accounting information system
TRANSCRIPT
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ACCOUNTING INFORMATION SYSTEMAN OVERVIEW
PRESENTED BY:Saket Kashyap
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CONTENT
• DATA AND INFORMATION
• WHAT IS AIS
• HISTORY OF AIS
• EFFECT OF MODERN TECHNOLOGY ON AIS
• COMPONENT
• MODEL OF AIS
• STEPS IN AIS
• OBJECTIVE ,PURPOSE AND USE OF AIS
• LIMITATION OF AIS
• CAREER OPPORTUNITIES IN AIS
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Difference Between Data and Information
• Data means facts maybe numeric,
Texts, pictures, graphs etc…
• It may be represented by symbols
• Data is input
• Information is processed data
• More meaningful for users
• Information is output
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AIS: At the Intersection of Accounting and IS
AccountingFinancial Accounting, Managerial accounting, and Taxation
Accounting
Information
Systems
Information
SystemsCollect,
Process,
Store,
Transform
and
Distribute
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AIS
• Collection of data and processing procedures
• Creates needed information for users.
• AIS don’t just support accounting and finance business processes. Theyoften create information that is useful to non-Accountants
Finance: cash forecasts and actual payment and receipt information
Marketing: Sales, summary analyses, cost information, and sales forecasts
Human Resources: payroll analyses( including employee benefitinformation) and projections of future personnel costs
Production: inventory summaries and product cost analyses
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History of Accounting Information Systems
Accounting information systems were predominantly developed “in-house” aslegacy systems. Such solutions were difficult to develop and expensive to maintain.
Today, accounting information systems are more commonly sold as prebuilt softwarepackages from vendors such as Microsoft, Sage Group, SAP and Oracle where it isconfigured and customized to match the organization’s business processes. As theneed for connectivity and consolidation between other business systems increased,accounting information systems were merged with larger, more centralized systemsknown as enterprise resource planning
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The Effect of Modern Technology in Accounting
Technology has greatly improved the accounting industry over the past several
decades. As personal computers have become standard office equipment, companies
have utilized accounting software as replacements for standard paper ledgers and
loose-leaf binders. Companies have also been able to customize their technology
needs to their business operations, eliminating unnecessary tasks in their accounting
processes. In addition to increased productivity, companies have developed faster
financial reporting and centralized accounting operations.
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MAIN COMPONENTS OF AIS
• Accounting information systems are composed of six main components:
• People: users who operate on the systems
• Procedures and instructions: processes involved in collecting, managingand storing the data
• Data: data that is related to the organization and its business processes
• Software: application that processes the data
• Information technology infrastructure: the actual physical devices andsystems that allows the AIS to operate and perform its functions
• Internal controls and security measures: what is implemented to safeguardthe data
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Model of AIS
MANAGEMENT
DATA PROCESSING SOFTWARE
DATABASE
INPUT PHYSICAL RESOURCES TRANSFORM
OUTPUT PHYSICAL RESOURCE
DATA INFORMATION …………………………………….
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Accounting data processing consist of four major task
Data collection
Data manipulation
Data storageDocument
preparation
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Steps of AIS
INPUT PROCESS
OUTPUTCONTROL
NEXT
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• Transaction data
• Status information regarding different entities such as customers,
vendors, employees etc..
Back
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Classification ComparisonAggregation
and Summation
Calculation
BACK
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FINANCIAL STATEMENTS
• Income statement
• Balance sheet
• Statement of change in financial position
MANAGEMENT REPORTS
OTHER OUTPUT DOUCUMENTS
• Customer invoice
• Material purchase order
• Pay chequesBACK
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External Control Factors
• To follow generally accepted accounting principles
• To follow accounting standards
• Follow rules and laws by the government and the statutory bodies
INTERNAL CONTROL FACTORS(MANAGEMENT)
• To ensure quality and security of information
• To analyze the variances between actual and standard performance
• To take corrective action for variances
BACK
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Objective of AIS
• To provide reliable accounting information to different users.
• Supporting routine activities
• To meet statutory reporting needs of an enterprise.
• To protect the enterprise from the possible risk of misuse of accounting data.
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PURPOSES OF AIS
• Inventory control
• Sales order processing
• Accounts receivable
• Accounts payable
• Payroll
• General ledger
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USE OF AIS BY
• Various customers
• Manager
• Consultant
• Evaluator
• Provider of accounting and tax services
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Limitation of Accounting Information System
• COST
• RELIABILITY OF COMPUTERS
• FRAUD
• ADDITIONAL SOFTWARE
• HUMAN ERROR
• TRAINING
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Careers in Accounting Information Systems
Systems consultants
provide help with information systems in
Designing information systems,
Selecting hardware and software, or
Re-engineering business processes.
Value-added resellers (VARs)
Sell a certain software program and
Provide consulting services to companies ain software program and
provide consulting services to companies.
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