Accounting Information Systems



Accounting Information Systems

Introduction [pic]

What is an Accounting Information System (AIS)?

An Answer:

“An AIS is a system that collects, records, stores and processes data to produce information for decision makers.” Accounting Information Systems, 2006, p.6.

What roles can accountants play in regards to AIS in organizations?

An Answer:

1. External Auditor

2. Tax Accountant

3. Internal Auditor/Risk Manager

4. Consultant

5. Implementation Team Member

6. Business Analyst

7. Budget Analyst

8. Financial Analyst

9. Systems Analyst

10. Controller

11. Accounting Clerk

12. CFO, etc.

S&S Questions:

1. How should information be organized so that Scott and Susan, external entities, and other employees can be effective? (What does effective mean to S&S?)

2. How can this information be collected and processed, while making sure this information is complete, reliable and accurate?

An Answer:

1.

• Effective is defined by the business objectives.

• Start with decisions that stakeholders need to make.

• Tools to use are overview of business activities, key decisions and information needs, p. 27

• Tools to use are transaction cycles and interactions between entities p. 31, revised

2.

• Capture data at the source

• Exception reporting

• Plan vs. actual

• Standard naming conventions

• Standard coding structures

• Summary reporting with drill-down

• Audit trail

• Normalized relational database

S&S Questions:

1. What tools and techniques are available to use to document existing information systems and why do I need to do this?

2. What tools are available to design the new AIS?

An Answer:

1.

• Earlier tools referenced

• Sample reports, source documents

• As-Is business process models

• As-Is Program flowcharts

• As-Is Data Models

• Policies

• Hardware/Software standards

2.

• Business objectives

• AIS objectives

• Same as 1 above (to-be)

• Procedures

• Hardware performance

• Software performance

S&S Questions:

1. What is a relational database and how is it different from excel?

2. Why does using a relational database make sense for S&S’s new AIS?

3. Should S&S buy off-the-shelf software or custom develop the new system?

An Answer:

1. Insert, update, delete anomolies addressed in a relational database, not in a flat file like excel

2. Data can be shared across applications, users and regions more easily and with greater accuracy in a relational database (see 1). Data standards are easier to enforce, and data security easier to manage.

3. Accounting applications are fairly standard across organizations and can be purchased off-the-shelf in almost all situations. (S&S offers nothing unique and should purchase off-the-shelf)

Class Friday:

We will be in KOBL 320 (computer lab) becoming familiar with Microsoft Access. Be prepared to discuss problem 4.3 on page 131.

No class next Monday, September 3rd or Friday, September 7th.

Prepare Section 2, Systems Analysis and Design, Software Selection for next Wednesday, September 5th.

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