1. Chapter 1 INTRODUCTION TO ACCOUNTING INFORMATION SYSTEMS

2. Central Themes of This Text
Business processes
Information systems

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

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

5. 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.

6. Typical Business Processes
Production
Sales

7. 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.

8. 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

9. 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.

10. 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

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

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

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

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