download materi Computer Application on Accounting and Business

z Accounting Information Systems: Essential Concepts and Applications
Fourth Edition by Wilkinson, Cerullo,
Raval, and Wong-On-Wing

zThe Study of Accounting Information Systems

zWhat Is Accounting?

z It is the principal way of organizing and reporting financial information.  It has been called the “language of business.”

z Accounting and information systems comprise the functional area of business responsible for providing information to the other areas to enable them to do their jobs and for reporting the results to interested parties.

z To that end, an accounting system is used to identify, analyze, measure, record, summarize, and communicate relevant economic information to interested parties.

zWhat Is a System?

zA System is an entity consisting of interacting parts that are coordinated to achieve one or more common objectives. Systems must possess

zData Versus Information

zData are raw facts and figures that are processed to produce information

zInformation is data that have been processed and are meaningful and useful to users. The terms “meaningful” and “useful” are value-laden terms and usually subsume other qualities such as timeliness, relevance, reliability, consistency, comparability, etc.

zFunctional Steps in Transforming Data into Information

zData collection  - capturing, recording, validating and editing data for completeness and accuracy

zData Maintenance/Processing - classifying, sorting, calculating data

zData Management - storing, maintaining and retrieving data

zData Control - safeguarding and securing data and ensuring the accuracy and completeness of the same

zInformation Generation - interpreting, reporting, and communicating information

zWhat Is an Information System?

zAn Information system is a framework in which data is collected, processed, controlled and managed through stages in order to provide information to users

zIt evolves over time and becomes more formalized as a firm grows and becomes more complex.  It can be a manual or computerized system

zFirms depend on information systems in order to survive and stay competitive

zThe Universal Data Processing Model

zAccounting Information System

zAn Accounting Information System is a unified structure that employs physical resources and components to transform economic datainto  accounting information for external and internal users.

zThe Business Firm as a System                                  

zSystem Characteristics of Business Firms

zObjectives

zEnvironment

zConstraints

zInput-Process-Output

zFeedback

zControls

zSubsystems

zAIS as an MIS Subsystem

zRelationship of AIS & MIS

zExamples of AIS Subsystems
(Merchandising)

zThe Operational System of a Manufacturing Firm

zExamples of AIS Subsystems: Production Cycle

zOrganizational Structure in Business Firms

zHierarchical

zMatrix: Blend functional and project-oriented structures

zDecentralized

zNetwork

zObjectives and Users of AIS

zSupport day-to-day operations

yTransaction processing

zSupport Internal Decision-Making

yTrend Analyses

yQuantitative & Qualitative Data

yNon-transactional sources

zHelp fulfill Stewardship Role

zResources Required for an AIS

zProcessor(s): Manual or Computerized

zData Base(s): Data Repositories

zProcedures: Manual or
Computerized

zInput/Output Devices

zMiscellaneous Resources

zReasons for Studying Accounting Information Systems

zCareer accountants will be users, auditors, and developers of AIS

zModern-day AIS are complex because of new technologies

zConcepts studied in AIS are integrated into every other accounting course

zInformation-Oriented Professionals

zAn array of professionally trained persons from different fields of study have focused on providing information to users

zThese professionals include system and managerial accountants and auditors, system analysts and industrial engineers

zProfessional certifications are increasing.  These include Certified Computing Professional, Certified Information Systems Auditor, Certified Managerial Accountant, Certified Fraud Examiner, etc.

zRoles of Accountants With Respect to an AIS

zFinancial accountants prepare financial information for external decision-making in accordance with GAAP

zManagerial accountants prepare financial information for internal decision-making

zRoles of Accountants With Respect to an AIS

zAuditors - evaluate controls and attest to the fairness of the financial statements.

zAccounting managers - control all accounting activities of a firm.

zTax specialists - develop information that reflects tax obligations of the firm.

zConsultants - devise specifications for the AIS.

zEthical Standards for Consulting

zProfessional competence

zExercise due professional care

zPlan and supervise all work

zObtain relevant data to support reasonable recommendations

zMaintain integrity and objectivity

zUnderstand and respect the responsibilities of all parties

zDisclose any conflicts of interest