An Introduction To Accounting

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1103AFE Accounting Information Systems

Introduction to Accounting
Information Systems

Unless otherwise indicated, this work by Dr Tyge Kummer is © Griffith University and is All Rights Reserved. Distribution of this work beyond the course without permission of the Course Convenor is forbidden.
The textbook used is Dull, R B, Gelinas, U J Jr, & Wheeler, P R (2012) Accounting Information Systems: Foundations in Enterprise Risk
Management, Ninth Edition, Cengage

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What is your experience with Information Systems?

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Objectives
 Learn how the AIS relates to Accounting Principals
 Understand why accountants should study accounting information systems (AIS)
 Define the nature of an accounting information system
 Understand relevant key terms and concepts
» System & subsystem
» Information quality and information requirements

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Some of the things you have learned in Accounting Principles
 Accounting measures business activities, processes information, and communicates financial information.
 Useful information must be relevant, valid and reliable

Horngren, C.T., Harrison, W.T., Bamber, L.,Best, P.J., Frazer, D.J. and Willett, R. (2013). Taken from Accounting (7th Edition), Frenchs Forest, NSW: Pearson Education Australia.
Taken from Lecture 1, Semester 2, 2013 (GC)

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Why Study AIS?
 Information technology (IT) is dynamic and pervasive.
 Competence is an imperative for the professional accountant.  AIS is a required, core knowledge area for professional membership (e.g., CPA Australia).
Fraud risk

Controls

Spreadsheets
Accounting Software
Design of AIS
Database
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Management
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Jobs 1

e.g. SAP

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Jobs 2

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New Opportunities for Accountants
Traditional challenges

Information creation & provision
Creation of information to enhance management decision-making
 Meet information needs
 Provide advice to management

New challenges

IS design
Ensure that Accounting aspects are adequately addressed. IS user
Accountants use an IS in several roles such as controller, treasurer, financial analyst, cost accountant.

IS auditor
Assessments of IS and the internal controls (e.g., security, information integrity).

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Make AIS a key skill you acquire in your
Commerce studies!

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Accounting and AIS

EXTERNAL
Financial Accounting
Accounting Information
Systems

INTERNAL
Management
Accounting

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An Accounting Information System (Accounting Principles)
Transactions

Journals

Sales

Sales journal

Cash receipts

Cash receipts journal Debtors ledger

Purchases

Purchases journal General ledger

Cash payments

Cash payments journal

Creditors ledger

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Ledgers

Reports

Debtors listing
Creditors listing

Trial balance
Financial
statements

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A Computerised Accounting Information System
Transactions

Input

Sales

Sales

Cash receipts

Cash receipts

Purchases

Purchases

Cash payments

Cash payments Offline Process

Manual keying

Flowchart Symbols

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Storage

Output

Debtors ledger

General ledger

Debtors listing
Creditors listing

Creditors ledger
Trial balance
Financial
statements
Disk
Document
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(Management) Information System (MIS or IS)
 is a manmade system
 consists of an integrated set of computer-based and manual components
 is established to collect, store, and manage data and to provide output information to users

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Characteristics of an
Information systems

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Transforming Data into Information

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Data vs. Information
 Data
» facts that are collected, recorded, stored and processed.
» insufficient for decision making
 Information
» is processed data used in decision making.

 However, too much information can cause information overload

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