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

SUMMARY OF STUDY OBJECTIVES

An overview of business processes. There are many different business processes that occur in organizations. A business process is a prescribed sequence of work steps completed in order to produce a desired result for the organization. A business process is initiated by a particular kind of event, has a well-defined beginning and end, and is usually completed in a relatively short period. Many business processes have direct or indirect effects on accounting records, and these can be categorized into revenue processes, expenditure processes, conversion processes, and administrative processes.

An overview of an accounting information system. 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 users. As business processes occur, accounting data from those processes are entered into the accounting information system, processed, and reported to the appropriate internal and external parties. The internal reports can be used as feedback to monitor and control business processes.

The business process linkage throughout the supply chain. Not only do business processes occur within an organization, but they can also be linked to related organizations. For example, when an organization buys raw materials, ...