Study Guide for AIS
Chapter 2 – Information Technology and AISs
What is AISs (Accounting Information Systems)? It is the application of information technology to accounting systems. It’s a collection of data and processing procedures that creates needed information for its users.
What is IT (Information Technology)? It is the hardware and software used in computerized information systems.
AIS can be viewed as a set of 5 interacting components: 1) hardware, 2) software, 3) data, 4) people, and 5) procedures that work together to accomplish processing tasks.
Hardware must work with the other components to perform data processing tasks. Without software, the hardware would stand idle. Without data, the H.W. & S.W. would be useless. Without people, the system probably would not be in use for long. Without procedures, accounting would not be gathered & distributed properly
Six reason’s IT is important to accountants:
- I.T. must be compatible with and support other components of AIS.
- Accounting professionals need to know about H.W. & S.W. to help clients with advice on purchases.
- Auditors must evaluate computerized systems.
- Accounts have to evaluate the efficiency and effectiveness of existing systems.
- It affects the way they work now & in the future.
- It is vital to passing most accounting certification examinations.
INPUT, PROCESSING, & OUTPUT DEVICES
Peripheral equipment surrounds the computer and helps process data.
Input: Mice & Keyboard/ Output: Printer & Monitor/ Secondary Storage: Hard Disks
Input-Processing-Output Cycle is a three phase operation in which accounting transactions are processed. Input Devices
Source Documents are the starting point for collecting accounting data. Source Documents are important to AISs because 1) they are human readable and 2) they can be completed by the user and 3) they provide evidence of a transaction. Examples: time cards, survey forms, purchase
What is AISs (Accounting Information Systems)? It is the application of information technology to accounting systems. It’s a collection of data and processing procedures that creates needed information for its users.
What is IT (Information Technology)? It is the hardware and software used in computerized information systems.
AIS can be viewed as a set of 5 interacting components: 1) hardware, 2) software, 3) data, 4) people, and 5) procedures that work together to accomplish processing tasks.
Hardware must work with the other components to perform data processing tasks. Without software, the hardware would stand idle. Without data, the H.W. & S.W. would be useless. Without people, the system probably would not be in use for long. Without procedures, accounting would not be gathered & distributed properly
Six reason’s IT is important to accountants:
- I.T. must be compatible with and support other components of AIS.
- Accounting professionals need to know about H.W. & S.W. to help clients with advice on purchases.
- Auditors must evaluate computerized systems.
- Accounts have to evaluate the efficiency and effectiveness of existing systems.
- It affects the way they work now & in the future.
- It is vital to passing most accounting certification examinations.
INPUT, PROCESSING, & OUTPUT DEVICES
Peripheral equipment surrounds the computer and helps process data.
Input: Mice & Keyboard/ Output: Printer & Monitor/ Secondary Storage: Hard Disks
Input-Processing-Output Cycle is a three phase operation in which accounting transactions are processed. Input Devices
Source Documents are the starting point for collecting accounting data. Source Documents are important to AISs because 1) they are human readable and 2) they can be completed by the user and 3) they provide evidence of a transaction. Examples: time cards, survey forms, purchase