Accounting Information

Systems
Accounting Information System : An Accountant’s
Perspective

ACCOUNTING PROGRAM
Overview
Introducing a general model for information systems,
functional areas, the role of information in system
information
Objectives
After studying this chapter, you should:
• Recognize the primary information flows within the
business environment
• Understand the difference between accounting
information systems and management information
systems.
• Understand the difference bbetween financial
transactions and nonfinancial transactions.
• Understand the organizational structure and
functional areas of a business
Contents
• Primary Information Flows within the business
environment
• Accounting Information systems and Management
Information Systems
• The General model for information systems
• Financial transactions from non financial transaction
• The functional areas of a business
• Two main stages in the evolution of information
systems
• Three roles of accountants in an information system
Primary Information flows within
the business environment
What is Accounting?
The traditional role of accounting and accountants is
seen as recording the details of transactions that
accur within an organization, starting with the
general journal and going through to the preparation
of the financial statements.
Traditional Accounting Cycle
What is a information?
Information is a data that has been processed and can be
used for the user.

Information Overload
Occurs in situations where someone has more information
than is needed

Organisations need to be consciours of what information they

produce (whether reports or some other type of information)
and make sure that it is relevant to the people who need it
What is a Systems?
A group of interrelated multiple components or
subsystems that serve a common purpose.

A system can be defined as something that takes inputs,

applies a set of rules or processes to the inputs and generates
ouputs.
What is a Systems?
Inputs can include data, as well as other resources, that are
the starting point for a system

Process (Proses) is a series of activities performed on input in

a system

Output (keluaran) is information obtained from the system or

resulting from the system.

Feedback (umpan balik) ialah method used to ensure that the

system is running normalluy and there is no problem.
What is an Information Systems?
• An information system is the set of formal
procedures by which data are collected, processed
into information, and distributed to users.
Accounting dan Information Systems
– A Changing Relationship
1970
Accounting
Information
System

Accounting AIS Information

System

Information
System
Accounting
Sekarang
Internal and External Information
Flows
Internal and External Information
Flows
1. Horizontal
flows of information used primarily at the operations level
to capture transaction and operations data

2. Vertical flows of information

• downward flows = instructions, quotas, and budgets
• upward flows = aggregated transaction and operations
data
Transactions
AIS versus MIS
Accounting Information Systems (AIS)
Process :
1. Financial transactions, Example : Sales
2. Non-financial Transactions that directly affect the
processing of financial transactions, Example : Adding
new approved vendor.

Management Information Systems (MIS)

Process :
1. Non-financial transactions that are not normally
processed by traditional accounting information
systems, Example : Customers Complain
 AIS versus MIS
Informatio
n System
(IS)

Accountig Management
Information Information
System Systems
(AIS) (MIS)

General
Transaction Management
Ledger/Financ Financial
Processing Reporting Marketing Distribution Marketing
ial Reporting Management
System System Systems Systems Systems
System Systems
(TPS) (MRS)
(GL/FRS)
 General Model for Accounting
Information Systems
The External Environment

The Information
Database
System
Manageme
nt

External
Data Data Information External
Sources of
Collection Processing Generation End Users
Data

Feedback
External
Internal End
Sources of
Users
Data The Business Organization

Feedback
Characteristics of Information
Relevan
According to purpose
Timeliness
Information should not exceed the time period of the
action it supports
Accuracy
Information must be fre from material error
Completeness
All information that matters to a decision or job must
exist
Summarization
Information should be aggregated in accordance with
the user’s needs.
Functions from Resources
Resources Functional Segment
Materials 1. Material Management
2. Production
3. Marketing
4. Distibution
Labor Personal
Financial Capital Finance
Information Accounting Information
Technology
The Role of Accountants in
Accounting Information Systems
• Accountants as Information System Users
• Accountants as System Designers
• Accountants as System Auditors