SAFIRA ALIFAH

12030117190231

Accounting Information System - CHAPTER 2

INTEGRATIVE CASE S&S

1. How should I organize the accounting records so that financial statements can be easily
produced?

To help organize the accounting records, can follow the data processing cycle. So the
financial statement can be easily produced:

- Customer billing statements

- Sales analyzing reports
- Purchase requisition
- Vendor invoices
- Check registers
- General ledger
- Inventory data
- Payroll information
- Timekeeping
- Tax information

Consider the consequences if S&S use only one general ledger account for all sales
transactions, it would be easy to produce reports showing the total amount of sales for a
given time period, but it would be very difficult to prepare reports separating cash and credit
sales.

2. How am I going to collect and process data about all of S&S’s transactions?

The data can be made in both way manual and automated. It is used for collecting, storing,
retrieving and processing data. The data can come from both internal sources (e.g.,
employees) and external sources (e.g customers' online orders). Procedures and instructions
will be coded into AIS software; they should also be "coded" into employees through
documentation and training.
 The data must be collected about three facets of each business activity:

• Each activity of interest

• The resources affected by each activity
• The people who participate in each activity

Also S&S may find a useful to collect the following data about sales transtraction:

• Date and fine the sales occurred

• Employee who made the sale & the checkout clerk who processed the sale
• Checkout registers where the sale was processed
• Item sold
• Quantity of each item sold
• List price & actual price of each item sold
• Total amount of the sale
• Delivery instructions
• For credit sales: customer name, customer bill to and ship to addresses

After collecting all the data in paper source he may transfer it to computer to make it easier to
be processed. In the processing the transaction, there are four types of data processing
activities:

• Creating new data records

• Reading retrieving / viewing existing data
• Updating previously stared data
• Deleting data

Perhaps Ashton may use batch processing which means accumulating transaction records to
groups or batches for processing at a regular interval such as daily or weekly, thus this will
help Ashton in order to process the transaction & to make the financial statement

3. How do I organize all the data that will be collected?

The data can be used to prepare accounting statements and also reports such as accounts
receivable ageing, depreciation/amortization schedules, loan schedules, trial balance, profit
and loss, and others. This data is to be kept in one place. It facilitates a business's
recordkeeping, reporting, analysis, auditing and decision-making activities. So that it must be
complete, correct and relevant.
4. How should I design the AIS so that the information provided is reliable and accurate?

An Accounting Information System (AIS) provides the information to all companies’

organization or individual. That information is used to determine and evaluate the long term
and short term financial stability. Employees track expenses, provide detailed insight about
the expenses and future paths. It is used to prepare, analyze and verify financial documents it
is used to collect, store, manage, process, retrieve and report its financial data so that it can
be used.

5. How can I design procedures to ensure that they meet all government obligations, such
as remitting sales, income, and payroll taxes?

We can design procedures by purchasing tax software so that they can meet all government
obligations on time. All taxes are paid as on due date and returns are filed in prescribed
format.