SlideShare a Scribd company logo
Accounting Information
Systems
“Inaccurate accounting records
  often contribute to business
failures. Failure to understand
   accounting information can
    result to poor business
    decision.”            -
         G.V.Lising Jr.
 Information
 System
Information
 Non-quantitative Information
 Quantitative Information
  Non-accounting Information
  Accounting Information
    Operating Information
    Financial Accounting
    Management Accounting
    Tax Accounting
The need for information

 quantitative – is information
  that is expressed in numbers
 non quantitative – samples
  are visual impressions,
  conversations, television
  progs etc
 accounting is primarily
  concerned with
  QUANTITATIVE INFO
Accounting is one of the several types of
  quantitative information

Four categories of information
 operating information
 financial accounting information
 management accounting information
 tax accounting information
INFORMATION




Non-quantitative information                              Quantitative information




                                                Accounting                       Non accounting
                                                information                       information




       Operating               Financial accounting           Management               Tax accounting
      information                                              accounting
 OPERATING INFORMATION constitutes by far
  the largest quantity of accounting information.

 FINANCIAL ACCOUNTING INFORMATION is
  intended for both managers and also for the use
  of parties external to the organization, including
  shareholders (and trustees) in profit
  organizations), banks, and other creditors,
  government agencies, investment advisers, and
  the general public.
MANAGEMENT ACCOUNTING INFORMATION
  – accounting information specifically
  prepared to aid managers. This information is
  used in three management functions
 planning
 implementation
 control
PLANNING actions should be taken care in the future.
is the process of deciding what

   An important form of planning is BUDGETING – the process of planning overall
    activities of the organization for a specified period of time, usually a year. A
    primary objective of budgeting is to coordinate the separate plans made for
    various segments of the organization so as to ensure that these plans harmonize
    with each other




Planning involves making DECISIONS
 recognizing the problem
 specifying and ranking the criteria to be used to determine the best solutions
 identifying alternative ways of addressing the problem or opportunity
 analyzing the consequences of each alternative
 comparing these cosequences
 IMPLEMENTATION – making plans does not
  itself ensure that managers will implement
  the plans. Each manager also must make
  more detailed implementation plans to
  encompassed in the budget

 CONTROL – manage / perform properly
Accounting information is used in the control
  process

 as means of communication
 motivation
 attention getting
 appraisal
System

 Set of detailed methods, procedures, and
  routines established or formulated to carry
  out a specific activity, perform a duty, or solve
  a problem. –BusinessDictionary.com
Elements of System

 Inputs and outputs
 Processor
 Control
 Environment
 Feedback
 Boundaries/interface
Planning              Implementation               Control


                             Appropriate action

                                                  Feedback


      Plan revision
Objectives

 To appreciate the complex, dynamic environment in which
    accounting is practiced.
   To know the AIS, its relationship to the organizations business
    processes
   To know the attributes of information
   To recognize how information is used for different types of
    decisions and at various levels in the organization
   To recognize how the information system supports the
    management function
   To recognize the accountant’s role in relation to the current
    environment for AIS
Key Terms

 System
 Subsystem
 Information system (IS)
 Management information system (MIS)
 Accounting information system (AIS)
 Operations Process
 Management process
Key Terms

 Information
 Data
 Understandability
 Relevance
 Timeliness
 Predictive value
 Feedback value
Key Terms

 Verifiability
 Neutrality
 Freedom from bias
 Comparability
 Consistent
 Validity
 Accuracy
 Completeness
Key Terms

 Decision making
 Structured decisions
 Unstructured decisions
 Enterprise database
 Effectiveness
 Efficiency
Key Terms

 Confidentiality
 Integrity
 Availability
 Compliance
 Reliability of information
Elements in the Study of AIS




Dull, Gelinas and Wheeler, Accounting Information System 2nd Edition, Page 31
Sarbanes-Oxley Act of 2002
Section 404 –
 Management must identify, document, and evaluate
  significant internal controls
 Auditors must report on management’s assertions
  regarding internal controls
Section 409 –
 Requires disclosure to the public on a
  “rapid and current” basis of material changes in an
  organization’s financial condition.

     Implications for both public and private accountants

                                                            23
Accounting Systems and
Subsystems
 A system is a set of interdependent elements
  that together accomplish specific objectives.
 A subsystem is the interrelated parts that
  have come together, or integrated, as a single
  system.




                                                   24
Information System Model

 An information system (IS) (or management
  information system [MIS]) is a manmade system
  that generally consists of an integrated set of
  computer-based and manual components
  established to collect, store, and manage data and
  to provide output information to users.




                                                       25
Information System Model




                           26
Purpose of AIS

 Collect, process and report information
  related to the financial aspects of business
  events
 Often integrated and indistinguishable from
  overall information system
 Like the IS, the AIS may be divided into
  components based on the operational
  functions supported.


                                                 27
Management Decision Making

1. Intelligence: Searching the environment for
   conditions calling for a decision.
2. Design: Inventing, developing, and analyzing
   possible courses of action.
3. Choice: Selecting a course of action.




                                                  28
Management Decision Making




                             29
Strategic
        Management
         Tactical
       Management

       Operations
      Management

      Operations and
  Transaction Processing

Horizontal information flows

                               30
Accountant’s Role

 Designer—application of accounting
  principles, auditing, information systems, and
  systems development
 User—participate in design
 Auditor—provide audit and assurance
  services




                                                   31
2012 Top Technology Priorities

 http://www.aicpa.org/INTERESTAREAS/INFOR
  MATIONTECHNOLOGY/RESOURCES/TOPTEC
  HNOLOGYINITIATIVES/Pages/2012TTI.aspx
2012 Top Technology Priorities
1. Securing the IT environment
2. Managing and retaining data
3. Managing risk and compliance
4. Ensuring privacy
5. Leveraging emerging technologies
6. Managing system implementation
7. Enabling decision support and managing
    performance
8. Governing and managing IT investment/spending
9. Preventing and responding to fraud
10. Managing vendors and service providers
YOU

 Catalyst of change and improvement
 Enabler
 Decision maker
Acknowledgement and Sources:
   Fundamentals of Accounting by Agamata & Berbano
   Accounting: Text and Cases by Robert N. Anthony
   Accounting Principles by Kieso and Weygant
   Basic Accounting by G.V.Lising Jr
   BDO International
   Deloitte (www.iasplus.com)
   Wikipedia (http://en.wikipedia.org)
   BusinessDictionary.com

Thank you!

More Related Content

What's hot

Financial Information Systems
Financial Information SystemsFinancial Information Systems
Financial Information Systemscatch_ashutosh
 
Accounting information system (AIS)
Accounting information system (AIS)Accounting information system (AIS)
Accounting information system (AIS)Muhammad Nasir
 
Accounting information system
Accounting information systemAccounting information system
Accounting information systemNowMaster Academy
 
Chapter 1 - The Information System: An Accountant's Perspective
Chapter 1 - The Information System: An Accountant's PerspectiveChapter 1 - The Information System: An Accountant's Perspective
Chapter 1 - The Information System: An Accountant's Perspectiveermin08
 
Ais in banking sector
Ais in banking sectorAis in banking sector
Ais in banking sectorMoez Ansary
 
Introduction to accounting information systems
Introduction to accounting information systemsIntroduction to accounting information systems
Introduction to accounting information systemsEmme Angelique Gametes
 
Lecture 5 the information system a general model of ais:update version
Lecture 5  the information system   a general model of ais:update versionLecture 5  the information system   a general model of ais:update version
Lecture 5 the information system a general model of ais:update versionHabib Ullah Qamar
 
Accounting Information system
Accounting Information systemAccounting Information system
Accounting Information systemanishpr15
 
Ais Romney 2006 Slides 06 Control And Ais Part 1
Ais Romney 2006 Slides 06 Control And Ais Part 1Ais Romney 2006 Slides 06 Control And Ais Part 1
Ais Romney 2006 Slides 06 Control And Ais Part 1Sharing Slides Training
 
Lecture 3 the information system by an accountant's prospective-2 ais an ove...
Lecture 3  the information system by an accountant's prospective-2 ais an ove...Lecture 3  the information system by an accountant's prospective-2 ais an ove...
Lecture 3 the information system by an accountant's prospective-2 ais an ove...Habib Ullah Qamar
 
Accounting information sysytem @ DOMS
Accounting information sysytem @ DOMS Accounting information sysytem @ DOMS
Accounting information sysytem @ DOMS Babasab Patil
 
Analytics & mis in finance
Analytics & mis in financeAnalytics & mis in finance
Analytics & mis in financeManish Gupta
 
Financial Information systems (fis) ppt
Financial Information systems (fis) pptFinancial Information systems (fis) ppt
Financial Information systems (fis) pptDavid Jaison
 
Financial information system
Financial information systemFinancial information system
Financial information systemUjjwal 'Shanu'
 
functional application of mis
functional application of misfunctional application of mis
functional application of misaman sharma
 

What's hot (20)

Ais
AisAis
Ais
 
Financial Information Systems
Financial Information SystemsFinancial Information Systems
Financial Information Systems
 
Accounting information system (AIS)
Accounting information system (AIS)Accounting information system (AIS)
Accounting information system (AIS)
 
Accounting information system
Accounting information systemAccounting information system
Accounting information system
 
Chapter 1 - The Information System: An Accountant's Perspective
Chapter 1 - The Information System: An Accountant's PerspectiveChapter 1 - The Information System: An Accountant's Perspective
Chapter 1 - The Information System: An Accountant's Perspective
 
Ais Romney 2006 Slides 01 Overview
Ais Romney 2006 Slides 01 OverviewAis Romney 2006 Slides 01 Overview
Ais Romney 2006 Slides 01 Overview
 
Ais in banking sector
Ais in banking sectorAis in banking sector
Ais in banking sector
 
Introduction to accounting information systems
Introduction to accounting information systemsIntroduction to accounting information systems
Introduction to accounting information systems
 
Ais presentation
Ais presentationAis presentation
Ais presentation
 
Lecture 5 the information system a general model of ais:update version
Lecture 5  the information system   a general model of ais:update versionLecture 5  the information system   a general model of ais:update version
Lecture 5 the information system a general model of ais:update version
 
Accounting Information system
Accounting Information systemAccounting Information system
Accounting Information system
 
James hall ch 1
James hall ch 1James hall ch 1
James hall ch 1
 
Ais Romney 2006 Slides 06 Control And Ais Part 1
Ais Romney 2006 Slides 06 Control And Ais Part 1Ais Romney 2006 Slides 06 Control And Ais Part 1
Ais Romney 2006 Slides 06 Control And Ais Part 1
 
Ch02
Ch02Ch02
Ch02
 
Lecture 3 the information system by an accountant's prospective-2 ais an ove...
Lecture 3  the information system by an accountant's prospective-2 ais an ove...Lecture 3  the information system by an accountant's prospective-2 ais an ove...
Lecture 3 the information system by an accountant's prospective-2 ais an ove...
 
Accounting information sysytem @ DOMS
Accounting information sysytem @ DOMS Accounting information sysytem @ DOMS
Accounting information sysytem @ DOMS
 
Analytics & mis in finance
Analytics & mis in financeAnalytics & mis in finance
Analytics & mis in finance
 
Financial Information systems (fis) ppt
Financial Information systems (fis) pptFinancial Information systems (fis) ppt
Financial Information systems (fis) ppt
 
Financial information system
Financial information systemFinancial information system
Financial information system
 
functional application of mis
functional application of misfunctional application of mis
functional application of mis
 

Viewers also liked

CIS Audit Lecture # 1
CIS Audit Lecture # 1CIS Audit Lecture # 1
CIS Audit Lecture # 1Cheng Olayvar
 
Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6Sharah Ayumi
 
Metodology Risk Assessment ISMS
Metodology Risk Assessment ISMSMetodology Risk Assessment ISMS
Metodology Risk Assessment ISMSblodotaji
 
Iso27001 Audit Services
Iso27001   Audit ServicesIso27001   Audit Services
Iso27001 Audit Servicestschraider
 
Audit in computerised informaton system environment and recent development i...
Audit in computerised  informaton system environment and recent development i...Audit in computerised  informaton system environment and recent development i...
Audit in computerised informaton system environment and recent development i...Dr. Sanjay Sawant Dessai
 
Why ISO-27001 is a better choice?
Why ISO-27001 is a better choice? Why ISO-27001 is a better choice?
Why ISO-27001 is a better choice? Patten John
 
Rothke Patchlink
Rothke    PatchlinkRothke    Patchlink
Rothke PatchlinkBen Rothke
 
Iso27001 Approach
Iso27001   ApproachIso27001   Approach
Iso27001 Approachtschraider
 
IS Audit and Internal Controls
IS Audit and Internal ControlsIS Audit and Internal Controls
IS Audit and Internal ControlsBharath Rao
 
Social Engineering Audit & Security Awareness
Social Engineering Audit & Security AwarenessSocial Engineering Audit & Security Awareness
Social Engineering Audit & Security AwarenessCBIZ, Inc.
 
Securing your presence at the perimeter
Securing your presence at the perimeterSecuring your presence at the perimeter
Securing your presence at the perimeterBen Rothke
 
Security and Audit Report Sign-Off—Made Easy
Security and Audit Report Sign-Off—Made EasySecurity and Audit Report Sign-Off—Made Easy
Security and Audit Report Sign-Off—Made EasyHelpSystems
 
Security Audit Best-Practices
Security Audit Best-PracticesSecurity Audit Best-Practices
Security Audit Best-PracticesMarco Raposo
 
Information System Architecture and Audit Control Lecture 1
Information System Architecture and Audit Control Lecture 1Information System Architecture and Audit Control Lecture 1
Information System Architecture and Audit Control Lecture 1Yasir Khan
 
Audit of it infrastructure
Audit of it infrastructureAudit of it infrastructure
Audit of it infrastructurepramod_kmr73
 
Security and Audit for Big Data
Security and Audit for Big DataSecurity and Audit for Big Data
Security and Audit for Big DataNicolas Morales
 

Viewers also liked (20)

CIS Audit Lecture # 1
CIS Audit Lecture # 1CIS Audit Lecture # 1
CIS Audit Lecture # 1
 
Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6
 
CISSPills #3.02
CISSPills #3.02CISSPills #3.02
CISSPills #3.02
 
Metodology Risk Assessment ISMS
Metodology Risk Assessment ISMSMetodology Risk Assessment ISMS
Metodology Risk Assessment ISMS
 
Iso27001 Audit Services
Iso27001   Audit ServicesIso27001   Audit Services
Iso27001 Audit Services
 
Audit in computerised informaton system environment and recent development i...
Audit in computerised  informaton system environment and recent development i...Audit in computerised  informaton system environment and recent development i...
Audit in computerised informaton system environment and recent development i...
 
Why ISO-27001 is a better choice?
Why ISO-27001 is a better choice? Why ISO-27001 is a better choice?
Why ISO-27001 is a better choice?
 
Rothke Patchlink
Rothke    PatchlinkRothke    Patchlink
Rothke Patchlink
 
Iso27001 Approach
Iso27001   ApproachIso27001   Approach
Iso27001 Approach
 
IS Audit and Internal Controls
IS Audit and Internal ControlsIS Audit and Internal Controls
IS Audit and Internal Controls
 
Social Engineering Audit & Security Awareness
Social Engineering Audit & Security AwarenessSocial Engineering Audit & Security Awareness
Social Engineering Audit & Security Awareness
 
Securing your presence at the perimeter
Securing your presence at the perimeterSecuring your presence at the perimeter
Securing your presence at the perimeter
 
Security and Audit Report Sign-Off—Made Easy
Security and Audit Report Sign-Off—Made EasySecurity and Audit Report Sign-Off—Made Easy
Security and Audit Report Sign-Off—Made Easy
 
ISCA-CA Final
ISCA-CA FinalISCA-CA Final
ISCA-CA Final
 
Security Audit Best-Practices
Security Audit Best-PracticesSecurity Audit Best-Practices
Security Audit Best-Practices
 
Information System Architecture and Audit Control Lecture 1
Information System Architecture and Audit Control Lecture 1Information System Architecture and Audit Control Lecture 1
Information System Architecture and Audit Control Lecture 1
 
5.4 it security audit (mauritius)
5.4  it security audit (mauritius)5.4  it security audit (mauritius)
5.4 it security audit (mauritius)
 
Audit of it infrastructure
Audit of it infrastructureAudit of it infrastructure
Audit of it infrastructure
 
Infosec Audit Lecture_4
Infosec Audit Lecture_4Infosec Audit Lecture_4
Infosec Audit Lecture_4
 
Security and Audit for Big Data
Security and Audit for Big DataSecurity and Audit for Big Data
Security and Audit for Big Data
 

Similar to AIS Lecture 1

Similar to AIS Lecture 1 (20)

Info System
Info SystemInfo System
Info System
 
CHAPTER 1 AIS.pdf
CHAPTER 1 AIS.pdfCHAPTER 1 AIS.pdf
CHAPTER 1 AIS.pdf
 
The Study of Accounting Information Systems: Essential Concepts and Applications
The Study of Accounting Information Systems: Essential Concepts and ApplicationsThe Study of Accounting Information Systems: Essential Concepts and Applications
The Study of Accounting Information Systems: Essential Concepts and Applications
 
Accounting information sysytem @ doms
Accounting information sysytem @ domsAccounting information sysytem @ doms
Accounting information sysytem @ doms
 
_Accounting information system_3.pdf
_Accounting information system_3.pdf_Accounting information system_3.pdf
_Accounting information system_3.pdf
 
MA-26-AIS-Notes.ppt
MA-26-AIS-Notes.pptMA-26-AIS-Notes.ppt
MA-26-AIS-Notes.ppt
 
ch01.ppt
ch01.pptch01.ppt
ch01.ppt
 
AIS-CHAPTER-1.ppt
AIS-CHAPTER-1.pptAIS-CHAPTER-1.ppt
AIS-CHAPTER-1.ppt
 
AIS-CHAPTER-1.ppt
AIS-CHAPTER-1.pptAIS-CHAPTER-1.ppt
AIS-CHAPTER-1.ppt
 
accounting_information_system[1].pptx
accounting_information_system[1].pptxaccounting_information_system[1].pptx
accounting_information_system[1].pptx
 
Management Information System
Management Information SystemManagement Information System
Management Information System
 
Bab1
Bab1Bab1
Bab1
 
Management information system kirti rana
Management information system kirti ranaManagement information system kirti rana
Management information system kirti rana
 
MIS Wk-9.ppt
MIS Wk-9.pptMIS Wk-9.ppt
MIS Wk-9.ppt
 
Accounting Information System (AIS)
Accounting Information System (AIS)Accounting Information System (AIS)
Accounting Information System (AIS)
 
Management information system presentation
Management information system presentationManagement information system presentation
Management information system presentation
 
Introduction to Accounting System
Introduction to Accounting SystemIntroduction to Accounting System
Introduction to Accounting System
 
Mis
MisMis
Mis
 
Ch 1 notes the is an accountants perspective
Ch 1 notes the is an accountants perspectiveCh 1 notes the is an accountants perspective
Ch 1 notes the is an accountants perspective
 
management information system
management information systemmanagement information system
management information system
 

More from Cheng Olayvar

Information system and security control
Information system and security controlInformation system and security control
Information system and security controlCheng Olayvar
 
Accounting Information System
Accounting Information SystemAccounting Information System
Accounting Information SystemCheng Olayvar
 
Cash Flow Statement - Finac 4
Cash Flow Statement - Finac 4Cash Flow Statement - Finac 4
Cash Flow Statement - Finac 4Cheng Olayvar
 
Production Management - ABC Inventory
Production Management - ABC InventoryProduction Management - ABC Inventory
Production Management - ABC InventoryCheng Olayvar
 

More from Cheng Olayvar (10)

Cost of Capital
Cost of Capital Cost of Capital
Cost of Capital
 
Sophos a-to-z
Sophos a-to-z Sophos a-to-z
Sophos a-to-z
 
Information system and security control
Information system and security controlInformation system and security control
Information system and security control
 
AIS Implementation
AIS ImplementationAIS Implementation
AIS Implementation
 
Bsa 1286
Bsa 1286Bsa 1286
Bsa 1286
 
Microsoft Project
Microsoft ProjectMicrosoft Project
Microsoft Project
 
Accounting Information System
Accounting Information SystemAccounting Information System
Accounting Information System
 
Info System 2
Info System 2Info System 2
Info System 2
 
Cash Flow Statement - Finac 4
Cash Flow Statement - Finac 4Cash Flow Statement - Finac 4
Cash Flow Statement - Finac 4
 
Production Management - ABC Inventory
Production Management - ABC InventoryProduction Management - ABC Inventory
Production Management - ABC Inventory
 

Recently uploaded

Enterprise Excellence is Inclusive Excellence.pdf
Enterprise Excellence is Inclusive Excellence.pdfEnterprise Excellence is Inclusive Excellence.pdf
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
 
April 2024 Nostalgia Products Newsletter
April 2024 Nostalgia Products NewsletterApril 2024 Nostalgia Products Newsletter
April 2024 Nostalgia Products NewsletterNathanBaughman3
 
Business Valuation Principles for Entrepreneurs
Business Valuation Principles for EntrepreneursBusiness Valuation Principles for Entrepreneurs
Business Valuation Principles for EntrepreneursBen Wann
 
Skye Residences | Extended Stay Residences Near Toronto Airport
Skye Residences | Extended Stay Residences Near Toronto AirportSkye Residences | Extended Stay Residences Near Toronto Airport
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
 
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBdCree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBdcreerey
 
IPTV Subscription UK: Your Guide to Choosing the Best Service
IPTV Subscription UK: Your Guide to Choosing the Best ServiceIPTV Subscription UK: Your Guide to Choosing the Best Service
IPTV Subscription UK: Your Guide to Choosing the Best ServiceDragon Dream Bar
 
IPTV Subscription in Ireland: Elevating Your Entertainment Experience
IPTV Subscription in Ireland: Elevating Your Entertainment ExperienceIPTV Subscription in Ireland: Elevating Your Entertainment Experience
IPTV Subscription in Ireland: Elevating Your Entertainment ExperienceDragon Dream Bar
 
Putting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxPutting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxCynthia Clay
 
Filing Your Delaware Franchise Tax A Detailed Guide
Filing Your Delaware Franchise Tax A Detailed GuideFiling Your Delaware Franchise Tax A Detailed Guide
Filing Your Delaware Franchise Tax A Detailed GuideYourLegal Accounting
 
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...Accpac to QuickBooks Conversion Navigating the Transition with Online Account...
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
 
Maximizing Efficiency Migrating AccountEdge Data to QuickBooks.pdf
Maximizing Efficiency Migrating AccountEdge Data to QuickBooks.pdfMaximizing Efficiency Migrating AccountEdge Data to QuickBooks.pdf
Maximizing Efficiency Migrating AccountEdge Data to QuickBooks.pdfPaulBryant58
 
Pitch Deck Teardown: RAW Dating App's $3M Angel deck
Pitch Deck Teardown: RAW Dating App's $3M Angel deckPitch Deck Teardown: RAW Dating App's $3M Angel deck
Pitch Deck Teardown: RAW Dating App's $3M Angel deckHajeJanKamps
 
Memorandum Of Association Constitution of Company.ppt
Memorandum Of Association Constitution of Company.pptMemorandum Of Association Constitution of Company.ppt
Memorandum Of Association Constitution of Company.pptseri bangash
 
sales plan presentation by mckinsey alum
sales plan presentation by mckinsey alumsales plan presentation by mckinsey alum
sales plan presentation by mckinsey alumzyqmx62fgm
 
Digital Transformation in PLM - WHAT and HOW - for distribution.pdf
Digital Transformation in PLM - WHAT and HOW - for distribution.pdfDigital Transformation in PLM - WHAT and HOW - for distribution.pdf
Digital Transformation in PLM - WHAT and HOW - for distribution.pdfJos Voskuil
 
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
 
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
 
NewBase 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compresse...
NewBase   24 May  2024  Energy News issue - 1727 by Khaled Al Awadi_compresse...NewBase   24 May  2024  Energy News issue - 1727 by Khaled Al Awadi_compresse...
NewBase 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compresse...Khaled Al Awadi
 
chapter 10 - excise tax of transfer and business taxation
chapter 10 - excise tax of transfer and business taxationchapter 10 - excise tax of transfer and business taxation
chapter 10 - excise tax of transfer and business taxationAUDIJEAngelo
 

Recently uploaded (20)

Enterprise Excellence is Inclusive Excellence.pdf
Enterprise Excellence is Inclusive Excellence.pdfEnterprise Excellence is Inclusive Excellence.pdf
Enterprise Excellence is Inclusive Excellence.pdf
 
April 2024 Nostalgia Products Newsletter
April 2024 Nostalgia Products NewsletterApril 2024 Nostalgia Products Newsletter
April 2024 Nostalgia Products Newsletter
 
Business Valuation Principles for Entrepreneurs
Business Valuation Principles for EntrepreneursBusiness Valuation Principles for Entrepreneurs
Business Valuation Principles for Entrepreneurs
 
Skye Residences | Extended Stay Residences Near Toronto Airport
Skye Residences | Extended Stay Residences Near Toronto AirportSkye Residences | Extended Stay Residences Near Toronto Airport
Skye Residences | Extended Stay Residences Near Toronto Airport
 
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBdCree_Rey_BrandIdentityKit.PDF_PersonalBd
Cree_Rey_BrandIdentityKit.PDF_PersonalBd
 
IPTV Subscription UK: Your Guide to Choosing the Best Service
IPTV Subscription UK: Your Guide to Choosing the Best ServiceIPTV Subscription UK: Your Guide to Choosing the Best Service
IPTV Subscription UK: Your Guide to Choosing the Best Service
 
Sustainability: Balancing the Environment, Equity & Economy
Sustainability: Balancing the Environment, Equity & EconomySustainability: Balancing the Environment, Equity & Economy
Sustainability: Balancing the Environment, Equity & Economy
 
IPTV Subscription in Ireland: Elevating Your Entertainment Experience
IPTV Subscription in Ireland: Elevating Your Entertainment ExperienceIPTV Subscription in Ireland: Elevating Your Entertainment Experience
IPTV Subscription in Ireland: Elevating Your Entertainment Experience
 
Putting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxPutting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptx
 
Filing Your Delaware Franchise Tax A Detailed Guide
Filing Your Delaware Franchise Tax A Detailed GuideFiling Your Delaware Franchise Tax A Detailed Guide
Filing Your Delaware Franchise Tax A Detailed Guide
 
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...Accpac to QuickBooks Conversion Navigating the Transition with Online Account...
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...
 
Maximizing Efficiency Migrating AccountEdge Data to QuickBooks.pdf
Maximizing Efficiency Migrating AccountEdge Data to QuickBooks.pdfMaximizing Efficiency Migrating AccountEdge Data to QuickBooks.pdf
Maximizing Efficiency Migrating AccountEdge Data to QuickBooks.pdf
 
Pitch Deck Teardown: RAW Dating App's $3M Angel deck
Pitch Deck Teardown: RAW Dating App's $3M Angel deckPitch Deck Teardown: RAW Dating App's $3M Angel deck
Pitch Deck Teardown: RAW Dating App's $3M Angel deck
 
Memorandum Of Association Constitution of Company.ppt
Memorandum Of Association Constitution of Company.pptMemorandum Of Association Constitution of Company.ppt
Memorandum Of Association Constitution of Company.ppt
 
sales plan presentation by mckinsey alum
sales plan presentation by mckinsey alumsales plan presentation by mckinsey alum
sales plan presentation by mckinsey alum
 
Digital Transformation in PLM - WHAT and HOW - for distribution.pdf
Digital Transformation in PLM - WHAT and HOW - for distribution.pdfDigital Transformation in PLM - WHAT and HOW - for distribution.pdf
Digital Transformation in PLM - WHAT and HOW - for distribution.pdf
 
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...
 
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...
 
NewBase 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compresse...
NewBase   24 May  2024  Energy News issue - 1727 by Khaled Al Awadi_compresse...NewBase   24 May  2024  Energy News issue - 1727 by Khaled Al Awadi_compresse...
NewBase 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compresse...
 
chapter 10 - excise tax of transfer and business taxation
chapter 10 - excise tax of transfer and business taxationchapter 10 - excise tax of transfer and business taxation
chapter 10 - excise tax of transfer and business taxation
 

AIS Lecture 1

  • 2. “Inaccurate accounting records often contribute to business failures. Failure to understand accounting information can result to poor business decision.” - G.V.Lising Jr.
  • 4. Information  Non-quantitative Information  Quantitative Information  Non-accounting Information  Accounting Information  Operating Information  Financial Accounting  Management Accounting  Tax Accounting
  • 5. The need for information  quantitative – is information that is expressed in numbers  non quantitative – samples are visual impressions, conversations, television progs etc  accounting is primarily concerned with QUANTITATIVE INFO
  • 6. Accounting is one of the several types of quantitative information Four categories of information  operating information  financial accounting information  management accounting information  tax accounting information
  • 7. INFORMATION Non-quantitative information Quantitative information Accounting Non accounting information information Operating Financial accounting Management Tax accounting information accounting
  • 8.  OPERATING INFORMATION constitutes by far the largest quantity of accounting information.  FINANCIAL ACCOUNTING INFORMATION is intended for both managers and also for the use of parties external to the organization, including shareholders (and trustees) in profit organizations), banks, and other creditors, government agencies, investment advisers, and the general public.
  • 9. MANAGEMENT ACCOUNTING INFORMATION – accounting information specifically prepared to aid managers. This information is used in three management functions  planning  implementation  control
  • 10. PLANNING actions should be taken care in the future. is the process of deciding what  An important form of planning is BUDGETING – the process of planning overall activities of the organization for a specified period of time, usually a year. A primary objective of budgeting is to coordinate the separate plans made for various segments of the organization so as to ensure that these plans harmonize with each other Planning involves making DECISIONS  recognizing the problem  specifying and ranking the criteria to be used to determine the best solutions  identifying alternative ways of addressing the problem or opportunity  analyzing the consequences of each alternative  comparing these cosequences
  • 11.  IMPLEMENTATION – making plans does not itself ensure that managers will implement the plans. Each manager also must make more detailed implementation plans to encompassed in the budget  CONTROL – manage / perform properly
  • 12. Accounting information is used in the control process  as means of communication  motivation  attention getting  appraisal
  • 13. System  Set of detailed methods, procedures, and routines established or formulated to carry out a specific activity, perform a duty, or solve a problem. –BusinessDictionary.com
  • 14. Elements of System  Inputs and outputs  Processor  Control  Environment  Feedback  Boundaries/interface
  • 15. Planning Implementation Control Appropriate action Feedback Plan revision
  • 16. Objectives  To appreciate the complex, dynamic environment in which accounting is practiced.  To know the AIS, its relationship to the organizations business processes  To know the attributes of information  To recognize how information is used for different types of decisions and at various levels in the organization  To recognize how the information system supports the management function  To recognize the accountant’s role in relation to the current environment for AIS
  • 17. Key Terms  System  Subsystem  Information system (IS)  Management information system (MIS)  Accounting information system (AIS)  Operations Process  Management process
  • 18. Key Terms  Information  Data  Understandability  Relevance  Timeliness  Predictive value  Feedback value
  • 19. Key Terms  Verifiability  Neutrality  Freedom from bias  Comparability  Consistent  Validity  Accuracy  Completeness
  • 20. Key Terms  Decision making  Structured decisions  Unstructured decisions  Enterprise database  Effectiveness  Efficiency
  • 21. Key Terms  Confidentiality  Integrity  Availability  Compliance  Reliability of information
  • 22. Elements in the Study of AIS Dull, Gelinas and Wheeler, Accounting Information System 2nd Edition, Page 31
  • 23. Sarbanes-Oxley Act of 2002 Section 404 –  Management must identify, document, and evaluate significant internal controls  Auditors must report on management’s assertions regarding internal controls Section 409 –  Requires disclosure to the public on a “rapid and current” basis of material changes in an organization’s financial condition. Implications for both public and private accountants 23
  • 24. Accounting Systems and Subsystems  A system is a set of interdependent elements that together accomplish specific objectives.  A subsystem is the interrelated parts that have come together, or integrated, as a single system. 24
  • 25. Information System Model  An information system (IS) (or management information system [MIS]) is a manmade system that generally consists of an integrated set of computer-based and manual components established to collect, store, and manage data and to provide output information to users. 25
  • 27. Purpose of AIS  Collect, process and report information related to the financial aspects of business events  Often integrated and indistinguishable from overall information system  Like the IS, the AIS may be divided into components based on the operational functions supported. 27
  • 28. Management Decision Making 1. Intelligence: Searching the environment for conditions calling for a decision. 2. Design: Inventing, developing, and analyzing possible courses of action. 3. Choice: Selecting a course of action. 28
  • 30. Strategic Management Tactical Management Operations Management Operations and Transaction Processing Horizontal information flows 30
  • 31. Accountant’s Role  Designer—application of accounting principles, auditing, information systems, and systems development  User—participate in design  Auditor—provide audit and assurance services 31
  • 32. 2012 Top Technology Priorities  http://www.aicpa.org/INTERESTAREAS/INFOR MATIONTECHNOLOGY/RESOURCES/TOPTEC HNOLOGYINITIATIVES/Pages/2012TTI.aspx
  • 33. 2012 Top Technology Priorities 1. Securing the IT environment 2. Managing and retaining data 3. Managing risk and compliance 4. Ensuring privacy 5. Leveraging emerging technologies 6. Managing system implementation 7. Enabling decision support and managing performance 8. Governing and managing IT investment/spending 9. Preventing and responding to fraud 10. Managing vendors and service providers
  • 34. YOU  Catalyst of change and improvement  Enabler  Decision maker
  • 35. Acknowledgement and Sources:  Fundamentals of Accounting by Agamata & Berbano  Accounting: Text and Cases by Robert N. Anthony  Accounting Principles by Kieso and Weygant  Basic Accounting by G.V.Lising Jr  BDO International  Deloitte (www.iasplus.com)  Wikipedia (http://en.wikipedia.org)  BusinessDictionary.com Thank you!

Editor's Notes

  1. Pages 2-6