Accounting information system an overview 9e bodnar hopwood chapter 01

Accounting Information
Systems: An Overview

Chapter 1

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Learning Objective 1

Understand the related concepts
of transaction cycles and
internal control structure.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Overview
An accounting information system (AIS)
is a collection of resources designed to
transform data into information.
Accounting information systems
perform this transformation.
Manual
Computerized
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Information and Decisions
Who are the two main users
of accounting information?
External users
Internal users

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Information and Decisions
Who are the external users
of accounting information?
Stockholders
Investors
Creditors
Government agencies
Customers and vendors
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Information and Decisions
Hierarchy of Internal Users
Top-Level

Management
Middle
Management
Lower-Level
Management

Strategic
Tactical

Summarization
and Filtration

Operational
Transaction oriented

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Information Systems
The term information system suggests the use
of computer technology in an organization.
Hardware
Data

Information

Software
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Information Systems
Electronic Data Processing System (EDP)
Data Processing System (DP)
Management Information System (MIS)
Decision Support System (DSS)
Expert System (ES)
Executive Information System (EIS)
Accounting Information System (AIS)
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Business Processes

Data

Organizational
units

Logical time
sequence

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Business Processes
Primary Business Processes
Inbound
sales
logistics

Outbound
sales
logistics

Marketing

Operations

Service

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Business Processes
Supporting Business Processes
Procurement

Technology
development

Human
resources

Firm
infrastructure

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Transaction Processing Cycles
1. Revenue cycle
2. Expenditure cycle
3. Production cycle
4. Finance cycle
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Internal Control Process
Reliability of financial reporting
Effectiveness and efficiency
Compliance

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Internal Control Process
What are the elements of internal control?
Control environment
Risk assessment
Control activities
Information and communication
Monitoring
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Internal Control Process
Segregation of Duties:
No individual or department should
control the accounting records
relating to its own operation.
Internal Auditing:
It is an independent appraisal
activity within the organization.
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Learning Objective 2

Describe the organizational
structure of the information

system function in organizations.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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The Information System Function
Chief
Information
Officer
Steering
Committee

Manager
Systems
Analysis

Manager
Programming

Manager
Operations

Manager
Technical
Support

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

Manager
User
Support

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The Information System Function
Manager
Systems
Analysis

Manager
Programming

Application
Analysts

Application
Programmers

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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The Information System Function
Manager
Operations
Maintenance

Programmers
File
Librarian

Data
Entry
Operators

Computer
Operators

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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The Information System Function
Manager
Technical
Support

Systems
Programmers

Communication
Analysts

Database
Administration

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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The Information System Function
Project organizations

Analysts

Programmers

Application projects
 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Learning Objective 3

Discuss applications of
information technology
in organizations.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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End-User Computing

End-user computing (EUC) is the
hands-on use of computers by end users.
Functional end users do their own
information processing activities.

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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EUC: Mainframe Application
Database
Database
Accounts
AccountsReceivable
Receivable
Data
Data

User
UserReport
Report

Query
QueryLanguage
Language
Processor
Processor

User

UserSubmits
Submits
Query
QueryLanguage
Language
Job
Job

Database
Database
Access
AccessControl
Control
Software
Software

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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Data Processing for the End User
Traditional Approach

User

Information System
Specialists

Data

Processing

 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood

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