International Accounting and Auditing Practice

Members Login
Username 
 
Password 
    Remember Me  
Post Info TOPIC: Systems concepts and technologies


Veteran Member

Status: Offline
Posts: 62
Date:
Systems concepts and technologies


Questions:

a. What is the relationship between AIS and IS?

b. Why is information system important to the organization?

c. Describe your own organization and state the roles your accountant fill in relation to AIS.

d. What information quality is most important - relevance or reliability? discuss your answer.

e. Describe the business process (briefly) of your own organization.


-- Edited by Chal at 02:41, 2008-12-08

__________________


Member

Status: Offline
Posts: 6
Date:

a.) What is the relationship between AIS and IS?
Ans: AIS is the sub-system of IS. IS pertains to overall system of the company as a whole wherein AIS is part of the whole Information technology infrastructure. AIS is more specific application like accounting modules: Gen. Ledger, Purchasing, Payroll, etc. from processing accounting transactions to processing sophisticated financial management systems. IS, in contrast, includes hardware, software, network, processing of data with the innovation of IT that can provide advanced analysis using technology into best use to serve the information flow within an organization.

b.) Why is information system important to the organization?
Ans: It is important because it provides efficient delivery of information and assist in delivery of accurate and informative data.

c.)Describe your own organization and state the roles your accountant fill in relation to AIS.
Ans: The Org. in mind provides supply chain management by providing service to customers manage their supply chain. Performing a value-added services based on customer defined requirements such as product verification, supplier management and development, audit and surveys, and special project resourcing.
The role of the accountant in the org. ranges from contract review in relation to statement of work and fees, costing, billing, payroll, disbursements, and marketing/Operations review.

d.) What information quality is most important--relevance or reliability? Discuss.
Ans: The FASB, after careful considedrations on the trade-offs between the issue of relevance and reliability of information, came up with a conceptual framework favoring relevance as dominant over reliability. Accordingly, the FASB's goals in setting standards is to enhance the usefulness to investors and creditors of the information that entities report in financial statements.
Conceptual framework #2 states, "...the objective of accounting policy decisions is to produce accounting information that is relevant to the purposes to be served and is reliable." In the issue of relevance and reliability between the use of fair value measurement and historical cost, the Board required greater use of the former because it perceives that information as more relevant to investors and creditors in assessing their past performance and future prospects.

e.) Describe the business process (briefly) of your own organization.
Ans: The business process (Supply chain management company)
1. Solicitation of business (Proposal process)
2. Contract review
3. Design and implementation
4. Service delivery
5. Billing the customer
6. Program review (Monitor amount per PO)

(Salvadore Libres Sara)

__________________


Member

Status: Offline
Posts: 7
Date:

a. What is the relationship between AIS and IS?

Answer: A company with high Accounting Information Systems that links business goals can achieve better organizational performance than firms with low AIS alignment. The importance of Accounting Information Systems alignment to companys objectives and current understanding of accounting information with the use of Information Technology is a tool for efficient data processing mechanism in an organization. The role of Information Systems in the business operation significantly influences the strategic planning practices in achieving organizational objectives and goals. Therefore, the alignment of AIS and IS are of great importance.

b. Why is information system important to the organization?

Answer: In todays complex and constantly changing business world, ITs alignment to the business operations are high on the agenda of executive management. This includes identifying a portfolio of computer-based applications that will assist an organization in executing its business plans and realizing its business goals. Strategic planning based on the alignment of IT and business goals are a key component to achieve organizations operational objectives. It is important that an organization start with a clear view of its mission and a thorough definition of its supporting strategy and its business goals. This then needs to be translated into goals for the IT department, which are the basis for the IT strategy. Finally, the supporting IT processes must be carefully planned to translate the IT strategy into action. For these planning efforts, organizations may be looking for guidance to identify the set of important IT and business goals, and how they interrelate.

c. Describe your own organization and state the roles your accountant fill in relation to AIS.

Answer: In an organization like the one that is engaged in real estate development and sales of commercial buildings, it is very important to record development costs and maintaining profitability on the basis of establishing appropriate percentage profit margin.
The accountant determines the accuracy of IT Departments linkages of purchases, disbursement, payroll, among others, that is related to a particular construction/development project. He generates financial statements out of the cost drivers involved.


d. What information quality is most important - relevance or reliability? Discuss your answer.

Answer: In designing audit procedures, the auditor considers relevance and reliability of the information to be used as audit evidence. Likewise, evaluates whether the information is sufficiently reliable. This enables the auditor to draw reasonable conclusions on which to base the audit opinion using professional judgment. I believe that reliability is the most important quality of information because substance is more important than form. Under the materiality principles of accounting, an honest and faithful reporting is very important in recording a business transaction.

e. Describe the business process (briefly) of your own organization.

Answer: Again, in the business of real estate development and sales, basically, the company purchases a tract of land. A business feasibility study will be written up in relation to constructing a commercial building on said land. Land preparations would then be initiated and a commercial building will be constructed based on budget.

In recording the land purchase transaction, the amount is entered into the system under asset account. While the money used to purchase the land is posted in the cash disbursement account. The monitoring of direct and material costs is very critical in this business such that every expenses directly linked to the project is very important because it is significant in determining the appropriate selling price of the project per square foot basis. Therefore, all disbursements are prepared in voucher form and duly approved by the accountant before posting it into the system. Disbursements are likewise monitored on the basis of percentage of completion method in the case of making payments to sub-contractors.


__________________


Member

Status: Offline
Posts: 7
Date:

mirasol wrote:

[NEW REVISION]
d. What information quality is most important - relevance or reliability? Discuss your answer.

Answer: In designing audit procedures, the auditor considers relevance and reliability of the information to be used as audit evidence. The answer to the question whether the information is sufficiently reliable will enable the auditor to draw reasonable conclusions on which to base the audit opinion using professional judgment. Under the materiality principles of accounting, an honest and faithful reporting is very important in recording a business transaction. Thus, in view of the preparer of financial statements placing greater importance on the reliability on historical cost measures is reliable to pass audit scrutiny and legal exposure. 


-- Edited by mirasol at 04:56, 2008-11-17

__________________


Member

Status: Offline
Posts: 17
Date:


1. what is the relationship between AIS and IS?

 AIS is one of the major classes of IS, IS is the set of formal procedures by which data are gathered, processed into information and distributed to users. Because IS covers a very broad areas of infomation it was decomposed into to major classes, these are AIS and MIS. AIS provides financial and non financial information that are useful in making business decisions. 

2. why is information systems important to the organization?

 Imagine how a particular entity operates without an information systems. They do not have accounting information system and management information system that provides financial and non financial informations that are very important for the daily operations and future growth of the company. A good information systems add value to the company,it provides a competitive environment to the entity. The competitions nowadays is based on how fast and effectively the company can generate output based on the processed information so that they could decide intellegently about how to become competitive and to excel with the current business environment now.

3.
Describe your own organization and state the roles your accountant fill in relation to AIS.

I am interested to established an organization in my poutry business, I want to have an information systems that can provide me effective data such as:
1. the list of various suppliers of chicks and feeds
2. the list of customers
3. credit and collection system 
4. chicks, chicken and feed inventory system
5. costing
6. pricing system
7. financial reports

my accountant should verify that:

1.  the list of various supplliers are updated, to ensure the current prices of chicks and feeds are the one  indicated in the systems, so she can compare which supplier offers the least cost.
2. the list of customers are updated.
3. the credit and collection system is functioning well, whether it provides correct receivable balances, aging of receivables.
4. the inventory system provides correct data to know whether we have negative variance of inventories.
5. the costing and pricing system is always at the current amount.
6. the financial reports revelas the true financial condition of the business
7. the employees incharge in gathering, inputing the data into the systems are following and performing correctly to the business information systems. 


  



__________________
marilyn u cortes


Member

Status: Offline
Posts: 12
Date:

a.  What is the relationship between AIS and IS?
     -  Information System (IS) is the umbrella under which, the Accounting Information System (AIS) can be found.  The two (2) major components of IS would be the Management Information System and the AIS.  While the latter contains all the accounting information - from the special journals to the general ledger, which would eventually produce the the financial statement for the company - the former provides for all the other qualitative (or could also be quantitative) information needs of the company to be able to come up with proper decisions.

b.  Why is information system important to the organization?
     -  In this age, the one who holds the information stands out as the winner.  Internet has revolutionized the business world in a way that it has made all kinds of information readily available and at lightning speed.  Thus managers are also expected to come up with quick decisions, at least more faster than before. 

This fast paced environment calls for a reliable and effective information system to aid the decision making needs of the managers.  It ensures that the business would not lag behind its competitors and more importantly it will support the organization in providing excellent and efficient service to its customers.

c.  Describe your own organization and state the roles your accountant fill in relation to AIS.
     -  The company where I'm working in is composed of buying stations, where the copra and cassava commodities are delivered and an admin office based in
Cebu, where the daily reports are checked and posted in the respective journals and ledger.

The accounting staff would do the following:
- Ascertain that the report is accurate
- Match the value of the inventory and price
- Check the bank balances if it matches the revolving fund given and its purchases and expenses
- Monitor the flow of inventory
- Post transactions to their respective books/ special journals
- Make summary entries and come up with a trial balance at the end of every month.

An external accountant will then process the Financial Statement based on the Trial balance & inventory report given to her.

d.  What information quality is most important - relevance or reliability? Discuss your answer.

     - Relevance is when accounting information is capable of making a difference in a decision by helping users to form predictions about the outcomes of past, present & future events or to confirm or correct expectations. (FASB Concepts Statement 2, par 47)

Reliability is the quality of information that assures that information is reasonably free from error or bias and faithfully represents what it purports to represent.  The principal components of reliability are representational faithfulness and verifiability. (FASB Conceptual Framework)

There has been much speculation if one quality can trump the other.  Most would differ in their definitions but in the end would say that both are required for information to be useful.  They are like salt and pepper.  However, theres a point made by Paul B.W. Miller & Paul R Bahnson thats worth mentioning.  They observed that relevance is not a continuous quality - its either relevant or irrelevant, but there are degrees of reliability.  From being less reliable to more reliable, the user can determine or achieve sufficient reliability.  They cited that as soon as relevance is sacrificed, any chance for usefulness is lost, but perhaps what can be traded off is the degree of reliability. 

With that being said, I am somehow akin to Miller and Bahnsons views regarding these particular qualities of information.

e.  Describe the business process (briefly) of your own organization.

     -  ACM Commodities Co. is a trading company.  We trade copra and cassava commodities, which are raw materials for cooking oil and feed mill.

We are middlemen, so we buy commodities from small farmers and small assemblers.  They would deliver their corriente (with more moisture content) and resecada (dried) copras and dried cassava chips to our buying stations that will weigh and sample the deliveries. 

The tester will print out the weighing ticket and deduct the moisture content from the net weight.  The cashier will then summarize the purchases as well as the expenses for the day and makes a Daily Transaction Report that will be faxed to our Admin office here in Cebu.

The bookkeepers will check the report of the previous day for proper valuation and totals.  They will then post the transactions to its respective journal entries.  At the end of every month, month end reports will then be made and the trail balance and inventory report will be forwarded to an external accountant who will furnish for us our financial statement.

Oil Mills who buy from us makes a contract stating how many tons of copra are they going to require from us and the contract price.  Upon agreement, we will then deliver to them the goods as they come in sufficient amount, at least one truck load.



-- Edited by karenbarte at 07:27, 2008-11-27


-- Edited by karenbarte at 07:28, 2008-11-27

__________________


Veteran Member

Status: Offline
Posts: 62
Date:


For those students who do not yet answer the question above, kindly cite the similarities and differences in business processes being cited above.  You may use a framework to properly classify and discuss why each business is unique.

__________________


Member

Status: Offline
Posts: 5
Date:

a. What is the relationship between AIS and IS?

IS is the main system and AIS is only one of its subsystems.

b. Why is information system important to the organization?

IS provide knowledge to every acquiring individual in the organization. IS also give ease on every query within the organization, query on the companys performance, sales, expenses, companys financial position, and other information that will help managers and the owners make sound decisions.

c. Describe your own organization and state the roles your accountant fill in relation to AIS.

Plantation Bay offers one of the largest privately-owned waterways in the world, with the clean elegance of colonial-plantation architecture.  Our accountant assist management and the BOD in planning and controlling the Hotels operation, including the maintenance of the records, producing the financial reports, preparing the budgets and controlling and allocating the cost of the Hotel.


d. What information quality is most important - relevance or reliability? discuss your answer.

e. Describe the business process (briefly) of your own organization.




-- Edited by donde at 01:56, 2008-12-26

__________________


Member

Status: Offline
Posts: 5
Date:

d. What information quality is most important - relevance or reliability? discuss your answer.

It depends, if time would be the essence then the information should be more relevant in order for the information to make a difference in rendering a decision by helping the decision makers form predictions about the outcome of past, present, and future events, or confirm and correct prior expectations. If we're talking about historical financial statements, then it has to be more reliable, the information should be free from bias and error, and faithfully represents what it purports to represent. But in general, both are equally important. Even if time is the essence and the information is needed to be more relevant it has to be reliable still. Same with information that needs to be more reliable, still it should also be relevant.

e. Describe the business process (briefly) of your own organization.



-- Edited by donde at 23:26, 2008-12-27

__________________


Member

Status: Offline
Posts: 5
Date:

e. Describe the business process (briefly) of your own organization.

The hotel accepts online reservations and also through telephone calls. The reservation department then booked the reservations received from the guest. When the guest arrived (during check in date), they will pass through the lobby for registration, then the bell service will help the guests carrying the luggage to their room. During check out, guest will pass through the Front Desk to settle the room charges and other incidentals.

At the end of each day, room revenue, F&B revenue, and other incidental charges will be posted by the system through night audit process (using Fidelio) or end of day process (using Opera Hotel Edition).  After the end of the night audit/end of day process, the system will generate different kind of reports which will be used by different departments in the hotel, like Revenue Reports, and Trial Balance which will be used by the Finance Department; Occupancy Rate, Guest List, Arrival List, and Departure List which will be used by the Front Office, Housekeeping Department, Security Department, and F&B Department.

-- Edited by donde at 16:53, 2009-01-01

__________________


Member

Status: Offline
Posts: 17
Date:

lyncortes wrote:


1. what is the relationship between AIS and IS?

 AIS is one of the major classes of IS, IS is the set of formal procedures by which data are gathered, processed into information and distributed to users. Because IS covers a very broad areas of infomation it was decomposed into to major classes, these are AIS and MIS. AIS provides financial and non financial information that are useful in making business decisions. 

2. why is information systems important to the organization?

 Imagine how a particular entity operates without an information systems. They do not have accounting information system and management information system that provides financial and non financial informations that are very important for the daily operations and future growth of the company. A good information systems add value to the company,it provides a competitive environment to the entity. The competitions nowadays is based on how fast and effectively the company can generate output based on the processed information so that they could decide intellegently about how to become competitive and to excel with the current business environment now.

3.
Describe your own organization and state the roles your accountant fill in relation to AIS.

I am interested to established an organization in my poutry business, I want to have an information systems that can provide me effective data such as:
1. the list of various suppliers of chicks and feeds
2. the list of customers
3. credit and collection system 
4. chicks, chicken and feed inventory system
5. costing
6. pricing system
7. financial reports

my accountant should verify that:

1.  the list of various supplliers are updated, to ensure the current prices of chicks and feeds are the one  indicated in the systems, so she can compare which supplier offers the least cost.
2. the list of customers are updated.
3. the credit and collection system is functioning well, whether it provides correct receivable balances, aging of receivables.
4. the inventory system provides correct data to know whether we have negative variance of inventories.
5. the costing and pricing system is always at the current amount.
6. the financial reports revelas the true financial condition of the business
7. the employees incharge in gathering, inputing the data into the systems are following and performing correctly to the business information systems. 

d. What information quality is most important - relevance or reliability? Discuss your answer.

both quality of information ( relevance and reliability) are important because the information in the financial statements are not useful and with value to the users if it do not have the quality of relevance, the same way with reliability.   

 




 



-- Edited by lyncortes at 23:05, 2009-01-01

__________________
marilyn u cortes


Member

Status: Offline
Posts: 7
Date:

a. What is the relationship between AIS and IS?

The accounting information system is part of the organizations information system. Whereas the information system will process a mixture of quantitative (i.e. numerical) and qualitative (i.e. non-numerical) data, the accounting information system focuses almost entirely on processing quantitative data. The accounting system is just one of the systems within an organization, all of which must work together in an effective and efficient way.

b. Why is information system important to the organization?

In the world of globalization, Information system is now very important to every organization because it is such where data are collected, classified and put into process interpreting the result thereon in order to provide an integrated series of information for further conveying and analyzing. In a progressively more strong-willed worldwide atmosphere, Information System plays the role as enabler and facilitator, which endows with tactical values to the officialdom and considerable step up to the excellence of administration. An Information System is a particular type of work system that uses information technology to detain, put on the air, store, retrieve, manipulate or display information, thereby supporting one or more other work structure. To sum up everything up to taking sides on assessment making, coordination and control, information systems may also help managers and workers investigate problems, visualize complex subjects and generate new merchandise or services.

c. Describe your own organization and state the roles your accountant fill in relation to AIS.

I am connected with a medium-sized organization engaged in manpower services. The main functions in the accounting are focused on the payroll preparation and billing our clients. But like the usual accounting system, there is also the collection and disbursing function to complete the accounting cycle inside.

The roles of the accountant in our organization are the following:
1) Verify that the data encoded by the payroll master is correct before generating the pertinent data
2) Review & examine the entries made by the bookkeeper for the CVs, JVs, and others and see to it that the complete documents are attached
3) Verify that every disbursement has an approved budget allocated specifically for it
4) Check the billing that the accounts receivable clerk did and make corrections if there's any
5) Check the monitoring of receivables from time to time
6) Do the bank reconciliation monthly to have a control and monitoring on whether the cash declared in the books is correct
7) Generate the financial statemets from the data entered into the computer for all the transactions made for the month, quarter, and year

d. What information quality is most important - relevance or reliability? discuss your answer.


It is stated that the qualities that distinguish better (more useful) information from inferior (less useful) information are primarily the qualities of relevance and reliability. So, definitely, both of them are really significant to be able to deliver a quality and purposeful report. But even though considerable agreement exists about the qualitative characteristics that "good" accounting information should have, no consensus can be expected about their relative importance in a specific situation because different constituents have or perceive themselves as having different needs and, therefore different preferences. Thus, neither charateristic can be dispensed with entirely. However, as what I have read, many FASB constituents supported the reliability characteristic as the most important quality. But even though there seems to be considerable support for the view that reliability should be the dominant quality in the information conveyed in the financial statements, that view has in it the seeds of danger. Like most potentially harmful generalizations, it does contain a germ of truth: almost everyone agrees that criteria for formally recognizing in financial statements call for a minimum level or threshhold of reliability of measurement that should be higher than is usually considered necessary for disclosing information outside financial statements. But the remainder of the proposition does not follow. If it were carried to its logical conclusion, the end would be that most really useful information provided by financial reporting would be conveyed outside the financial statements, while the audited financial statements would increasingly convey highly reliable but largely irrelevant, and thus, useless information.
So basically, the quality of relevance is being considered as the most important characteristic between the two of them.

e. Describe the business process (briefly) of your own organization.

The name of my company is Unity Worldwide Resources, Inc. It is a manpower agency engaged in manpower pooling and deployment of workers to different client companies.

The company invests in setting up ads and distributing fliers to everyone in order to entice more people to apply. We pool all these applicants and hire the qualified ones everytime the need for specified workers arise from our client companies.

Our bread and butter really is the function of the HR department. From there, we do the payroll preparation and billing being the two major activities done in the accounting section.


-- Edited by bby_emma at 11:39, 2009-01-14

__________________


Member

Status: Offline
Posts: 7
Date:

Questions :
A. What is the relationship between AIS and IS?
Ans. Information system is a man-made system that generally consists of an integrated set of computer based components and manul components established to collect, store and manage data and to provide output information to users. Accounting information system is a specialied subsystem of the information system that collects, process and reports financial information related to the financial aspects of business.
B. Why is information system important to the organization?
Ans. The information systems facilitates these operational functions and supports management decision making by providing information that managers can use to plan and control the activities of the firm. The information system may have advanced elements, such as a database for storage and can use decision models to present output information for decsion making.
C. Describe you own organization and state the roles your accountant fill in relation to AIS.
Ans. In BDO banco de oro the custodian assigned for control and compliance are the branch accountant and accounting assistant. the branch account is for large branch and assisted by the accounting assistant as for the medium and small branches. the branch accountant supervise the accounting assistants and acts as the control and compliance officer of the branch. also responsible for the booking of entries, maintenance of books of accounts, preparation and submission of required reports.accounting assistant is responsible for ensuring accuracy of brnach transactions, including clearing operations, books of accounts and timely preparation and submission of reports.
D. What information quality is most importat-relevance or reliability? discuss your answer.
Ans. Relevance contents of a report or document must serve a purpose while reliability relates to the provision of appropriate information for management to operate the entity and exercise its fiduciary and governance responsibilities. relevance is the most important information quality. a primary component of appropriates.this could be to support a managers decsion or a clerks task.we have established, that only data relevant to a users action have information content. therefore, the information system should present only relevant data in its reports containing irrelevants waste resources and maybe counter productive to the user, Irrelevancies detract attention from the true message of the report and my result in incorrect decsions or actions.
E. Describe the business provess (briefly) of your own organization.
Ans.Branch system and applications
1. International Comprehensive banking System (ICBS)-is a centralized system or banking application can provide the bank information on total business activities of clients and it has a built-in report generator for management information at all best.
2. Process Server - relays accout status information from ICBS to teller workstations.. stores information in ICBS and process all branch transactions. Information from the branch is consolidated into one thru PCOMB (process combine) to update and generate reports.
ICBS Related Applications.
a. AS/400
b. Alliant branch teller
c. Identity Capture
d. BDO front end application system(BFEAS/Bills payment)
e. Foreign exchange dealing system
f. cash card
g. Remote delivery channel
h. Online check archiving and verification.



__________________


Member

Status: Offline
Posts: 8
Date:

Questions:
A. What is the relationship between AIS and IS?
Ans. AIS and IS the same relationship but different in purpose , because AIS is the subsystem of the IS. AIS process financial trasactions and non financial trasactions that directly affect the processing of financial trasactions. While IS on the otherhand is the set of formal procedures by which data are collected , processed into information ad distributed to users.
B. Why is information system important to the organization?
Ans. The improvement of technology inthe business today, information system is a big contribution in the society it deals a smooth details in operations and financial components with day to day trasactions in a fastest way the management can rely on to achieve its goal.
C. Describe your own organization and state the roles your accountant fill in relation to AIS?
Ans. The company had the systems that can run to its afficiliate company trasactions may in use to management. Accounting department uses Peachtree 2008 edition.Can process any financial transactions and non-financial trasactions. The accountants role specify accounting rules and techniques to used, internal control requirements.
D. What information quality is most important-relevance or reliability? discuss your answer.
Ans. Relevance because the contenets of a report or document must serve a purpose. this could be to support a managers decision or a clerks task. Reports containing irrelevancies waste resources and maybe counterprodictive to the user.
E. Describe the business process(briefly) ofyour own organization.
Ans. The company has its so could Database Management System(DMS) of which input all the system to its primary users in Any financial transactions internally in the organization. The IT department monitors and process (DMS) trasanctions.

__________________
RYAN


Member

Status: Offline
Posts: 6
Date:

a. What is the relationship between AIS and IS?

IS or Management Information System is a set of interrelated elements that work together  to capture, process, maintain and disseminate information, while Accounting Information System is a subsystem of IS that specifically process financial transactions including: inter reporting for management planning and decision making; and external reporting to interested outside entities such as creditors, stockholders, and government agencies.

b. Why is information system important to the organization?

Information systems like the AIS covers almost all business functions from basic accounting transaction processing systems to sophisticated financial management planning and processing systems. Having a sound Information System could add value to the organization's bottom line

c. Describe your own organization and state the roles your accountant fill in relation to AIS.

Computer House of Cebu provides handicapping computation services to four major Golf courses in Cebu. The company maintains and manages thousands of golfers playing records that are updated in a day to day basis. The accountant sends billing to each Golf Clubs in a form of printed Statement of Account with attached list of names of Golfers generated from the Golf Regional Handicapping System. Other major accounting transactions such as generation of payment vouchers, payroll reports, and financial statements are done through the company's customized Accounting System.

d. What information quality is most important - relevance or reliability? discuss your answer.

The primary qualities of accounting information are relevance and reliability, and that to be useful, information must possess both of those qualities. A relevant information that is not reasonably free from error or bias is useless, while the audited financial statements that is highly reliable but largely irrelevant is still useless information.

e. Describe the business process (briefly) of your own organization.

(1)Receive scorecards from different Golf courses daily;(2) enter scorecard's data into the handicapping system; (3) send handicap computation report every 1st and 16th of the month;(4) print list of Golfers on a per club basis; (5) attached list to the billing statement send to each club, received paycheck from Clients;(6) Process disbursement Vouchers and make financial statements every end of the month which is automatically generated from the company's customized Accounting system.

For those students who do not yet answer the question above, kindly cite the similarities and differences in business processes being cited above.  You may use a framework to properly classify and discuss why each business is unique.


Type of Company:          Trading Industry
Nature of business:         Engaged in buying and selling of commodities
Activity:                         Buy commodities to small farmers and
                                     assemblers and sells inventories to big
                                    manufacturing industries
Clients:                         Oil Mills
Required ERP System:    SME Management Information System
Recommended Software:QuickBooks, Peachtree, SAP Business Suite
Required Automation:     Financial Management
                                   Operational Management
                                   Supplier/Partner Management
                                   Customer relationship management
                                   Inventory Management
                                   Accounting
                                   Estimating
                                   Procurement
                                   Reporting and Productivity Tools


Type of Company:         Supply Change Management Firm
Nature of business:        Engaged in moving a product or service from
                                   supplier to  supplier's customer.
Activity:                         Manages suppliers product warehousing,
                                    logistic,courier, and freight  
Clients:                         Suppliers, Manufacturing Company
Required ERP System:     Supply Chain Management Info System 
Recommended Software: SAP Business Suite (eg. SAP SCMS) 
Required Automation:     Financial Management
                                   Operational Management
                                   Supplier/Partner Management
                                   customer relationship management
                                   Inventory/ Warehouse Management
                                   Accounting
                                   Estimating
                                   Procurement
                                   Reporting and Productivity Tools
                                   Service Management

Type of Company:         Poultry Industry
Nature of business:        Engaged in Poultry farming, raising, selling
Activity:                        Buy chicks to raise from poultry farmers,
                                   process poultry products and sells poultry
                                   products to consumers
Clients:                         Households, Food manufacturing firms
Required ERP System:      Poultry Management Info System 
Recommended Software:  Poultry Express Program by Sotwareareus
Required Automation:       Financial Management
                                   Operational Management
                                   Supplier/Partner Management
                                   customer relationship management
                                   Poultry Product Management
                                   Accounting
                                   Estimating
                                   Procurement
                                   Reporting and Productivity Tools


Type of Company:        Real Estate Industry
Nature of business:       Engaged in real estate development and sales
                                  of commercial buildings
Activity:                       Buy and develop land into residential subdivisions
                                  and commercial building
Clients:                         Households, Public and Private Firms
Required ERP System:      Real Estate Information System
Recommended Software:  Sage Timberline Office
Required Automation:       Financial Management
                                   Operational Management
                                   Supplier/Partner Management
                                   customer relationship management
                                   Materials Management
                                   Accounting
                                   Estimating
                                   Procurement
                                   Production Management
                                   Project Management
                                   Real Estate Management
                                   Reporting and Productivity Tools
                                   Service Management



-- Edited by rodgie at 17:35, 2009-02-02

__________________


Member

Status: Offline
Posts: 12
Date:


Questions:

a. What is the relationship between AIS and IS?

Information system refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently run their departments. In order to provide past, present and predictive information, an MIS can include software that helps in decision making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently. One function of IS, is AIS or Accounting Information System. This specifically processes financial transactions to provide useful information thru internal reporting to managers for use in planning and controlling current and future operations and for nonroutine decision making. Also, this generates the information for external reporting to outside parties such as to stockholders, creditors, and government agencies.

b. Why is information system important to the organization?

The interrelated business functions in an organization can be organized, tracked and be more efficiently done with the help of IS. Data that flows thru the organization is made readily accessible by any department involved in the main process, speeding things up and providing ease in reporting. Transactions can more easily be monitored thru review of the audit trails, and internal controls can be best implemented thru the application of access controls and checked regulary thru computer audit.


c. Describe your own organization and state the roles your accountant fill in relation to AIS.
Our organization being a shared services is subdivided into different smaller divisions. Firstly, we are segregated by geographical locations, which we support: North America, EMEA (Europe, Middle East, Africa), and Asia Pacific. Each geo, has the following departments, Order to Cash Dept, Finance and SupplyChain. Our Finance team, is further subdivided into General Ledger accountants, handling all the AP/AR/Inventory of specific countires, then there is a team for mainly Accounts Payable accounting and Accounts Receivable accounting. There is also a team under finance handling Cost Accounting. In relation to AIS, each type of accountant have specific accesses to our ERP, which cater to their functions. For example for the AR department, from the bank statement, they apply in their window of the ERP, the cash received to the outstanding invoices shown in the system. This screen is not available to the Cost Accounting Team because this is not related to their function.

d. What information quality is most important - relevance or reliability? discuss your answer.

Ideally, relevance and reliability should be ensured processing data into becoming a useful information. Relevance, because of the tons of information that can be gathered in an advanced information system, one has to assess which information can best help the process. Not all information is useful for a specific user, so with efficiency in mind, one should process only RELEVANT data. Reliability as well, is an important quality for an information to be useful. Data coming from an independent source, with lesser human intervention, is generally more reliable. Unreliable data can lead to errors in the bottomline and can give a false notion causing decisions made to be incorrect. But if one is to be sacrificed, I would say reliability can be done away with. What's important in making quick decisions is that what's being considered are the things that directly affect the decision to be made---therefore should be RELEVANT. Anyway, instinct thru experience and skill can somehow make up for the uncertainty on the reliability of source.

e. Describe the business process (briefly) of your own organization.

In our department, Order to cash, as the name suggests, we are involved in accepting the customers' orders until we collect them as cash.

this is the basic normal flow:

1. CUSTOMER PLACES THE ORDERS THRU PURCHASE ORDER FORM
2. OUR DEPARTMENT, THRU A CUSTOMER MANAGEMENT REP, RECEIVES THE ORDER VIA EMAIL .
3. THE ORDER IS LOADED IN THE SYSTEM (ERP), INDICATING PO REFERENCE NO., ITEM, QTY AND REQUESTED DATE OF DELIVERY.
4. LOADING WILL ALSO BE DONE UNDER THE CUSTOMER # SETUP IN THE SYSTEM.
5. 7 DAYS PRIOR TO REQUESTED DATE, THE SYSTEM ANALYZES THE STOCK AVAILABILITY OF THE ITEM BEING ORDERED.
6. ONCE AVAILABLE, THE ORDER IN THE SYSTEM CHANGES STATUS TO MOVE ON TO THE NEXT PHASE, WHICH IS CREDIT LIMIT CHECK, TO SEE IF CUSTOMER IS STILL IN GOOD CREDIT STANDING.
7. ONCE PASSED, THE ORDER THEN GOES TO THE WAREHOUSE FOR PREPARATION.
8. AFTER THE WAREHOUSE HAS PREPARED THE GOODS, HE CONTACTS THE COURIER FOR THEM TO PICK UP THE GOODS.
9. COURIER PICKS UP THE GOODS AND DELIVERS TO THE CUSTOMER.
10. INVOICE IS GENERATED IN THE SYSTEM.
11. CMR SENDS TO CUSTOMER A COPY OF THE INVOICE.
12. WEEKLY, A STATEMENT OF ACCOUNT IS SENT TO THE CUSTOMER, SHOWING THEM THE OUTSTANDING INVOICES WITH THE DUE DATES.
13. ONCE CUSTOMERS PAY THRU THE BANK TRANSFER, THE BANK ISSUES THE STATEMENT TO THE AR DEPARTMENT, ALONG WITH THE REMITTANCE ADVICE.
14. AR DEPARTMENT APPLIES THE CASH RECEIVED TO THE CORRESPONDING INVOICES IN THE SYSTEM, AS INDICATED ON THE REMITTANCE ADVICE.
------END OF PROCESS-----



__________________


Member

Status: Offline
Posts: 11
Date:

a. What is the relationship between AIS and IS?

Accounting Information Systems (AISs) is the sub-system of information system, it combine the study and practice of accounting with the design, implementation, and monitoring of information systems. Such systems use modern information technology resources together with traditional accounting controls and methods to provide users the financial information necessary to manage their organizations, while the term information system refers to information technology that is used by people to accomplish a specified organizational or individual objective. The technology may be used in the gathering, processing, storing, and/or dissemination of information, and the users are trained in the use of that technology, as well as in the procedures to be followed in doing so.


b. Why is information system important to the organization?

An understanding of the effective and responsible use and management of information systems is important for managers and other business knowledge workers in todays global information society. Information system and technologies have become a vital component of successful businesses and organizations. Information systems constitute an essential field of study in business administration and management, as they are considered a major functional area in business operations.

c. Describe your own organization and state the roles your accountant fill in relation to AIS.

The nature of my business is accounting services, the role of my accountant should record all transactions in relation to sales, accounts receivable, purchases, accounts payable, payroll for withholding tax purposes and other expenses necessary for the preparation of financial statements and taxation matters of my clients.

d. What information quality is most important - relevance or reliability? discuss your answer.


Reliability- investors seek information that is reasonably free of errors and material omissions. Information is considered reliable if it can be verified or checked for correctness and if it is felt to be unbiased.

Relevance - accounting information is relevant to investors if it has the capacity to influence an investors decision-making process. To achieve this objective, the accounting information must be timely and provide predictive or feedback value.

Financial accounting information will not be useful if either relevance or reliability is missing.

e. Describe the business process (briefly) of your own organization.

For professional clients like doctors and lawyers they prefer me to do their BIR, SSS, PHIC & HDMF matters. While manufacturing and trading I am working for both the internal and tax matters. For internal accounting I am using the quickbooks for easy preparation of FS.

zenaida salomon

__________________


Veteran Member

Status: Offline
Posts: 26
Date:

Questions:

a. What is the relationship between AIS and IS?
Accounting information system is a system of records, usually computer based, which combines accounting principles and concepts with the benefits of an information system and which is used to analyze and record business transactions for the purpose to prepare financial statements and provide accounting data to its users.

An information system (IS) - or application landscape[1] - is any combination of information technology and people's activities using that technology to support operations, management[2] In a very broad sense, the term information system is frequently used to refer to the interaction between people, algorithmic processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) an organization uses, but also to the way in which people interact with this technology in support of business processes.

The relationship between accounting information system and information system is that, accounting information system is a subset of information system. Thus, information system refers to the broad idea, while, accounting information system refers to specific part of information system that deals with recording and preparation of financial statements.

b. Why is information system important to the organization?
Information system is vital in the organization in terms of providing efficient and timely data that would probably lead to a more effective decision.

c. Describe your own organization and state the roles your accountant fill in relation to AIS.
Organizational description of Metro-bank:
Metropolitan bank and trust company is a huge organization. It is composed of 12,000 employees and 500 branches for the entire nation. Thus, information system played a very vital part in banking operation, communication and implementation of policies, control and security.
Roles of accountant in relation to AIS:
Accountant is a user of AIS and the one responsible for bridging the gap of accounting information and its other users. Thus, it provides intellectual contribution through analysis and interpretation of data in respect with accounting information system.


d. What information quality is most important - relevance or reliability? discuss your answer.
Relevance is more important than reliability when it comes to information quality for the organization. Why? It is because in the business organization, timeliness, predictive value and feedback value are much more given emphasis for the purpose of attaining efficiency and effectivity in the organization. Although, reliability will result to effectivity in the organization but the question is when will be the information can be utilize in the organization? A big question that should not be taken for granted.

e. Describe the business process (briefly) of your own organization.

Description of business process of University of Mindanao:

The business process of the university starts with promotional campaign through its office of business development and its radio broadcasting network. It includes admission, operation and communication in the perspective of the organization. Thus, business processes of the university involve enormous transactions but manageable ones.




__________________
devzon


Member

Status: Offline
Posts: 17
Date:

A.

Accounting information system is focus on transforming business transaction or what we call business data majority financial transaction into useful information. Information like cash balance and retained earnings balance.

Information systems refers to the wider systems of people, data and activities, both computer-based and manual, that effectively gather, process, store and disseminate organisations information.

AIS together with MIS is a subsystem of informtion system.

B.

The success of such knowledge-based organisations lies in their information systems. Also, forced by technological change and globalisation of markets, many manufacturing industries are also placing increasing emphasis upon information systems. Information systems are more than just computer programs. Though information and communications technologies are playing an increasing role in meeting organisations information needs, an information system is a much more general concept.



__________________
God Bless!!!


Veteran Member

Status: Offline
Posts: 35
Date:

What Does Accounting Information System - AIS Mean?

What Does Accounting Information System - AIS Mean?

The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.

An accounting information systems that combines traditional accounting practices such as the Generally Accepted Accounting Principles (GAAP) with modern information technology resources. Six elements compose the typical accounting information system:      

People - the system users. 

Procedure and Instructions - methods for retrieving and processing data.

Data - information pertinent to the organization's business practices. 

Software - computer programs used to process data.  

Information Technology Infrastructure - hardware used to operate the system.

Internal Controls - security measures to protect sensitive data.

Accounting Information Systems (AISs) combine the study and practice of accounting with the design, implementation, and monitoring of information systems. Such systems use modern information technology resources together with traditional accounting controls and methods to provide users the financial information necessary to manage their organizations.

AIS TECHNOLOGY

Input The input devices commonly associated with AIS include: standard personal computers or workstations running applications; scanning devices for standardized data entry; electronic communication devices for electronic data interchange (EDI) and e-commerce. In addition, many financial systems come "Web-enabled" to allow devices to connect to the World Wide Web.

Process Basic processing is achieved through computer systems ranging from individual personal computers to large-scale enterprise servers. However, conceptually, the underlying processing model is still the "double-entry" accounting system initially introduced in the fifteenth century.

Output Output devices used include computer displays, impact and nonimpact printers, and electronic communication devices for EDI and e-commerce. The output content may encompass almost any type of financial reports from budgets and tax reports to multinational financial statements.

AISINFORMATION SYSTEMS IN CONTEXT

AISs cover all business functions from backbone accounting transaction processing systems to sophisticated financial management planning and processing systems.

Financial reporting starts at the operational levels of the organization, where the transaction processing systems capture important business events such as normal production, purchasing, and selling activities. These events (transactions) are classified and summarized for internal decision making and for external financial reporting.

Cost accounting systems are used in manufacturing and service environments. These allow organizations to track the costs associated with the production of goods and/or performance of services. In addition, the AIS can provide advanced analyses for improved resource allocation and performance tracking.

 

Management accounting systems are used to allow organizational planning, monitoring, and control for a variety of activities. This allows managerial-level employees to have access to advanced reporting and statistical analysis. The systems can be used to gather information, to develop various scenarios, and to choose an optimal answer among alternative scenarios.

DEVELOPMENT

The development of an AIS includes five basic phases: planning, analysis, design, implementation, and support. The time period associated with each of these phases can be as short as a few weeks or as long as several years.

Planningproject management objectives and techniques The first phase of systems development is the planning of the project. This entails determination of the scope and objectives of the project, the definition of project responsibilities, control requirements, project phases, project budgets, and project deliverables.

Analysis The analysis phase is used to both determine and document the accounting and business processes used by the organization. Such processes are redesigned to take advantage of best practices or of the operating characteristics of modern system solutions.

Data analysis is a thorough review of the accounting information that is currently being collected by an organization. Current data are then compared to the data that the organization should be using for managerial purposes. This method is used primarily when designing accounting transaction processing systems.

Decision analysis is a thorough review of the decisions a manager is responsible for making. The primary decisions that managers are responsible for are identified on an individual basis. Then models are created to support the manager in gathering financial and related information to develop and design alternatives, and to make actionable choices. This method is valuable when decision support is the system's primary objective.

Process analysis is a thorough review of the organization's business processes. Organizational processes are identified and segmented into a series of events that either add or change data. These processes can then be modified or reengineered to improve the organization's operations in terms of lowering cost, improving service, improving quality, or improving management information. This method is appropriate when automation or reengineering is the system's primary objective.

Design The design phase takes the conceptual results of the analysis phase and develops detailed, specific designs that can be implemented in subsequent phases. It involves the detailed design of all inputs, processing, storage, and outputs of the proposed accounting system. Inputs may be defined using screen layout tools and application generators. Processing can be shown through the use of flowcharts or business process maps that define the system logic, operations, and work flow. Logical data storage designs are identified by modeling the relationships among the organization's resources, events, and agents through diagrams. Also, entity relationship diagram (ERD) modeling is used to document large-scale database relationships. Output designs are documented through the use of a variety of reporting tools such as report writers, data extraction tools, query tools, and on-line analytical processing tools. In addition, all aspects of the design phase can be performed with software tool sets provided by specific software manufacturers.

Reporting is the driving force behind an AIS development. If the system analysis and design are successful, the reporting process provides the information that helps drive management decision making. Accounting systems make use of a variety of scheduled and on-demand reports. The reports can be tabular, showing data in a table or tables; graphic, using images to convey information in a picture format; or matrices, to show complex relationships in multiple dimensions.

There are numerous characteristics to consider when defining reporting requirements. The reports must be accessible through the system's interface. They should convey information in a proactive manner. They must be relevant. Accuracy must be maintained. Lastly, reports must meet the information processing (cognitive) style of the audience they are to inform.

Reports are of three basic types: A filter report that separates select data from a database, such as a monthly check register; a responsibility report to meet the needs of a specific user, such as a weekly sales report for a regional sales manager; a comparative report to show period differences, percentage breakdowns and variances between actual and budgeted expenditures. An example would be the financial statement analytics showing the expenses from the current year and prior year as a percentage of sales.

Screen designs and system interfaces are the primary data capture devices of AISs and are developed through a variety of tools. Storage is achieved through the use of normalized databases that assure functionality and flexibility.

Business process maps and flowcharts are used to document the operations of the systems. Modern AISs use specialized databases and processing designed specifically for accounting operations. This means that much of the base processing capabilities come delivered with the accounting or enterprise software.

Implementation The implementation phase consists of two primary parts: construction and delivery. Construction includes the selection of hardware, software and vendors for the implementation; building and testing the network communication systems; building and testing the databases; writing and testing the new program modifications; and installing and testing the total system from a technical standpoint. Delivery is the process of conducting final system and user acceptance testing; preparing the conversion plan; installing the production database; training the users; and converting all operations to the new system.

Tool sets are a variety of application development aids that are vendor-specific and used for customization of delivered systems. They allow the addition of fields and tables to the database, along with ability to create screen and other interfaces for data capture. In addition, they help set accessibility and security levels for adequate internal control within the accounting applications.

Security exists in several forms. Physical security of the system must be addressed. In typical AISs the equipment is located in a locked room with access granted only to technicians. Software access controls are set at several levels, depending on the size of the AIS. The first level of security occurs at the network level, which protects the organization's communication systems. Next is the operating system level security, which protects the computing environment. Then, database security is enabled to protect organizational data from theft, corruption, or other forms of damage. Lastly, application security is used to keep unauthorized persons from performing operations within the AIS.

Testing is performed at four levels. Stub or unit testing is used to insure the proper operation of individual modifications. Program testing involves the interaction between the individual modification and the program it enhances. System testing is used to determine that the program modifications work within the AIS as a whole. Acceptance testing ensures that the modifications meet user expectations and that the entire AIS performs as designed.

Conversion entails the method used to change from an old AIS to a new AIS. There are several methods for achieving this goal. One is to run the new and old systems in parallel for a specified period. A second method is to directly cut over to the new system at a specified point. A third is to phase in the system, either by location or system function. A fourth is to pilot the new system at a specific site before converting the rest of the organization.

Support The support phase has two objectives. The first is to update and maintain the AIS. This includes fixing problems and updating the system for business and environmental changes. For example, changes in generally accepted accounting principles (GAAP) or tax laws might necessitate changes to conversion or reference tables used for financial reporting. The second objective of support is to continue development by continuously improving the business through adjustments to the AIS caused by business and environmental changes. These changes might result in future problems, new opportunities, or management or governmental directives requiring additional system modifications.

 

and IS: combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization.

 

b. Why is information system important to the organization?

business firms, other organizations, and individuals in contemporary society rely on information systems to manage their operations, compete in the marketplace, supply services, and augment personal lives. For instance, modern corporations rely on computerized information systems to process financial accounts and manage human resources; municipal governments rely on information systems to provide basic services to its cirizens; and individuals use information systems to study, shop, bank, and invest.

 



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.



Create your own FREE Forum
Report Abuse
Powered by ActiveBoard