Description
An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources
PRESENTED BY:-
Adil Ahmad Zaidi
Krishnendu Saha
Garima Singhania
Abhisek Das
The Study of Accounting
Information Systems
Accounting Information System
? The collection, storage and processing of
financial and accounting data that is used
by decision makers.
? An accounting information system is
generally a computer-based method for
tracking accounting activity in conjunction
with information technology resources.
The Business Firm as a System
Business
Firm
Environment
of the Firm
Organization’s
functions
AIS Transaction
Cycles
Business Events
from Operations
Organization
Information
System
Operational
System
AIS
Sales/
Marketing
Personnel
Production
Info
Finance
AIS as an MIS Subsystem
Relationship of AIS & MIS
Sales/Marketing Production AIS Personnel
MIS
Finance
Order entry/Sales
Billing/A.Rec./Cash receipts
Production
General ledger
Payroll
Inventory
Purchasing/A. Pay./Cash disb.
Examples of AIS Subsystems
(Merchandising)
No Planning/Control, Investment, or Production Cycles reflected here
Inventory
System
General
Ledger
System
Order entry
Sales
System
Billing/
A. Receivable
Cash Receipts
System
Purchasing/
A. Payable/
Cash Disb.
System
Human
Resource
Management
(Payroll)
System
Revenue
Cycle
Expenditure
Cycle
Shipping
Receiving
Ext/Fin. reporting
Tax & req. reporting
I nternal reporting
The Operational System of a
Manufacturing Firm
Facilities
Labor
(human
services)
Data
Funds
Acquiring
Materials
Producing
Finished
Goods
Storing
Finished
Goods
Shipping
Finished
Goods
Goods
to
Customer
Supporting
Operations
AIS
Information
Funds
Material
from
Supplier
Manufacturing Firm
Data and information flow
Physical flows
Examples of AIS Subsystems:
Production Cycle
Inventory
System
Human
Resource
Management
(Payroll
System
General
Ledger
System
Purchasing/
A. Payable/
Cash Disb.
System
Production
System
Production Cycle
No Revenue, and Investment Cycles reflected here
TYPES OF AIS
? Operating information
? Financial Accounting
? Management Accounting
CHARATERSTICS
? Reliability
? Relevance
? Understandability
? Comparability
Objectives
?Support day-to-day operations
? Transaction processing
?Support Internal Decision-Making
? Trend Analysis
? Quantitative & Qualitative Data
? Non-transactional sources
Resources Required for an AIS
?Processor(s): Manual or Computerized
?Data Base(s): Data Repositories
?Procedures: Manual or
Computerized
?Input/Output Devices
?Miscellaneous Resources
Roles of Accountants With Respect
to an AIS
?Financial accountants
prepare financial information
for external decision-making in
accordance with GAAP
?Managerial accountants
prepare financial information
for internal decision-making
Roles of Accountants With Respect
to an AIS
?Auditors - evaluate controls
and attest to the fairness of
the financial statements.
?Accounting managers -
control all accounting
activities of a firm.
?Tax specialists - develop
information that reflects tax
obligations of the firm.
?Consultants - devise
specifications for the AIS.
ADVANTAGE
? Efficiency-Computerized financial information
systems are faster and more efficient in processing data.
The use of hardware such as scanners automatically
generates accounting information without much ado.
The information is available almost immediately.
? Cost Effectiveness-Accounting information system
makes the maintenance of a bloated financial
department irrelevant. The software does most of the
work that would otherwise require several employees.
? Analysis Tool-Accounting reports can be analyzed
to provide management with financial information that
can be used to run a business, plan ahead and to make
changes when business is not going as expected
DISADVANTAGE
? Re-evaluation-Companies often change their way of
doing business to keep up with the latest trends. To keep up in
a demanding business world, these changes may impact an
accounting system. In order to keep up with changes,
accounting information systems must be re-evaluated often.
Changes often need to be made in a system in order to
process information efficiently. This can be a disadvantage to
companies because it takes time for the re-evaluation, and it
costs money.
? Loss of Information-Accounting information systems
are usually computerized. Because of this, there is always a risk
of losing information through power outages or system
crashes. When this happens, there is a chance that all the
information in the system could be lost.
? Learning an accounting- Information system
can often be difficult and time-consuming. Individuals
must be trained on a system, and this can cause a
disadvantage to companies in terms of time and
manpower.
Reasons for Studying Accounting
Information Systems
?Career accountants will be users, auditors,
and developers of AIS
?Modern-day AIS are complex because of
new technologies
?Concepts studied in AIS are integrated into
every other accounting course
THANK YOU
HAVE A GOOD DAY
doc_889585576.ppt
An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources
PRESENTED BY:-
Adil Ahmad Zaidi
Krishnendu Saha
Garima Singhania
Abhisek Das
The Study of Accounting
Information Systems
Accounting Information System
? The collection, storage and processing of
financial and accounting data that is used
by decision makers.
? An accounting information system is
generally a computer-based method for
tracking accounting activity in conjunction
with information technology resources.
The Business Firm as a System
Business
Firm
Environment
of the Firm
Organization’s
functions
AIS Transaction
Cycles
Business Events
from Operations
Organization
Information
System
Operational
System
AIS
Sales/
Marketing
Personnel
Production
Info
Finance
AIS as an MIS Subsystem
Relationship of AIS & MIS
Sales/Marketing Production AIS Personnel
MIS
Finance
Order entry/Sales
Billing/A.Rec./Cash receipts
Production
General ledger
Payroll
Inventory
Purchasing/A. Pay./Cash disb.
Examples of AIS Subsystems
(Merchandising)
No Planning/Control, Investment, or Production Cycles reflected here
Inventory
System
General
Ledger
System
Order entry
Sales
System
Billing/
A. Receivable
Cash Receipts
System
Purchasing/
A. Payable/
Cash Disb.
System
Human
Resource
Management
(Payroll)
System
Revenue
Cycle
Expenditure
Cycle
Shipping
Receiving
Ext/Fin. reporting
Tax & req. reporting
I nternal reporting
The Operational System of a
Manufacturing Firm
Facilities
Labor
(human
services)
Data
Funds
Acquiring
Materials
Producing
Finished
Goods
Storing
Finished
Goods
Shipping
Finished
Goods
Goods
to
Customer
Supporting
Operations
AIS
Information
Funds
Material
from
Supplier
Manufacturing Firm
Data and information flow
Physical flows
Examples of AIS Subsystems:
Production Cycle
Inventory
System
Human
Resource
Management
(Payroll
System
General
Ledger
System
Purchasing/
A. Payable/
Cash Disb.
System
Production
System
Production Cycle
No Revenue, and Investment Cycles reflected here
TYPES OF AIS
? Operating information
? Financial Accounting
? Management Accounting
CHARATERSTICS
? Reliability
? Relevance
? Understandability
? Comparability
Objectives
?Support day-to-day operations
? Transaction processing
?Support Internal Decision-Making
? Trend Analysis
? Quantitative & Qualitative Data
? Non-transactional sources
Resources Required for an AIS
?Processor(s): Manual or Computerized
?Data Base(s): Data Repositories
?Procedures: Manual or
Computerized
?Input/Output Devices
?Miscellaneous Resources
Roles of Accountants With Respect
to an AIS
?Financial accountants
prepare financial information
for external decision-making in
accordance with GAAP
?Managerial accountants
prepare financial information
for internal decision-making
Roles of Accountants With Respect
to an AIS
?Auditors - evaluate controls
and attest to the fairness of
the financial statements.
?Accounting managers -
control all accounting
activities of a firm.
?Tax specialists - develop
information that reflects tax
obligations of the firm.
?Consultants - devise
specifications for the AIS.
ADVANTAGE
? Efficiency-Computerized financial information
systems are faster and more efficient in processing data.
The use of hardware such as scanners automatically
generates accounting information without much ado.
The information is available almost immediately.
? Cost Effectiveness-Accounting information system
makes the maintenance of a bloated financial
department irrelevant. The software does most of the
work that would otherwise require several employees.
? Analysis Tool-Accounting reports can be analyzed
to provide management with financial information that
can be used to run a business, plan ahead and to make
changes when business is not going as expected
DISADVANTAGE
? Re-evaluation-Companies often change their way of
doing business to keep up with the latest trends. To keep up in
a demanding business world, these changes may impact an
accounting system. In order to keep up with changes,
accounting information systems must be re-evaluated often.
Changes often need to be made in a system in order to
process information efficiently. This can be a disadvantage to
companies because it takes time for the re-evaluation, and it
costs money.
? Loss of Information-Accounting information systems
are usually computerized. Because of this, there is always a risk
of losing information through power outages or system
crashes. When this happens, there is a chance that all the
information in the system could be lost.
? Learning an accounting- Information system
can often be difficult and time-consuming. Individuals
must be trained on a system, and this can cause a
disadvantage to companies in terms of time and
manpower.
Reasons for Studying Accounting
Information Systems
?Career accountants will be users, auditors,
and developers of AIS
?Modern-day AIS are complex because of
new technologies
?Concepts studied in AIS are integrated into
every other accounting course
THANK YOU
HAVE A GOOD DAY
doc_889585576.ppt