Studying Accounting Information Systems

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Studying Accounting Information Systems
Business Strategy
IT Environment
Business Processes
AIS Applications
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Studying Accounting Information Systems
Business Strategy

• Transaction cycles, events and AIS data
• Documenting business processes and data
• Risks and controls in business processes

Part 1
IT Environment
Business Processes
AIS Applications
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Business Processes and AIS

• Business Processes
• Manner in which work is organized, coordinated,
  and focused to produce a valuable product or
  service
• Concrete work flows of material, information, and
  knowledge
• Sets of activities or events
• Unique ways to coordinate work, information, and
  knowledge
• Ways in which management chooses to coordinate
  work
• Accountants are interested in Transaction Cycles
• Acquisition (purchasing)
• Conversion (transforming resources)
• Revenue (providing goods and services and
  collection)

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Cross-functional Business Processes Order
Fulfillment
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Management Information Systems

• A Management Information System (MIS)
• related components that process data and
  transactions to provide the user with the
  information they need to plan, control and
  operate their businesses
• collect data and enter into IS
• process data (into information)
• store data/information for future use
• access to data/information -- retrieval and/or
  reports
• provide control to ensure accuracy and
  reliability
• AIS is a subset of MIS

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The S word System
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MIS is a Collection of Systems
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Scope of AIS

• AIS are not just systems for use by accountants
• Not just accounting data
• Impossible to separate accounting data so we will
  have a fairly general view

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ERPs

• Significant overlap in terms of data needs and
  some processes
• Enterprise Resource Management systems (ERPs)

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Uses of AIS

• Producing External Reports
• Investors, creditors, tax collectors, regulatory
  agencies, etc.
• Supporting Routine Activities
• Order taking, billing, collection, etc.
• Decision Support
• Help out with non-routine tasks with appropriate
  data/models
• Planning and Control
• Budgets, access to historical data, forecasting,
  datamining, etc.
• Implementing Internal Controls
• Policies, procedures and IS to protect assets and
  insure accuracy

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Accounting Applications/Software

• Application computer programs used for
  particular purposes
• Forecasting, Tax preparation, .
• AIS typically organized by transaction cycle
• Off the shelf vs. in-house development
• When you should you go off the shelf?

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Role of Accountants in AIS

• User
• Not just for routine but non-routine decision
  making process
• Part of development team
• Manager
• Understand business processes, accounting and
  technology (SOX!)
• Consultant
• Acquisition, design, installation and
  modification of AIS
• Evaluator
• Internal auditor (SOX), external auditors,
  assurance services (for external decision
  makers)
• Provider of Accounting and Tax Services

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Thinking about AMIS
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Using Technology to Change Span of Control

• Smushing the Organization
• Allow supervision of more employees
• Move decision rights

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Is the influence really one way?