Problems and prospects of AIS in Banking Sector 1

Chapter - 1
Introduction

1.1: Introduction
An accounting information system (AIS) is a system of collection, storage and
processing of financial and accounting data that is used by decision makers. An
accounting information system is generally a computer-based method for tracking
accounting activity in conjunction with information technology resources. The resulting
statistical reports can be used internally by management or externally by other
interested parties including investors, creditors and tax authorities. The actual physical
devices and systems that allows the AIS to operate and perform its functions
• Internal controls and security measures: what is implemented to
safeguard the data
• Model Base Management
Accounting information allows commercial banks to speculate upon opportunity of
attractive business in placements and resource attraction. The role of accounting
information in the banking activity is extremely important in the orientation of bank
management towards successful strategies. By exercising the main functions,
consecrated by law, banks generate extremely useful accounting information for both
customers and bank management. Users of bank accounting information are internal
users (bank clients and shareholders, employees in front office and bank office, bank
managers) and external users (client business partners, tax authorities, insurance
companies, other banks).
The main generating sources of accounting information in bank activity are: client
accounts, bank accounts and bank computerized programs (which deal both with
accounting data and statistical data, bank management, etc.).