
hero knew that it was well for that man to give way to the good
feelings which the contemplation of humanity and philanthropy in
others had so recently awakened.
But Richard did not perceive that, while the executioner was giving
utterance to the invincible promptings of nature, Gibbet had drawn
near,—had listened to his father with indescribable interest,—had
drunk in with surprise and avidity every word that fell from his lips,—
and had gradually sunk upon his knees in the presence of that
benefactor whom even a rude, brutalized, and savage disposition
was now compelled to believe to be something more than man!
"This, sir," said Benstead, glancing his eyes around, and touching
Markham's arm to direct his attention to the scene,—"this, sir, is
doubtless a welcome reward for all your goodness."