1. 1 Information systems Learning objectives
To understand the concept of systems.
To learn the systems that comprise an accounting information system.
To identify the relationship between an accounting information system and value-adding activities.
To understand the various types of decisions made in businesses, and the structure and scope of such decisions.
To understand what a computer-based accounting information system is.

2. key terms accounting information system (AIS) boundary closed system
data
economic event
information
information system
input
interface
management information system
open system
output
subsystem
super system
system
transaction
transaction processing system
value chain
value system

3. Accounting information systems
AIS provides information using accounting methods:
Management reports for decision making
Reports for regulatory bodies
Special reports for potential creditors including financial institutions and suppliers of goods and services

4. Accounting information systems
Record
Process
Report
events in monetary terms using generally accepted accounting principles (GAAP)

5. Accounting information systems
External reporting
Internal reporting
Financial accounting system
Managementaccounting system
Produces budgets & other reports for management
Produces financial statements

6. Levels within the AIS super system
Expert system
Decision support system
Management information system
Transaction processing system

7. AIS super system – another view
Comprises only three systems:
Transaction processing system
Records transactions
Budgeting system
Produces control information used by management
Responsibility reporting system
Summarises historical data and provides reports to compare with budgets or set management targets

8. Decision making Structured Semistructured Unstructured
Strategic planning
Management control
Operational control
Structured
Trends in balance of accounts receivable
Accounts receivable balances
Semistructured
Budget preparation
Personnel management
Production scheduling
Cash management
Unstructured
New products
Opening a factory site
Mergers and acquisitions

9. Transaction cycle interconnection
Finance cycle
Payroll cycle
Expenditure cycle
General ledger & reporting system
Conversion cycle
Revenue cycle