Reading review questions:
What is an accounting information system
An accounting information
system is a collection of inputs, processes, outputs and internal controls.
The AIS captures primarily financial data, which can be transformed into
information and used for making decisions.
Describe the purpose of the FASB Conceptual Framework.
how it relates to your study of accounting information system
FASB Conceptual Framework, developed in 1977, was designed to give
guidance in the development of future accounting principles and rules.
comprises six parts: purpose of financial reporting, elements of financial
statements, qualitative characteristics, assumptions, principles and
The conceptual framework relates to accounting information
systems by identifying the data to be captured and the characteristics it
needs to be useful in making decisions.
List and discuss the four parts of a generic accounting information
The four parts of an AIS are: inputs, processes, outputs and
Inputs refer to things like source documents, while
processing tools can comprise anything from paper-based journals and
ledgers to sophisticated information technology like ERP systems.
Outputs include the general purpose financial statements and other
specialized internal reports.
Internal controls are designed to promote
information integrity in the accounting information system.
Compare and contrast sponsored information, practitioner / public
information and scholarly information
While all three types of
information can be useful for research and decision making, they do have
some important differences.
Sponsored information may be more biased
than the other two types—it may have an “agenda” beyond simply
Practitioner / public information may not be based
on research, but is often useful in a practical sense.
is typically based on some form of qualitative or quantitative research;
while it is sometimes useful for practice, it may be too specialized to
influence practice in a major way.
Identify five broad criteria you can use to evaluate information on the
Internet and in other sources
The five criteria suggested by the U.
Maryland are: authority, accuracy, objectivity, currency and coverage.
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