Chapter 1 INTRODUCTION TO ACCOUNTING INFORMATION SYSTEMS

Central Themes of This Text Business processes Information systems

Business Processes A sequence of activities: for acquiring goods and services for producing goods and services for selling goods and services

Business Processes Models of business processes viewed in terms of transaction cycles. Each transaction cycle involves several events.

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.

Typical Business Processes Production Sales

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.

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

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.

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

Uses of Accounting Information Systems Producing external reports Supporting routine activities Decision support Planning and control Implementing internal control

Role of Accountants in Relation to AIS User Manager Consultant Evaluator Provider of accounting and tax services

Keyterms Accounting information system (AIS) Applications Assurance services Business process Enterprise resource planning system (ERP)

Keyterms Events Internal control Management information system (MIS) Off-the-shelf software Transaction cycles