Short Answer

1 Describe how AIS adds value to an organization by providing accurate and timely
. information.
A well-designed AIS can do this through the following:

 Improving the quality and reducing the costs of products and services
 Improving efficiency
 Sharing knowledge
 Improving the efficiency and effectiveness of the supply chain
 Improving the internal control structure
 Improving decision making

2 Describe the six components of an Accounting Information System (AIS).

.
 The people who operate the system and perform various functions
 The procedures and instructions, both manual and automated, involved in
collecting, processing and storing data
 The data about the organization and its business processes
 The software used to process the organization's data
 The information technology infrastructure, including computers, peripheral devices
and network communications devices used to collect, store, process and transmit
data and information.
 The internal controls and security measures that safeguard the data in the AIS

3 Within the value chain of an organization there are five primary activities and four
. support activities. Describe how an accounting information system fits into the
value chain of an organization. Where does it add value?
 While some might pigeon-hole the accounting information system as a simple
support activity, its influence on the value of each primary and support activity
is large. The accounting information system adds value to each activity by
improving the quality and reducing the costs of each activity, improving
efficiency, improving decision making, improving the sharing of knowledge. All
of this is accomplished by collecting the proper data, summarizing it
appropriately for each particular user, and delivering the information at the
appropriate time.