Accounting Information System
INFOTECH 1
LEARNING MATERIALS PART 1
1.LAN -Local Area network is a computer network that interconnects computers within a limited area
such as a residence, school, laboratory, university campus or office building.
2.PK – Primary Keys
3.GL/FRS – General Ledger/ Financial Reporting System-Produces the traditional financial statements,
such as the income statement, balance sheet, statement of cash flows, tax returns, and other reports
required by law.
4.HTML-Hypertext Markup Language-Provide the formatting for a web page as well as hypertext links to
other web pages. The linked pages may be stored on the same server or anywhere in the world.
5.DFD Data Flow Diagrams
6.GLS-GeneralLedger System
7.XML- eXtensible Markup Language- Metalanguage for describing markup languages which can be used
to model the data structure of an organization’s internal database.
8.EOF- End of File
9.DDP-Distributed Data Processing-Involves reorganization the IT function into small information
processing units(IPUs) that are distributed to end users and placed under their control.
10.UPC-Universal Product Code
11.DASD-Direct Access Storage Device
12.REA-Resource, Events and Agents
13.NNTP-Network News Transfer Protocol
14.PCAOB – Public Company Accounting Oversight Board-is empowered to set auditing, quality control,
and ethics standards, to inspect registered accounting firms, to conduct investigations; and to take
disciplinary actions.
15.DBMS-Database Management System-Software system that controls ace to the data resource.
16.TPS-Transaction Processing System-Activity comprising three major subsystems-the revenue
cycle,the expenditure cycle, and the conversion cycle.
17.HTTP – Hyper Text Transfer Protocol – a communications protocol used to transfer or convey
information on the World Wide Web.
18.FK- Foreign Keys
19.MRS-Management Reporting System-provides internal management with special-purpose financial
reports and information needed for decisionmaking such as budgets,variance reports, and responsibility
reports.
20.VSAM-Virtual Storage Access Method-Structure used for very large files that require routine batch
processing and a moderate degree of individual record processing.
21.ER-Entity Relationship
22.IT-Information Technology
23.XBRL-eXtensible Business Reporting Language-an xml-based language that was designed to provide
the financial community with a standardized method for preparing, publishing, and
automaticallyexchanging financial information including financial statements of public held companies.
24.WAN-Wide Area Networks
25.IPUs – Information Processing Units
26.OSI-Open System Interface
27.SOX- Sarbanes-Oxley Act
28.ERP- Enterprise Resource Planning
29.AIS-Accounting Information System
30.COSO-Committee of Sponsoring Organizations
PKI-Public Key Infrastructure
System- is a group of two or more interrelated components or subsystems that serve a common
purpose.
Subsystem- is called a system when it is the focus of attention.
Information System is the set of formal procedures by which data are collected, processed into
information, and distributed to users.This is decomposed into two elemental subsystems Accounting
Information System (AIS) and Management Information System (MIS).
Accounting Information System is composed of three major subsystems (1)Transaction Processing
System(TPS) which supports daily business operations with numerous reports, documents, and
messages for users throughout the organization;(2) the general ledger/financial reporting
system(GL/FRS), which produces the traditional financial statements, such as the income statement,
balance sheet,statement of cash flows, tax returns, and other reports required by law and (3) the
management reporting system(MRS), which provides internal management with special- purpose
financial reports and information needed for decision making such as budgets, variance reports, and
responsibility reports.
The Management Information System(MIS) processes nonfinancial transactions that are not normally
processed by traditional AIS.
A transaction is an event that affects or is of interest to the organization and is processed by its
information system as a unit of work.
A financial transaction is an economic event that affects the assets and equities of the organization, is
reflected in its accounts, and is measured in monetary terms.
Nonfinancial transaction is an event that do not meet the narrow definition of a financial transaction.
Business system – is a documented procedure that outlines how to do something in your organization to
achieve your business goals. (https://www.forbes.com)09/09/2022
o
System fundamental
System environment and boundary
System Environment is primarily the set of variables that define or control certain aspects of
process execution.They are set or reset each time a shell is started.From the systemmanagement point of view, it is important to ensure the user is set up with the correct values at
log in.(https://www.ibm.com)09/09/2022
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Data cycle or the data life cycle is the sequence of stages that a particular unit of data goes
through from its initial generation or capture to its eventual archival and/or deletion at the end
of its useful life.(https://www.techtarget.com) 09/09/2022
o
Systems analysis -Two-step process that involves a survey of the current system and then an analysis
of the users needs.
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Advantages and limitations of systems analysis
Limitations of System Analysis- the risk of too much analyzing which may be costly and time
consuming.(https://www.ftias.com)09/09/2022
Advantages of systems analysis-The data is reliable, it is not expensive.(https://brainly.ph
09/09/20220
Reference:
Accounting Information Systems . James A. Hall . 2008
Compiled by:
Dr.Velissa C. Rubaya