seB.

Financial Reports• Main source of informationof stakeholders are thegeneral purpose

financialstatements• Are audited by CPA’sC. Tax Reports• Used by the BIRD. Special Reports• Use by
certain regulatorybodies• E.g. banks prepares monthly,quarterly and annual reportto the Bangko Sentral
ngPilipinasACCOUNTING INFORMATION SYSTEMCan be classified into:Measurement system (processing
phase) – analysing, measuring, recording, classifyingand summarizing.Communication system (reporting
phase) – presentation of formal reports which arecommunicated to decision makers.PHASE 1 – Data
gatheringPHASE 2 – analysing, measuring andrecordingPHASE 3 – classifying, storing
andsummarizingPHASE 4 – reporting and interpretingDecision makingAIS PRINCIPLES1. Control Principle
– AIS of the firmmust have good internal control.Internal control enumeratesmethods and procedures
necessaryto monitor the activities of thebusiness and ensure efficientoperation.2. Cost-Benefit Principle
– prescribesthat the advantages enjoyed frominstalling the system must outweighits cost.3. Relevance
Principle – Informationmust be reported promptly and thatinformation must be useful toenable
statement users to reach aconclusion and make a decision4. Compatibility Principle – systemdesigned
to fit the uniquecharacteristics of the company – itspersonnel, activities, and structure.5. Flexibility
Principle – prescribes thatthe company’s system should allowfor changes if change is
needed.COMPONENTS OF ACCOUNTINGINFORMATION SYSTEMPEOPLE• or personnel; involves
fromphase 1 to phase 4

Financial Accounting and Reporting for Servicers andMerchandisersInternational

Edition2021Sources:21st Century Accounting Process 27th edition – Financial Accounting and Reporting
for Servicers andMerchandisers by Zenaida Vera Cruz Manuel;Fundamentals of Accountancy, Business
and Management 1 by Rabo,Tugas and SalendrezDigested by Patricia Janel Borja (Holy Angel University,
BSA Student)