Introduction to Accounting

Information Systems
Learning Objectives
 Appreciate the complex, dynamic environment
in which accounting is practiced.
 Know the relationship between the AIS and the
organization’s business processes.
 Know the attributes of information.
 Recognize how information is used for different
types of decisions and at various levels in the
organization.
 Recognize how the information system supports
the management function.
 Recognize the accountant’s role in relation to
the current environment for the AIS.
 Understand how to use this textbook effectively
to learn AIS.
Textbook Themes
1. Enterprise Systems — integrates business
process functionality and information from
all of an organization’s functional areas

2. E-business — use of networks to undertake

business processes.

3. Internal Control — a system of integrated

elements that provide reasonable
assurance that a business will reach its
business process goals.
 Sarbanes-Oxley Act of 2002

 PublicCompany Accounting Reform and Investor

Protection Act
 Corporate and Auditing Accountability,
Responsibility, and Transparency Act

*Implications for both public and private accountants

Elements in the Study of AIS
Top Technology Initiatives
1. Information Security 6. Identity and Access
Management Management
2. IT Governance 7. Conforming to
3. Business Continuity Assurance and
Management and Compliance Standards
Disaster Recovery 8. Business Intelligence
Planning 9. Mobile and Remote
4. Privacy Management Computing
5. Business Process 10. Document, Forms,
Improvement, Content, and
Workflow and Process Knowledge
Exception Alerts Management
Accounting Systems and Subsystems

A system is a set of interdependent

elements that together accomplish
specific objectives.
A subsystem is the interrelated parts that
have come together, or integrated, as a
single system.
 Information System /Management
Information System

a manmade system

 consists of an integrated set of computer-based

and manual components

 established to collect, store, and manage data

 to provide output information to users.
Information System Model
 11

Purpose of AIS
 Collect, process and report information related
to the financial aspects of business events.
 Oftenintegrated and indistinguishable from the
overall information system.
 Like
the IS, the AIS may be divided into
components based on the operational functions
supported.
Information Qualities
 13

Accountant’s Role in Current

Business Environment
 Designer — application of accounting principles,
auditing, information systems, and systems
development.
 User — participate in design.
 Auditor — provide audit and assurance services.