Chapter 1

INTRODUCTION TO
ACCOUNTING
INFORMATION
SYSTEMS

Central Themes
of This Text
Business processes
Information
systems

Business Processes

A sequence of
activities:
for acquiring
goods and
services
for producing
goods and
services
for selling goods
and services

Business Processes
Models of business
processes viewed in
terms of transaction
cycles.
Each transaction
cycle involves
several events.

Business Processes

Three main transaction

cycles:
An acquisition
(purchasing) cycle is the
process of purchasing
and paying for
goods/services.
A conversion cycle is the
process of transforming
resources acquired into
goods/services.
A revenue cycle is the
process of providing
goods or services to
customers and collecting
cash.

Typical Business
Processes
Production
Sales

Information Systems

A management
information system
(MIS) is a system that
captures data about
an organization
stores and maintains
the data
provides meaningful
information for
management.

Information Systems

An MIS can be viewed

as a set of subsystems
that provide
information for such
functions as:

production

marketing

human resources

accounting

finance

Management
Information Systems

MIS captures
data about business
processes
aggregates, summarizes,
and organizes data
produces information
that helps monitor and
control business
processes
ERP systems integrate
all aspects of a firms
business processes.

Accounting
Information System
An AIS is a subset of
an organizations MIS
that
provides:
accounting and
financial information
other information
obtained in the
routine processing of
accounting
transactions

Uses of Accounting
Information Systems

Producing external
reports
Supporting routine
activities
Decision support
Planning and control
Implementing internal
control

Role of Accountants
in Relation to AIS

User
Manager
Consultant
Evaluator
Provider of
accounting and tax
services

Keyterms

Accounting
information system
(AIS)
Applications
Assurance services
Business process
Enterprise resource
planning system (ERP)

Keyterms

Events
Internal control
Management
information system
(MIS)
Off-the-shelf software
Transaction cycles