INSTRUCTIONS:

Answer the following questions and cite your corresponding source/s.

1. Define what is AIS? (2 pts)

Answer:
An accounting information system (AIS) is a structure that a business uses to collect, store,
manage, process, retrieve, and report its financial data so it can be used by accountants,
consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators,
and tax agencies.

Source/s: https://www.investopedia.com/articles/professionaleducation/11/accounting-
information-systems.asp

2. When was AIS first introduced? Present timeline of AIS progress. (3pts)
Answer:
1970s
Early accounting information systems were designed for payroll functions. Accounting
information systems were developed "in-house" as no packaged solutions were available.
Present
Accounting information systems are more commonly sold as prebuilt software packages from
large vendors such as Microsoft, Sage Group, SAP AG|SAP and Oracle Corporation|
Oracle where it is configured and customized to match the organization's business
processes. Small businesses often use accounting lower costs software packages such
as Tally.ERP 9, MYOB and Quickbooks.
Source/s: https://en.wikipedia.org/wiki/Accounting_information_system#:~:text=Early
%20accounting%20information%20systems%20were,no%20packaged%20solutions
%20were%20available.&text=Small%20businesses%20often%20use
%20accounting,ERP%209%2C%20MYOB%20and%20Quickbooks.

3. What are the basic functions of AIS? (5pts)

Answer:

Every accounting information system has three basic functions that it must be able to perform.

 An AIS program must be able to collect and store financial data about a company’s
business transactions. This should include capturing financial data content from source
information, recording transactional activities, and converting financial data into records,
ledgers, and the occasional report.
 
 An AIS should be able to provide accurate and useful financial information and
knowledge to employees, executive, and stakeholders for the purpose of making prudent
business decisions and future planning.
 
 An AIS should make sure to have a system in place to effectively collect and convert
financial data into actionable information and allow easy access for general analytics purposes.

Source/s: https://discoveraccounting.org/accounting-information-systems/

4. Who are the advantages of having AIS? (5pts)

Answer:
1. Cost Effectiveness – In the era of digitalization and artificial intelligence, each
organization is moving towards cost cutting with the use of artificial intelligence. AIS has helped
to reduce manual efforts and can perform the same operation more cost-effectively.
2. Time Effectiveness – AIS has assisted business organizations to reduce the amount of
time involved in recording, classifying, reporting any financial information. A large quantum of
manual work can be completed by AIS with much fewer efforts and time involved.
3. Easy Access (Portability) – Data stored in AIS can be retrieved via information system
connected with internet anywhere and at any time. Where manually prepared books of accounts
cannot be carried easily, AIS data can be.
4. Accuracy – With the involvement of AIS, the reliability of data is increased. As we had
discussed earlier in this article that an AIS follows a predefined set of instructions, therefore
chances of error-prone information are less and therefore AIS have an added advantage of
accurate data.

Source/s: https://aziroff.com/accounting-information-system/

5. As a student, what do you think is the importance of having knowledge in AIS? (5 points)
Answer:
Accounting information systems provides businesses with the ability to record all types
of financial information for future use. In addition, these systems are huge time-savers
and make the accounting processes and procedures easily repeatable. Because of that,
these systems save companies money because the number of people needed to complete
accounting processes is reduced. Also, the risk of human error is drastically reduced
because the computer systems manage the accounting processes, and documents are
automatically created by the systems. It is imperative that businesses keep accurate
books, and accounting information systems make this requirement much easier to meet.

Source/s: https://classroom.synonym.com/study-accounting-information-systems-
6309095.html