Chapter 1 Review

Chapter 1 Review - C hapter One Introduction to AIS...

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Chapter One Introduction to AIS Enterprise System – integrate the business process and information from all of an organization’s functional areas (e.g. marketing and sales, purchasing, and business reporting) Enterprise Resource Planning (ERP) – software packages that can be used for the core systems necessary to support enterprise systems It is essential for accountants to know and understand these ERP systems because they will be part of teams that will install and operate systems in their organizations E-Business – the application of electronic networks (including the internet) to undertake the business processes between individuals and organizations These processes include interaction between back-office processes (internal) and front-office processes (external) Created entirely new ways of working within and across organizations Internal Control – a process designed to provide reasonable assurance regarding achieving objectives in the following categories: efficiency and effectiveness of operations, reliability of reporting, and compliance with applicable laws and regulations Effected by an entity’s board of directors, management and other personnel Example – controls ensure than an organization’s products are not stolen and that the organization does not have too much inventory Necessary for managers and accountants to know how to use controls to ensure achievement of the organizations goals Legal Issues Impacting Accountants – compliance with laws and regulations – especially SOX Section 404 – represent a significant expansion of the internal control-related roles of management and auditors Section 409 – requires disclosure to the public on a “rapid and current basis” of material changes in an organization’s financial condition
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Chapter 1 Review - C hapter One Introduction to AIS...

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