AIS Exam 1 Notes

AIS Exam 1 Notes - Chapter 1: Intro to AIS- Computers allow

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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 organizations 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 salesconnect 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- Reportingas to support GAAP- Controlmeans by which we make sure the intended actually happens - Business operations- Events processingevents 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 informations 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...
View Full Document

Page1 / 9

AIS Exam 1 Notes - Chapter 1: Intro to AIS- Computers allow

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online