Accounting Information Systems Study Notes

Topics: Data flow diagram, Management, Use case Pages: 18 (4437 words) Published: August 21, 2013
* System – set of interdependent elements that together accomplish specific objectives * subsystem – interrelated parts that have come together, or integrated, as a single system. * IS/MIS – person made system that consists of an integrated set of computer based and manual components established to collect, store and manage data and to provide output info to users (hardware, software, data, procedure, people). Provides info for decision making Purpose of AIS

* Collect process and report info related to financial aspects of business events * often integrated an indistinguishable from overall info sys * AIS may be divided into components based on the operational functions supported Business Process

* Operations process:
* person made system consisting of the people, equipment, org, policies and procedures. * designed to accomplish the activities of the org
* typically include: production, personnel, marketing and sales, warehousing, acct * Management process:
* person made system consisting of people, authority, org, policies and procedure. * designed to control the operations of the org.
* typically include: planning, controlling, decision making * Information process:
* person made system that consists of an integrated set of computer-based and manual components established to collect, store and manage data and to provide output info to users. * Interactions and relationship:

* info process assists operations by maintaining inventory records and customer data. * info process enables management to monitor the operations process and operation and accounting related processes can be integrated. eg processing customer requirements, invoicing customers, producing financial statistics and performance figures from AIS records. * management designs the operations and info processes and provides the resources * info process users include people both inside and outside the org. * all person-made systems, which facilitate the functions of each other. * IS facilitates day to day operations and provide useful info for the org’s management.

Qualities of information
* Effectiveness
– relevance and pertinence, eg accurate and timely info on production requirements, sales forecasts * Efficiency
– in production of the information, eg integrated IS system to keep track of customer data, cost allocation process efficiency * Confidentiality
– the right people receiving it, eg report directly to managers with the info, segregation of duties, eg access to payroll * Integrity
– accuracy and completeness, eg double check and ensure reliability of sources, give true and fair view * Availability
– when required, keep data updated so that constantly available * Compliance
– laws, regulations, contracts, eg adherence to GAAP in preparation of financial statements * Reliability
– appropriate information for making decisions, eg provide timely and accurate data, * Trade-offs and relationships…. eg obtaining complete info for a decision may require delaying use of info until all events related to the decision have taken place. That delay may sacrifice the timeliness of the info. For example, to determine all the merchandise shipments made in Nov, an org may have to wait until several days into December to make sure that all shipments get posted. To ensure the accuracy of a customer invoice, billing clerks might check the invoice for accuracy several times and then get their supervisor to initial the invoice; these will delay the mailing of the invoice. * effectiveness v integrity

* availability v integrity
* efficiency v integrity
* confidentiality v integrity

Management decision making and information requirements
* Intelligence: searching the environment for conditions calling for a decision * Design: inventing, developing, and...
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