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Presented by: Mr. Jhaun Paul G. Enriquez CE104 (Accounting Information Systems / Computerized Auditing and Accounting Syst...
What is an AIS? Accounting Information System  is a collection of data and processing procedures that creates needed infor...
What is an AIS? Accounting Information System is the  information subsystem  within an organization that  accumulates and ...
Accounting in an AIS <ul><li>AIS help accountants  maintain general ledger information ,  create spreadsheets for strategi...
Information vs. Data <ul><li>Data  are raw facts about events that have little organization or meaning. </li></ul>Computer...
Systems in an AIS <ul><li>A  system  is an entity consisting of interacting parts or components that are attempt to achiev...
The Information Age <ul><li>In the  information age , fewer workers are making products, and a large segment of the employ...
Current Trends in AIS <ul><li>Suspicious Activity Reporting (SAR) </li></ul><ul><ul><li>report  questionable financial tra...
Current Trends in AIS <ul><li>Enterprise Resource Planning (ERP) Systems </li></ul><ul><ul><li>includes  software packages...
Enterprise Resource Planning Source:  http://www.arhun.com/wp-content/uploads/2011/03/erp-system.jpg Computer Studies Prog...
Accounting and IT <ul><li>Financial Accounting </li></ul><ul><ul><li>provide relevant information to  individuals and grou...
Accounting and IT <ul><li>Financial Accounting Audit Trail </li></ul><ul><ul><li>An  audit trail  enables information user...
Accounting and IT <ul><li>Financial Accounting Audit Trail </li></ul><ul><ul><li>The basic inputs to and outputs from are ...
Accounting and IT <ul><li>Impact of IT in Financial Accounting </li></ul><ul><ul><li>Non-Financial Data </li></ul></ul><ul...
Accounting and IT <ul><li>Impact of IT in Financial Accounting </li></ul><ul><ul><li>Real-Time Reporting </li></ul></ul><u...
Accounting and IT <ul><li>Impact of IT in Financial Accounting </li></ul><ul><ul><li>Interactive Data and XBRL </li></ul><...
Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>provide relevant information to  organizational mana...
Accounting and IT <ul><li>Features of Managerial Accounting </li></ul><ul><ul><li>providing accounting information for int...
Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Cost Accounting </li></ul></ul><ul><ul><ul><li>assis...
Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Cost Accounting </li></ul></ul><ul><ul><ul><li>Perfo...
Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Cost Accounting  ( Business Intelligence Tools)  </l...
Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Budgeting </li></ul></ul><ul><ul><ul><li>financial p...
Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Systems Study </li></ul></ul><ul><ul><ul><li>Perform...
Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Steps in Systems Study </li></ul></ul>Computer Studi...
Accounting and IT <ul><li>Auditing </li></ul><ul><ul><li>evaluate the accuracy and completeness of a corporation’s financi...
Accounting and IT <ul><ul><ul><li>CPA Trust Services  include  online privacy evaluations ,  security audits ,  testing th...
Accounting and IT <ul><li>Taxation </li></ul><ul><ul><li>Information Technology enables the  automation of income tax retu...
Computer Studies Program THANK YOU!
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  1. 1. Presented by: Mr. Jhaun Paul G. Enriquez CE104 (Accounting Information Systems / Computerized Auditing and Accounting Systems) Introduction to Accounting Information Systems Source: Barganoff, Nancy A. Core Concepts of Accounting Information Systems 11 th edition . John Wiley & Sons, Inc., 2010
  2. 2. What is an AIS? Accounting Information System is a collection of data and processing procedures that creates needed information for its users. Computer Studies Program Source: Barganoff, Nancy A. Core Concepts of Accounting Information Systems 11 th edition, 2010
  3. 3. What is an AIS? Accounting Information System is the information subsystem within an organization that accumulates and processes information (both financial and non-financial) from the entity’s various subsystems and communicates this information to the organization’s users. Computer Studies Program Source: Barganoff, Nancy A. Core Concepts of Accounting Information Systems 11 th edition, 2010
  4. 4. Accounting in an AIS <ul><li>AIS help accountants maintain general ledger information , create spreadsheets for strategic planning , and distribute financial reports . </li></ul>Computer Studies Program <ul><li>Determine how best to provide the information required to support business and government processes. </li></ul><ul><li>Create information that is useful to non-accountants such as marketing, production and human relations </li></ul>Which to purchase?
  5. 5. Information vs. Data <ul><li>Data are raw facts about events that have little organization or meaning. </li></ul>Computer Studies Program <ul><li>Information is data that have been processed and is meaningful and useful to users </li></ul>Model for Information System Components Raw data are also important because they mark the starting point of an audit trail
  6. 6. Systems in an AIS <ul><li>A system is an entity consisting of interacting parts or components that are attempt to achieve one or more goals. </li></ul>Computer Studies Program <ul><li>An Information System is a set of interrelated subsystems that work together to collect, process, store, transform, and distribute information for planning, decision making, and control </li></ul><ul><li>Firms depend on information systems in order to stay competitive . </li></ul>
  7. 7. The Information Age <ul><li>In the information age , fewer workers are making products, and a large segment of the employee population is involved in producing, analyzing, and distributing information. </li></ul>Computer Studies Program <ul><li>Knowledge workers comprise much of the labor force. </li></ul><ul><li>A major contributor to the information age is the Internet </li></ul><ul><li>The increasing importance and growth of e-business and e-commerce </li></ul>
  8. 8. Current Trends in AIS <ul><li>Suspicious Activity Reporting (SAR) </li></ul><ul><ul><li>report questionable financial transactions which may include money laundering, bribes, or wire transfers to terrorist organizations </li></ul></ul><ul><ul><li>Acts to prevent criminal or terrorist activities </li></ul></ul>Computer Studies Program <ul><li>Countering Terrorism </li></ul><ul><ul><li>Trace flow of funds across international borders </li></ul></ul><ul><ul><li>Identify and deny financial aids to terrorists </li></ul></ul><ul><ul><li>Identifying unauthorized purchases </li></ul></ul><ul><ul><li>Help to plan for catastrophic events </li></ul></ul><ul><ul><li>Security measures to control cyber terrorism </li></ul></ul>
  9. 9. Current Trends in AIS <ul><li>Enterprise Resource Planning (ERP) Systems </li></ul><ul><ul><li>includes software packages to integrate information subsystems into one application </li></ul></ul><ul><ul><li>Integrate data and functions to obtain information needed for planning, decision making and control </li></ul></ul>Computer Studies Program <ul><ul><li>Examples of ERPs include SAP , Oracle , Sage , Microsoft , and e-business (amazon.com) </li></ul></ul>
  10. 10. Enterprise Resource Planning Source: http://www.arhun.com/wp-content/uploads/2011/03/erp-system.jpg Computer Studies Program
  11. 11. Accounting and IT <ul><li>Financial Accounting </li></ul><ul><ul><li>provide relevant information to individuals and groups outside an organization’s boundaries </li></ul></ul><ul><ul><li>users include investors , federal and state tax agencies , and creditors </li></ul></ul><ul><ul><li>Objectives are achieved through preparation of financial statements </li></ul></ul><ul><ul><li>Financial reports are used for planning, decision-making and control activities </li></ul></ul>Computer Studies Program
  12. 12. Accounting and IT <ul><li>Financial Accounting Audit Trail </li></ul><ul><ul><li>An audit trail enables information users to follow the flow of data through the system </li></ul></ul>Computer Studies Program
  13. 13. Accounting and IT <ul><li>Financial Accounting Audit Trail </li></ul><ul><ul><li>The basic inputs to and outputs from are usually expressed in monetary units </li></ul></ul><ul><ul><li>Audit trail parallels the accounting cycle , which begins with a transaction and ends with producing financial statements and closing temporary accounts. </li></ul></ul><ul><ul><li>A good audit trail permits managers to follow source document data from input through processing to the data’s location on an output report (and vice versa). </li></ul></ul>Computer Studies Program
  14. 14. Accounting and IT <ul><li>Impact of IT in Financial Accounting </li></ul><ul><ul><li>Non-Financial Data </li></ul></ul><ul><ul><ul><li>The need to store important non-financial information about r esources, e vents and a gents in databases ( REA accounting ) </li></ul></ul></ul>Computer Studies Program
  15. 15. Accounting and IT <ul><li>Impact of IT in Financial Accounting </li></ul><ul><ul><li>Real-Time Reporting </li></ul></ul><ul><ul><ul><li>Timing of inputs, processing, and outputs </li></ul></ul></ul><ul><ul><ul><li>Financial statements are either done periodically, quarterly , or annually </li></ul></ul></ul><ul><ul><ul><li>Advances in IT that allow transactions to be captured immediately and possibly produce financial statements in real-time. </li></ul></ul></ul>Computer Studies Program
  16. 16. Accounting and IT <ul><li>Impact of IT in Financial Accounting </li></ul><ul><ul><li>Interactive Data and XBRL </li></ul></ul><ul><ul><ul><li>Interactive data are data that can be reused and carried seamlessly among a variety of applications or reports </li></ul></ul></ul><ul><ul><ul><li>Extensible business reporting language ( XBRL ) is emerging as the language for standardization that ‘‘tags’’ the data at its most basic level </li></ul></ul></ul><ul><ul><ul><li>Incorporate XBRL for creating, transforming, and communicating financial information </li></ul></ul></ul>Computer Studies Program
  17. 17. Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>provide relevant information to organizational managers who are internal to a company or government agency </li></ul></ul><ul><ul><li>Three components of Managerial Accounting: </li></ul></ul><ul><ul><ul><li>Cost Accounting </li></ul></ul></ul><ul><ul><ul><li>Budgeting </li></ul></ul></ul><ul><ul><ul><li>Systems Study </li></ul></ul></ul>Computer Studies Program
  18. 18. Accounting and IT <ul><li>Features of Managerial Accounting </li></ul><ul><ul><li>providing accounting information for internal parties </li></ul></ul><ul><ul><li>information is mostly forward-looking </li></ul></ul><ul><ul><li>not regulated by generally accepted accounting principles (GAAP) nor is it mandatory to prepare it </li></ul></ul><ul><ul><li>reports include both non-monetary and financial data </li></ul></ul><ul><ul><li>influenced by many business and non-business disciplines </li></ul></ul><ul><ul><li>information is flexible and frequently involves non-routine reporting </li></ul></ul>Computer Studies Program
  19. 19. Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Cost Accounting </li></ul></ul><ul><ul><ul><li>assists management in measuring and controlling the costs associated with an organization’s various acquisition, processing, distribution, and selling activities </li></ul></ul></ul><ul><ul><ul><li>Activity-based costing (ABC) systems assign overhead to products based on cost drivers </li></ul></ul></ul><ul><ul><ul><li>Responsibility accounting systems help managers trace unfavorable performance to the department or individual that caused the inefficiencies </li></ul></ul></ul>Computer Studies Program
  20. 20. Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Cost Accounting </li></ul></ul><ul><ul><ul><li>Performance measurement are being used for long-term profitability and to encourage certain employee behavior </li></ul></ul></ul><ul><ul><ul><li>Balance scorecard is an approach that uses performance measurements in four categories </li></ul></ul></ul><ul><ul><ul><ul><li>Financial Performance </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Customer knowledge </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Internal business process </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Learning and growth </li></ul></ul></ul></ul>Computer Studies Program to evaluate and promote certain activities and behaviors.
  21. 21. Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Cost Accounting ( Business Intelligence Tools) </li></ul></ul><ul><ul><ul><li>Key Performance Indicators (KPIs) to measure and evaluate activities in each quadrant of the balanced scorecard </li></ul></ul></ul>Computer Studies Program Return of investment Track new customers per month Speed up business transactions Increase productivity Lessen company expense FP CK IBP L & G
  22. 22. Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Budgeting </li></ul></ul><ul><ul><ul><li>financial projection for the future and is thus a valuable managerial planning aid </li></ul></ul></ul><ul><ul><ul><ul><li>Short-range projections – 12 month period </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Long-range projections – 5 or more years </li></ul></ul></ul></ul><ul><ul><ul><li>A good budgetary system is a useful managerial control mechanism </li></ul></ul></ul><ul><ul><ul><ul><li>attempt to predict future financial expectations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Compare actual and budgeted results </li></ul></ul></ul></ul>Computer Studies Program
  23. 23. Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Systems Study </li></ul></ul><ul><ul><ul><li>Performed by managerial accountants since they understand internal financial systems </li></ul></ul></ul><ul><ul><ul><li>Usually employs a team approach </li></ul></ul></ul><ul><ul><ul><ul><li>marketing specialists, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>computer experts, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>production managers, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>engineers and </li></ul></ul></ul></ul><ul><ul><ul><ul><li>industrial psychologists. </li></ul></ul></ul></ul>Computer Studies Program
  24. 24. Accounting and IT <ul><li>Managerial Accounting </li></ul><ul><ul><li>Steps in Systems Study </li></ul></ul>Computer Studies Program develop strategic plans review current system create new system apply and monitor system Planning System Analysis System Design Implementation and Follow-up
  25. 25. Accounting and IT <ul><li>Auditing </li></ul><ul><ul><li>evaluate the accuracy and completeness of a corporation’s financial statements </li></ul></ul><ul><ul><li>Accountants are focusing on additional assurance services in arenas other than financial reporting </li></ul></ul>Computer Studies Program <ul><ul><li>CPA Trust Services set of professional service areas built around a set of common principles and criteria related to the risks and opportunities presented by IT environments. </li></ul></ul>
  26. 26. Accounting and IT <ul><ul><ul><li>CPA Trust Services include online privacy evaluations , security audits , testing the integrity of information processing systems , assessing availability of IT services , and systems confidentiality testing </li></ul></ul></ul><ul><li>Assurance Services identified by the AICPA Special Committee </li></ul><ul><ul><ul><li>Risk Assessment </li></ul></ul></ul><ul><ul><ul><li>Business Performance Measurement </li></ul></ul></ul><ul><ul><ul><li>Information Systems Reliability </li></ul></ul></ul><ul><ul><ul><li>Electronic Commerce </li></ul></ul></ul><ul><ul><ul><li>Health Care Performance Measurement </li></ul></ul></ul><ul><ul><ul><li>Eldercare Plus </li></ul></ul></ul>Computer Studies Program
  27. 27. Accounting and IT <ul><li>Taxation </li></ul><ul><ul><li>Information Technology enables the automation of income tax returns (ITR) </li></ul></ul><ul><ul><li>Use of spreadsheets or tax preparation software that enables users to create and store copies of trial tax returns </li></ul></ul><ul><ul><li>Information technology can also help tax professionals research challenging tax questions </li></ul></ul><ul><ul><li>Electronic tax libraries and on-line tax services make it easier for accountants to perform tax research. </li></ul></ul>Computer Studies Program
  28. 28. Computer Studies Program THANK YOU!
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