AIS Exam One - 1 AIS Exam One Chapter 1 Key Terms...

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1 AIS Exam One Chapter 1 Key Terms Accounting Information Systems (AIS)—an information system that: --identifies, collects, processes, and communicates economic information about a firm using a wide variety of technologies. --Captures and records the financial effects of the firm’s transactions. --Distributes transaction information to operations personnel to coordinate many key tasks. Agents—economic agents are individuals and departments that participate in an economic event. They are parties both inside and outside the organization with discretionary power to use or dispose of economic resources. Examples include sales clerks, production workers, shipping clerks, customers, and vendors. Assurance services are professional services, including the attest (certifies or bears witness) function, that is designed to improve the quality of information, both financial and nonfinancial, used by decision makers. A gray area of overlap exists between assurance and consulting services, which auditors must avoid now because of SOX legislation. Attest Function—is when an expert expresses an opinion about the fairness of a company’s financial statements Public confidence in the reliability of internally produced financial statements rests directly on their being validated by an independent expert auditor. Auditing—is the form of independent attestation performed by an expert—the auditor— who expresses an opinion about the fairness of a company’s financial statements. Auditor—is the one who performs these independent opinions about a company’s statement. Backbone System—consists of a basic system structure on which to build. The pimary processing logic is preprogrammed, and the vendor then designs the user interfaces to suite the client’s unique needs. Centralized Data Processing—all data processing is performed by one or more large computers housed at a central site that serve users throughout the organization. Conceptual system—the design of the conceptual system involves specifying the criteria for identifying delinquent customers and the information that needs to be reported. The accountant determines the nature of the information required, it sources, it destination, and the accounting rules that need to be applied.
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This note was uploaded on 04/01/2008 for the course MGMT AIS 310 taught by Professor Cicotte during the Spring '08 term at University of Michigan.

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AIS Exam One - 1 AIS Exam One Chapter 1 Key Terms...

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