1. Accounting Information Systems: An Overview

2. Understand the related concepts of transaction cycles and
Learning Objective
Understand the related concepts
of transaction cycles and
internal control structure.

3. Overview An accounting information system (AIS)
is a collection of resources designed to
transform data into information.
Accounting information systems
perform this transformation.
Manual
Computerized

4. Information and Decisions
Who are the two main users
of accounting information?
External users
Internal users

5. Information and Decisions
Who are the external users
of accounting information?
Stockholders
Investors
Creditors
Government agencies
Customers and vendors

6. Information and Decisions
Hierarchy of Internal Users
Top-Level
Management
Strategic
Middle
Management
Summarization
and Filtration
Tactical
Lower-Level
Management
Operational
Transaction oriented

7. Information Systems The term information system suggests the use
of computer technology in an organization.
Hardware
Data
Information
Software

8. Information Systems Electronic Data Processing System (EDP)
Data Processing System (DP)
Management Information System (MIS)
Decision Support System (DSS)
Expert System (ES)
Executive Information System (EIS)
Accounting Information System (AIS)

9. Business Processes Tasks: Data Organizational units Logical time
sequence

10. Primary Business Processes
Inbound
sales
logistics
Outbound
sales
logistics
Operations
Marketing
Service

11. Supporting Business Processes
Procurement
Technology
development
Human
resources
Firm
infrastructure

12. Transaction Processing Cycles
1. Revenue cycle
2. Expenditure cycle
3. Production cycle
4. Finance cycle

13. Internal Control Process
Reliability of financial reporting
Effectiveness and efficiency
Compliance

14. Internal Control Process
What are the elements of internal control?
Control environment
Risk assessment
Control activities
Information and communication
Monitoring

15. Internal Control Process
Segregation of Duties:
No individual or department should
control the accounting records
relating to its own operation.
Internal Auditing:
It is an independent appraisal
activity within the organization.

16. QUESTIONS ???