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Chapter 1 - Introduction to Accounting Information Systems Accounting Information Systems 8e Ulric J. Gelinas and Richard Dull © 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use

Chapter 1 - Introduction to Accounting Information Systems Accounting Information Systems 8e Ulric J. Gelinas and Richard Dull © 2010 Cengage Learning

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  • Chapter 1 - Introduction to Accounting Information Systems

    Accounting Information Systems 8eUlric J. Gelinas and Richard Dull

    2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use

  • *Learning ObjectivesAppreciate the complex, dynamic environment in which accounting is practiced.Know the relationship between the AIS and the organizations business processes.Know the attributes of information.Recognize how information is used for different types of decisions and at various levels in the organization.Recognize how the information system supports the management function.Recognize the accountants role in relation to the current environment for the AIS.Understand how to use this textbook effectively to learn AIS.

  • *Textbook ThemesEnterprise Systems integrates business process functionality and information from all of an organizations functional areas (marketing and sales, cash receipts, purchasing, cash disbursements, human resources, production and logistics, and business and financial reporting).E-business use of networks to undertake business processes.Internal Control a system of integrated elements that provide reasonable assurance that a business will reach its business process goals.

  • *Sarbanes-Oxley Act of 2002Section 404 Management must identify, document, and evaluate significant internal controls.Auditors must report on managements assertions regarding internal controls.Section 409 Requires disclosure to the public on a rapid and current basis of material changes in an organizations financial condition.

    Implications for both public and private accountants

  • *Elements in the Study of AIS

  • 2008 Top Technology InitiativesInformation Security ManagementIT GovernanceBusiness Continuity Management and Disaster Recovery PlanningPrivacy ManagementBusiness Process Improvement, Workflow and Process Exception Alerts

    Identity and Access ManagementConforming to Assurance and Compliance StandardsBusiness IntelligenceMobile and Remote ComputingDocument, Forms, Content, and Knowledge Management*

  • *Accounting Systems and Sub-systems

  • *Accounting Systems and Sub-systems

  • *Accounting Systems and SubsystemsA system is a set of interdependent elements that together accomplish specific objectives.A subsystem is the interrelated parts that have come together, or integrated, as a single system, which we have named System 1.0.

  • *Information System ModelAn information system (IS) or management information system (MIS) is a manmade system that consists of an integrated set of computer-based and manual components established to collect, store, and manage data and to provide output information to users. The figure on the next slide depicts the functional components of an information system.

  • *Information System Model

  • *Purpose of AISCollect, process and report information related to the financial aspects of business events.Often integrated and indistinguishable from the overall information system.Like the IS, the AIS may be divided into components based on the operational functions supported.

  • *A Logical Model of a Business Process 1. Management hires personnel and establishes the means foraccomplishing the work of the organization.

  • *A Logical Model of a Business Process2. Management establishes broad marketing objectives and assigns specific sales quotas by which progress toward the long-run objective can be measured. In addition, management designs the IS procedures for facilitatingoperations, such as the procedures used to pick and ship goods to thecustomer.

  • *A Logical Model of a Business Process3. Normal operations begin with the IS receiving a customers order topurchase goods.

  • *A Logical Model of a Business Process4. The IS acknowledges the customers purchase order.

  • *A Logical Model of a Business Process5. The IS sends a request to the warehouse to ship goods to the customer. This request identifies the goods and their location in the warehouse.

  • *A Logical Model of a Business Process6. A document (i.e., a packing slip) identifying the customer and the goods is attached to the goods.

  • *A Logical Model of a Business Process7. The goods are shipped to the customer.

  • *A Logical Model of a Business Process8. The shipping department reports to the IS that the goods have beenshipped.

  • *A Logical Model of a Business Process9. The IS prepares an invoice and sends it to the customer.

  • *A Logical Model of a Business Process10. The IS sends management a report comparing actual sales to previouslyestablished sales quotas.

  • Transforming Data into Information*

  • Transforming Data into Information*

  • *Information Qualities

  • *Information Qualities Control Matrix

  • *Management Decision Making1. Intelligence: Searching the environment for conditions calling for a decision.2. Design: Inventing, developing, and analyzing possible courses of action.3. Choice: Selecting a course of action.

  • *Management Decision Making

  • *Management Problem Structure and Information Requirements

  • *Management Problem Structure and Information RequirementsHorizontal flows relate to specific business events, such as one shipment, or to individual inventory items. The information moves through operational units such as sales, the warehouse, and accounting.Vertical flows relate to the flow of information to and from strategic management through tactical management, operations management, and operations and transaction processing.

  • *Accountants Role in Current Business EnvironmentDesigner application of accounting principles, auditing, information systems, and systems development.User participate in design.Auditor provide audit and assurance services.

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