An accounting information system (AIS) is a system of collection, storage and processing of financial and accounting data that is used by decision makers.
accounting information system (AIS) consists of:
- Information technology infrastructure
What important functions does
the AIS perform in an
1. It collects and stores data about activities and transactions. 2. It processes data into information that is useful for making decisions. 3. It provides adequate controls to safe-guard the organization’s assets. Uses of (AIS)
* Producing External Reports
* Supporting Routine Activities
* Decision Support
* Planning and Control
* Implementing Internal Control
Producing External Reports
Businesses use (AIS) to produce special reports that follow a required structure established by organizations such as (FASB). These reports include financial statements, tax returns, etc Supporting Routine Activities
Managers need an (AIS) for handling
routine operating activities during the firm’s operating cycle. Computer systems excel at handling repetitive transaction by many accounting software support these routine functions. Decision Support
Information is needed for nonroutine decision support at all levels of an organization. Some information are critical for planning, deciding, marketing functions.
Planning and Control
An information system is required for planning and control activities as well. Historical data can be extracted from the database and used to forecast growth and cash flows. Planners can use data mining to reveal long-term trends and relationships. Implementing Internal Control
Internal control includes the policies, procedures, and information system used to protect a company’s assets from loss and to maintain accurate financial data. It is possible to build...