Professional Documents
Culture Documents
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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
§ Information is a business
resource that:
§ needs to be appropriately
managed
§ is vital to the survival of
contemporary businesses
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 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.
Organizational Structure for a Distributed
Processing System
Figure 1-11
Hall, Accounting Information Systems, 7e 30
©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 Cashier
1
Received 34
Hall, Accounting Information Systems, 7e
by 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.
REA Model
§ The REA model is an accounting framework
for modeling an organization’s
§ economic resources; e.g., assets
§ economic events; i.e., affect changes in resources
§ economic agents; i.e., individuals and departments
that participate in an economic event
§ Interrelationships among resources, events and
agents
§ Entity-relationship diagrams (ERD) are often
used to model these relationships.
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.
Enterprise Resource Planning Systems
(ERP)
§ Is and information system model that enables
an organization to automate and integrate its
key business process.
§ ERP breaks down traditional function barriers by
facilitating data sharing, information flow, and
the introduction of common business practices
among all organizational users.
§ ERP packages are sold to client organizations
in modules that support standard process
Hall, Accounting Information Systems, 7e 39
©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
§ Plan Maintenance
§ Production Planning
§ Quality Management
§ Sales and Distribution
§ Inventory Management
Hall, Accounting Information Systems, 7e 40
©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 43
©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.