This document provides information about an Accounting Information Systems course being taught from February 3 to March 12, 2022. The course will introduce students to the core concepts of accounting information systems, including the relationship between accountants, information technology, and accounting information systems. Students will learn about databases, documenting business processes, and internal control systems. The course objectives, schedule, and learning outcomes are outlined.

1. Module 1
(AEAIS)
(ACCOUNTING
INFORMATION SYSTEM)
Kurt Lupin C. Orioque
Instructor
Email Address:
kurtorioque112@gmail.com
Contact Number:
0961 713 4338
Module Duration:
FEB 3 - March.12,2022

2. Course Title ACCOUNTING INFORMATION SYSTEM
Course Code AEAIS
Course Unit Credit 3 Units (54 hours per Semester)
Course Prerequisite(s)
Course Description This course covers the Core Concepts in Accounting Information System
which involves introduction of the knowledge that accountants need for
understanding and using information technologies and for knowing how
an accounting information system gathers and transforms data into useful
decision-making information. .
Course Outcomes Through active participation in the course, students will be able to:
1. Introduction of relationship between the Accountant,
Information Technology and the Information Accounting
System.
2. Discuss the basics of Databases and how they work for as a
tool in formulation Information Systems.
3. Integrating Documenting Business Processes into Accounting
Information System.
4. Discussion of Internal Control Systems
5. Understanding Computer Crime, Ethics, and Privacy.
MODULE SCHEDULE (This module is good for 3 weeks)
i. Synchronous Meeting: November 3 – March 12, 2022
ii. Asynchronous Meeting: (Quizzes and Individual acti vity and assignment)
CONSULTATION HOURS
i. At your class hour during asynchronous meeting
ii. You can reach me at my email add: kurtorioque112@gmail.com or through our GC. Just send me a
personal message.
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
 The study of Accounting Information System (AIS) is essential to all accounting related
courses since the field of accounting in the business world is gradually gearing through
Information System.
 A proper understanding of the relationship of Accountants, Information Technology and
Accounting Information System.
 Introduce the basics of Databases, which includes data modelling, Database Forms and
Reports and organizing and manipulating data using databases.

3. CONTENT
Introduction to Accounting Information Systems (AIS)
An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve, and report its financial data
so it can be used by accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators, and tax
agencies. Specially trained accountants work in-depth with AIS to ensure the highest level of accuracy in a company's financial transactions and
record-keeping, as well as make financial data easily available to those who legitimately need access to it—all while keeping data intact and
secure.
 An accounting information system (AIS) is used by companies to collect, store, manage, process, retrieve, and report financial data.
 AIS can be used by accountants, consultants, business analysts, managers, chief financial officers, auditors, and regulators.
 An AIS helps the different departments within a company work together.
 An effective AIS uses hardware and software to effectively store and retrieve data.
 The internal and external controls of an AIS are critical to protecting a company's sensitive data.
Understanding Accounting Information Systems (AIS)
An accounting information system is a way of tracking all accounting and business activity for a company. Accounting information
systems generally consist of six primary components: people, procedures and instructions, data, software, information technology infrastructure,
and internal controls. Below is a breakdown of each component in detail.
1. AIS PEOPLE
The people in an AIS are the system users. An AIS helps the different departments within a company work together. Professionals who
may need to use an organization's AIS include:
 Accountants
 Consultants
 Business analysts
 Managers
 Chief financial officers
 Auditors
For example, management can establish sales goals for which staff can then order the appropriate amount of inventory. The inventory order
notifies the accounting department of a new payable. When sales are made in a business, the people and departments involved in the sales
process could include the following
1. Salespeople enter the customer orders into the AIS.
2. Accounting bills or sends an invoice to the customer.
3. The warehouse assembles the order.
4. The shipping department sends the order out to the customer.
5. The accounting department gets notified of a new accounts receivable, which is an IOU from the customer that's typically paid within 30,
60, or 90 days.
6. The customer service department tracks the order and customer shipments.
7. Management uses AIS to create sales reports and perform cost analysis, which can include inventory, shipping, and manufacturing
costs.
With a well-designed AIS, everyone within an organization can access the same system and retrieve the same information. An AIS also simplifies
the process of reporting information to people outside of the organization, when necessary.
For example, consultants might use the information in an AIS to analyze the effectiveness of the company's pricing structure by looking at cost
data, sales data, and revenue. Also, auditors can use the data to assess a company's internal controls, financial condition, and compliance with
regulations such as the Sarbanes-Oxley
The AIS should be designed to meet the needs of the people who will be using it. The system should also be easy to use and should improve, not
hinder efficiency.
2. Procedures and Instructions
The procedure and instructions of an AIS are the methods it uses for collecting, storing, retrieving, and processing data. These methods
are both manual and automated. The data can come from both internal sources (e.g., employees) and external sources (e.g., customers' online
orders). Procedures and instructions will be coded into the AIS software. However, the procedures and instructions should also be "coded" into
employees through documentation and training. The procedures and instructions must be followed consistently in order to be effective.

4. 3. AIS Data
An AIS must have a database structure to store information, such as structured query language (SQL), which is a computer language
commonly used for databases. SQL allows the data that's in the AIS to be manipulated and retrieved for reporting purposes. The AIS will also
need various input screens for the different types of system users and data entry, as well as different output formats to meet the needs of different
users and various types of information.
The data contained in an AIS is all of the financial information pertinent to the organization's business practices. Any business data that
impacts the company's finances should go into an AIS.
The type of data included in an AIS depends on the nature of the business, but it may consist of the following:
 Sales orders
 Customer billing statements
 Sales analysis reports
 Purchase requisitions
 Vendor invoices
 Check registers
 General ledger
 Inventory data
 Payroll information
 Timekeeping
 Tax information
The data can be used to prepare accounting statements and financial reports, including accounts receivable aging, depreciation or amortization
schedules, a trial balance, and a profit and loss statement. Having all of this data in one place—in the AIS—facilitates a business's record-
keeping, reporting, analysis, auditing, and decision-making activities. For the data to be useful, it must be complete, accurate, and relevant.
On the other hand, examples of data that would not go into an AIS include memos, correspondence, presentations, and manuals. These
documents might have a tangential relationship to the company's finances, but, excluding the standard footnotes, they are not really part of the
company's financial record-keeping.
4. AIS Software
The software component of an AIS is the computer programs used to store, retrieve, process, and analyze the company's financial data.
Before there were computers, an AIS was a manual, paper-based system, but today, most companies are using computer software as the basis of
the AIS. Small businesses might use Intuit's Quickbooks or Sage's Sage 50 Accounting, but there are others. Small to mid-sized businesses might
use SAP's Business One.4 Mid-sized and large businesses might use Microsoft's Dynamics GP, Sage Group's MAS 90, or MAS 200, Oracle's
PeopleSoft, or Epicor Financial Management. Quality, reliability, and security are key components of effective AIS software. Managers rely on the
information it outputs to make decisions for the company, and they need high-quality information to make sound decisions. AIS software programs
can be customized to meet the unique needs of different types of businesses. If an existing program does not meet a company's needs, the
software can also be developed in-house with substantial input from end-users or can be developed by a third-party company specifically for the
organization. The system could even be outsourced to a specialized company. For publicly-traded companies, no matter what software program
and customization options the business chooses, Sarbanes-Oxley regulations will dictate the structure of the AIS to some extent. This is because
SOX regulations establish internal controls and auditing procedures with which public companies must comply.
5. IT Infrastructure
Information technology infrastructure is just a fancy name for the hardware used to operate the accounting information system. Most of these
hardware items a business would need to have anyway and can include the following:
 Computers
 Mobile devices
 Servers
 Printers
 Surge protectors
 Routers
 Storage media

5.  A back-up power supply
In addition to cost, factors to consider in selecting hardware include speed, storage capability, and whether it can be expanded and upgraded.
Perhaps most importantly, the hardware selected for an AIS must be compatible with the intended software. Ideally, it would be not just
compatible, but optimal—a clunky system will be much less helpful than a speedy one. One way businesses can easily meet hardware and
software compatibility requirements is by purchasing a turnkey system that includes both the hardware and the software that the business needs.
Purchasing a turnkey system means, theoretically, that the business will get an optimal combination of hardware and software for its AIS.
A good AIS should also include a plan for maintaining, servicing, replacing, and upgrading components of the hardware system, as well as a plan
for the disposal of broken and outdated hardware, so that sensitive data is completely destroyed.
6. Internal Controls
The internal controls of an AIS are the security measures it contains to protect sensitive data. These can be as simple as passwords or
as complex as biometric identification. Biometric security protocols might include storing human characteristics that don't change over time, such
as fingerprints, voice, and facial recognition.
An AIS must have internal controls to protect against unauthorized computer access and to limit access to authorized users, which includes some
users inside the company. It must also prevent unauthorized file access by individuals who are allowed to access only select parts of the system.
An AIS contains confidential information belonging not just to the company but also to its employees and customers. This data may include:
 Social Security numbers
 Salary and personnel information
 Credit card numbers
 Customer information
 Company financial data
 Financial information of suppliers and vendors
All of the data in an AIS should be encrypted, and access to the system should be logged and surveilled. System activity should be traceable as
well.
An AIS also needs internal controls that protect it from computer viruses, hackers, and other internal and external threats to network security. It
must also be protected from natural disasters and power surges that can cause data loss.

6. Data Modeling, Organizing and Manipulating Data in Databases
What is Data Modeling?
Data Modeling is the process of analyzing the data objects and their relationship to the other objects. It is used to analyze the data
requirements that are required for the business processes. The data models are created for the data to be stored in a database.
Uses of Data Modelling Tools
Data Modelling is a process to formulate data in an information system in a structured format. Listed below are certain practical uses of the related
tools in any sector or industry.
 Data Modelling helps create a robust design with a data model that can show an organization's entire data on the same platform.
 The data model makes sure that all the data objects required by the database are represented or not.
 The database at the logical, physical, and conceptual levels can be designed with the help data model.
 The relation tables, foreign keys, and primary keys can be defined with the data model's help.
 Data Modelling Tools help in the improvement of data quality.
 Data Model gives the clear picture of business requirements.
 Redundant data and missing data can be identified with the help of data models.
 In data models, all the important data is accurately represented. The chances of incorrect results and faulty reports decreased as the
data model reduces data omission.
 The data models create a visual representation of the data. With the help of it, the data analysis gets improved. We get the data picture,
which can then be used by developers to create a physical database.
 Better consistency can be qualified with the help of a data model across all the projects.
 The data model is quite a time consuming, but it makes the maintenance cheaper and faster.
Three Perspectives of a Data Model
Data Modelling helps to create a conceptual model and create the relationship between the items. The basic data modelling techniques
involve dealing with three perspectives of a data model.
1. Conceptual Model
The conceptual data model is a view of the data that is required to help business processes. It also keeps track of business events and
keeps related performance measures. The conceptual model defines what the system contains. This type of Data Modeling focuses on finding the
data used in a business rather than processing flow. The main purpose of this data model is to organize, define business rules and concepts. For
example, it helps business people to view any data like market data, customer data, and purchase data.
2. Logical Model
In the logical data model, the map of rules and data structures includes the data required, such as tables, columns, etc. Data architects
and Business Analysts create the Logical Model. We can use the logical model to transform it into a database. This type of Data Modeling is

7. always present in the root package object. This data model helps to form the base for the physical model. In this model, there is no secondary or
primary key is defined.
3. Physical Data Model
In a physical data model, the implementation is described using a specific database system. It defines all the components and services
that are required to build a database. It is created by using the database language and queries. The physical data model represents each table,
column, constraints like primary key, foreign key, NOT NULL, etc. The main work of the physical data model is to create a database. This model is
created by the Database Administrator (DBA) and developers. This type of Data Modeling gives us the abstraction of the databases and helps to
create the schema. This model describes the particular implementation of the data model. The physical data model helps us to have database
column keys, constraints, and RDBMS features.
Data Modeling Techniques
1. Hierarchical Technique
The hierarchical model is a tree-like structure. There is one root node, or we can say one parent node and the other child nodes are
sorted in a particular order. But, the hierarchical model is very rarely used now. This model can be used for real-world model relationships.
2. Object-oriented Model
The object-oriented approach is the creation of objects that contains stored values. The object-oriented model communicates while
supporting data abstraction, inheritance, and encapsulation.
3. Network Technique
The network model provides us with a flexible way of representing objects and relationships between these entities. It has a feature
known as a schema representing the data in the form of a graph. An object is represented inside a node and the relation between them as an
edge, enabling them to maintain multiple parent and child records in a generalized manner.
4. Entity-relationship Model
ER model (Entity-relationship model) is a high-level relational model which is used to define data elements and relationship for the
entities in a system. This conceptual design provides a better view of the data that helps us easy to understand. In this model, the entire database
is represented in a diagram called an entity-relationship diagram, consisting of Entities, Attributes, and Relationships.
5. Relational Technique
Relational is used to describe the different relationships between the entities. And there are different sets of relations between the entities
such as one to one, one to many, many to one, and many to many.
Organize Data In Database
One way to prepare and organize your data is to invest in a database management systems (DBMS) based on a relational data model.
This setup allows specific users to access and manage relations relation, which are two-dimensional tables that store data about objects, events,
and other entities.

8. What is SQL?
SQL stands for Structured Query Language
SQL lets you access and manipulate databases
SQL became a standard of the American National Standards Institute (ANSI) in 1986, and of the International Organization for Standardization (ISO) in 1987
What Can SQL do?
SQL can execute queries against a database
SQL can retrieve data from a database
SQL can insert records in a database
SQL can update records in a database
SQL can delete records from a database
SQL can create new databases
SQL can create new tables in a database
SQL can create stored procedures in a database
SQL can create views in a database
SQL can set permissions on tables, procedures, and views
Database Commands
 SELECT - extracts data from a database
 UPDATE - updates data in a database
 DELETE - deletes data from a database
 INSERT INTO - inserts new data into a database
 CREATE DATABASE - creates a new database
 ALTER DATABASE - modifies a database
 CREATE TABLE - creates a new table
 ALTER TABLE - modifies a table
 DROP TABLE - deletes a table
 CREATE INDEX - creates an index (search key)
 DROP INDEX - deletes an index

9. CHAPTER REVIEW
LEARNING ACTIVITIES
Data Management: Importance, and Challenges.
Types of data management
Key parts of data management process
Benefits of good data management
Data management history and evolution
Data Warehouse, Data Base, and Data Mart
Data warehousing (models and data structures)
Data mining
Data warehouse vs databases
Database management software, features, types and uses
ASSESSMENTS/EVALUATION
This might be in the form of:
Online quizzes using Google Meet Chat box and Google form.
Chapter Test
Assessing Group Work
ASSIGNMENTS & ACTIVITIES
To be given via Google Classroom using Google form.
_____________________________________________________________________________________________
Course Requirements:
 Attendance (students are REQUIRED to attend ALL SYNCHRONOUS meetings
 Quizzes / Long Tests / Major Exams are though Google form in synchronous and asynchronous modes
respectively
 Discussion / Active Participation / Recitation
 Completion and submission of Learning Portfolio
 Research output / projects/ activities
 Assignments
_____________________________________________________________________________________________
Grading System: Prelim / Midterm / Final:
Attendance - 5%
Recitation - 10%
Quizzes - 25%
Activity / Project - 25%
Assignment - 5%
Major Exam - 30%
TOTAL - 100%
_____________________________________________________________________________________________
LEARNING REFERENCES / MATERIALS:
https://www.investopedia.com/articles/professionaleducation/11/accounting-information-systems.asp
https://www.xenonstack.com/insights/data-modelling#:~:text=Data%20Modelling%20is%20the%20process,be
%20stored%20in%20a%20database.
https://www.w3schools.com/sql/default.asp
Supplemental Materials: