© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart1 of 43 It’s fundamental to accounting. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? Accounting is an information-providing activity, so accountants need to understand: –How the system that provides that information is designed, implemented and used. –How financial information is reported –How information is used to make decisions

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart2 of 43 It’s fundamental to accounting. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? Other accounting courses focus on how the information is provided and used. An AIS course places greater emphasis on: –How the data is collected and transformed –How the availability, reliability, and accuracy of the data is ensured AIS courses are not number-crunching courses

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart3 of 43 It’s fundamental to accounting. The skills are critical to career success. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? Auditors need to evaluate the accuracy and reliability of information produced by the AIS.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart4 of 43 It’s fundamental to accounting. The skills are critical to career success. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? Tax accountants must understand the client’s AIS adequately to be confident that it is providing complete and accurate information for tax planning and compliance work.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart5 of 43 It’s fundamental to accounting. The skills are critical to career success. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? In private industry and not-for-profits, systems work is considered the most important activity performed by accountants.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart6 of 43 It’s fundamental to accounting. The skills are critical to career success. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? In management consulting, the design, selection, and implementation of accounting systems is a rapid growth area.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart7 of 43 It’s fundamental to accounting. The skills are critical to career success. The AIS course complements other systems courses. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? Other systems courses focus on design and implementation of information systems, databases, expert systems, and telecommunications. AIS courses focus on accountability and control.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart8 of 43 It’s fundamental to accounting. The skills are critical to career success. The AIS course complements other systems courses. AIS topics are tested on the new CPA exam. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? Makes up about 25% of the Business Environment & Concepts section of the CPA exam.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart9 of 43 It’s fundamental to accounting. The skills are critical to career success. The AIS course complements other systems courses. AIS topics are tested on the new CPA exam. AIS topics impact corporate strategy and culture. WHY STUDY ACCOUNTING INFORMATION SYSTEMS?

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart10 of 43 WHY STUDY ACCOUNTING INFORMATION SYSTEMS? AIS Occupational Culture Strategy Information Technology AIS design is affected by information technology, the organization’s strategy, and the organization’s culture.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart11 of 43 WHY STUDY ACCOUNTING INFORMATION SYSTEMS? AIS Occupational Culture Strategy Information Technology Information technology affects the company’s choice of business strategy. To perform cost-benefit analyses on IT changes, you need to understand business strategy.

© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart12 of 43 WHY STUDY ACCOUNTING INFORMATION SYSTEMS? AIS Occupational Culture Strategy Information Technology While culture affects the design of the AIS, it’s also true that the AIS affects culture by altering the dispersion and availability of information.