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Accounting Information Systems: Basic Concepts and Current Issues 4th Edition Robert L. Hurt
Accounting Information Systems: Basic Concepts and Current Issues 4th Edition Robert L. Hurt
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Name
Chapter 1
Chapter 2
Chapter 3
Internal controls
Chapter 4
Management concepts
Chapter 5
Name
Chapter 6
Flowcharting
Chapter 7
Chapter 8
REA modeling
1-2
Name
Chapter 9
XBRL
Name
1-3
Name
1-4
1-5
Chapter 1
Role and Purpose of Accounting
Information Systems
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Outline
Learning objectives
Definition of AIS
AIS importance
AIS generic structure
Information literacy
1-7
Learning objectives
1. Define accounting information systems.
2. Discuss why AIS is an important area of
study for future accountants.
3. Compare and contrast AIS with other
areas of accounting.
4. Explain the structure of most AIS.
5. Locate and evaluate information sources
on AIS.
1-8
Example-Starbucks
More than 18000 stores in 62
countries.
Publicly traded under the symbol
SBUX.
Typical activities in a Starbuck
retail store are
Definition of AIS
An accounting information system is:
A set of interrelated activities, documents and
technologies
Designed to collect data, process it and report
information
To a diverse group of internal and external
decision makers in organizations
1-10
Definition of AIS
Activities
Business processes
Sales / collection
Acquisition / payment
Conversion
Financing
Human resource
Documents
Purchase orders
Remittance advices
Technologies
General ledger
software
ERP systems
Definition of AIS
Data
Stacks of sales
invoices
Receipts for the
payment of rent
Information
General purpose
financial statements
Cost variance analysis
Decision makers
Management (internal)
Shareholders
(external)
Organizations
For profit (Microsoft)
Not for profit (Red
Cross)
Governmental (State
of California)
1-12
Accounting cycle
1-13
Accounting cycle
1-14
AIS importance
Developing a strong AIS helps achieve some
of the components of the FASB Conceptual
Framework of Accounting
Figure 1.1
1-15
AIS importance
Broad business perspective
competencies
Functional
competencies
Personal
competencies
of Certified Public
Accountants
1-16
AIS importance
AICPA Core Competences
competences
Board business
perspectives
Contents
Strategic/critical thinking
Resource management
Functional competence
Risk analysis
Research
Personal competences
1-17
AIS importance
Acquiring knowledge about AIS helps
students learn more about common
business processes
Sales / collection process
Acquisition / payment process
Conversion process
Human resource process
Financing process
1-18
AIS importance
Which business process is associated with each of the
following activities?
a. Collecting cash from clients:
sales / collection
b. Issuing capital stock:
financing
c. Manufacturing automobiles:
conversion
d. Paying employees:
human resource
e. Purchasing inventory on account:
acquisition / payment
1-19
Input
Process
Output
Storage
1-20
1-22
1-23
1-24
1-25
Information literacy
Sometimes called information
competence
The ability to confirm, find, evaluate, use
and communicate information in all of its
various formats
1-26
Information literacy
UMUC criteria for evaluating information
Authority: Who created it? Why?
Accuracy: Is the source identified? Is the
information accurate?
1-27
Information literacy
UMUC criteria for evaluating information
Objectivity: Does it include advertising? Is it
available freely?
Currency: How old is the information?
Coverage: Does the information have
sufficient depth?
1-28
1-29