Intro to AIS
A resource to make decisions with
long-term benefits.
Information
Three (3) OBJECTIVES OF INFORMATION
To support firm's day-to-day operation
To support management decision making
To support the stewardship function of management
Is the set of formal procedures by which data are collected, processed into information, and distributed to users.
Information System
A group of two or more interrelated components that serve a
common purpose.
System
Specialized subset of information systems that processes financial transactions.
Accounting Information System
Six (6) primary components of AIS:
People, Procedures & Instructions,
Data, Software, IT Infrastructure, and Internal Control
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 Intructions
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 (TPS)
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. It is also known as discretionary reporting.
Management Reporting System (MRS)
Financial transactions that enter the information system
from either internal or external sources
Data source
Is 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
GENERAL MODEL OF AIS
Information Generation
Feedback
End Users
is the process of compiling, arranging,
formatting, and presenting information to users.
Information Generation
is 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
transaction cycles:
Expenditure Cycle, Conversion Cycle, and Revenue Cycle.
Result in some documents being created at the beginning
of the transaction.
Accounting Record
three (3) types of documents:
Source Documents
Product Documents
Turnaround Documents
Used to capture and formalize transaction
data that the transaction cycle needs
for processing.
Source Documents
The result of transaction processing
rather than the triggering mechanism
for the process.
Product Documents
One system that become source documents for
another system.
Turnaround Documents
a record of a chronological entry or the event is recorded in a
journal in chronological order.
Journals
Used to record specific classes of
transactions that occur in high
volume.
Special Journals
Used by the firm to record nonrecurring,
infrequent, and dissimilar
transactions.
General Journals
s a book of accounts that reflects the financial effects of the firm’s transactions after they are posted from the various journals.
Ledgers
which contain the details of the individual
accounts that constitute a particular
control.
Subsidiary Ledgers
which contain the firm's account information in the form of highly summarized control
accounts.
General Ledgers
Is used for tracing transaction from source documents to the financial statement.
Audit Trail
GOUR MAGNETIC FILE:
Master Files
Transaction Files
Refference Files
Archive Files
generally contains account data.
Master Files
a temporary file of transaction records
used to change or update data in a master file.
Transaction files
stores data that are used as standards for
processing transactions.
Reference Files
contains records of past transactions that
are retained for future reference.
Archive Files