Jan Krisha Tubog

BSA 2B Prof. Flora

What is Information System (IS)?
An information system (IS) refers to a collection of multiple pieces of equipment
involved in the dissemination of information. Hardware, software, computer system connections
and information, information system users, and the system’s housing are all part of an IS.
are formal, sociotechnical, organizational systems designed to collect, process, store, and
distribute information.In a sociotechnical perspective, information systems are composed by four
components: task, people, structure (or roles), and technology.
There are several types of information systems, including the following common types:

 Operations support systems, including transaction processing systems

 Management information systems
 Decision support systems
 Executive information systems
The six components that must come together in order to produce an information system are:
Hardware: The term hardware refers to machinery.
Software: The term software refers to computer programs and the manuals (if any) that
support them.
Data: Data are facts that are used by programs to produce useful information. Like programs,
data are generally stored in machine-readable form on disk or tape until the computer needs
them.
Procedures: Procedures are the policies that govern the operation of a computer system.
People:. Often the most overlooked element of the system are the people, probably the
component that most influence the success or failure of information systems. This includes "not
only the users, but those who operate and service the computers, those who maintain the data,
and those who support the network of computers."
Feedback: it is another component of the IS, that defines that an IS may be provided with a
feedback (Although this component isn't necessary to function).

What is an Accounting Information Systems – AIS?

An accounting information system (AIS) is a structure that a business uses to collect,
store, manage, process, retrieve and report its financial data so it can be used by accountants,
consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators,
and tax agencies.

What are the parts of an Accounting Information System?

An accounting information system typically has six basic parts:
People who use the system, including accountants, managers, and business analysts
Procedure and instructions are the ways that data are collected, stored, retrieved, and
processed
Data including all the information that goes into an AIS
Software consists of computer programs used for processing data
 Information technology infrastructure includes all the hardware used to operate the
AIS
Internal controls are the security measures used to protect data

Who are the Users of Accounting Information?

Internal Users
Accounting supplies managers and owners with significant financial data that is useful
for decision making. This type of accounting in generally referred to as managerial accounting.
External users are people outside the business entity (organization) who use accounting
information. Examples of external users are suppliers, banks, customers, investors, potential
investors, and tax authorities.

Some of the ways external users employ accounting information include the following:

 Stockholders have the right to know how a company is managing its investments
 Federal and State Governments require tax returns and other documents often prepared
by accountants
 Banks or lending institutions may use accounting information to guide decisions such
as whether to lend or how much to lend a business
 Investors will also use accounting information to guide investment decisions
 Government / IRS Government agencies that track and use taxes are interested in the
financial story of a business. They want to know whether the business is paying taxes
according to current tax laws. The language in which tax-related financial statements are
prepared is called IRC or Internal Revenue Code. Tax preparation will be outside the
scope of this course.

Example of an Accounting Information Software.

TRADOGRAM is an e-procurement platform designed to streamline the purchasing

process for your business. The platform comes with built-in tools to help you manage
suppliers, control costs, and track expenses. This way, you get finer control over your
business’ spending.

Tradogram offers built-in capabilities for inventory management, multi-level

management, and report generation. You’ll also get tools for producing invoices, POs,
contracts, and other documents. The software centralizes all these features into one
platform to organize your procurement process.