ACCT INFO SYSTEM
ACCT INFO SYSTEM ACCT 322
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Jarvis Reilly DDS
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This 4 page Class Notes was uploaded by Jarvis Reilly DDS on Saturday September 26, 2015. The Class Notes belongs to ACCT 322 at Clemson University taught by Richard Dull in Fall. Since its upload, it has received 18 views. For similar materials see /class/214237/acct-322-clemson-university in Accounting at Clemson University.
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Date Created: 09/26/15
Themes 1 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 EBusiness 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 5 quot 10 Elements of AIS 9 Technology 9 Databases 9 Reporting 9 Control 9 Business operations 9 Events processing 9 Management decisionmaking 9 Systems development and operation 9 Communications 9 Accounting and auditing principles SarbanesOxley Act of 2002 9 Section 404 0 Management must identify document and evaluate significant internal controls 0 Auditors must report on management s assertions regarding internal controls 9 Section 409 o Requires disclosure to the public on a llrapid and current basis of material changes in an organization s financial condition Accounting Systems and Subsystems 9 A system is a set of interdependent elements that together accomplish specific objectives 9 A subsystem is the interrelated parts that have come together or integrated as a single system which we have named System 10 9 Information System Model 9 An information system IS or management information system MIS is a manmade system that generally consists of an integrated set of computerbased and manual components established to collect store and manage data and to provide output information to users Enterprise databasethe central repository for all the data related to an organizations business activities and resources Purpose of AIS 9 Collect process and report information related to the financial aspects of business events 9 Often integrated and indistinguishable from overall information system 9 Like the IS the AIS may be divided into components based on the operational functions supported 9 Comparison of Manual and Automated Systems 9 Components of Business Process 3 Policies procedures personnel hii lng Management Operations process Goods 7 Sales quotas i 21 and IS design 39 speci cations 3 22w 0 m 39 1 a D Sales 101 repons Customer lnformallon 393 Packing slip Z I OrEer acknowledgment 3 Customer order NOTE external In this particular example the operations parties process comprises warehousing and shipping J Broken line depicts the organization s boundary 0 Operations process a man made system consisting ofthe people policies equipment and procedures whose objective is to accomplish the work ofthe organization 0 Management process a man made system consisting ofthe people authority organization policies and procedures it is to plan and control the operations ofthe organization 0 Information System Information System or Management Information System ISMIS is a manmade system that generally consists of an integrated set of computer based components and manual components established to collect store and manage data and to provide output information to users Information Qualities Effectiveness deals with information being relevant and pertinent to the business process as well as being delivered in a timely correct consistent and usable manner Efficiencyconcerns the provision of information through the optimal most productive and economical use of resources Confidentiality concerns the protection of sensitive information from unauthorized disclosure Integrity relates to the accuracy and completeness of information as well as to its validity in accordance with business values and expectations Availabilityrelates to information being available when required by the business process now and in the future It also concerns the safeguarding of necessary resources and associated capabilities Compliancedeals with complying with those laws regulations and contractual arrangements to which the business process is subject that it externally imposed business criteria as well as internal policies Reliability relates to the provision of appropriate information for management to operate the entity and exercise its fiduciaw and governance responsibilities Hierarchy of Qualities Understandab ty enables users to perceive the information39s significance valued from the user39s point of view Relevance information needs to be capable of making a difference in a decision making situation by reducing uncertainty or increasing knowledge forthat particular decision Timeliness info needs to be available before it loses its capacity to influence a decision PredictiveValueFeedback Value improve a decision makers39 capacity to predict confirm or correct earlier expectations nfo can have both types bc knowledge of the outcomes of actions already taken will generally improve a decision maker s abilities to predict the results of similar future actions Veri ability info needs to have a high degree of consensus among independent measurers usingthe same metho s Neutrality or Freedom from Bias info is objective amp non bias no representation Comparab ty info quality that enables users to ID similarities and differences in tow pieces of in 0 Consistency if information is the same over different points oftime Validity info portrays actual events and actual objects Accuracy the correspondenceagreement bwthe info and the actual events that it represents Completeness the degree to which the info includes data about evew relevant event necessaw to make a decisio Decmw mdkw and USERS or limit chalaclenslks INFORMA HON he undeislaMmg w my kmwiedge PERVASWE szlle OVERALL Decisim uunuw useluluess l USER39SFEC HE Undsisinmahiivly omurv FHlMAHY DEClSlON SPECIFlC OUAHTlES dummy manning Eanmstencv Malenalily lNGREDlENTS OF PHlMAHV ouAunEs Venliabilily SECONDARV AND iNrERAcnvE ouALIW YHRESHOLD FOR HEWGNI HON Management Decision Making 1 Intelligence Searching the environment for conditions calling for a decision 2 Design Inventing developing and analyzing possible courses of action 3 Choice Selecting a course of action Structured decisionsdecisions for which all three decision phases intelligence design and choice are relatively routine or repetitive Unstructured decisionsa decision for which none of the decision phases intelligence design choice are routine or repetitive Management Problem Structure and Information Requirements 9 Horizontal flows relate to specific business events such as one shipment or to individual inventory items 0 The information moves through operational units such as sales the warehouse and accounting 9 Vertical Flows relate to the flow of information to and from strategic management through tactical management operations management and operations and transaction processing Management Problem Structure and Information Requirements 9 Higher up the pyramid the less structured the decision 0 Less defined External orientation More summarized information Future oriented Less frequent 0 Less accurate 9 Lower down the pyramid the more structured the decision 0 More defined 0 Internal orientation 0 More detailed information 0 Historical O O 0000 More frequent More accurate 9 Accountant s Role 0 Designer application of accounting principles auditing information systems and systems development 0 User participate in design 0 Auditor provide audit and assurance services
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