Intro to AIS
Used as a resource to make decisions with
long-term benefits.
Information
3 OBJECTIVES OF INFORMATION
To support firms day-to-day operation
To support management decision making
To support the stewardship function of management
A group of two or more interrelated components that serve a
common purpose
System
Some systems are naturally occurring _______,
whereas others are a human-designed and developed system ______.
Natural System
Artificial System
Is the set of formal procedures by which data are
collected, processed into information, and distributed to users.
Information System
Specialized subset of information systems that processes financial transactions.
Accounting Information System
Who interact with an AIS are known as system users.
People
the methods it uses to
collect, store, retrieve, process, and report data.
Procedures and Infrastructure
An AIS contains all of the financial information relevant to the
organization's business processes.
Data
Refers to the computer programs that are used to
store, retrieve, process, and analyze financial data for the organization.
Software
Refers to the hardware that is needed to run the accounting information system.
IT Infrastructure
The security procedures in place to secure
sensitive data.
Internal Control
It is a business tool consisting of computer hardware and software that
hosts an application that performs transactions to run or undertake business.
Transaction Processing System
It is a system that produces traditional financial statements, such as
income statements, balance sheets, statements of cash flows, tax returns,
and other reports required by law
General Ledger/ Financial Reporting System
It is a system that provides the internal financial information needed to
manage a business.
Management Reporting System
Financial transactions that enter the information system
from either internal or external sources.
Data Sources
the first operational stage in the information
system.
Data Collection
A group that manages the computer resources used
to perform the day-to-day processing of transactions.
Data Processing
A special software system that is
programmed to know which data elements each user is authorized to access.
Database Management
3 GENERAL MODEL OF AIS
Information Generation
Feedback
End Users
The process of compiling, arranging,
formatting, and presenting information to users.
Information Generation
A form of output that is sent back to the system as a source
of data.
Feedback
Are users for whom the system is built.
End Users
It is a business tool consisting of computer hardware and software that
hosts an application that performs transactions to run or undertake business.
Transaction Processing
Three (3) subsystems of transaction processing system or transactions.
Expenditure Cycle
Conversion Cycle
Revenue Cycle
Economic events result in some documents being created at the beginning
of the transaction.
Accounting Records
Three (3) types of documents:
Source Document
Product Document
Turnaround Document
Used to capture and formalize transaction
data that the transaction cycle needs
for processing.
Source Document