Accounting Information System

1. Chapter 1
INTRODUCTION TO ACCOUNTING
INFORMATION SYSTEMS

2. Central Themes
of This Text
• Business processes
• Information systems

3. Business Processes
• A sequence of activities:
–for acquiring goods and services
–for producing goods and services
–for selling goods and services

4. Business Processes
• Models of business processes viewed in
terms of transaction cycles.
• Each transaction cycle involves several
events.

5. Business Processes
• Three main transaction cycles:
–An acquisition (purchasing) cycle is the
process of purchasing and paying for
goods/services.
–A conversion cycle is the process of
transforming resources acquired into
goods/services.
–A revenue cycle is the process of providing
goods or services to customers and collecting
cash.

6. Typical Business Processes
• Production
• Sales

7. Information Systems
• A management information system (MIS)
is a system that
–captures data about an organization
–stores and maintains the data
–provides meaningful information for
management.

8. Information Systems
 An MIS can be viewed as a set of
subsystems that provide information for
such functions as:
 production
 marketing
 human resources
 accounting
 finance

9. Management Information Systems
• MIS captures
–data about business processes
–aggregates, summarizes, and organizes data
–produces information that helps monitor and
control business processes
–ERP systems integrate all aspects of a firm’s
business processes.

10. Accounting
Information System
• An AIS is a subset of
an organization’s MIS that
provides:
–accounting and financial information
–other information obtained in the
routine processing of accounting
transactions

11. Uses of Accounting
Information Systems
• Producing external reports
• Supporting routine activities
• Decision support
• Planning and control
• Implementing internal control

12. Role of Accountants
in Relation to AIS
• User
• Manager
• Consultant
• Evaluator
• Provider of accounting and tax services

13. Keyterms
• Accounting information system (AIS)
• Applications
• Assurance services
• Business process
• Enterprise resource planning system (ERP)

14. Keyterms
• Events
• Internal control
• Management information system (MIS)
• Off-the-shelf software
• Transaction cycles