Chapter 2 - Fundamental concepts of the AIS. This chapter presents the following content: The interrelationships of business processes and the AIS, types of accounting information systems, client-server computing, cloud computing, accounting software market segments, input methods used in business processes, the processing of accounting data, outputs from the AIS related to business processes, documenting processes and systems, ethical considerations at the foundation of accounting information systems. | Chapter 2 Fundamental Concepts of the AIS Chapter 2 The interrelationships of business processes and the AIS Types of accounting information systems Client-server computing Cloud computing Accounting software market segments Input methods used in business processes The processing of accounting data Outputs from the AIS related to business processes Documenting processes and systems Ethical considerations at the foundation of accounting information systems Study Objectives 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) SO 1 The interrelationships of business processes and the AIS Accounting Information System - a system that captures, records, processes, and reports accounting information. Business Process - a prescribed sequence of work steps completed in order to produce a desired result. Business Processes and the AIS SO 1 The interrelationships of business processes and the AIS Business Processes and the AIS SO 2 Types of accounting information systems Three categories of AIS: Manual systems Legacy systems Modern, integrated IT systems Types of Accounting Information Systems SO 2 Types of accounting information systems Manual Systems Generally used by small organizations. Entirely manual system would require: Source document Turnaround document General ledger General journal Special journals Subsidiary ledgers Types of Accounting Information Systems SO 2 Types of accounting information systems Legacy Systems Existing system, often based on old technology. Advantages are that legacy systems: Customized to specific needs. Support . | Chapter 2 Fundamental Concepts of the AIS Chapter 2 The interrelationships of business processes and the AIS Types of accounting information systems Client-server computing Cloud computing Accounting software market segments Input methods used in business processes The processing of accounting data Outputs from the AIS related to business processes Documenting processes and systems Ethical considerations at the foundation of accounting information systems Study Objectives 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) SO 1 The interrelationships of .
