Revision Notes
Accounting Information Systems I
SAMPLE
Chapter 1 - Theoretical foundation and overview
Drivers of business and information system change can include: globalisation, deregulation, advances in technology, and outsourcing and downsizing. A system is system is a set of two or more interrelated components interacting to achieve a goal. A goal conflict occurs when components act in their own interest without regard for the overall goal. Goal congruence occurs when components acting in their own interest contribute toward the overall goal. Data are facts that are collected, recorded, stored and processed (Insufficient for decision making). Information is processed data used in decision making. Benefits include: Reduce Uncertainty, Improve Decisions, Improve Planning, and Improve Scheduling. Costs include: Time and Resource, Produce Information, Distribute Information. A transaction is an agreement between two entities to exchange goods or services. An accounting information system can: Improve quality and reduce costs Improve efficiency Improve sharing knowledge Improve supple chain Improve internal control Improve decision making
Chapter 2 – Fundamentals of business processes and transaction processing
Data processing cycle: Data Input>Data Processing ( + Data Storage)> Information Output Paper based sources documents (eg sales-order form, purchase requisition) will eventually need to be transferred to AIS. The turnaround is usually paper based, are sent from organisation to customer, returned by customer to organisation. Data storage consists of paper-based (journals, ledgers) and computer-based AIS. Ledgers can be general (summary level data ie. Asset, liability) or Subsidiary (detailed data ie. Accounts receivable and payable). Journals can be general (infrequent or specialised transactions) or specialised (repetitive transactions). Coding techniques include: Sequence (numbered consecutively, ie. 1-3) Group (positioning of digits in code provide meaning, ie 1204100) Mnemonic (code is numbers and letters deprived from description of item, ie Dry300W05) An Enterprise Resource Planning (ERP) system integrates an organisation’s information into one overall AIS. ERP modules can include Financial, Human Resources, and Manufacturing. ERP advantages: intergration, data is captured once, easier management, better access controls, simplifies operating procedures, improved customer service, efficient manufacturing.\ ERP disadvantages: cost, time-consuming, disruptive change, complex, resistance to change.