Accounting Information System Overview
a) Define Accounting Information System (AIS) (3 marks)
An accounting information system is a collection of data and processing procedures that creates needed information for its users. It also can define as the information subsystem within an organization that accumulates and processes information from the entity’s various subsystems and communicates this information to the organization’s users.
b) Compare and contrast between management information systems and accounting Information Systems (6 marks)
The principle of management accounting information systems is providing relevant information to organization manager. It is focus on providing accounting information for internal parties such as management, rather than external investor and creditor. Management accounting information is not regulated by generally accepted accounting principles, nor is it mandatory to prepare it. Next, it also influenced by many business and non-business disciplines, such as economic, behavior science, and quantitative methods.
c) Describe the purposes of accounting Information Systems (9 marks)
Accounting software helps keep accounting records accurately and efficiently and provide useful information so that management, accountants, investors and creditors can make economic decisions.
d) Is it true that AIS serves more to an organization than other systems? Discuss with examples (15 marks)
True, Accounting information system is to ensure the highest level of accuracy remains the company's financial transactions, and provide all the necessary reports, have legitimate access to this paper. It helps on internal control on an organization to analyze the expenditure and development of the organization. All internal control systems need to be monitored. Monitoring enables the company to evaluate the effectiveness of its system of internal control...
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