ACCOUNTING

Janice E. Audal

INFORMATION
SYSTEM
Continuation. . .
4 AIS Software

 The software component of an AIS is the

computer programs used to store, retrieve,
process, and analyze the company's financial data.
4 AIS Software
 Key Components of Effective AIS Software

02 Quality
 Reliability
 Security

Managers rely on the information it outputs to

make decisions for the company, and they need
high-quality information to make sound decisions.
5 IT INFRASTRUCTURE

 Information technology infrastructure is just a

fancy name for the hardware used to operate the
accounting information system. Most of these
hardware items a business would need to have
anyway and can include the following:
5 IT INFRASTRUCTURE

COMPUTER STORAGE
MEDIA .

SURGE
MOBILE
PROTECTOR
DEVICES .
5 IT INFRASTRUCTURE

 A good AIS should also include a plan for

maintaining, servicing, replacing, and upgrading
components of the hardware system, as well as a
plan for the disposal of broken and outdated
hardware, so that sensitive data is completely
destroyed.
6 Internal Controls

 The internal controls of an AIS are the security

measures it contains to protect sensitive data.
These can be as simple as passwords or as
complex as biometric identification. Biometric
security protocols might include storing human
characteristics that don't change over time, such
as fingerprints, voice, and facial recognition.
6 Internal Controls

 An AIS must have internal controls to protect

against unauthorized computer access and to
limit access to authorized users, which includes
some users inside the company. It must also
prevent unauthorized file access by individuals
who are allowed to access only select parts of the
system
6 Internal Controls
 An AIS contains confidential information
belonging not just to the company but also to its
employees and customers.
This data may include:
 Social Security numbers
 Salary and personnel information
 Credit card numbers
 Customer information
 Company financial data
 Financial information of suppliers and vendors
6 Internal Controls
 All of the data in an AIS should be encrypted, and
access to the system should be logged and
surveilled. System activity should be traceable as
well.

 An AIS also needs internal controls that protect it

from computer viruses, hackers, and other internal
and external threats to network security. It must
also be protected from natural disasters and
power surges that can cause data loss.
 How an Accounting Information Systems (AIS) is
Used

 AIS includes data relating to revenue, expenses , customer information,

employee information, and tax information. Specific data includes sales
orders and analysis reports, purchase requisitions, invoices, check
registers, inventory, payroll, ledger, trial balance, and financial statement
information.
 An accounting information system must have a database
structure to store information.
- This database structure is typically
programmed with query language that
allows for table and data manipulation.
 How an Accounting Information Systems (AIS) is
Used

 Accounting information systems are often highly secured

platforms with preventative measures taken against viruses,
hackers, and other external sources attempting to collect
information. Cyber security is increasingly important as more and
more companies store their data electronically.
 How an Accounting Information Systems (AIS) is
Used

An AIS produces reports

 accounts receivable
 aging reports based on customer information
 depreciation schedules for fixed assets
 trial balance for financial reporting
 Customer lists
 taxation calculations
 inventory levels
However, correspondences, memos, or presentations are not included
in the AIS because these items are not directly related to a company’s
financial reporting or bookkeeping.
 Benefits of Accounting Information Systems

Interdepartmental Interfacing
 An accounting information system strives to interface across multiple
departments.
 An AIS can share information about a new order so that the
manufacturing, shipping, and customer service departments are aware
of the sale.

Internal Controls
 Policies and procedures can be placed within the system to ensure that
sensitive customer, vendor, and business information is maintained
within a company. Through the use of physical access approvals, login
requirements, access logs, authorizations, and segregation of duties,
users can be limited to only the relevant information necessary to
perform their business function.
Thank You