Scribd
Upload
56 views

CH 01

1) The document discusses information systems from an accountant's perspective, including the flow of internal and external information, different information requirements based on organizational level, and the definition of an information system. 2) It defines key terms like data, information, systems, and subsystems and explains that an accounting information system (AIS) captures and records financial transactions. 3) The document outlines the organizational structure of information systems departments and different models like centralized, distributed, flat-file, and database. It also discusses accountants' various roles in information systems as users, designers, and auditors.

Uploaded by

Salsabila Savira
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
56 views

CH 01

1) The document discusses information systems from an accountant's perspective, including the flow of internal and external information, different information requirements based on organizational level, and the definition of an information system. 2) It defines key terms like data, information, systems, and subsystems and explains that an accounting information system (AIS) captures and records financial transactions. 3) The document outlines the organizational structure of information systems departments and different models like centralized, distributed, flat-file, and database. It also discusses accountants' various roles in information systems as users, designers, and auditors.

Uploaded by

Salsabila Savira
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 24

Chapter 1

The
Information
System: An
Accountant’s
Perspective
Internal & External
Information Flows
Information Requirements
• Each user group has unique information
requirements.
• The higher the level of the organization,
the greater the need for more
aggregated information and less need for
detail.
Information in Business
• Information is a business
resource:
–needs to be appropriately
managed
–is vital to the survival of
contemporary businesses
What is Information?

• Information is processed data that is


used to make decisions, resolve
conflicts, and/or reduce uncertainty.
What is a System?
• A group of interrelated multiple
components or subsystems that
serve a common purpose
• System or subsystem?
– A system is called a subsystem when it is
viewed as a component of a larger system.
– A subsystem is considered a system when it
is the focus of attention.
Examples of Systems
• Biological
– cell
– human body
• Mechanical
– water heater
– computer
• Others
E = mc2
– solar system
– mathematics
What is an Information
System?

• An information system is the set


of formal procedures by which
data are collected, processed
into information, and distributed
to users.
Information System Objectives in a
Business Context

• The goal of an information system is to


support
– the stewardship function of
management.
– management decision making.
– the firm’s day-to-day operations.
Transactions

Financial

Transactions User
Information
Decision
Nonfinancial System
Information Making

Transactions
What is Accounting Information
Systems?
• Accounting is an information system
– which identifies, collects, processes, and
communicates economic information about an
entity to a wide variety of people regardless of
the technology
– captures and records the financial effects of
the firm’s transactions
– distributes transaction information to
operations personnel to coordinate many key
tasks
AIS vs. MIS?

IS

AIS MIS

GLS/FRS TPS MRS Finance Marketing Production HRS Distribution


Transforming the Data into
Information
Functions for transforming data into
information according to the general AIS
model:
1. data Collection
2. data Processing
3. data Management
4. information Generation
Organizational Structure
• The structure of an organization helps to
allocate
– responsibility
– authority
– accountability
• Segmenting by business function is a
very common method of organizing.
Functional Areas
• Inventory/Materials Management
– purchasing, receiving and stores
• Production
– production planning, quality control, and
maintenance
• Marketing
• Distribution
• Personnel
• Finance
• Accounting
• Computer Services
Organization of Computer Services Function in a
Centralized System
Organizational Structure for a Distributed Processing
System
Potential Advantages of DDP

• Cost reductions in hardware and data


entry tasks
• Improved cost control responsibility
• Improved user satisfaction since control
is closer to the user level
• Backup of data can be improved through
the use of multiple data storage sites
Potential Disadvantages of DDP

• Loss of control
• Mismanagement of organization-wide
resources
• Hardware and software incompatibility
• Redundant tasks and data
• Consolidating tasks usually segregated
• Difficulty attracting qualified personnel
• Lack of standards
The Evolution of IS Models: The Flat-File Model
The Evolution of IS Models: The Database
Model
Accountants as Information
System Users
• Accountants must be able to clearly
convey their needs to the systems
professionals who design the system.
• The accountant should
actively participate
in systems development
projects to ensure
appropriate systems design.
Accountants as System
Designers
• The accounting function is responsible
for the conceptual system, while the
computer function is responsible for the
physical system.
• The conceptual system determines the
nature of the information required, its
sources, its destination, and the
accounting rules that must be applied.
Accountants as System
Auditors
• External Auditors
– attest to fairness of financial statements
– assurance service: broader in scope than
traditional attestation audit
• IT Auditors
– evaluate IT, often as part of external audit
• Internal Auditors
– in-house IS and IT appraisal services

You might also like