Objectives
Learn how the AIS relates to Accounting Principals
Understand why accountants should study accounting information systems (AIS)
Define the nature of an accounting information system
Understand relevant key terms and concepts
» System & subsystem
» Information quality and information requirements
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Some of the things you have learned in Accounting Principles
Accounting measures business activities, processes information, and communicates financial information.
Useful information must be relevant, valid and reliable
Horngren, C.T., Harrison, W.T., Bamber, L.,Best, P.J., Frazer, D.J. and Willett, R. (2013). Taken from Accounting (7th Edition), Frenchs Forest, NSW: Pearson Education Australia.
Taken from Lecture 1, Semester 2, 2013 (GC)
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Why Study AIS?
Information technology (IT) is dynamic and pervasive.
Competence is an imperative for the professional accountant. AIS is a required, core knowledge area for professional membership (e.g., CPA Australia).
Fraud risk
Controls
Spreadsheets
Accounting Software
Design of AIS
Database
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Management
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Jobs 1
e.g. SAP
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Jobs 2
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New Opportunities for Accountants
Traditional challenges
Information creation & provision
Creation of information to enhance management decision-making
Meet information needs
Provide advice to management
New challenges
IS design
Ensure that Accounting aspects are adequately addressed. IS user
Accountants use an IS in several roles such as controller, treasurer, financial analyst, cost accountant.
IS auditor
Assessments of IS and the internal controls (e.g., security, information integrity).
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Make AIS a key skill you acquire in your
Commerce studies!
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Accounting and AIS
EXTERNAL
Financial Accounting
Accounting Information
Systems
INTERNAL
Management
Accounting
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An Accounting Information System (Accounting Principles)
Transactions
Journals
Sales
Sales journal
Cash receipts
Cash receipts journal Debtors ledger
Purchases
Purchases journal General ledger
Cash payments
Cash payments journal
Creditors ledger
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Ledgers
Reports
Debtors listing
Creditors listing
Trial balance
Financial
statements
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A Computerised Accounting Information System
Transactions
Input
Sales
Sales
Cash receipts
Cash receipts
Purchases
Purchases
Cash payments
Cash payments Offline Process
Manual keying
Flowchart Symbols
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Storage
Output
Debtors ledger
General ledger
Debtors listing
Creditors listing
Creditors ledger
Trial balance
Financial
statements
Disk
Document
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(Management) Information System (MIS or IS)
is a manmade system
consists of an integrated set of computer-based and manual components
is established to collect, store, and manage data and to provide output information to users
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Characteristics of an
Information systems
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Transforming Data into Information
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Data vs. Information
Data
» facts that are collected, recorded, stored and processed.
» insufficient for decision making
Information
» is processed data used in decision making.
However, too much information can cause information overload
