A system is a set of interdependent elements that together accomplish specific objectives.

A system must
have organization, interrelationships, integration, and central objectives. Each part of a system is known
as a subsystem. Within limits, any subsystem can be further divided into its component parts or
subsystems.

A system is a collection of organized things and combination of parts working together to accomplish a
goal. Whereas a subsystem is derived from system and it is an integral part of a larger system.

A subsystem is defined as a technique or procedure found within a larger set of approaches or processes.
A department in a larger firm is an example of a subsystem in action. Subsystems, including shipping,
order fulfillment, and inventory management, may be part of an online retailer's complicated and vast
distribution system. On the other hand, a system is defined as an assemblage or combination of elements
or pieces that create a complicated or unitary whole. The correlation between systems and subsystems is
that subsystems usually occur within bigger systems, which in turn exist within larger systems. To put it
another way, processes are a logical sequence of actions designed to accomplish a specific goal. Even
though systems do not produce outputs, they provide the framework and atmosphere in which processes
can thrive.

An information system (IS) (or management information system [MIS]) is a man-made system that
generally consists of an integrated set of computer-based components and manual components established
to collect, store, and manage data and to provide output information to users.

Accounting information system (AIS), which is a specialized subsystem of the IS. The purpose of this
separate AIS was to collect, process, and report information related to the financial aspects of business
events.
→ An accounting information system (AIS) is a structure that a business uses to collect, store,
manage, process, retrieve, and report its financial data so it can be used by accountants,
consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators, and
tax agencies. Specially trained accountants work in-depth with AIS to ensure the highest level of
accuracy in a company's financial transactions and record-keeping, as well as make financial data
easily available to those who legitimately need access to it—all while keeping data intact and
secure

Our definitions of data and information are a bit circular. Information is data presented in a form that is
useful in a decision-making activity. The information has value to the decision maker because it reduces
uncertainty and increases knowledge about a particular area of concern. Data are facts or figures in raw
form. Data represent the measurements or observations of objects and events. To become useful to a
decision maker, data must be transformed into information.

QUALITIES OF INFORMATION

Effectiveness
→ Information is effective if it meets the needs of the information consumer who uses the
information for a specific task. If the information consumer can perform the task with the
information, then the information is effective. This corresponds to the following information
quality goals: appropriate amount, relevance, understandability, interpretability, objectivity.
Efficiency
→ Whereas effectiveness considers the information as a product, efficiency relates more to the
process of obtaining and using information, so it aligns to the ‘information as a service’ view. If
information that meets the needs of the information consumer is obtained and used in an easy
way (i.e., it takes few resources— physical effort, cognitive effort, time, money), then the use of
information is efficient. This corresponds to the following information quality goals:
believability, accessibility, ease of operation, reputation.

Integrity
→ If information has integrity, then it is free of error and complete. It corresponds to the following
information quality goals: completeness, accuracy.

Reliability
→ Reliability is often seen as a synonym of accuracy; however, it can also be said that information
is reliable if it is regarded as true and credible. Compared to integrity, reliability is more
subjective, more related to perception, and not just factual. It corresponds to the following
information quality goals: believability, reputation, objectivity.

Availability
→ Availability is one of the information quality goals under the accessibility and security heading.
Confidentiality
→ Confidentiality corresponds to the restricted access information quality goal.

Compliance
→ Compliance in the sense that information must conform to specifications is covered by any of the
information quality goals, depending on the requirements.
→ Compliance to regulations is most often a goal or requirement of the use of the information, not
so much an inherent quality of information.