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HAPTER 1

HAPTER 1. Accounting Information Systems: An Overview. WHAT IS AN AIS?. An AIS is a system that collects, records, stores, and processes data to produce information for decision makers. It can: Use advanced technology; or Be a simple paper-and-pencil system; or Be something in between.

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HAPTER 1

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  1. HAPTER 1 Accounting Information Systems: An Overview

  2. WHAT IS AN AIS? • An AIS is a system that collects, records, stores, and processes data to produce information for decision makers. • It can: • Use advanced technology; or • Be a simple paper-and-pencil system; or • Be something in between. • Technology is simply a tool to create, maintain, or improve a system.

  3. WHAT IS AN AIS? • The functions of an AIS are to: • Collect and store data about events, resources, and agents. • Transform that data into information that management can use to make decisions about events, resources, and agents. • Provide adequate controls to ensure that the entity’s resources (including data) are: • Available when needed • Accurate and reliable

  4. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? • It’s fundamental to accounting. • Accounting is an information-providing activity, so accountants need to understand: • How the system that provides that information is designed, implemented, and used. • How financial information is reported. • How information is used to make decisions.

  5. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? • It’s fundamental to accounting. • Other accounting courses focus on how the information is provided and used. • An AIS course places greater emphasis on: • How the data is collected and transformed. • How the availability, reliability, and accuracy of the data is ensured. • AIS courses are not number-crunching courses.

  6. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? • It’s fundamental to accounting. • The skills are critical to career success. • Auditorsneed to evaluate the accuracy and reliability of information produced by the AIS.

  7. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? • It’s fundamental to accounting. • The skills are critical to career success. • Tax accountantsmust understand the client’s AIS adequately to be confident that it is providing complete and accurate information for tax planning and compliance work.

  8. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? • It’s fundamental to accounting. • The skills are critical to career success. • Inprivate industryandnot-for-profit, systems work is considered the most important activity performed by accountants.

  9. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? • It’s fundamental to accounting. • The skills are critical to career success. • Inmanagement consulting, the design, selection, and implementation of accounting systems is a rapid growth area.

  10. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? • It’s fundamental to accounting. • The skills are critical to career success. • The AIS course complements other systems courses. • Other systems courses focus on design and implementation of information systems, databases, expert systems, and telecommunications. • AIS courses focus on accountability and control.

  11. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? • It’s fundamental to accounting. • The skills are critical to career success. • The AIS course complements other systems courses. • AIS topics are tested on the new CPA exam. • Makes up about 25% of the Business Environment & Concepts section of the CPA exam.

  12. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? • It’s fundamental to accounting. • The skills are critical to career success. • The AIS course complements other systems courses. • AIS topics are tested on the new CPA exam. • AIS topics impact corporate strategy and culture.

  13. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? Occupational Culture Strategy AIS design is affected by information technology, the organization’s strategy, and the organization’s culture. AIS Information Technology

  14. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? Occupational Culture Strategy AIS Information technology affects the company’s choice of business strategy. To perform cost-benefit analyses on IT changes, you need to understand business strategy. Information Technology

  15. WHY STUDY ACCOUNTING INFORMATION SYSTEMS? Occupational Culture Strategy AIS Although culture affects the design of the AIS, it’s also true that the AIS affects culture by altering the dispersion and availability of information. Information Technology

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