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Module 1 - AIS

The document provides an overview of accounting information systems (AIS). It defines an AIS as a subsystem of management information systems that collects, processes, and communicates financial transaction data and information to decision-makers. It describes the basic concepts of AIS, including that large businesses typically use computerized systems while small businesses often use manual systems. It also outlines the basic functions, components, data processing cycle, information outputs, internal controls, subsystems, design factors, accounting process, and benefits of implementing an AIS.

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Janessa Engeng
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46 views13 pages

Module 1 - AIS

The document provides an overview of accounting information systems (AIS). It defines an AIS as a subsystem of management information systems that collects, processes, and communicates financial transaction data and information to decision-makers. It describes the basic concepts of AIS, including that large businesses typically use computerized systems while small businesses often use manual systems. It also outlines the basic functions, components, data processing cycle, information outputs, internal controls, subsystems, design factors, accounting process, and benefits of implementing an AIS.

Uploaded by

Janessa Engeng
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Module 1

Accounting
Information
System
Accounting Information System
is a subsystem of management
information system
Collects and process transactions data
Communicates financial information to
decision makers
Includes each of the steps in the
accounting cycle
An accounting information system
consist of:
People

Procedure

Data

Software

Information Technology
Accounting Information System
Basic Concepts of AIS
Computerized
 Large Business organization use this
 Works are done with the help of software
 Chances of mistakes are less
Manual
 Generally used in small organizations
 Works are done manually
 More chances of doing mistakes
Basic Functions of AIS
It collects and stores data about activities
and transactions

It process data into information that is


useful for making decisions

It provides adequate controls to safeguard


the organization’s assets
The data processing cycle consist of four
steps:
1. Data Input
2. Data Storage
3. Data Processing
4. Information output
the information an AIS provides falls into
two main categories:
1. Financial Statements
2. Managerial Reports
The third function of an AIS is to provide
adequate internal controls to accomplish
three basic objectives.

1. Ensure that the information is reliable.


2. Ensure that business activities are
performed efficiently.
3. Safeguard organizational assets.
Subsystems in the AIS
Factors influencing design of the AIS
The Accounting Process
The accounting process starts when an
economic event is recognized by AIS,
which records this event as accounting
transactions.
Close
Reports
Adjusting Entries
Trial Balance
Post
Journalize
Benefits of AIS
Businesses use accounting information
systems to make their accounting activities
easier, quicker, and more accurate.
Allows to safe time of employees and avoid
mistakes.
Implementation of such system requires
investment and time to be spent on the
implementation, however future benefits are
much higher that the expenses incurred.
Helps the company forecast sales, profits, loss
Make it easier to compile financial data for use
in taxes, payroll and other bookkeeping
requirements.
END
THANK
YOU

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