Chapter 1 Accounting Information Systems: An Overview Copyright © 2012 Pearson Education 1-1.
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Transcript of Chapter 1 Accounting Information Systems: An Overview Copyright © 2012 Pearson Education 1-1.
Chapter 1Accounting Information Systems: An Overview
Copyright © 2012 Pearson Education1-1
Learning Objectives
Distinguish between data and information.
Discuss the characteristics of useful information. Explain how to determine the value of information.
Explain the decisions an organization makes and the information needed to make them.
Identify the information that passes between internal and external parties and an AIS.
Describe the major business processes present in most companies.
Explain what an accounting information system (AIS) is and describe its basic functions.
Discuss how an AIS can add value to an organization.
Explain how an AIS and corporate strategy affect each other.
Explain the role an AIS plays in a company’s value chain.
Copyright © 2012 Pearson Education 1-2
What Is a System?
System A set of two or more
interrelated components interacting to achieve a goal
Goal Conflict Occurs when components
act in their own interest without regard for overall goal
Goal Congruence Occurs when components
acting in their own interest contribute toward overall goal
Copyright © 2012 Pearson Education 1-3
Data vs. Information
Data are facts that are recorded and stored. Insufficient for decision
making.
Information is processed data used in decision making. Too much information
however, will make it more, not less, difficult to make decisions. This is known as Information Overload.
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The case of 7-11 in page 30
Value of Information
Benefits
Reduce Uncertainty
Improve Decisions
Improve Planning
Improve Scheduling
Costs
Time & Resources
Produce Information Distribute Information
1-5
Benefit $’s > Cost $’s
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What Makes Information Useful?
Necessary characteristics: Relevant
“The capacity of information to make a difference in a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct prior expectations.”
Reliable “The quality of information that assures that
information is reasonably free from error and bias and faithfully represents what it purports to represent.”
Complete “The inclusion in reported information of everything
material that is necessary for faithful representation of the relevant phenomena.”
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What Makes Information Useful?
Timely “Having information available to a decision maker
before it loses its capacity to influence decisions.” Understandable
“The quality of information that enables users to perceive its significance.”
Verifiable “The ability through consensus among measurers to
ensure that information represents what it purports to represent or that the chosen method of measurement has been used without error or bias.”
Accessible Available when needed (see Timely) and in a useful
format (see Understandable).
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Information Visualization
Map of the Market
以TreeMap呈現一個業務部門
以 TreeMap呈現 iTune 上 100首最流行歌曲
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Business Process
Systems working toward organizational goals
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Definition in page 31; Table 1-2for an illustration
Figure 1-1 shows interactionsbetween different parties thruAIS
Business Transactions
Give–Get exchanges
Between two entities
Measured in economic terms
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Business Process Cycles
Revenue
Expenditure
Production
Human Resources
Financing
Pages 32-3 for definitions
Table 1-3 for major cycle activities in each cycle
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Business Cycle Give–Get
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Accounting Information Systems
Collect, process, store, and report data and information
If Accounting = language of business
AIS = information providing vehicle
Accounting = AIS
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Components of an AIS
People using the system
Procedures and Instructions For collecting, processing, and storing data
Data
Software
Information Technology (IT) Infrastructure Computers, peripherals, networks, and so on
Internal Control and Security Safeguard the system and its data
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AIS and Business Functions
Collect and store data about organizational: Activities, resources, and personnel
Transform data into information enabling Management to:
Plan, execute, control, and evaluate Activities, resources, and personnel
Provide adequate control to safeguard Assets and data
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AIS Value Add
Improve Quality and Reduce Costs
Improve Efficiency
Improve Sharing Knowledge
Improve Supply Chain
Improve Internal Control
Improve Decision Making
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Improve Decision Making
Identify situations that require action.
Provide alternative choices.
Reduce uncertainty.
Provide feedback on previous decisions.
Provide accurate and timely information.
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Value Chain
The set of activities a product or service moves along before as output it is sold to a customer At each activity the product or service gains value
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Value Chain—Primary Activities
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Value Chain—Support Activities
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Value Chain
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AIS and Corporate Strategy
Organizations have limited resources, thus investments to AIS should have greatest impact on ROI.
Organizations need to understand:
IT developments
Business strategy
Organizational culture
Will effect and be effected by new AIS
Copyright © 2012 Pearson Education 1-22