Chapter 1
INTRODUCTION TO
ACCOUNTING
INFORMATION
SYSTEMS
Central Themes
of This Text


Business processes
Information systems
Business Processes

A sequence of
activities:
 for acquiring goods
and services
 for producing goods
and services
 for selling goods and
services
Business Processes


Models of business
processes viewed in
terms of transaction
cycles.
Each transaction cycle
involves several
events.
Business Processes

Three main transaction
cycles:
 An acquisition
(purchasing) cycle is the
process of purchasing and
paying for goods/services.
 A conversion cycle is the
process of transforming
resources acquired into
goods/services.
 A revenue cycle is the
process of providing goods
or services to customers
and collecting cash.
Typical Business
Processes


Production
Sales
Information Systems

A management
information system (MIS)
is a system that
 captures data about an
organization
 stores and maintains
the data
 provides meaningful
information for
management.
Information Systems
 An MIS can be viewed as
a set of subsystems that
provide information for
such functions as:
 production
 marketing
 human resources
 accounting
 finance
Management
Information Systems

MIS captures
 data about business
processes
 aggregates, summarizes,
and organizes data
 produces information that
helps monitor and control
business processes
 ERP systems integrate all
aspects of a firm’s
business processes.
Accounting
Information System
An AIS is a subset of
an organization’s MIS that
provides:
 accounting and
financial information
 other information
obtained in the routine
processing of
accounting transactions

Uses of Accounting
Information Systems





Producing external
reports
Supporting routine
activities
Decision support
Planning and control
Implementing internal
control
Role of Accountants
in Relation to AIS






User
Manager
Consultant
Evaluator
Designer
Provider of accounting
and tax services
Accountants
Need to understand:
 a company’s business
process
how data are organized
to support those processes

Understanding transaction
cycles helps accountants
ask the right questions
when learning about an
accounting system.
Keyterms





Accounting information
system (AIS)
Applications
Assurance services
Business process
Enterprise resource
planning system (ERP)
Keyterms





Events
Internal control
Management information
system (MIS)
Off-the-shelf software
Transaction cycles