It would be useful for PG & Management students

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, a
nd 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