Studying Accounting Information Systems
Business Strategy
Business Processes IT Environment
AIS Applications
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Studying Accounting Information Systems
Business Strategy
•Transaction cycles, Part 1
events and AIS data
•Documenting business
Business Processes IT Environment
processes and data
•Risks and controls in
business processes
AIS Applications
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Business Processes and AIS
Business Processes
Manner in which work is organized, coordinated, and focused to
produce a valuable product or service
Concrete work flows of material, information, and knowledge
Sets of activities or events
Unique ways to coordinate work, information, and knowledge
Ways in which management chooses to coordinate work
Accountants are interested in Transaction Cycles
Acquisition (purchasing)
Conversion (transforming resources)
Revenue (providing goods and services and collection)
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Cross-functional Business Processes:
Order Fulfillment
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Management Information Systems
A Management Information System (MIS)
related components that process data and transactions to
provide the user with the information they need to plan,
control and operate their businesses
collect data and enter into IS
process data (into information)
store data/information for future use
access to data/information -- retrieval and/or reports
provide control to ensure accuracy and reliability
AIS is a subset of MIS
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The “S” word : System
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MIS is a Collection of Systems
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Scope of AIS
AIS are not just systems for use by accountants
Not just “accounting data”
Impossible to separate accounting data so we will have a
fairly general view
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ERPs
Significant overlap in terms of data needs and some
processes
Enterprise Resource Management systems (ERPs)
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Uses of AIS
Producing External Reports
Investors, creditors, tax collectors, regulatory agencies, etc.
Supporting Routine Activities
Order taking, billing, collection, etc.
Decision Support
Help out with non-routine tasks with appropriate data/models
Planning and Control
Budgets, access to historical data, forecasting, datamining, etc.
Implementing Internal Controls
Policies, procedures and IS to protect assets and insure accuracy
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Accounting Applications/Software
Application: computer programs used for particular
purposes
Forecasting, Tax preparation, ….
AIS typically organized by transaction cycle
Off the shelf vs. in-house development
When you should you go off the shelf?
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Role of Accountants in AIS
User
Not just for routine but non-routine decision making process
Part of development team
Manager
Understand business processes, accounting and technology (SOX!)
Consultant
Acquisition, design, installation and modification of AIS
Evaluator
Internal auditor (SOX), external auditors, “assurance services” (for
external decision makers)
Provider of Accounting and Tax Services
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Thinking about AMIS
TECHNICAL APPROACHES
COMPUTER
OPERATIONS
SCIENCE
RESEARCH
MANAGEMENT
SCIENCE
AMIS
SOCIOLOGY
PSYCHOLOGY ECONOMICS
BEHAVIORAL APPROACHES
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Using Technology to Change Span of Control
•“Smushing” the
Organization
•Allow supervision of
more employees
•Move decision rights
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Is the influence really one way?
Business Strategy
Business Processes IT Environment
Business
AIS Applications
Strategy
Organization Information
Strategy Systems
Strategy
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