ACC 3520
Class #2
Ch 1 – Introduction to AIS
Day 2 Agenda
Ch 1 Introduction
• Syllabus questions?
• What is an AIS?
• Business Processes, Internal Controls,
and Enterprise Systems
ACC 3520 - AIS
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Big Picture of AIS
• Understanding IS (ch 1 – 3)
– AIS / Enterprise Systems / E-business
• Organizing & Managing Info (ch 4 – 6)
– DFD / Flowcharts / DBMS (Normalization, REA,
relational DB, SQL)
• Enterprise Risk Mgmt (ch 7 – 9)
– ERM / COSO / COBIT / Controls: Pervasive,
General, Application /
Control Matrix
• Business Processes (ch 10 – 15)
ACC 3520 - AIS
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Textbook Themes
•
•
•
Enterprise systems— integrate the business
process functionality and information from all of an
organization’s functional areas, such as marketing
and sales, cash receipts, purchasing, cash
disbursements, human resources, production and
logistics, and business reporting (including financial
reporting).
E-Business—use of networks to undertake
business processes
Internal control— a system of integrated
elements that provide reasonable assurance that a
business will reach its business process goals
ACC 3520 - AIS
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Entrepreneur Script - the
Merchant of Venice
• Overview
– 1500’s Italy
– Entrepreneur
– Sail to China for silk
– Sell goods
5
Entrepreneur Script – the big
Business Entrepreneur Script
picture!
I pay back
money and
live off
of profit
I engage in
value-added
exchanges
I get some
money
Labor
Cash
I purchase
R.M.
I make stuff
R.M
Source: McCarthy & Geerts 1994
I sell stuff
F.G
Cash
6
Entrepreneur Script, cont.
1.
2.
3.
4.
5.
6.
7.
Purchase boat
Hire deck hand
Sail to China
Purchase silk
Sail back to Italy
Pay deck hand
Sell silk
7
Entrepreneur Script, cont.
Give
Cash
Give
Cash
Get
Cash
Get
Ship
Give
Cash
Give
Silk
Get
Employee
Service
Give
Cash
Get
Cash
Get
Silk
8
Elements in the Study of AIS
9
Accounting Systems and
Subsystems
• A system is a set of interdependent
elements that together accomplish
specific objectives.
• A subsystem is the interrelated parts
that have come together, or integrated,
as a single system, which we have
named System 1.0.
10
Information System Model
• An information system (IS) or management
information system (MIS) is a manmade system
that consists of an integrated set of computerbased and manual components established to
collect, store, and manage data and to provide
output information to users.
• The figure on the next slide depicts the
functional components of an information system.
11
Information System Model
12
Purpose of AIS
• Collect, process and report information
related to the financial aspects of
business events
• Often integrated and indistinguishable
from overall information system
• Like the IS, the AIS may be divided into
components based on the operational
functions supported.
13
Comparison of Manual and
Automated Systems
14
A Business Process
15
Information Qualities
16
Accountant’s Role
• Designer — application of accounting
principles, auditing, information
systems, and systems development.
• User — participate in design.
• Auditor — provide audit and assurance
services.
17
Learning Objectives
• Appreciate the complex, dynamic environment in
which accounting is practiced.
• Know the relationship between the AIS and the
organization’s business processes.
• Know the attributes of information.
• Recognize how information is used for different types
of decisions and at various levels in the organization.
• Recognize how the information system supports the
management function.
• Recognize the accountant’s role in relation to the
current environment for the AIS.
• Understand how to use this textbook effectively to
learn AIS.
18
Enterprise Information Systems
V
e
n
d
o
r
s
Enterprise Risk Management
& Internal Controls
Business Processes
C
u
s
t
o
m
e
r
s
Next?
• Chapter 2 – Enterprise systems
ACC 3520 - AIS
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