ACCT 425 Note

What can do as AIS?
User
Designer
Auditors
System advisors

Information system users
Accountants use information systems to generate information for decision makers.

Accountants as System Designers
The accounting function is responsible for the conceptual system, while the computer function is responsible for the physical system.

Accountants as System Auditors
Financial auditors (Internal or External)
Attest to fairness of financial statement
Attest to fairness of internal controls
IT Auditors (Internal or External)
Evaluate IS, and IT appraisal

Accountants as System advisor
Implement and integrate accounting information systems.
Forensic accounting (i.e. FBI)
Financial advisors (i.e. M&A, IPO)

What is an Information Systems?
Does information system include computers?
An information system is the set of formula procedures by which data are collected, processed into information, and distributed to users.

AIS vs. MIS
AIS process:
Financial transactions; e.g. sales of goods
And nonfinancial transaction

1. Data collection
Capturing transaction data
Recording data onto forms
Validating and editing the data
2. Data (Transaction) Processing
Classifying
Transcribing
Sorting
Batching
Merging
Calculating summarizing Comparing
3. Data Management
Storing
Retrieving
Deleting
4. information generation/ analysis
Compiling
Arranging

Business process in Accounting
Understand transaction cycles

Master files
Store relatively permanent data about
External agents
Internal agents
Or g/s
No detail about indiv transaction
Second data- either reference or summary – how many books we have sold

Types of ERP:
Manufacturing Resources Planning (MRPII)
Engineering, bills of material, scheduling, capacity, workflow management, quality control, cost management
Supply Chain Management (SCM)
Inventory, order entry, purchasing, supply chain planning, supplier scheduling, inspection of goods, claim