Chapter 1 Accounting Information Systems and the Accountant

What are Accounting Information Systems?

Raw and stored data Processes information Accounting system and Information System Collection of data and

Processing procedures that Creates needed information for its users

Organizes and store data

Accounting

Perform tasks in such areas Maintain general ledger information, create spreadsheets for strategic planning, and distribute financial reports Challenge: how best to provide information Useful to nonaccountants

Accounting

Information
Data - raw facts VS Raw data starting point of an audit trail Audit trail path that data follow as they flow through an AIS End users need processed data for decision-making purposes

Information processeed data

Information

Inputs
Data/Information from Internal/External Sources

Processes
Sort, Organize, Calculate

Outputs
Information for Internal/External Decision Makers

Problems:

Information

1. Information overload causing relevant information to be lost or overlooked 2. Do not automatically catch the simple input errors that humans do 3. Make audit trails more complex

Organization and Storage of Data

What to store? How to integrate the stored data for end users?
Old Method: maintain independently the data for each of its traditional organization functions DRAWBACK: Duplication of data-collecting and processing efforts

 Enterprise Resource Planning (ERP) system

Integration of information subsystems into one application Examples: SAP ERP

Predictive analytics
Includes a variety of methodologies that managers might use to analyze current and past data to help predict future events

 systems IT is a vital part of what accountants must know to be employable processing procedures computerized processing

Systems computer systems

AIS

Set of components that Collect accounting data Store it for future uses Process it for end users

AIS and Their Role in Organizations

Information Technology Knowledge workers produce, analyze, manipulate, and distribute information about business activities Accountants are knowledge workers E-business and E-commerce Accounting is itself an information system Concerned with nonfinancial as well as financial data and information AIS as an enterprise-wide system: accounting as an organizations primary producer and distributor of many different types of information Process focused

Thank You !
BALTAR, JOANNA MARIE D. BSA 3-15