Summary

AIN1501 - Study Guide Summary

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Course
Accounting Information Systems (AIN1501)

Institution
University Of South Africa (Unisa)

A detailed summary of the course material included in the course material included in the study guide for the subject Accounting Information Systems in a Computer Environment.

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Uploaded on March 9, 2024
Number of pages 22
Written in 2023/2024
Type Summary

ain1501

ElmarieGouws Member since 4 year 80 documents sold

Accounting Information Systems in a Computer Environment

Pages 1 to 7

 System development:
 Initiatives arise from all levels of an organization (planned and unplanned).
 Managers and employees are users and part of the development process.
 Solid planning and managerial involvement ensure alignment with organizational
goals.
 Reasons for replacing or improving information systems:
 Changes in technology, decision-making policies, user demands, business
environment, and organization's nature.
 Maintaining competitive advantage, improving performance and productivity.
 System performance measurement:
 Monitoring system effectiveness and contribution to the organization.
 Definition and components of a system:
 A set of components working together to achieve a common goal.
 Subsystems perform specific functions supporting the larger system.
 Open vs closed systems:
 Closed systems are isolated from their environment.
 Open systems interact with and are affected by their environment.
 Overview of system development life cycle (SDLC):
 Practical framework for developing an information system.
 Traditional SDLC, prototyping, rapid application development (RAD), end-user
development life cycle.
 Role of accountants and auditors in system development:
 SDLC is of interest to accountants due to financial and resource implications.

Pages 7 to 10

 Accountants are involved in system development in three ways: as users, as members of
the development team, and as auditors
 Accountants play a role in the conceptual design of the system, considering control
implications, accounting conventions, and legal requirements
 An information system (IS) is a set of components that collect, process, and disseminate
data and information
 ISs are used by organizations to carry out operations, interact with customers and
suppliers, and compete in the marketplace
 Information systems assist organizations in functions such as planning, recording
transactions, decision making, control and performance measurement, and hardware,
software, telecommunication, people, procedures, networks, and databases
 The computerized information system process involves different stages and their
relationship is illustrated in a diagram
 IS departments can be organized in a centralized, decentralized, or outsourced manner,
and the most efficient approach should be considered by the organization.

,Pages 10 to 12

 Organizations can outsource their IS department to external service providers and
monitor the service through a service level agreement
 Three outsourcing models include on-site outsourcing, off-site outsourcing, and blended
outsourcing
 The effectiveness of an organization's information system can give it an advantage over
competitors by providing faster access to sales figures, product availability, and client
requirements
 IS departments can be located either on-site or at the head office
 Information produced by information systems is vital for day-to-day decision-making
 Computerized information systems are essential for accuracy and speed in processing
information
 AIS (Accounting Information System) is important for producing reliable financial
statements and can be misused if not monitored properly
 The application of AIS can have a significant positive effect on areas such as internal
control, organizational culture, and decision-making
 AIS implementation under ERP and accountant competency can positively affect useful
information and successful decision-making
 Studying AIS is important for careers in accounting or auditing to evaluate the reliability
and accuracy of information
 CIS (Computer Information System) is a computerized system that collects, stores, and
processes data into meaningful information
 ICT adoption has increased globally, and the modernization of ICT, including accounting
systems, is crucial for competitive business processes
 Different types of IS include TPS (Transaction Processing System), KWS (Knowledge Work
System), and OAS (Office Automatic System)
 TPS collects and stores transaction information, KWS is used for technical design
purposes, and OAS supports knowledge-level tasks such as document processing and
calculations.

Pages 12 to 18

 Information systems are crucial for the success of an organization and aid in decision-
making and internal control.
 There are different types of information systems including Transaction Processing
Systems, Decision Support Systems, Management Information Systems, and Executive
Support Systems.
 Outdated software of an AIS can negatively impact the organizational culture by
hindering efficient processes and creating frustration among employees.
 The components of a computerized information system are essential for its effective
functioning and should be understood by managers.
 Understanding the impact and effectiveness of information systems is crucial in running a
successful business in a continuously changing environment.
 Information is derived from data and must be processed and organized to provide value
and knowledge for decision-making.

,  Information serves the needs of internal and external users, providing records, analyzing
business situations, and aiding in decision-making and performance monitoring.
 Internal users include financial managers, production managers, staff managers,
marketing managers, sales managers, and purchase managers, who require different
types of information for their specific tasks.
 External users, such as shareholders, customers, suppliers, and government agencies, also
rely on information for decision-making and assessing stability and reliability.
 Information Systems consist of operational support, support of knowledge work, and
management support layers, each serving different purposes within the organization.

Pages 18 to 21

 Management support subsystems are used to manage and evaluate an organization's
resources and goals.
 A business information system collects and processes data and resources from the
environment to satisfy the information needs of different entities associated with the
business enterprise.
 Management information systems (MIS) collect and store key data, produce information
for analysis, control, and decision-making.
 MIS is used by all levels of management, with the decision to implement a system falling
on the CIO and CTO.
 The MIS director oversees the technical implementation of the system and ensures data
availability, network services, and security.
 MIS reports can help with decision-making and reduce downtime for actionable items.
 MIS can improve an organization's operating efficiency, add value to existing products,
and help managers make better decisions.
 MIS can identify strengths and weaknesses, give an overall picture of the company, act as
a communication and planning tool, and provide customer data for marketing activities.
 Advantages of using MIS include improved efficiency, innovation, better decision-making,
and a competitive advantage.
 Disadvantages of using MIS include dependence on technology, potential for inaccurate
information.
 Information is a key resource within an organization and forms the basis of decisions
made by internal and external users.
 Technology is revolutionizing work in the office and organizational setting.
 The role of accountants is still needed in preparing the AIS and inputting financial data.
 Traditional accounting knowledge is necessary but not sufficient for accounting
information professionals.
 Factors influencing technology adoption in organizations include technical feasibility,
cost, economic benefits, labor skills, and regulatory and social acceptance.

Pages 21 to 24

 Factors such as technical feasibility, cost minimization, and economic benefit
management are important in embracing new technologies.
 Accounting professionals in the digital economy need digital competence in soft skills
more than technical skills.
 Routine tasks in accounting have been automated through the latest wave of technology
and software solutions.

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