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

SUMMARY OF STUDY OBJECTIVES

The interrelationships of business processes and the AIS. As transactions occur, the systematic and defined steps that take place within the organization to complete the underlying tasks of the transaction are called business processes. These business processes generate accounting information that must be captured, recorded, and processed. The accounting information system comprises the processes, procedures, and systems that capture accounting data from business processes; records the accounting data in the appropriate records; processes the detailed accounting data by classifying, summarizing, and consolidating; and reports the summarized accounting data to internal and external users. Business processes, IT systems, and the accounting information system are inextricably linked.

The types of accounting information systems. Simply as a way to organize the study of accounting information systems, we classify the systems in place into three categories: manual systems, legacy systems, and modern integrated systems. Manual systems use paper documents and records, including journals and ledgers. Legacy systems employ older technology in which the organization has a considerable investment and that might be entrenched in the organization. Modern, integrated accounting software offers companies powerful, technologically advanced systems to serve as accounting information systems that integrate business processes across the organization.

Client–server computing ...