Accounting Information Systems: The Processes and Controls, 2nd Edition

OVERVIEW OF AN ACCOUNTING INFORMATION SYSTEM (STUDY OBJECTIVE 2)

The accounting information system comprises the processes, procedures, and systems that capture accounting data from business processes; record the accounting data in the appropriate records; process the detailed accounting data by classifying, summarizing, and consolidating; and report the summarized accounting data to internal and external users. Many years ago, accounting information systems were paper-based journals and ledgers that were recorded manually by employees. Today, nearly every organization uses computer systems for maintaining records in its accounting information system. The accounting information system has several important components, listed next. An example from McDonald's is used to describe each component.

1. Work steps within a business process intended to capture accounting data as that business process occurs. When McDonald's employees greet a customer at the cash register, they have several work steps to complete a sale, some of which are accounting related and some of which are not. Greeting the customer with a smile may be an important step, but it has no impact on accounting records. However, using the touch screen at the cash register to conduct the sale does have an accounting effect: sales amounts in the sales records should be increased and cash amounts in cash records should be increased.
2. The manual or computer-based records to record the accounting data from business processes. As ...