Produces traditional fs grs most transactions come

produces traditional FS
GRS - most transactions come from the transaction
cycle
FRS - measures and reports status of fin resources and
the changes in those resources
- communicates this info to external users (NON-
DISCRETIONARY REPORTING)
- orgn has few or no choice in the info it provides
- much of this information consists of:

traditional FS

tax returns

other legal documents
3. Management reporting system (MRS)
- provides internal mgt with special-purpose fin reports
and info needed for decision making
- provides internal info needed to manage a business
- DICRETIONARY REPORTING
- orgn can choose what info to report and how to
present it
- typical reports include:

budgets

variance reports

cost-volume-profit analyses

reports using current cost data
Management Information System
- often requires info that goes beyond the capability of AIS
- processes non-fin transactions that are not processed by
traditional AIS
Why is it important to Distinguish between AIS and MIS?

Because of the highly integrative nature of modern IS,
mgt and auditors need a conceptual view of the info that
distinguishes key processes and areas of risk and legal
responsibility from the other aspects of the system.
GENERAL MODEL FOR INFO SYSTEM
1. End users
a. External users
b. Internal users – management at every level of the
orgn and the operations personnel
2. Data sources
- fin transactions that enter the info system from both
internal and external sources
a. External fin transactions – most common source
of data
- economic changes
b. Internal fin transactions exchange or movement
of resources within the orgn
Data vs Information:
Data – facts which may or may not be processed and
have no direct effect on the user
Info – causes the user to take an action that they could
not and would not have taken
- allows users to take action to resolve conflicts
reduce uncertainty and make decisions
3. Data collection - first opn’l system
- most important system in the
system

Objective: to ensure that the event data entering the
system are valid, complete, and free from material
errors
Two rules governing the design of data collection
procedures:
a. Relevance - info system should only capture
relevant data
- system designer to
determine what is and what is not relevant
b. Efficient – designed to collect data only once
- to make the data available to
multiple users
4. Data processing
5. Database management
Database – physical repository for fin and non-fin data
Data hierarchy: (ARF)
a. Attribute – most elemental piece of potentially
useful data in the database
- logical and relevant characteristic of an
entity about which the
firm captures data
a. Record – complete set of attributes for a single
occurrence within an entity class
- every record in the database
must be unique in at least one attribute
b. Files – complete set of records of an identical
class
Database management task
Three fundamental tasks:
a. Storage – assigns keys to new records - store
them in proper location in the database
b. Retrieval – task of locating and extracting an