MULUNGUSHI UNIVERSITY
SCHOOL OF BUSINESS STUDIES
BAC 442: ACCOUNTING INFORMATION SYSTEM
COURSE CODE:
ACADEMIC YEAR:
ACCOUNTING
INFORMATION SYSTEM
2019/2020
LECTURER:
C. E Deressa
TERM/SEMISTER
PREREQUISITE
(Int. to Computers & Appl.) &
BAC 211,212,361,311,312,421
COURSE TITLE:
1
Contact:
BAC
442
4/3
II
Course Description: The course deals with how accountants can improve the design and function
of the accounting information systems with the help of the current state of the art so that it truly
adds value to the organization. The course introduces the techniques and methodologies used in
the designing/development of systems in general and the designing and development of
accounting system in particular. It discusses essential concepts, methods, and techniques, specific
to the development of accounting information system. It also familiarizes students with General
accounting software.
Course Objective: The goal is to familiarize the student with information system development with
particular emphasis in accounting information system. It also helps the student in identifying the
principles of properly designed accounting information system.
After successful completion of the course, students will be able to understand:
 System theory
 Types and nature of information systems
 The business Activities &decisions performed in the major business cycles and the collection and processing
of data about those business activities

Revenue cycle

Expenditure cycle

Production cycle

Finance cycle
 Fundamental concepts of database technology.
Course Outline:
1. Conceptual Foundation of AIS
Introduction to the meaning of AIS
The importance of studying AIS
How AIS can add value to an organization
Information and decision making
The future of AIS
Elements and procedures of AIS
Data processing methods
2. Introduction to system development and analysis(project assignment)
2
The system development environment
Managing information system projects
AIS development strategies
System analysis
System design
System implementation
3. Data Bases( Reading Assignment)
Introduction to Data Bases
Relational Data Bases
Stages in Data Base Design
Data Modeling-REA Model
Data Base Design
Data Base system and the future of Accounting
4. AIS Application
Revenue Cycle
Expenditure Cycle
Production Cycle
Human Resource Management (Payroll Cycle)
G/Ledger and Reporting Cycle
5. Practical (Peachtree Sage Accounting)

HOW TO SET UP YOUR COMPANY
 Entering company information
 Stating Business Type
 Stating Accounting Method
 Stating Accounting Period and Fiscal Year

PEACHTREE OVERVIEW

MAINTAINING DATABASES:
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

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
Building Chart Of Accounts
Maintaining Budgets
Maintaining Creditor’s Profile & Credit Limit
Maintaining Debtor’s Profile & Credit Limit
Maintaining Inventory Items & Setting Price Levels
Maintaining Sales Taxes
Beginning Balances for Debtors, Creditors & Inventory Items
TRANSACTION POSTING :( TASK)
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 Credit/Cash Purchases
 Credit/Cash Sales
 Cash/Bank Payment
 Cash/Bank Receipt
 Sales & Purchase Orders
 Posting Journal Entries
ACCOUNTS RECONCILIATION
 Bank Statement Reconciliation
 Cash Account Reconciliation
 Liability Account Reconciliation
FINANCIAL STATEMENT AND FORM DESIGN
 Income Statement design
 Balance Sheet design
 Receipt & Deposit slip design
 Invoice Design
 Pay check design
FIXED ASSETS SOFTWARE (FAS)
 Creation of new company under FAS
 Entry of new and existing assets
 Calculation of depreciation
 Disposal of assets
USER SECURITY CONTROL
Text: Romney et al., 1997. “Accounting Information Systems”, 8th or latest edition.
Reference Books:
1. System Understanding Aid, 4th Edition, By Arens and Ward, 1995.
2. Accounting Information Systems, 2nd Edition, by Smith and Smith, International
Thomson Learning/Dame Publications, Inc, 1998. (ISBN: 0-87393-688-X).
3. Accounting Information Technology and Business Solutions by Hollander et al.,
1996.
Evaluation Scheme
Assignment, projects, tests
20%
Case study& Practical Exam
20%
Final Exam
Total
60%
100%
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NB: The course requires an intensive reading; and hence please spend Two Hours (2hr)
every day so that you can capture the basics of accounting, particularly the practice of
the profession.
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