Flexible Budgets, Direct-Cost Variances, and Management Control Dr. Hisham Madi.
Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham...
-
Upload
evangeline-elliott -
Category
Documents
-
view
265 -
download
7
Transcript of Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham...
![Page 1: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/1.jpg)
Chapter 1-1
The Islamic University of Gaza
Accounting Information SystemsAn Introduction
Dr. Hisham Madi
![Page 2: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/2.jpg)
Chapter 1-2
IntroductionIntroduction
What is an Information System?An information system is the set of formal procedures by which data are collected, processed into information, and distributed to users
![Page 3: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/3.jpg)
Chapter 1-3
IntroductionIntroduction
TransactionsA transaction is a business event.
Financial transactions economic events that affect the assets and equities of the organization (sales, and purchase).
Nonfinancial transactions all other events processed by the organization’s. adding new supplier of raw materials.
![Page 4: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/4.jpg)
Chapter 1-4
IntroductionIntroduction
Financial
Transactions
Nonfinancial
Transactions
Information System
User Decision MakingInformation
![Page 5: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/5.jpg)
Chapter 1-5
Introduction
What is Accounting Information Systems?
Applying information technology (IT) to accounting systems Financial accounting Managerial accounting Auditing Taxation
It identifies, collects, processes, and communicates economic information about a firm using a wide variety of technologies
![Page 6: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/6.jpg)
Chapter 1-6
Introduction
Accounting information systems exists at the intersection of two important disciplines: (1) accounting and (2) information systems
An Accounting Information System (AIS) Data and processing procedures Creates needed information for users
![Page 7: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/7.jpg)
Chapter 1-7
Accounting Versus Management Information System
Accounting Information Systems (AIS) process financial transactions; e.g., sale of goods and nonfinancial transactions that directly affect the
processing of financial transactions; e.g., addition of newly approved vendors.
Management Information Systems (MIS) process nonfinancial transactions that are not normally processed by traditional
AIS; e.g., tracking customer complaints, production planning, control, sales forecasting.
![Page 8: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/8.jpg)
Chapter 1-8
AIS versus MIS?
Accounting Versus Management Information System
![Page 9: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/9.jpg)
Chapter 1-9
The General AIS Model
![Page 10: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/10.jpg)
Chapter 1-10
Data Raw facts No organization or meaning Have not processed (edited, summarized, or redefined) Have no direct effect on the users.
Information Processed data Meaningful to users Cause the user to take an action.
Information Versus Data
![Page 11: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/11.jpg)
Chapter 1-11
AIS Components
![Page 12: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/12.jpg)
Chapter 1-12
Transforming the Data into Information
Functions for transforming data into information according to the general AIS model:
1. Data Collection
2. Data Processing
3. Data Management
4. Information Generation
![Page 13: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/13.jpg)
Chapter 1-13
Transforming the Data into Information
Data Collection Capturing transaction data Recording data onto forms Validating and editing the data
Data Processing Merging Calculating Summarizing Comparing
![Page 14: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/14.jpg)
Chapter 1-14
Transforming the Data into Information
![Page 15: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/15.jpg)
Chapter 1-15
Relevance: serves a purpose
Timeliness: no older than the time period of the action it supports
Accuracy: free from material errors
Completeness: all information essential to a decision or task is present
Summarization: aggregated in accordance with the user’s needs
Characteristics of Useful Information
![Page 16: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/16.jpg)
Chapter 1-16
The Importance of IT to Accountants
Accountants often help clients make software and hardware purchases
Auditors must evaluate computerized systems
Often asked to evaluate the efficiency and effectiveness of existing system
Understanding is vital to passing most certification exams
![Page 17: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/17.jpg)
Chapter 1-17
Introduction to Transaction Processing
An economic event that affects the assets and equities of the firm.
Similar types of transactions are grouped together into three transaction cycles: the expenditure cycle, the conversion cycle, and the revenue cycle.
![Page 18: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/18.jpg)
Chapter 1-18
Introduction to Transaction Processing
Expenditure Cycle: time lag between the two due to credit relations with suppliers: physical component (acquisition of goods) financial component (cash disbursements to the supplier)
Conversion Cycle : the production system (planning, scheduling, and control of the
physical product through the manufacturing process) the cost accounting system (monitors the flow of cost
information related to production)Revenue Cycle: time lag between the two due to credit relations with customers : physical component (sales order processing) financial component (cash receipts)
![Page 19: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/19.jpg)
Chapter 1-19
Source Documents - used to capture and formalize transaction data needed for transaction processing
Product Documents - the result of transaction processing
Turnaround Documents - a product document one system that becomes a source document for system
Manual System Accounting Records
![Page 20: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/20.jpg)
Chapter 1-20
Creation a source Document
![Page 21: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/21.jpg)
Chapter 1-21
A Product Document
![Page 22: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/22.jpg)
Chapter 1-22
A Turnaround Document
![Page 23: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/23.jpg)
Chapter 1-23
Manual System Accounting Records
Journals - a record of chronological entry special journals - specific classes of transactions that occur in high
frequency general journal - nonrecurring, infrequent, and dissimilar transactions
Ledger - a book of financial accounts general ledger - shows activity for each account listed on the chart of
accounts subsidiary ledger - shows activity by detail for each account type
![Page 24: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/24.jpg)
Chapter 1-24
Computer-Based Systems
Master File - generally contains account data (e.g., general ledger and subsidiary file)
Transaction File - a temporary file containing transactions since the last update (sales orders, cash receipt, and inventory receipt).
Reference File - contains relatively constant information used in processing (e.g., tax tables, customer addresses)
Archive File - contains past transactions for reference purposes
![Page 25: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/25.jpg)
Chapter 1-25
Documentation Techniques
Five common documentation techniques: Entity Relationship Diagram Data Flow Diagrams Document Flowcharts System Flowcharts
![Page 26: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/26.jpg)
Chapter 1-26
Data Flow Diagrams (DFD)
Use symbols to represent the processes, data sources, data flows, and entities in a system
Entities represent the sources of Data.
Entities may be external to the organization such as customer or supplier.
DFD shows what logical tasks are being done, but not how they are done or who is performing them
![Page 27: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/27.jpg)
Chapter 1-27
Data Flow Diagram Symbols
EntityName
NProcess
Description
Data StoreName
Direction of data flow
![Page 28: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/28.jpg)
Chapter 1-28
Data Flow Diagram Symbols
![Page 29: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/29.jpg)
Chapter 1-29
Entity Relationship Diagram (ERD)
ERD is a documentation technique to represent the relationship between entities in a system
Entities are Resources (cash, raw materials) Events (release of raw materials into the production
process) Agents (inventory control clerk, vendor, production
worker)
![Page 30: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/30.jpg)
Chapter 1-30
Entity Relationship Diagram (ERD)
Cardinality Is numeric mapping between two entity Relationship between tow entities.
one-to-one (1:1) one-to-many (1: M) many-to-many (M : M)
![Page 31: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/31.jpg)
Chapter 1-31
Sales-person
CarType
Customer Order
Vendor Inventory
Assigned
Places
Supply
Entity Relationship Entity
1
M
M M
1
1
Cardinalities
![Page 32: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/32.jpg)
Chapter 1-32
System Flowcharts
A system flowchart is the graphical representation of the physical relationships among key elements of a system.
![Page 33: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/33.jpg)
Chapter 1-33
![Page 34: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/34.jpg)
Chapter 1-34
Document Flowcharts
A document flowchart traces the physical flow of documents through an organization—i.e., from the departments, groups, or individuals who first create them to their final dispositions.
Constructing a document flowchart begins by identifying the different departments or groups that handle the documents of a particular system
![Page 35: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/35.jpg)
Chapter 1-35
Sales Department Computer Operations Department Warehouse Shipping Department
Finished System Flowchart Showing All Facts Translated into Visual Symbols
CustomerOrder
Customer
Terminal
Edit and Credit Check
AR FileUpdate
Program
Sales Orders
Inventory
Sales Order1
PicksGoods
StockRecords
Sales Order1
Sales Order3
Sales Order 3
Sales Order2
PicksGoods
N
Sales Order2
Customer
Sales Order1
A
A
Sales Order 3Sales
Order2Sales Order1
Credit File
N
CustomerOrder
![Page 36: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/36.jpg)
Chapter 1-36
Computer-Based Accounting Systems
Two broad classes of systems: batch systems real-time systems
![Page 37: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/37.jpg)
Chapter 1-37
Batch Processing
A batch is a group of similar transactions that are accumulated over time and then processed together.
There is always a time lag between the point at which an economic event occurs and the point at which it is reflected in the firm’s accounts.The amount of lag depends on the frequency of batch processing
A time lag exists between the event and the processing.
![Page 38: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/38.jpg)
Chapter 1-38
Advantages of Batch Processing
Organizations can increase efficiency by grouping large numbers of transactions into batches rather than processing each event separately.
Batch processing provides control over the transaction process via control figures.
![Page 39: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/39.jpg)
Chapter 1-39
Real-Time Systems
Process transactions individually at the moment the economic event occurs.
Have no time lag between the economic event and the processing
![Page 40: Chapter 1-1 The Islamic University of Gaza Accounting Information Systems An Introduction Dr. Hisham Madi.](https://reader036.fdocuments.net/reader036/viewer/2022081421/56649d825503460f94a674c7/html5/thumbnails/40.jpg)
Chapter 1-40
Why Do So Many AIS Use Batch Processing?
The processing of such high-volume checks can be done during an off-peak computer time.
This is one reason why batch processing maybe done using real-time data collection.