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Unformatted text preview: Chapter 1: Intro to AIS- Computers allow accountants/auditors to be more mobile and use databases to get customer info 3 Themes:- Enterprise systems— integrate the business process and information from all of the organization’s functional areas ie) marketing + sales, - Enterprise resource planning systems— software packages that can be used for the core systems because it allows members of the team to install and organize information o The process needs to be understood and documented- E-business— application of electronic networks o Using virtual marketplaces to make sales—connect company, customer and suppliers- Internal control —process effected by board of directors, management and other personnel Beyond Debits and Credits- Controls —used to protect the organizations assets and ensure the effectiveness of operations- Sarbanes Oxley Act of 2002 —management must identify, document, and evaluate significant internal controls, auditors much report on the effectiveness of these controls Components of the Study of AIS- Technology- Databases- Reporting—as to support GAAP- Control—means by which we make sure the intended actually happens - Business operations- Events processing—events have operational and AIS aspects- Management decisions- Systems development and operation- Communications- Accounting and auditing principles What is an Accounting Information System?- System —set of interdependent elements that together accomplish specific objectives o Must have organization, interrelationships, integration and control objectives- Information system —man made system that consists of computer-based components and manual components established to collect, store and mange data and to provide output info to users- AIS —specialized subsystem of the information system o Collect, process and report info related to the financial aspect of business events Qualities of Information- Understandability —users see the information’s significance - Relevance —makes a difference in decision making situations by reducing uncertainty or increasing knowledge for that particular decision- Timeliness —info is available before the decision maker loses its capacity to influence a decision —lack of timeliness can make info lose its relevance- Predictive value/ Feedback value —improve a decision makers ability to predict, confirm or correct earlier expectations- Verifiability- high degree of consensus about the info among independent measurers- Neutrality/freedom from bias —addresses the reliability of the person doing the measuring- Comparability —can it be compared to other info for similarities/differences- Consistent- Accuracy —correspondence between the info and the actual events or objects that the info represents- Completeness —degree to which info includes data about every relevant object/event necessary to make a decision- Accounting vs. IT people: o only IT people will lack info about rules/regulations and controls according to GAAP...
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- Spring '10
- Business, Database normalization, normal forms