Topic 1 - Week 1

Topic 1 - Week 1 - Topic 1 Accounting Information Systems...

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Topic 1 Accounting Information Systems (AIS): 1. Collections of raw and stored data 1. Together typically serve as inputs 2. Processing methods 3. Information that serves useful accounting information 1. Outputs 4. Viewed as the study of computerised accounting systems DEFINITION OF AIS: 1. Collection of data and processing procedures that creates needed information for its users Accounting: 2. Fields: 1. Financial accounting 2. Managerial accounting 3. Taxation 3. AIS is used in all fields 4. AIS perform tasks such as: 1. Maintaining general ledger information 2. Creating spreadsheets for strategic planning tasks 3. Distributing financial reports 5. AIS also has the ability to create information that is helpful for non- accountants 1. Need to identify what information is needed Information (versus data): 1. Data are raw facts about events that have little organisation or meaning 1. E.g. raw scores from an exam 2. Information is where the data is processed by sorting, manipulating, or aggregating them into averages or other classifications 3. Raw data is important as it marks the starting point for an audit trial 4. However the output (information) is usually needed by everyone 5. 3 step process: 1. Inputs: Data/ Information form Internal/ External sources 2. Processes: Sort, Organise, Calculate 3. Outputs: Information for Internal/ External Decisions- Makers 6. Issues with computerised data processing: 1. Use of computers is great to gather information however the drawback is that information can be processed to fast and lead to too much information that is unwanted 1. Relevant information may be lost or overlooked 1. Information Overload 2. Computers do not automatically catch the simple input errors. 3. Make audit trials more difficult to follow 1. Not record is on paper 7. AIS’s must be able to organise and store data for future uses
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8. Decisions need to be made on what data to be stored and how best to integrate the stored data for end users 9. Old approach was to have independent subsystems. 1.
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This note was uploaded on 11/09/2011 for the course AFF 2851 taught by Professor Red during the Three '11 term at Monash.

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Topic 1 - Week 1 - Topic 1 Accounting Information Systems...

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