Introduction to AIS Flashcards
What is AIS?
It is a computer-based method that can do tracking in account activity by joining with information technology resources. It involves the collection, storage, and processing of Financial and Accounting Data.
A system that collects, stores and process data to produce information and reports the information to internal and external decision makers.
How AIS is used?
AIS must have a database to store any information. Also, is related to revenue, expense, customer info, and tax Info
What are the items that are not included in AIS? And why?
Correspondences(friendly discussion), memos, presentations because they are not directly related to financial reporting or bookkeeping
What is the cycle form in AIS?
INPUT: Data from internal and external sources
PROCESS: Sort, organize, calculate
OUTPUT: Information for internal and external decision makers
Objectives of AIS?
To support day to day operations, to support decision making by internal decision makers, to fulfill obligations relating to stewardship.
Roles of Accountant
System Users, sytem designers, system auditors.
Definition of System Users
The people in AIS are simply the system users. For example, accountants, managers, and more. They must provide a clear picture of their needs
Definition of System Designers
Responsible for the conceptual system. Conceptual system means something having to do with the mind, or with mental concepts or philosophical or imaginary ideas. Ex, an accountant is going to collab with computer professional to design a system
Definition of System Auditors
Express their opinion on the company’s computerized system. Also, a system audit is a disciplined approach to evaluate and improve the effectiveness of a system
What is the definition of auditor?
An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws.
Manual method in Accounting Record
- Paper based documents. Ex, journal, ledgers.
2. Provide audit trail for tracing
Computer Based System in Accounting Record
- Paperless/softcopy. Ex, Master file, Transaction file, Archive file
- Audit trail is embedded in the system
What is a Batch System?
Assemble transaction into groups for processing.
Ex, payroll system
In this system, transactions are grouped and processed
What is a Real Time System?
Transactions are processed as the economics event occurred. Ex, sales system.
Processing must be done within the defined constraints or the system will fail.
Characteristics of Batch System
- Lag (fail to keep up) between time
- Fewer resources required
- Certain records can processed after the events
