AIS- OVERVIEW OF AIS

55問 • 1年前

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It is a system that collects, records, stores and processes data to produce information for decision makers. It includes people, procedures and instructions data, software, information technology infrastructure, and internal controls and security measures.

ACCOUNTING INFORMATION SYSTEM

What are the components of AIS?

PEOPLE, PROCEDURES AND INSTRUCTIONS, DATA, SOFTWARE, INFORMATION TECHNOLOGY INFRASTRACTURE AND INTERNAL CONTROLS AND SECURITY MEASURES

Component of AIS in which they are the one who use the system.

PEOPLE

It is used to collect, process and store data.

PROCEDURES AND INSTRUCTIONS

The _____ about the organization and its business activities.

DATA

The _______ used to process the data.

SOFTWARE

It includes the computers, peripheral devices, and network communications devices used in the AIS.

INFORMATION TECHNOLOGY INFRASTRUCTURE

It safeguard the AIS data.

INTERNAL CONTROLS AND SECURITY MEASURES

How AIS processes data to produce information for Decision-Makers? I. Transform data into information so management can plan, execute, control and evaluate activities, resources, and personnel. II. Collect and store data about organizational activities, resources and personnel. Organizations have a number of business processes, such as making a sale or purchasing of raw materials, which are repeated frequently. III. Provide adequate control to safeguard the organization's assets and data.

II,I,III

Example on how AIS add value to an organization: An AIS can monitor machinery so operators are notified immediately when performance falls outside the acceptable quality limits. This helps maintain product quality, reduces waste, and lower costs.

IMPROVING THE QUALITY AND REDUCING THE COST OF PRODUCTS OR SERVICES

Example on how AIS add value to an organization:: Timely information makes a just-in-time manufacturing approach possible, as it requires constant, accurate, up-to-date information about raw materials inventories and their location.

IMPROVING EFFICIENCY

Example: Sharing knowledge and expertise can improve operations and provide a competitive advantage. ▪ CPA firms use their information systems to share best practices and to support communication between offices. Employees can search the corporate database to identify experts to provide assistance for a particular client; thus, a CPA firm’s international expertise can be made available to any local client.

SHARING KNOWLEDGE

Example: Allowing customers to directly access inventory and sales order; entry systems can reduce sales and marketing costs, thereby increasing customer retention sales.

IMPROVING THE EFFICIENCY AND EFFECTIVENESS OF ITS SUPPLY CHAIN

An AIS with the proper internal control structure can help protect systems from fraud, errors, system failures, and disasters.

IMPROVING THE INTERNAL CONTROL STRUCTURE

Improved decision making through identifying situations requiring management actions, reducing uncertainty and providing a basis for choosing alternative actions, providing information about the results of decisions and providing information on a timely manner.

IMPROVING DECISION MAKING

What are the major subsystem of AIS?

TRANSACTION PROCESSING SYSTEM (TPS), GENERAL LEDGER/ FINANCIAL REPORTING SYSTEM (GL/FRS) AND MANAGEMENT REPORTING SYSTEM

It supports daily business operations with numerous reports, documents, and messages for users throughout the organization.

TRANSACTION PROCESSING SYSTEM (TPS)

It produces the financial statements such as income statement, balance sheet, statement of cash flows, etc.

GENERAL LEDGER/ FINANCIAL REPORTING SYSTEM (GL/FRS)

It provides internal management with special purpose financial reports and information needed for decision-making such as budgets, variance reports, and responsibility reports.

MANAGEMENT REPORTING SYSTEM

It processes non-financial transactions that are not normally processed by traditional AIS.

MANAGEMENT INFORMATION SYSTEM

What are the elements of General Model for AIS?

END USERS, DATA SOURCES, DATA COLLECTION, DATA PROCESSING, DATABASE MANAGEMENT, INFORMATION GENERATION AND FEEDBACK

It fall into two general groups: external and internal

END USERS

What are the 2 general groups of end users?

EXTERNAL AND INTERNAL USERS

Which of the following are INCLUDED jn External users?

CREDITORS, STOCKHOLDERS, POTENTIAL INVESTORS, REGULATORY AGENCIES, TAX AUTHORITIES, SUPPLIER, CUSTOMER

It include management at every level of the organization, as well as operations personnel. In contrast to external reporting, the organization has a great deal of latitude in the way it meets the needs of internal users

INTERNAL USERS

These are facts, which may or may not be processed (edited, summarized, or refined) and have no direct effect on the user.

DATA

It is a processed data.

INFORMATION

These are financial transactions that enter the information system from both internal and external sources.

DATA SOURCES

These are the most common source of data for most organizations. These are economic exchanges with other business entities and individuals outside the firm.

EXTERNAL FINANCIAL TRANSACTION

Which of the following are included in External Financial Transaction?

Sales of goods and services, Purchace inventory, Receipt of cash, Disbursement of cash including payroll

These are exchange or movement of resources within the organization.

INTERNAL FINANCIAL TRANSACTIONS

It is the first operational stage in the information system. The objective is to ensure that event data entering the system are valid, complete, and free from material errors. The information system should capture only relevant data and there must be efficient data collection procedures.

DATA COLLECTION

Once collected, data usually require processing to produce information. Tasks in this element of general model stage range from simple to complex.

DATA PROCESSING

It is the organization's physical repository for financial and nonfinancial data. Its content can be represented in logical hierarchy

DATABASE MANAGEMENT

What are the levels in Hierarch?

DATA ATTRIBUTE, RECORD AND FILES

It is the most elemental piece of potentially useful data in the database.

DATA ATTRIBUTE

It is the complete set of attributes for a single occurrence within an entity class. To find a record within a database, we must be able to identify it uniquely.

RECORD

It is a complete set of records of an identical class. For example, all the AR records of the organization constitute the AR file. Similarly, files are constructed for other class of records such as inventory, accounts payable, and payroll. ▪ The organization’s database is the entire collection of such files.

FILES

What are the 3 database management tasks?

STORAGE, RETRIEVAL AND DELETING

It is the process of compiling, arranging, formatting, and presenting information to users.

INFORMATION GENERATION

It is a form of output that is sent back to the system as a source of data. It could be internal or external to initiate or alter a proces

FEEDBACK

Which of the folowing are included in INFORMATION SYSTEM OBJECTIVES? 1. To support stewardship functions of the management. 2. To support management decision making. 3. To support the firm’s day-to-day operations. 4. To support adjusting entries of transaction

I,II,III

It manages the financial information resource of the firm. In this regard, it plays to important roles in transaction processing:

ACCOUNTING FUNCTION

True or False: Accounting captures and records the financial effects of the firm’s transactions.

TRUE

True or False: The accounting function distributes transaction information to operations personnel to coordinate one task.

FALSE

The value of information to a user is determined by _____.

RELIABILITY

True or False: Information must possess attributes like relevance, accuracy, completeness, summarization and timeliness

TRUE

TRUE OR FALSE: Unreliable information has value – it can waste resources or can lead to dysfunctional decisions.

FALSE

True or False: Effective decisions require information that has a low degree of reliability.

FALSE

What are thr roles of accountants?

USERS, SYSTEM DESIGNERS AND SYSTEM AUDITORS

It is a logical and relevant characteristic of an entity about which the firm captures data.

ATTRIBUTE

It assigns keys to new records and stores them in proper location in database.

STORAGE

the tasks of locating and extracting an existing record from the database for processing

RETRIEVAL

task of permanently removing obsolete or redundant records from the database.

DELETING

What are the characteristics of Information Generation?

RELEVANCE, TIMELINESS, ACCURACY, COMPLETENESS AND SUMMARIZATION

VITMOLOGY-PPT2

Anndrea S. Galupo · 22問 · 1年前

VITMOLOGY-PPT2