COURSE INTRODUCTION

Department: Accounting
Course Title: Accounting Information System
Course No
No: Acct 322
Credit Hours: 3
Contact Hours: 3
Study hours required: 300

Introduction:
To day professional accountants work in an exciting and complex environment that is
constantly changing. Progress in information technology is occurring at an ever – increasing
rate. Business organizations are changing their methods of operation and their management
structures to meet the demands of an increasingly competitive environment. The economic
and legal environment that accountants work in is also changing in unpredictable ways. All of
these changes require that today’s accounting students be better prepared than ever before to
enter the challenging world of the accounting profession.

To be successful in pursuing an accounting career, graduate must posses a basic knowledge of

computer based information systems and their role in performing the accounting function in
contemporary business organizations. To this end the course is designed to help the students
gain an appreciation and working knowledge of how ICT is applied to business functions in
general and the accounting function in particular.
particular.
Course Objectives
After successful completion of the course, students must understand:
 system theory
 types and nature of information systems
 the business Activities &decisions performed in the major business cycles and the
collection and processing of data about those business activities;
 Revenue cycle
 Expenditure cycle
 Production cycle
 Finance cycle
 Fundamental concepts of database technology and its effect on AIS
 The design of an AIS to provide the information needed to make key decisions in each
business cycle
 The tools of AIS work, such as data flow diagrams and flow-charting.
BLOCK I

Title: Conceptual Foundations of Accounting Information System

Introduction

Block one consists of three units that present the underlying concepts fundamental to
understanding of AIS. Unit one introduces basic terminology and discusses the different
components of AIS, Principles of AIS and phases of accounting system development.

Unit two discusses the role of E-business (electronic commerce) in today’s business
organizations. The unit also discusses telecommunication concepts and applications as well as
the Internet.

Unit three presents basic information processing and data storage concepts.
To cover the contents of the block a total of twenty-four (24 Hrs) is required. At the end of
every unit you will find answers to learning activity and check your progress questions.

Block Objectives:
Careful study of the block enables you to understand:
 what AIS is and why it is important to study it.
 the role of E- commerce
 how a processed Data can be stored.
BLOCK II

Introduction
Revenue, expenditure, production and finance activities are common to business
organizations. Unit 4, 5, 6, and 7 provide an overview of transaction processing applications
in each of these major cycles of business activity. And unit 8, 9, and 10 provides control
issues related to these business activities, in particular unit 10 helps you to practice and apply
internal controls in expenditure cycle of any business organization found in your surrounding.
The application systems discussed in this chapter and the next illustrate and emphasize the
concept of organizational independence (separation of functions) in the design of application
systems. Organizational independence requires that custody of an asset be under a separate
authority from record keeping functions related to that asset and that both custody and record
keeping be under separate authority from any operating functions that utilize the asset. The
applications presented are not intended to serve as a blue prints to be duplicated with out
regard to the specific situation at hand. They are however the check list. They provide a frame
of reference against which an analyst may contrast a proposed or existing system.

The flow diagrams presented focus on the logical necessities of an application system rather
than on physical features. The information represented by the documents symbol in these
diagrams may be a paper form, a telephone call, a computer or a satellite data transmission, or
any other physical form. Technological considerations are not specifically addressed because,
although technology may alter the operating configuration of an application system, the same
ends should be accomplished regardless of technology.
Block objectives
After successful completion of the block the reader should be able to explain:
revenue cycle application system
expenditure cycle application system
production application system
finance application system
transaction processing and the internal control process
computer and information system security.
And in addition exercise some control issues in her/his own organization through observing
the existing system, thereby suggesting for change if any.