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Lecture 1
Introduction to accounting systems
Prepared by: Dr. Savanid (Nui) Vatanasakdakul
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Unit overview
Accounting Information System Concept
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http://mq.edu.au/iLearn/
Contains:
Regularly update announcement
Tutorial questions
Lecture note
Subject outline
Assessments
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regularly access your student email address.
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Lecture 2 hours
Tutorial 1 hour
PAL (optional) 1 hour
Independent study 6 hours
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Per ____
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COMPONENT DUE DATE WEIGHTING
Assessed
coursework
Weekly 30 %
Report Week 7 30%
Final Exam TBA 40 %
Total 100 %
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Students with tutorials on public holidays
should arrange to sit in on another tutorial
for that week only, but it is not compulsory.
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The University has determined that some circumstances routinely
encountered by students are not acceptable grounds for claiming Special
Consideration. These grounds include, but are not limited, to:
Routine demands of employment
Routine family problems such as tension with or between parents, spouses,
and other people closely involved with the student
Difficulties adjusting to university life, to the self-discipline needed to study
effectively, and the demands of academic work
Stress or anxiety associated with examinations, required assignments or any
aspect of academic work
Routine need for financial support
Routine demands of sport, clubs and social or extra-curricular activities
Conditions existing prior to commencing a unit of study are not grounds for
Special Consideration. The student is responsible for managing their
workload in light of any known or anticipated problems. The student is
responsible for contacting Student Support Services if they have a chronic
condition.
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Attend lectures and tutorials
Review lecture (notes/i-lecture)
Complete reading before the tutorial.
Participate the tutorial discussions.
Attend PAL session
See staff/tutors in consultation hours when
are not not sure of something.
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What is information?
What is a system?
What is information system?
What is an accounting information system?
Why do business need IS?
Why do accountant need to know about IS?
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Data (Singular form datum) are the raw
materials of which Information Systems
are built.
Information is processed or value-added
data.
Knowledge is understanding the meaning of
information knowledge is personal and
subjective.
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Can you give an example which links all
three?
Data___________________________
Information_____________________
Knowledge _____________________
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A collection of parts that work together to
achieve some purpose.
Systems can be man-made or natural
Identify some systems that you know about
what do they have in common?
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System data conversion
Data
Processing
Information
Inputs
Outputs
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Manual keying
Scanning through barcode technology
Scanning through image scanners
Magnetic ink character recognition [MICR]
Voice recognition
Optical mark readers
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Processes are the sets of activities that are
performed on the inputs into the system
Examples:
oFormat checks on data
oValidity checks on data
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Outputs refer to what is obtained from a
system, or the result of what the system
does
Examples:
oReceipts
oInvoices
Outputs are normally the starting point
when designing a system
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A system whose purpose is the efficient
storage, manipulation, processing and
retrieval of information.
A set of interrelated components that collect
(or retrieve), process, store, and distribute
information to support decision marking and
control in an organization.
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The components of an information system
are:
People
Data/information
Procedures
Software
Hardware
Communication
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Source: Laudon and Laudon 2006
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Internet growth and technology convergence.
Transformation of business enterprise.
Growth of a globally connected economy.
Growth of knowledge and information-based
economies.
Emergence of the digital firm.
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We can use technology to create barriers to
competition.
We can use technology to lower the costs of
market entry.
We can shorten timelines, speed cashflow, cut
out intermediaries,
We can be better informed than our
competitors.
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Source: Laudon and Laudon 2006
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Source: Laudon and Laudon 2006
Business process
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1. When describing systems, a component may
belong to more than one system.
2. Information Systems is purely and simply about
technology
3. Successful Information Systems are centered on
technology
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Transaction Processing Systems (TPS)
serves the operational level of an organization.
are designed to process routine transactions
efficiently
E.g. Systems to calculate the weekly and monthly
payroll and tax payments
Knowledge management systems (KMS)
helps businesses create and share information.
uses group collaboration systems such as an
intranet.
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Office automation systems (OAS)
improves the productivity of employees who need to
process data and information.
provides individuals effective ways to process personal and
organisational data, perform calculations, and create
documents. e.g. word processing, spreadsheets, file
managers, personal calendars, presentation packages
Management information systems (MIS)
serves the management level of the organization.
mainly concerned with internal sources of information. MIS
usually take data from the TPS and summarise it into a
series of management reports.
MIS reports tend to be used by middle management and
operational supervisors.
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Decision-support systems (DSS)
helps management make decisions in situations where
there is uncertainty about the possible outcomes of those
decisions.
DSS comprise tools and techniques to help gather relevant
information and analyse the options and alternatives.
DSS often involves use of complex spreadsheet and
databases to create "what-if" models.
Executive support systems (ESS)
serves the strategic level of an organization.
It gathers, analyses and summarises the key internal and
external information used in the business.
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Source: Laudon and Laudon 2006
A collection of data and information
processing procedures aimed at converting
economic data into the accounting
information needed by users for decision
about the allocation of scare resource.
AIS = Accounting + Information System
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Pre 15th century: recording economic
activities
15th century: Paciolis development
of double-entry
accounting
19th century: adding machines and
cash registers >>
batch totals
20th century: punch cards >> fully
integrated computerised
systems
21st century: accounting information
systems
Evolution of AIS
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Accounting and IS a changing relationship
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Why do accountants need to know about IS?
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
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