AIS exam 1 review

AIS exam 1 review - The Information System: 21:56 The...

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The Information System: 21:56 The Information Environment : Triangle: Operational personnel: day-to-day operations Middle management: short-term planning and coordination of activities to overcome  goals Top management: long-term planning/ stakeholders Information flow: Information flows horizontally within the levels of the organization, as well as upward  and downward between the levels Manager’s will use summarized information External users:  we need to supply them with information- Trading partners : suppliers, customer sales,  Stakeholders : accounting, internal auditors, tax returns, financial statements What is a system ? Generates mental images of computers and programming A group of two or more interrelated components or subsystems that serve a common  purpose A system must contain more than one part All parts serve a common objective/goal Needs to be interdependent and harmoniously coordinate with all levels
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Information system designers need to identify critical subsystems, anticipate risk of their  failure, and design cost-effective control procedures to mitigate that risk An Information Systems Framework : Set of formal procedures by which date are collected, processed into formation, and   distributed to users Transactions are what distinguish an AIS from MIS AIS : The organizational component that accumulates, classifies, analyzes and  communicated relevant financial and nonfinancial decision making information to a  company’s internal and external parties FUNCTIONS of an AIS : Collect and store data about activities in an organization’s business processes Transform the data into information Provide assurance: Data is accurate and reliable Assets are safeguarded Actually operating as managers intend
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AIS Subsystems (3): Transaction processing system (TPS) (central to overall function) converting economic  events into financial transactions Supports daily business operations with reports, documents, and messages for users  throughout the organization Records financial transactions in the accounting records Distributed essential financial information to operations personnel to support their daily  operations General Ledger/Financial Reporting System: Produces the traditional financial statements, such as the income statement, balance  sheet, statement of CF’s, tax returns, and other reports required by law Update general ledger controls and updates status of financial resources and changes  in those resources Management Reporting System: Provides internal management with special-purpose financial reports and information  needs for decision making such as budgets, variance reports, and responsibility reports Discretionary reporting—they can choose important information they want to report, and 
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AIS exam 1 review - The Information System: 21:56 The...

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