ACCOUNTING INFORMATION SYSTEM

The accounting information system plays a vital role as the source of information needed
for the accounting experts such as accountants, business analysts, managers, chief financial officers
(CFOs), auditors, and tax agencies to interpret. According to Wild (2018), “it involves people,
records, methods that collects and process data from the transactions and events and then organize
them in useful forms for easy communication”.

To start, “Information is a business resource.” (Hall, 2011) All these data are scattered in
different flows depending on the organization structure –which is the second important factor.
There are six primary components that work hand-in-hand to collate data the best way possible.

People. The users of the system

Procedure. The methods used to collect, store and process data

Data. The financial or non-financial information gathered

Software. The programs to run the procedures

Information Technology Design. The equipment used or the hardware

Internal Controls. The measures done to ensure data are well-protected

REFERENCES:

• https://www.investopedia.com/articles/professionaleducation/11/accounting-information-

systems.asp#:~:text=An%20accounting%20information%20system%20(AIS,%2C%20regulators%2C%20a

nd%20tax%20agencies

• https://www.youtube.com/watch?v=5XxRJ7cBZnE