Vous êtes sur la page 1sur 17

Accounting Information

Systems: An Overview
Chapter 1

Copyright © Pearson Education 2015 .

Learning Objectives
• Distinguish between data and information:
▫ Understand the characteristics of useful information.
▫ Explain how to determine the value of information.

• Explain fundamental decisions an organization makes:

▫ Understand basic information needed to make them.

• Identify the transactional information that passes between internal and external
parties and an AIS.

• Describe the major business processes present in most companies.

• Explain what an accounting information system (AIS) is and describe its basic

• Discuss how an AIS can add value to an organization.

• Explain how an AIS and corporate strategy affect each other.

• Explain the role an AIS plays in a company’s value chain.

Copyright © Pearson Education 2015.
Data vs. Information
• Data are facts stored in the system
▫ A fact could be a number, date, name,
and so on.
For example:
ABC Company, 123,
99, 3, 20, 60

Copyright © Pearson Education 2015.

Data vs. Information
The previous slide just showed facts, if we put those
facts within a context of a sales invoice, for example, it
is meaningful and considered information.

Invoice Date : 2/22/14 Invoice #: 123

Customer: ABC company

Item # Qty Price

99 3 $20

Total Invoice Amount $60

Copyright © Pearson Education 2015.
Value of Information
• Information is valuable when the benefits exceed
the costs of gathering, maintaining, and storing
the data.

Benefit (i.e., improved decision making)

> Cost (i.e., time and resources used to get
the information)

Copyright © Pearson Education 2015.

What Makes Information Useful?
There are seven general characteristics that make
information useful:
1. Relevant: information needed to make a decision
(e.g., the decision to extend customer credit would
need relevant information on customer balance
from an A/R aging report)
2. Reliable: information free from bias
3. Complete: does not omit important aspects of
events or activities
4. Timely: information needs to be provided in time
to make the decision
Copyright © Pearson Education 2015.
What Makes Information Useful?

5. Understandable: information must be

presented in a meaningful manner
6. Verifiable: two independent people can
produce the same conclusion
7. Accessible: available when needed

Copyright © Pearson Education 2015.

Organizational Decisions and
Information Needed
• Business organizations use business processes to
get things done. These processes are a set of
structured activities that are performed by
people, machines, or both to achieve a specific
• Key decisions and information needed often
come from these business processes.

Copyright © Pearson Education 2015.

Transactional Information Between
Internal and External Parties in an AIS
• Business organizations conduct business
transactions between internal and external
• Internal stakeholders are employees in the
organization (e.g., employees and managers).
• External stakeholders are trading partners such as
customers and vendors as well as other external
organizations such as Banks and Government.
• The AIS captures the flow of information between
these users for the various business transactions.
Copyright © Pearson Education 2015.
Interactions Between AIS and Internal
and External Parties

Copyright © Pearson Education 2015.

Basic Business Processes
• Transactions between the business organization
and external parties fundamentally involve a
“give–get” exchange. These basic business
processes are:
▫ Revenue: give goods / give service—get cash
▫ Expenditure: get goods / get service—give cash
▫ Production: give labor and give raw materials—get
finished goods
▫ Payroll: give cash—get labor
▫ Financing: give cash—get cash
Copyright © Pearson Education 2015.
What Is an Accounting Information
• It can be manual or computerized
• Consists of
▫ People who use the system
▫ Processes
▫ Technology (data, software, and information
▫ Controls to safeguard information
• Thus, transactional data is collected and stored into
meaningful information from which business
decisions are made and provides adequate controls
to protect and secure the organizational data assets.
Copyright © Pearson Education 2015.
How Does an AIS Add Value?

• A well thought out AIS can add value through

effective and efficient decisions.
▫ Having effective decisions means quality decisions
▫ Having efficient decisions means reducing costs of
decision making

Copyright © Pearson Education 2015.

AIS and Strategy
• An AIS is influenced by an organization’s
• A strategy is the overall goal the organization
hopes to achieve (e.g., increase profitability).
• Once an overall goal is determined, an
organization can determine actions needed to
reach their goal and identify the informational
requirements necessary to measure how well
they are doing in obtaining that goal.

Copyright © Pearson Education 2015.

AIS in the Value Chain
• The value chain shows how the different
activities within an organization provide value to
the customer.
• These activities are primary and support
▫ Primary activities provide direct value to the
▫ Support activities enable primary activities to be
efficient and effective.

Copyright © Pearson Education 2015.

Copyright © Pearson Education 2015.
Key Terms
• System • Revenue cycle
• Goal conflict • Expenditure cycle
• Goal congruence • Production (conversion) cycle
• Data • Human resource/payroll cycle
• Information • Financing cycle
• Information technology (IT) • General ledger and reporting
• Information overload system
• Value of information • Accounting information
system (AIS)
• Business process
• Predictive analytics
• Transaction
• Value chain
• Transaction processing
• Primary activities
• Give-get exchange
• Support activities
• Supply chain
Copyright © Pearson Education 2015. 1-17