Accounting information systems 11e romney steinbart chapter 01

Trang 1

C HAPTER 1

Accounting Information

Systems:

An Overview

Trang 2

– What is an accounting information system (AIS)?

– Why is the AIS an important topic to study?

– What is the role of the AIS in the value chain?

– How does the AIS provide information for decision making?

Trang 3

SYSTEMS, DATA, AND INFORMATION

• A system is:

– A set of interrelated components – That interact

– To achieve a goal

Trang 4

• Most systems are composed of smaller subsystems

.

• and vice versa!

Trang 5

• Every organization has goals.

– The subsystems should be designed to maximize achievement of the organization’s goals.

– Even to the detriment of the subsystem itself.

– EXAMPLE: The production department (a subsystem) of a company might have to forego its goal of staying within its budget in order to meet the organization’s goal of

delivering product on time.

Trang 6

• Goal conflict occurs when the activity of a

subsystem is not consistent with another subsystem

or with the larger system.

• Goal congruence occurs when the subsystem’s

goals are in line with the organization’s goals.

• The larger and more complicated a system, the more

difficult it is to achieve goal congruence.

Trang 7

• The systems concept encourages integration

(i.e., minimizing the duplication of recording,

storing, reporting, and processing).

• Data are facts that are collected, recorded,

stored, and processed by an information

system.

• Organizations collect data about:

– Events that occur – Resources that are affected by those events – Agents who participate in the events

Trang 8

• Information is different from data.

• Information is data that have been organized and

processed to provide meaning to a user.

• Usually, more information and better information

translates into better decisions.

Trang 9

• However, when you get more information than you

can effectively assimilate, you suffer from

information overload.

– Example: Final exams week!

• When you’ve reached the overload point, the quality

of decisions declines while the costs of producing

the information increases.

Trang 10

Trang 11

Trang 12

Trang 13

• Characteristics that make information useful:

– Relevance

It reduces uncertainty by helping you predict what will happen or confirm what already has happened.

Trang 14

– Relevance

– Reliability

It’s dependable, i.e., free from error or bias and faithfully portrays events and activities.

Trang 15

– Relevance – Reliability

– Completeness

It doesn’t leave out anything that’s important.

Trang 16

– Relevance – Reliability – Completeness

– Timeliness

You get it in time to make your decision.

Trang 17

– Relevance – Reliability – Completeness – Timeliness

– Understandability

It’s presented in a manner you can comprehend and use.

Trang 18

– Understandability

– Verifiability

A consensus notion—the nature of the information is such that different people would tend to produce the same result.

Trang 19

– Understandability – Verifiability

– Accessibility You can get to it when you need it and in a format you can use.

Trang 20

• Information is provided to both:

– External users – Internal users

Trang 21

– External users

– Internal users

Trang 22

• External users primarily use information that is

either:

– MANDATORY INFORMATION—required by a governmental entity, such as Form 10-K

required by the SEC; or – ESSENTIAL INFORMATION—required to conduct business with external parties, such

as purchase orders.

Trang 23

• In providing mandatory or essential information, the

focus should be on:

– Minimizing costs.

– Meeting regulatory requirements.

– Meeting minimum standards of reliability and usefulness.

Trang 24

– External users

– Internal users

Trang 25

• Internal users primarily use discretionary

information.

• The primary focus in producing this information is

ensuring that benefits exceed costs, i.e., the

information has positive value.

Trang 26

• An AIS is a system that collects, records, stores, and

processes data to produce information for decision

makers.

• It can:

– Use advanced technology; or – Be a simple paper-and-pencil system; or – Be something in between.

• Technology is simply a tool to create, maintain, or

improve a system.

WHAT IS AN AIS?

Trang 27

• The functions of an AIS are to:

– Collect and store data about events, resources, and agents.

– Transform that data into information that management can use to make decisions about events, resources, and agents.

– Provide adequate controls to ensure that the entity’s resources (including data) are:

• Available when needed

• Accurate and reliable

WHAT IS AN AIS?

Trang 28

• It’s fundamental to accounting.

WHY STUDY ACCOUNTING INFORMATION SYSTEMS?

• Accounting is an information-providing activity, so accountants need to

understand:

– How the system that provides that information is designed, implemented, and used.

– How financial information is reported.

– How information is used to make

Trang 29

• It’s fundamental to accounting.

• Other accounting courses focus on how the information is provided and used.

• An AIS course places greater emphasis on:

– How the data is collected and transformed.

– How the availability, reliability, and accuracy of the data is ensured.

• AIS courses are not number-crunching courses.

Trang 30

• It’s fundamental to accounting.

• The skills are critical to career success.

• Auditors need to evaluate the accuracy

and reliability of information produced by the AIS.

Trang 31

• Tax accountants must understand the

client’s AIS adequately to be confident that

it is providing complete and accurate information for tax planning and

compliance work.

Trang 32

• In private industry and not-for-profit ,

systems work is considered the most important activity performed by

accountants.

Trang 33

• In management consulting , the design, selection, and implementation of

accounting systems is a rapid growth area.

Trang 34

• The skills are critical to career success.

• The AIS course complements other systems

courses.

• Other systems courses focus on design and

implementation of information systems, databases, expert systems, and

telecommunications.

Trang 35

• The AIS course complements other systems

courses.

• AIS topics are tested on the new CPA exam.

• Makes up about 25% of the Business Environment & Concepts section of the CPA exam.

Trang 36

• The AIS course complements other systems

courses.

• AIS topics are tested on the new CPA exam.

• AIS topics impact corporate strategy and culture.

Trang 37

AIS

Occupational

Information Technology

Trang 38

Trang 39

AIS

Occupational

Information Technology

Although culture

affects the design of

the AIS, it’s also true

that the AIS affects

culture by altering

the dispersion and

availability of

information.

Trang 40

• The objective of most organizations is to provide

value to their customers.

• What does it mean to deliver value?

• Let’s peek in on a conversation at Joe’s

pharmacy

ROLE OF THE AIS IN THE VALUE CHAIN

Trang 41

Well, Mr Pharmaceutical Salesman, your proposal looks

good, but your prices are about

5% higher than your competitors.

Trang 42

That’s true, but we’re comfortable with that because of the value- added that we bring to this arrangement.

Trang 43

What is that “value-added,”

and how do you convert it

into dollars?

Trang 44

Blah—blah—blah–

customer service–

blah—blah — blah

Trang 45

• Although “adding value” is a commonly used

buzzword, in its genuine sense, it means

making the value of the finished component

greater than the sum of its parts.

• It may mean:

– Making it faster – Making it more reliable – Providing better service or advice – Providing something in limited supply (like O-negative blood or rare gems)

– Providing enhanced features – Customizing it

Trang 46

• Value is provided by performing a series of activities

referred to as the value chain These include:

– Primary activities – Support activities

• These activities are sometimes referred to as “line”

and “staff” activities respectively.

Trang 47

– Primary activities

– Support activities

Trang 48

• Primary activities include:

– Inbound logistics

Receiving, storing, and distributing the materials that are inputs to the

organization’s product or service.

For a pharmaceutical company, this activity might involve handling incoming chemicals

Trang 49

– Inbound logistics

– Operations

Transforming those inputs into products or services.

For the pharmaceutical company, this step involves combining the raw chemicals and elements with the work of people and equipment to produce the finished drug product that will be sold

to customers.

Trang 50

– Inbound logistics – Operations

– Outbound logistics

Distributing products or services to customers.

For the pharmaceutical company, this step involves

packaging and shipping the goods to drug stores,

Trang 51

– Outbound logistics

– Marketing and sales

Helping customers to buy the organization’s products or services.

A pharmacy rep may visit with drug stores, doctors, etc to inform them about their

products and take orders.

Trang 52

– Outbound logistics – Marketing and sales

– Service

Post-sale support provided to customers such as repair and maintenance function.

A pharmaceutical firm will typically not be repairing it’s product (though the product may

be periodically reformulated)

The pharmaceutical company is more likely to be providing

Trang 53

– Primary activities

– Support activities

Định dạng
Số trang	85
Dung lượng	514,5 KB