Accounting Information Systems:
A Business Process Approach
Chapter One: Introduction to
Accounting Information Systems
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Learning Objective
After completing this chapter, you should
understand:
 The scope of accounting information system
(AIS)
 The ways in which an AIS is used
 Accounting applications and software
 Various roles for accountants as they relate
to an AIS
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Exhibits: 1.1, 1.2, 1.3, 1.4,
Figures: 1.1
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Business Processes and Accounting Information Systems
(1) Business Processes
is a sequence of activity performed by a business for acquiring, producing,
and selling goods and services
Transaction Cycles group related events that typically occur in a particular
sequence.
Events are activities that happen at a particular point in time.
(2) Information Systems
- Management Information System (MIS)
- Accounting Information System (AIS)
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Accounting Information System
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The Scope of an AIS
The Use of Information Provided by an AIS
The Nature of Accounting Software
The Accountant’s role as it relates to an AIS
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Scope of An AIS
 See Figure 1.1
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Uses of AIS

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Producing External Reports
Supporting Routine Activities
Decision Support
Planning and Control
Implementing Internal Control
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Accounting Applications and
Software
 Applications are computer programs that are used to serve
particular purposes
 Interaction between an AIS and a user consists primarily:
(1) recording events, often using on screen forms
(2) entering information about suppliers, customer,
employees and products
(3) printing documents, such as purchase orders and sales
invoices
(4) printing reports, such as financial statements and sales
analysis
(5) conducting ad hoc inquiries
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Types of Accounting Applications
 Off the shelf accounting packages
 Applications develop using database
management system software (DBMS)
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Role of Accountants in Relation to
AIS
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Accountant as User
Accountant as Manager
Accountant as Consultant
Accountant as Evaluator
- Internal Auditors
- External Auditors
- Other Evaluative Roles
 Accountant as Provider of Accounting and Tax
Services
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