Examples of MIS Applications in Functional Areas

AIS Subsystems
 Transaction Processing System
 General Ledger/Financial Reporting Systems
 Nondiscretionary reporting is a type of reporting in which the organization has few or no choices in the
information it provides. Much of this information consists of traditional financial statements, tax returns, and
other legal documents.
 Management Reporting System
 Discretionary reporting is a type of reporting in which the organization can choose what information to report
and how to present it.

A General Model For AIS

The general model for AIS is a model that describes all information systems, regardless of their technological architecture.

End Users
 End users are users for whom the system is built.
 External users include creditors, stockholders, potential investors, regulatory agencies, tax authorities, suppliers,
and customers.
 Internal users include management at all levels of the organization as well as operations personnel.
 DATA VERSUS INFORMATION: Data are facts, which may or may not be processed (edited, summarized, or
refined) and which have no direct effect on the user. Information causes the user to take an action that he or she
otherwise could not, or would not, have taken.

General Model for Accounting Information Systems

Data Sources
 Data sources are financial transactions that enter the information system from either internal or external sources.
Data Collection
 Data collection is the first operational stage in the information system
Data Processing
 Data Processing is a group that manages the computer resources used to perform the day-to-day processing of
transactions.
Database Management
 Database is a physical repository for financial data.
 DATA ATTRIBUTE
 RECORD
 FILE
 DATABASE MANAGEMENT TASKS: Database management is a special software system that is programmed to
know which data elements each user is authorized to access.

The Data Hierarchy