Beruflich Dokumente
Kultur Dokumente
Abdi Dufera
Chapter 1
Learning Objectives
1.
2.
3.
4.
Explain what an accounting information system (AIS) is and describe the basic functions it performs. Discuss why studying the design and management of an AIS is important. Explain the role played by the AIS in a companys value chain and discuss ways that the AIS can add value to a business. Describe and contrast the basic strategies and strategic positions that a business can adopt.
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Learning Objective 1
Explain what an accounting information system (AIS) is and describe the basic functions it performs.
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What Is An AIS?
A system is a set of two or more interrelated components that interact to achieve a goal. Systems are almost always composed of smaller subsystems, each performing a specific function supportive of the larger system. An accounting information system (AIS) consists of:
What Is An AIS?
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What important functions does the AIS perform in an organization? It collects and stores data about activities and transactions. It processes data into information that is useful for making decisions. It provides adequate controls to safeguard the organizations assets.
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Learning Objective 2
Discuss
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In Statement of Financial Accounting Concepts No. 2, The FASB... defined accounting as an information system. stated that the primary objective of accounting is to provide information useful to decision makers.
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The Accounting Education Change Commission recommended that the accounting curriculum should provide students with a solid understanding of three essential concepts:
The use of information in decision making The nature, design, use and implementation of an AIS 3. Financial information reporting
1. 2.
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organizations activities and transactions How to transform that data into information that management can use to run the organization How to ensure the availability, reliability, and accuracy of that information
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Auditors need to understand the systems that are used to produce a companys financial statements. Tax professionals need to understand enough about the clients AIS to be confident that the information used for tax planning and compliance work is complete and accurate.
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One of the fastest growing types of consulting services entails the design, selection, and implementation of new Accounting Information Systems. A survey conducted by the Institute of Management Accountants (IMA) indicates that work relating to accounting systems was the single most important activity performed by corporate accountants.
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CITP: certified information technology professional Identifies CPAs who possess a broad range of technological knowledge and the manner in which information technology (IT) can be used to achieve business objectives Reflects the AICPAs recognition of the importance and interrelationship of IT with accounting
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AIS
Information Technology
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Learning Objective 3
Explain the role played by the AIS in a companys value chain and discuss ways that the AIS can add value to a business.
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The ultimate goal of any business is to provide value to its customers. A business will be profitable if the value it creates is greater than the cost of producing its products or services.
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Operations
Outbound Logistics
Service
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The four support activities in the value chain make it possible for the primary activities to be performed efficiently and effectively.
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Infrastructure
Technology
Human Resources
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Purchasing
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The value chain concept can be extended by recognizing that organizations must interact with suppliers, distributors, and customers. An organizations value chain and the value chains of its suppliers, distributors, and customers collectively form a value system.
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Distributor
Retailer
Consumer
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products or services. improving efficiency. Improving decision making capabilities. increasing the sharing of knowledge.
A well-designed AIS can also help an organization profit by improving the efficiency and effectiveness of its supply chain.
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What is information? The term data refers to any and all of the facts that are collected, stored, and processed by an information system. Information is data that has been organized and processed so that it is meaningful.
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Agent
Event Agent
Resource
Sales Transaction Inventory
Customer
Sales
Sale
Cashier
Supplier
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1. 2. 3. 4. 5.
6.
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Decision Structure
Structured decisions are repetitive, routine, and understood well enough that they can be delegated to lower-level employees in the organization. An example is:
Extending credit to customers.
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Decision Structure
Semistructured decisions are characterized by incomplete rules for making the decision and the need for subjective assessments and judgments to supplement formal data analysis. An example is:
Setting a marketing budget for a new product.
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Decision Structure
Unstructured decisions are nonrecurring and nonroutine. An example is: Choosing the cover for a magazine.
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Decision Scope
Decisions vary in terms of the scope of their effect. Operational control is concerned with the effective and efficient performance of specific tasks. Management control is concerned with the effective and efficient use of resources for accomplishing organizational objectives. Strategic planning is concerned with establishing organizational objectives and policies for accomplishing those objectives.
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Learning Objective 4
Describe and contrast the basic strategies and strategic positions that a business can adopt.
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New developments in IT affect the design of an AIS. What basic requirements are needed to evaluate the costs and benefits of new IT developments?
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Develop a basic understanding of corporate strategies. how IT developments can be used to implement existing organizational strategies. how IT developments can be used to create an opportunity to modify existing strategies.
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Because an AIS functions within an organization, it should be designed to reflect the values of that organizational culture.
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What role does the AIS play in helping organizations adopt and maintain a strategic position? Data collection about each activity Transforming data into information that can be used by management to coordinate those activities
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The value of information is the benefit produced by the information minus the cost of producing it.
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The Internet makes strategy more important than ever Enterprise resource planning (ERP) systems integrate all aspects of a companys operations with its traditional AIS. The key feature of ERP systems is the integration of financial data and other nonfinancial operating data.
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End of Chapter 1
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