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52 views

A

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phuongnhu150395
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You are on page 1/ 20

CSAC 2511 AIS: Overview of

Accounting Information Systems


and Enterprise Resource Planning
Systems
Chapter 1 Learning Objectives
• Distinguish between data and information:
− Understand the characteristics of useful information.
− Explain how to determine the value of information.

• Explain fundamental decisions an organization makes:


− Understand basic information needed to make them.

• Identify the transactional information that passes between internal and external
parties and an AIS.

• Describe the major business processes present in most companies.

• Explain what an accounting information system (AIS) is and describe its basic
functions.

• Discuss how an AIS can add value to an organization.

• Explain how an AIS and corporate strategy affect each other.

• Explain the role an AIS plays in a company’s value chain.


1-2
What Is an Accounting Information System?
• It can be manual or computerized
• Consists of
− People who use the system
− Processes
− Technology (data, software, and information technology)
− Controls to safeguard information
• Thus, transactional data is collected and stored into
meaningful information from which business decisions
are made and provides adequate controls to protect and
secure the organizational data assets.

1-3
How Does an AIS Add Value?

• A well thought out AIS can add value through effective


and efficient decisions.
− Having effective decisions means quality decisions
− Having efficient decisions means reducing costs of
decision making

1-4
Data vs. Information

• Data are facts stored in the system


− A fact could be a number, date, name,
and so on.
For example:
2/22/14
ABC Company, 123,
99, 3, 20, 60
1-5
Data vs. Information
The previous slide just showed facts, if we put those facts
within a context of a sales invoice, for example, it is
meaningful and considered information.

Invoice Date : 2/22/14 Invoice #: 123

Customer: ABC company

Item # Qty Price


99 3 $20

Total Invoice Amount $60


1-6
Value of Information
• Information is valuable when the benefits exceed the
costs of gathering, maintaining, and storing the data.

Benefit (i.e., improved decision making)


> Cost (i.e., time and resources used to get
the information)

1-7
What Makes Information Useful?
There are seven general characteristics that make
information useful:
1. Relevant: information needed to make a decision
(e.g., the decision to extend customer credit would
need relevant information on customer balance from
an A/R aging report)
2. Reliable: information free from bias
3. Complete: does not omit important aspects of events
or activities
4. Timely: information needs to be provided in time to
make the decision
1-8
What Makes Information Useful?

5. Understandable: information must be presented in a


meaningful manner
6. Verifiable: two independent people can produce the
same conclusion
7. Accessible: available when needed

1-9
Interactions Between AIS and Internal and
External Parties

1-10
AIS and Strategy
• An AIS is influenced by an organization’s strategy.
• A strategy is the overall goal the organization hopes to
achieve (e.g., increase profitability).
• Once an overall goal is determined, an organization can
determine actions needed to reach their goal and identify
the informational requirements necessary to measure
how well they are doing in obtaining that goal.

1-11
1-12
Chapter 2 Learning Objectives
• Describe the four parts of the data processing cycle and the major
activities in each.

• Describe documents and procedures used to collect and process


transaction data.

• Describe the ways information is stored in computer-based


information systems.

• Discuss the types of information that an AIS can provide.

• Discuss how organizations use enterprise resource planning (ERP)


systems to process transactions and provide information.

2-13
Data Processing Cycle

2-14
Data Input

Steps in Processing Input are:


• Capture transaction data triggered by a business activity
(event).
• Make sure captured data are accurate and complete.
• Ensure company policies are followed (e.g., approval of
transaction).

2-15
Source Documents

• Captures data at the source when the transaction takes


place
− Paper source documents
− Turnaround documents
− Source data automation (captured data from machines,
e.g., Point of Sale scanners at grocery store)

2-16
Data Storage
• Important to understand how data is organized
− Chart of accounts
 Coding schemas that are well thought out to anticipate
management needs are most efficient and effective.
− Transaction journals (e.g., Sales)
− Subsidiary ledgers (e.g., Accounts receivable)
− General ledger
Note: With the above, one can trace the path of the
transaction (audit trail).

2-17
Data Processing
Four types of processing (CRUD):
• Creating new records (e.g., adding a customer)
• Reading existing data
• Updating previous record or data
• Deleting data

Data processing can be batch processed (e.g., post


records at the end of the business day) or in real-time
(process as it occurs).

2-18
Information Output

The data stored in the database files can be viewed


• Online (soft copy)
• Printed out (hard copy)
− Document (e.g., sales invoice)
− Report (e.g., monthly sales report)
− Query (question for specific information in a database,
e.g., What division had the most sales for the month?)

2-19
Enterprise Resource Planning (ERP)
Systems
• Integrates activities from the entire organization
− Production
− Payroll
− Sales
− Purchasing
− Financial Reporting

2-20

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