Accounting Information System
Discussion I. I. Accounting information system is a combination of collecting, recording, storing, and processing data of a business.
The advancement of technology initiates business firms to seek for new innovations that would greatly help in business functions. As what Dillon and Kruck (2004) had explained, “at the start of the 21st century, business organizations are facing an explosion of global competition and innovation and facilitating this explosion is the increasing ability of organizations to make good business decisions based on the large amounts of information their enterprise produces”. In this environment, it is necessary for a successful business to integrate information technology into its basic process. And with this, AIS technology uses the modern information technology resources to aid in business functions. In order to understand AIS well, knowing the meaning of the system is important as stated by Gangolly (n.d.) and Gelinas and Sutton (2002) “a system is a set of interdependent components which collectively accomplish specific objectives”. They also added that AIS is an information system; but not all information system are accounting information system and example of this is human resource information system. Also Gelinas and Sutton (2002) defines information system as “a man-made system that generally consists of an integrated set of computer-based and manual components established to collect, store, and manage data as well as provide output information to users”. While as described by Herrera (n.d.) “information system is a set of formal procedures by which data are collected, processed into information, and distributed to users”. According to Henson (2006), “AIS combines the study and practice of accounting with the decision, implementation and monitoring of information system”. Hence Orwell (n.d.) noted, “it is a system of records usually computer based which combines accounting principles and concepts with the benefits of an
The advancement of technology initiates business firms to seek for new innovations that would greatly help in business functions. As what Dillon and Kruck (2004) had explained, “at the start of the 21st century, business organizations are facing an explosion of global competition and innovation and facilitating this explosion is the increasing ability of organizations to make good business decisions based on the large amounts of information their enterprise produces”. In this environment, it is necessary for a successful business to integrate information technology into its basic process. And with this, AIS technology uses the modern information technology resources to aid in business functions. In order to understand AIS well, knowing the meaning of the system is important as stated by Gangolly (n.d.) and Gelinas and Sutton (2002) “a system is a set of interdependent components which collectively accomplish specific objectives”. They also added that AIS is an information system; but not all information system are accounting information system and example of this is human resource information system. Also Gelinas and Sutton (2002) defines information system as “a man-made system that generally consists of an integrated set of computer-based and manual components established to collect, store, and manage data as well as provide output information to users”. While as described by Herrera (n.d.) “information system is a set of formal procedures by which data are collected, processed into information, and distributed to users”. According to Henson (2006), “AIS combines the study and practice of accounting with the decision, implementation and monitoring of information system”. Hence Orwell (n.d.) noted, “it is a system of records usually computer based which combines accounting principles and concepts with the benefits of an