I.

The importance of information systems grows as a result of the expanding

advancement of technology and increasing in information needs. The first part of
Chapter 1 discussed the basic systems concepts and provides a framework for
analyzation for the difference between accounting information systems and
management information systems so that appropriate application may be use to
process financial and non-financial transactions. In addition to managers and other
internal users, AIS provides information for other external users so that it has more
users. The general model for AIS has been presented and this includes: data
collection, data processing, database management, and information generation.

The second part is all about the relationship between organizational structure and
the information system. It evaluated the operations of a typical manufacturing
organization and concentrated on functional segmentation as the most common
approach of constructing a business. It has presented two general methods of
organizing the IT function: the distributed data processing and the centralized data
processing.

The third part discussed the evolution of IS model. Each new model emerged as a
result of the flaws and limits of the previous one. However, as new approaches
emerged, the prior or legacy systems were frequently kept in use. As a result,
multiple generations of systems coexist at any one time across multiple businesses
and even inside a single firm.

The last part tackled the three roles of accountants as users of AIS, designers of AIS,
and auditors of AIS. Accountants, as end users, must give the professionals who
develop their systems a clear image of their objectives. The accountant’s
participation in systems development should be active rather than passive. The
principal cause of design errors that result in system failure is the absence of user
involvement. An appreciation of the accountant’s responsibility for system design
requires a historic perspective that predates the computer as a business information
tool. Today, we recognize that the responsibility for systems design is divided
between accountants and IT professionals as follows: the accounting function is
responsible for the conceptual system, and the IT function is responsible for the
physical system. Both internal and external auditors conduct audits. Their
respective constituencies are the attribute that most clearly distinguishes the two
factions. Internal auditors represent management's interests, whereas external
auditors represent third-party outsiders.

References
Alikhani H., A. N. (2016). Accounting information system versus management information
system, II(ISSN 1805-3602), 359-366. Retrieved June 16, 2021, from
https://core.ac.uk/download/pdf/296306638.pdf

Berisha-Shaqiri, A. (2015). Impact of Information Technology and Internet in Businesses.

IMPACT OF INFORMATION TECHNOLOGY AND INTERNET IN BUSINESSES. 1. Retrieved June
16,2021, from
https://www.researchgate.net/publication/287205733_Impact_of_Information_Technology_an
d_Internet_in_Businesses

II. According to Shaqiri in 2015, the evolution in information and communication

technology has changed not only our lives but also the way how people do business.
Using information technology, companies possess the potential to reach more
customers, introduce new products and services quickly, and collaborate with
suppliers and business partners from all over the world. This is why I totally agree on
what I have highlighted in the first part. The impact of information technology on
the firms’ cost structure can be best illustrated on the electronic commerce
example. The key areas of cost reduction when carrying out a sale via electronic
commerce rather than in a traditional store involve physical establishment, order
placement and execution, customer support, staffing, inventory carrying, and
distribution.

I believe that Information systems and organizations have effects on each other.
Information systems have to accompany the organization in order to provide the
information needed by special organization’s members. On the other hand, the
organizations must be aware of the information effects and open their doors to
benefit from the innovative technical knowledge. Organizations apply IT to have
greater efficiency to, save valuable resources, and to reduce expenses. The
information systems change the future of organizations. The revolution of
information reduces the need for middle managers and executive units to gather,
analyze, and comment data. The executive units are initially designed for resolving
the issues and problems resulted from increasing the size of the organization,
complexity of problems, and the need for professional knowledge. But in many
organizations, the computers are able to gather and analyze data more rapidly,
exactly and more appropriate than what the executive units are able to.
 Accountants play an important part in AIS, regardless of what careers they are into.
What important is that the accountants are able to deliver whenever they are
needed. Yes, accountants use AIS, which makes sense because they are the first to
set an example for others to follow. They must be involved in the decision making
and analysis of financial information. Overall, I agree that the AIS will serve the
purpose of providing people with the information that they need in order to do their
jobs. That might be internal management reports, external financial reporting for
stakeholders, or reporting to governmental agencies for taxes, etc
In an Accounting information system, TPS is the most fundamental system that is responsible
for recording of Transaction in Journals and vouchers and distributing necessary information for
daily operations. Chapter 2 discussed the treatment of transaction processing systems into four
major sections. The first part provided an overview of transaction processing, showing its vital
role as an information provider for financial reporting, internal management reporting, and the
support of day-to-day operations. To deal efficiently with large volumes of financial
transactions, business organizations group together transactions of similar types into
transaction cycles. Three transaction cycles account for most of a firm’s economic activity: the
revenue cycle, the expenditure cycle, and the conversion cycle. These cycles exist in all types of
businesses- both profit-seeking and not-for-profit. Expenditure cycle refers to the acquisition of
materials, property, and labor in exchange for cash. Conversion cycle is composed of the
production system and the cost accounting system. Revenue cycle is composed of sales
order processing and cash receipt.
The second part described the relationship among accounting records in both manual and
computer-based systems. Manual Accounting refers to the accounting method in which
physical registers for journal and ledger, vouchers and account books are used to keep a record
of the financial transactions. On the other hand, computerized accounting implies the method
of accounting, which uses an accounting software or package, to record the monetary
transactions, which happen to an organization (Surbhi 2018). Regardless of the system, internal
and external users should make decisions that become economic events, the cycle of
information, decisions, and economic events begins again.
The third part of the chapter presented an overview of documentation techniques used to
describe the key features of systems. Accountants must be proficient in using documentation
tools to perform their professional duties. Data flow diagrams, entity relationship diagrams,
document flowcharts, system flowcharts, program flowcharts, and record layout diagrams are
six types of documentation often used for this purpose.
Finally, the last part examined two computer techniques used for transaction processing: (1)
batch processing using real-time data collection and (2) real-time processing. It also examined
the operational efficiency issues associated with each configuration. Batch data processing is an
efficient way of processing high volumes of data is where a group of transactions is collected
over a period of time. In contrast, real time data processing involves a continual input, process
and output of data (7wData 2017).

Surbhi, S. (2018). Difference Between Manual and Computerized Accounting. Retrieved June
16,2021 from:
https://keydifferences.com/difference-between-manual-and-computerized-accounting.html
7wData (2017). Batch vs. Real Time Data Processing. Retrieved June 16, 2021 from
https://www.7wdata.be/business-analytics/batch-vs-real-time-data-processing/#:~:text=Batch
%20data%20processing%20is%20an,focused%20on%20batch%20data%20processing).

In the first part, despite the fact that each cycle performs distinct duties and supports distinct
goals, they all have similar characteristics. An example for this is given by Farahat in 2015, in
which all three TPS cycles capture financial records, and provide information about transactions
to users in support of their day-to-day activities. In addition, transaction cycles produce much of
the raw data from which management reports and financial statements are derived. Because of
their financial impact on the firm, transaction cycles command much of the accountant’s
professional attention. Financial transactions are common business events that occur regularly.
For instance, thousands of transactions of a particular type (sales to customers) may occur
daily. To deal efficiently with such volume, business firms group similar types of transactions
into transaction cycles.
I believe that although most businesses today use accounting software, some still use manual
procedures. Both systems have their own advantages and disadvantages. For example, many
firms may find manual accounting cheaper than computer-based systems. On its negative side,
manual accounting is prone to human error since there is a greater risk of making mistakes.
Financial records that are inaccurate can stifle business growth and result in regulatory fines.
They could also have an impact on decision-making, budgeting, and other critical operations.
electronic record-keeping ensures greater accuracy and can free up your time. Most accounting
programs have built-in reporting functions, invoice templates, automatic backups and other
useful features. Plus, they reduce or eliminate human error and can handle large amounts of
data. Faster and more efficient record-keeping, access to real-time financial data, automated
invoicing, and cost savings are all advantages of a computerized system. Most accounting
software, for example, can generate invoices, receipts, and credit notes automatically. As a
result, you won't have to spend hours manually preparing these documents. Instead, you can
concentrate on the most important areas of your business. It has also brought about quality
performance in banking operations by abiding by the accounting instructions and guidelines
which help them to minimize risk/challenges that are likely to be encountered in the course of
their duties as well as evolves adequate measures to combat such challenges and achieve
success. Overall, it depends on the firm’s ability to acquire resources to be used so that its
employees can function well according to their skills.

Farahat, A. (2015). Introduction to Transaction Processing: An Overview, TRANSACTION CYCLES,

The Expenditure Cycle, The Conversion Cycle and The Revenue Cycle. Retrieved on June
16,2021 from:
http://www.engineering-bachelors-degree.com/business-information-
management/uncategorized/introduction-to-transaction-processingan-overviewtransaction-
cyclesthe-expenditure-cyclethe-conversion-cycle-and-the-revenue-cycle/#:~:text=Three
%20transaction%20cycles%20process%20most,not%2Dfor%2Dprofit%20types.
Mitsde (2018). Importance of operations management. Retrieved on June 16,2021 from
https://blog.mitsde.com/importance-of-operations-management/
Operations management (OM) is the business function that plans, organizes, coordinates, and
controls the resources needed to produce a company’s goods and services. Operations
management is a management function. It involves managing people, equipment, technology,
information, and many other resources. The operations function in business can also be viewed
from a more far-reaching perspective: The collective success or failure of companies’ operations
functions has an impact on the ability of a nation to compete with other nations, and on the
nation’s economy. The role of operations management is to transform a company’s inputs into
the finished goods or services. Inputs include human resources (such as workers and
managers), facilities and processes (such as buildings and equipment), as well as materials,
technology and information. Outputs are the goods and services a company produces.
Operations serve as an excellent career path to upper management positions in many
organizations. The reason is that operations managers are responsible for key decisions that
affect the success of the organization.
Goods are physical items that include raw materials, parts, subassemblies such as
motherboards that go into computers, and final products such as cell phones and automobiles.
Services are activities that provide some combination of time, location, form, or psychological
value. The differences between the two have important part in the organization particularly in
operations.
For operations management to be successful, it must add value during the transformation
process. We use the term value added to describe the net increase between the final value of a
product and the value of all the inputs. The greater the value added, the more productive a
business is. An obvious way to add value is to reduce the cost of activities in the transformation
process. Activities that do not add value are considered a waste; these include certain jobs,
equipment, and processes. In addition to value added, operations must be efficient. Key
challenges include customers, technology, workforce, globalization, sustainability, and
optimizing supply chains.
According to Mitsde in 2018, operation management involves similar management for every
industry or business irrespective of their nature of the operation. Planning, organizing, staffing,
monitoring controlling, directing and motivating are its significant elements. Operation
management is obligatory for organizations to manage the daily activities seamlessly. With its
help, an organization is able to make good use of its resources like labor, raw material, money
and other resources. I admit that the role of operations management is vital because it directs
workforce towards achieving its goals and objectives.