AIS - INTRODUCTION TO ACCOUNTING INFORMATION SYSTEMS Flashcards
It identifies, collects, processes, and communicates economic information about a firm using a wide variety of technologies.
ACCOUNTING INFORMATION SYSTEM
It gets and records the financial effects of the firm’s transactions.
ACCOUNTING INFORMATION SYSTEM
It distributes transaction information to operations personnel to coordinate many tasks.
ACCOUNTING INFORMATION SYSTEM
A ______ is an event that affects or is of interest to the organization and is processed by its information system as a unit of work.
TRANSACTION
TYPES OF TRANSACTIONS
Financial Transaction
Non-Financial Transactions
Economic events that affect the assets and equities of an entity.
Financial Transaction
All other events processed by the
organization’s information system.
Non-Financial Transactions
AIS SUBSYSTEMS
(TPS)
(GL/FRS)
(MRS)
- Transaction Processing System (TPS)
- General ledger/ Financial Reporting System (GL/FRS)
- Management Reporting System (MRS)
AIS SUBSYSTEM:
Supports daily business operations
Transaction Processing System
(TPS)
AIS SUBSYSTEM:
Produces financial statements and reports
General ledger/ Financial
Reporting System (GL/FRS)
AIS SUBSYSTEM:
Produces special-purpose reports for internal use.
Management Reporting System
(MRS)
THE 4 GENERAL AIS MODEL
∙ DATA COLLECTION
∙ DATA PROCESSING
∙ DATA MANAGEMENT
∙ INFORMATION GENERATION
2 USERS OF ACCOUNTING INFORMATION
Internal users (Primary Users)
External users (Secondary Users)
USERS OF ACCOUNTING INFORMATION
Internal users (Primary Users) of accounting information include the following:
• Management:
• Employees:
• Owners:
“USERS OF ACCOUNTING INFORMATION”
External users (Secondary Users) of accounting information include the following:
• Creditors
• Tax Authorities
• Investors
• Customers
• Regulatory Authorities
______ must be able to clearly convey their needs to the systems professional who design the system.
The ____ should actively participate in system development projects to ensure system design.
Accountants
2 ACCOUNTANTS’ UNIQUE ROLES IN THE AIS
- Accountants as System Designers
- Accountants as System Auditors
ACCOUNTANTS’ UNIQUE ROLES IN
THE AIS
- Accountants are the domain experts and responsible for the conceptual design of the AIS.
- Conceptual system design involves specifying the criteria for identifying delinquent customers and the information that needs to be reported.
Accountants as System Designers
Accountants as _______
• _______ - Certify the fairness of the presentation of financial statements.
• ________ - An independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization.
• _____ - Investigate anomalies and gather evidence of fraud.
Accountants as System Auditors
• External Auditors
• Internal Audit
• Fraud Audit
