What is an AIS?

1. What important functions does the AIS perform in an organization?

a. It collects and stores data about activities and transactions
b. It processes data into information that is useful for making decisions.
c. It provides adequate controls to safeguard the organization’s assets.

AIS VERSUS MIS

● Accounting information system process
○ Financial transactions; e.g., sale of goods
○ Nonfinancial transaction is that directly affects the processing financial
transactions e.g., addition of newly approved vendors.
● Management information system process
○ Nonfinancial transactions that are not normally processed by traditional AIS e.g.,
tracking customer complaints.
AIS Subsystem
● Transaction processing system (TPS)
○ Supports daily business operations
● General ledger/financial reporting system (GL/FRS)
○ Produces financial statements and reports
● Management reporting system (MRS)
○ Produces special-purpose reports for internal use
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