Accounting Information Systems: A Business Process Approach Chapter One: Introduction to Accounting Information Systems

Learning Objective After completing this chapter, you should understand: The scope of accounting information system (AIS) The ways in which an AIS is used Accounting applications and software Various roles for accountants as they relate to an AIS

Exhibits: 1.1, 1.2, 1.3, 1.4, Figures: 1.1

Business Processes and Accounting Information Systems is a sequence of activity performed by a business for acquiring, producing, and selling goods and services Transaction Cycles group related events that typically occur in a particular sequence. Events are activities that happen at a particular point in time. (2) Information Systems - Management Information System (MIS) - Accounting Information System (AIS)

Accounting Information System The Scope of an AIS The Use of Information Provided by an AIS The Nature of Accounting Software The Accountant’s role as it relates to an AIS

Scope of An AIS See Figure 1.1

Uses of AIS Producing External Reports Supporting Routine Activities Decision Support Planning and Control Implementing Internal Control

Accounting Applications and Software Applications are computer programs that are used to serve particular purposes Interaction between an AIS and a user consists primarily: (1) recording events, often using on screen forms (2) entering information about suppliers, customer, employees and products (3) printing documents, such as purchase orders and sales invoices (4) printing reports, such as financial statements and sales analysis (5) conducting ad hoc inquiries

Types of Accounting Applications Off the shelf accounting packages Applications develop using database management system software (DBMS)

Role of Accountants in Relation to AIS Accountant as User Accountant as Manager Accountant as Consultant Accountant as Evaluator - Internal Auditors - External Auditors - Other Evaluative Roles Accountant as Provider of Accounting and Tax Services