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


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



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



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

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

1–


The Information System Function
Manager
Operations
Maintenance

 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

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