Basic Function

The third function of an AIS is to provide adequate internal controls to accomplish three
basic objectives.

o Ensure that the information is reliable

o Ensure that business activities are performed efficiently
o Safeguard organizational assets

Basic Function

The data processing cycle consist of four steps

Data Input
Data storage
Data Processing
Information Output

The information an AIS provides falls into two main categories

Financial Statement
Managerial Reports

Basic Functions Of AIS

o It collects and stores data about activities and transaction
o It processes data into information that is useful for making decisions
o It provides adeguate controls to safeguard the organizations assets