CHAPTER I – OVERVIEW OF ACCOUNTING INFORMATION SYSTEM

Specific Information Objectives will differ from each firm. This is the common:

1. To support the firm day-to-day operations. Operations personnel use information to assist
them in the efficient and effective discharge of their daily tasks.
2. To support management decision making. Managers use information to assist them in
planning and control decisions related to their areas of responsibility
3. To support stewardship function of management. Stewardship refers to manager’s
responsibility to properly manage the resources of the firm and to report on their activities.
External users receive stewardship information through traditional FS and other mandated
reports. Internally, managers receive stewardship information from various responsibility
reports.

Information system = the set of formal procedures by which data are collected, stored, processed
into information, and distributed to users.

Transaction = an event that affect or is of interest to the organization and is processed by its
iformation system as a unit of work.

(FIGURE 1-2)

Financial transaction = an economic event that affects the assets and equities of the organization, is
reflected in its accounts, and is measured in monetary terms. (Sales of product to customers)

Nonfinancial transaction = event that do not meet the narrow definition of a financial transaction
(hiring new employee)

MANAGEMENT INFORMATION SYSTEM

Process nonfinancial transactions that are not normally processed by traditional AIS. (Subsystem :
Financial Management System, Marketing System, Distribution System, Human Resources System)

ACCOUNTING INFORMATION SYSTEM

Process financial and non financial transactions that directly affect the processing of financial
transactions. Three major subsytem:

1. Transactions processing system (TPS)

Support daily business opertations with numerous reports, documents, and messages for
users throughout the organization
2. General Ledger/Financial Reporting System (GL/FRS)
Produces the traditional financial statement – Income statement, balance sheet, statement
of cashflow, tac returns, other reports required by the law. * called : nondiscretionary
reporting because the organization has few or no choices in the information it provides.
*baca tentang fotcop yg subsidiary ledger special journal
3. Management Reporting System (MRS)
Provides internal management with special purpose financial reports and information
needed for decision making – budgets, variance reports, responsibility reports. *called :
 discretionary reporting because the organization can choose what information to report
and how to present it.
4. Sisanya bisa variatif, contoh : Expenditure System/cycle Purchase system, Cash Disbursement
System, Payroll Processing System, Fixed asset System, Conversion system/cycle Cost
Accounting system, production planning and control system, Revenue system/cycle sales
processing system, Cash receipt system

DATA VS INFORMATION

Data = facts, which may or may not be processed (edited, summarized, or refined) and have no
direct effect on a user’s actions.

Information = causes the user to take an action that they otherwise could not, or would not, have
taken. Simply define as processed data, but inadequate.

- Data sources

- Data Collection

- Data Processing

INFORMATION GENERATION

Is the process of compiling, arranging, formatting, and presenting information to users.

Characteristic :

1. Relevance (The content of a report or document must serve a purpose)

2. Timeliness (Information must be no older than the time frame of the action it supports)
3. Accuracy (Information must be free from material errors)
4. Completeness (No piece of information essential to a decision or task should be missing)
5. Summarization (Information should be aggregated in accordance with the user’s needs)

CHAPTER II – INTRODUCTION TO TRANSACTION PROCESSING

The most common financial transaction are econmic exchanges with external parties. Financial
transaction also include depreciation, labor, raw material, overhead, transferring inventory from one
dept to other dept.