This document introduces the key topics of accounting information systems. It discusses business processes which involve acquiring, producing, and selling goods and services through transaction cycles. It also defines information systems as capturing organizational data, storing it, and providing meaningful information to management. Finally, it introduces accounting information systems as a subset of MIS that provides accounting and financial information obtained from processing accounting transactions.

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