Lecture 1 Flashcards
(8 cards)
Define an accounting information system
Are a set of interrelated components working together to collect, process store and disseminate information to support decision-making, coordination, control and analysis in an organization.
Explain the characteristics of useful information
Relevant information = information that can make a difference in a decision
* Predictive value
* Feedback value
* Timely
Reliable information = information that is free from bias and error
* Verifiable
* Representational faithfulness
* Neutrality
Distinguish among data, information and information systems
Data is simply raw facts that describe an event and have little meaning on their own, data is out of context. Information is defined as being data organized in a meaningful way to be useful to the user. Data serves as an input; data becomes information when it is given in the context
Describe how AIS affects internal business process
AIS is responsible for the collection, storage and processing of financial and accounting data that is used for internal management decision-making, including nonfinancial transactions that directly affect the processing of financial transactions
An information system that facilitates different functions within different organisations.
Describe how AIS affects the value chain
Better implementation of AIS decreases the chances of error in supply chain operations, increasing overall operation accuracy. It also decreases the time cost and delivery of the product to the customers. These positive effects have a significant influence on supply chain activities and performance.
Describe how AIS affects external business process
We can establish relationships with external partners. We can customer the service and marketing processes for customers.
e.g. Fonterra has a ERP system. The suppliers are very important. Farmers supply milk, so they have to keep in touch with them. Customers are the same
The effect of AIS on the income statement
The results concluded that the Accounting Information System has a positive and significant effect on the timeliness of delivering financial statements. It shows the increasing use of AIS, the precision and timely delivery of financial statements as well as its usefulness to users.
Revenue = impact comes through integrated customer relationship management (CRM)
Cost of sales = impact comes through supply chain management (SCM)
Sales and general admin expenses = enterprise system
Interest expenses = SCM
Net income = combined effect
Describe the ICT strategic role
Information is a strategic resource that underpins the key functions and decision-making processes of a local government. The way information is managed, including the technology used to support it, is therefore central to local government business practices.
Information communication technologies
Automate = use technologies just to replace a person
informate = information systems to communicate within the business
transform = expect a fundamental change to business processes
