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The Information System: An Accountant's Perspective: Accounting Information Systems, 7e
The Information System: An Accountant's Perspective: Accounting Information Systems, 7e
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives for Chapter 1
• Understand the primary information flows within the
business environment.
• Understand the difference between accounting
information systems and management information
systems.
• Understand the difference between Financial
transactions and non-financial transactions.
• Know the general model for information systems.
• Be familiar with the functional areas of a business.
• Understand the stages in the evolution of information
systems.
• Understand the relationship between the three roles of
accountants in an information system.
Hall, Accounting Information Systems, 7e 2
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal & External Information Flows
Financial
IS
AIS MIS
Financial Human
Marketing Distribution
GLS/FRS TPS MRS Management Resource
Systems Systems
Systems Systems
Figure 1-5
• Classifying • Merging
• Transcribing • Calculating
• Sorting • Summarizing
• Batching • Comparing
▪ Storing
▪ Retrieving
▪ Deleting
▪ Compiling
▪ Arranging
▪ Formatting
▪ Presenting
Figure 1-10
Hall, Accounting Information Systems, 7e 28
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Structure for a Distributed
Processing System
Figure 1-11
Hall, Accounting Information Systems, 7e 29
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
Figure 1-12
Figure 1-13
R E A
M M M 1
Inventory Line items
Sales Party to Sales
M person
M
1
Pays for Made to
Customer
1
M
M Received
1 M Cash from
Cash Increases
Collections M 1 Cashier
Received 34
Hall, Accounting Information Systems, 7e
by 36
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Enterprise Resource Planning Systems
(ERP)
▪ is an information system model that enables an
organization to automate and integrate its key
business processes.
▪ ERP breaks down traditional functional barriers
by facilitating data sharing, information flows,
and the introduction of common business
practices among all organizational users.
▪ ERP packages are sold to client organizations
in modules that support standard processes
Hall, Accounting Information Systems, 7e 37
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
ERP Modules
▪ Asset Management
▪ Financial Accounting
▪ Human Resources
▪ Industry-Specific Solutions
▪ Plant Maintenance
▪ Production Planning
▪ Quality Management
▪ Sales and Distribution
▪ Inventory Management
Hall, Accounting Information Systems, 7e 38
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Accountants as Information System
Users
▪ 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
Hall, Accounting Information Systems, 7e 41
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.