Chapter 1 INTRODUCTION TO ACCOUNTING INFORMATION SYSTEMS

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Chapter 1 INTRODUCTION TO ACCOUNTINGINFORMATION
SYSTEMS
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Central Themes of This Text

• Business processes
• Information systems

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Business Processes

• A sequence of activities
• for acquiring goods and services
• for producing goods and services
• for selling goods and services

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Business Processes

• Models of business processes viewed in terms of
  transaction cycles.
• Each transaction cycle involves several events.

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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.

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Typical Business Processes

• Production
• Sales

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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.

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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

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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 firms
  business processes.

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Accounting Information System

• An AIS is a subset of
• an organizations MIS that
• provides
• accounting and financial information
• other information obtained in the routine
  processing of accounting transactions

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Uses of Accounting Information Systems

• Producing external reports
• Supporting routine activities
• Decision support
• Planning and control
• Implementing internal control

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Role of Accountants in Relation to AIS

• User
• Manager
• Consultant
• Evaluator
• Provider of accounting and tax services

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Keyterms

• Accounting information system (AIS)
• Applications
• Assurance services
• Business process
• Enterprise resource planning system (ERP)

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Keyterms

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