ipl-logo

Understanding Accounting Information Systems: Key Benefits and

School
Warren High School**We aren't endorsed by this school
Course
ACC 320
Subject
Accounting
Date
Dec 11, 2024
Pages
9
Uploaded by LieutenantLlamaMaster878
Chapter 1 Pass; Sabrinalanda728What’s AIS? 1. Accounting information system: is a system that records, processes, summarizes, reports and communicates results of business transactions.a. By providing financial and non financial info to facilitate decision making. Accounting information system plays a crucial role because;1. Management Decision-Making:AIS provides timely access to relevant information, allowing decision-making2. Internal Controls:It ensures information is secure, reliable, and free from errors, supporting the company's internal control structure.3. Financial Reporting:AIS streamlines the production of both internal and external financial reports, ensuring efficiency and timeliness.4. Human Resources Support:It facilitates easy access to payroll, benefits, and compensation information.5. Procurement and Supply Chain:AIS improves the effectiveness and efficiency of the supply chain, ensuring the right products are in the right place at the right time.6. Data Analytics:It provides high-quality data for employees to perform analytics, addressing key management questions.What makes information useful?1. Relevance: Information must be relevant when it helps users evaluate past decisions or predict what will happen in the future. a. capable of influencing the decisions of users2. Faithful representation: When information is complete, free form errors.Information overload; too much information makes it difficult for someone to understand and make a decision. What are the mandatory reporting requirements for public corporations? Discretionary information; Information that is based on one's own judgment. ● Primarily for internal use, aiding management in decision-making processes.● Cost-Benefit Consideration:Management evaluates whether the benefits derived from this information justify the costs of producing it.Mandatory information; For external reporting purposes, ensuring compliance with laws and regulations.● Financial statements, tax returns, information required by the IRS, SEC, and other regulatory bodies.● Cost consideration; Typically produced at the lowest possible cost to comply with legal requirements.Accountants areUsers, managers, designers and evaluation of accounting information system —------------------------------------------------------------------------------Notes/ video Data—-> information= relevant if it helps the orgz make a decision. Enterprise Resource Planning (ERP);system used to centralized data management across organizations.● Helps track primary and support activities. Ease access of reporting and info. ● Helps to be efficient. IT role? It helps the organization automate work tasks.● Informate-up: valuable info to manager ● Informate-down: valueve info to employees. Business process: sequence of activities that use resources to transform specific input into outputs to achieve business goals. Business Analysis:evaluating business performance and process.
Background image
Documentation:explains how business processes and systems work for audits. Sarbanes-Oxley Act of 2002:Require business to provide required documentation to prevent fraud. Role of an accountant isto reduce costs, optimize processes, and maximize profit. ● Responsible for collecting , reporting and communicating data. ● And understand risk Business Processunified modeling language (UML); structure modelBPM: activity model Financial reporting system (FRS) ; measure and records accounting transactions to the general ledger and related journal entries. Human resources—--------------------------------------------------------------------------------—-----------------------------------------------------------------------------------------------------------------------------------------------Practice; Your company is considering implementing a new system to track production line efficiency, focusing on areas like machine downtime and labor performance. Which type of information would this system produce?A. Mandatory Information B. Discretionary Information C. Tax Information D. Audit InformationIt is a model that centralizes data management across different departments? A.ERP B. Inbound logistic C.UML D. CMA—------------------------------------------------------------Data analytics Helps companies with the ability to change based from the data. Must be life long learner which are foundations for success. -if s science of examining raw data before it has meaning. -its role is to remove excess noise. -organize and use data to make decision Tools; Better technology, system, practices, methods, databases, application. Big data: Data sets that are too large for a traditional system to manage. The feature are; ● Volume, velocity and variety 2 key limited factors -Data storage-processing power —---------------------------------------------------------------------------------------Recap: AMPs model Ask a question, Master the data,Perform the analysis.Share your story. Why? This allows companies to analyze large sets of data to gain powerful business insight PowerBITableau Overview; an analytical tool that empowers you to visualize data ETL: Extract, transform, and load -clean up to make data meaningful
Background image
-extracting data internally and externally-leading into proper application Changes in audits;Continuous audit Ai Audit data standards Data privacy standards -personally identifiable information -breacher must be reported -System must be secure—---------------------------------------------------------------------------------------------------------------------------------------------------------------Excel, power BI, Tableau: week 2 assignment. ● Pie chart,, line graph, bar charts● Words cloud regression analysis ● Forecast ● Slicers —----------------------------------------Artificial intelligenceWe can program the software to read documentation. Enhancing efficiency and insight Streamlining routine task with robotic process automotion (RPA) Machine learning: improving data analysis and decision making. Revolutionazing interaction with unstructured data using natural language precessign (NPL) RPA Automating data entry invoice processuML; Predictive analytics, fraud detectionNLP,extracting insights from unstructured data. Unlocking the advatgees ● Accelerated task execution ● Enhanced accuracy abnd reliability ● Improved financial forecasting and decision making. Overcoming challenges ● Comprehensive training program ● Collective implementation with accounting proifesionals. Shaping the Future AI’s role in the evolving landscape of accounting The Promise of improved efficiency. Accuracy, and decision making. Accelerated tasl lexecution —-------------------------------------------------------------They improved the processInteract wih 5 different system It took themm 4 weeks to build the new system—---------------------------------------------------------------------------------------------------------------------------------------------------------------Key parts of the data management process 1. Design data tools 2. model data and workflows
Background image
3. Gemerate and store data 4. Integrate datda for Analysis 5. Quality of data cleansing 6. Data governance (usage of policies) Buildign efficeint data structures 1. Efficent data tables2. Relational database3. Importating to access4. Primary key 5. Building relations6. Data quaries Operations; Payroll, quality control, Sales: customer info, sale discount Relational Databse Accauntacy: Asset aact receivable, liabilities A/PLogistics: vendors, shopping tracking, raw material Relational database: databse tht uses effiectly organized data tables. Tables;an object containing data in column (fields/ attribute) and raws (records) Benefits of relational database: Efficiency in adding/ Changing/ Dealig data. Common errors:fail to plan fields (fixed data) more than one data point in a field, repeated group of information. Each field is not dependent upon the primary point. Normalization:cleaning up an error. Primary key: Unique identification of each row are recorded in the table cannot be blank, Foreign keys: is The PR of a related table added to create a relationship. Must match primary key value. Reflectional integrity:FK must match PR —----------------------------------------------------------------------------------------------------------------------------------Key concepts for test 1. Week 7-9 determines appropriate data structure and build UML model (Midterm) 2. 5-6 import efficient tabes and assignment oriery key 3. 5-6 build relationships 4. 1-2 analaze data. —-----------------------Intro to UML (critical Lecture) Value of business models Two type of business modelUML?REA modelsClasses (tables)Assiciation (relationship) Multiplicities
Background image
Value of business models 2 typesActivity BPMN business process modeling notions ● Activity model:Diagram workflow ○ Identify weaknesses in control/ documentation○ Organized changes / M&As? Start upsStructure UML- unified modelign language ● Structure models: UML: Structure retention database ○ Use data dictionary: tabel listing too plan and audit or extract for operating purposes Basic building block of UML Access= Class Name > Tables Lines —--------------- = associaatiom > Relationship (we need Ff or link tables) = MULTIPLICITIES > defines relationships one to many or many to many only one Zero or more One or more Pg 566 General sales model Resources Events Agents Table linking Resources Inventory Sales Employees Inventory: inventory#(PK),cost,QOHCash: branl acct # (PK)Events (1,*) Sales: invoice # (PK), date, date of delivery, Cash (1,1) Cash receipts customers Cash receipts: receipts # (PK), dateAgents: Employee: EE ID(PK), nameCustomer: customer ID (PK), name, addressIn inventory in the small boxes PPk, cost etc need to fit there Need a relationship to connect the table show on the lineCash recipes: If we collected deposit at time sale date and payment at delivery data we would have 1^(1,*)Cash: (1.,*) = one cash receipts receives multiple transactions (1,1)cash should be put into one acct / busines to bank Sales (0,8) zero or many chanpus can be sale Inventory (1,*) one or many are put in display Employee; (1,1) for oen sale should be process my one employee(0,*) for each employee there will be multiple sales Customers; (0,*) we could zero transaction or manyOn the x if i want to know which employee did the sale (1,1) Which customer bough (1,1)
Background image
Generic multiplicities 1. Aorund the outside of event we will use 0 or more (0*1) \2. Connecting agent to event wil always be (1,1) 3. Connecting cash to cash receipts always (1,1) ===============================================================================================Generic sales PG 586Multiplicity (look at the Max values)ResourcesInventory: Inventory ID ( PK), QOH, Desc, Cost Cash: Bank acct #(PK), Bank name, BalanceEvent zero to more Sales: Invoice (PK), SMEployee ID (FK), Customer ID (FK)Cash receipts: Receipts #(PK), Date Agent will always be only one Employees: Employee ID(PK), First name, last name. Customers: Customers ID (PK), First Name, Last name ADDING KEYS Foreign key: One to many MAx an association line s are 1 and *Linking tables; many to many Max on association lines are * and * Linking tablesInventory- Sale: inventory ID + Inventory (PK)Cash receipts sale: Receipts + invoice number (PK) Chapters 5,7 and 8 need to understand it. How to create the tables above with the prompt given.
Background image
IC 9 ResorucesRentals Houses: house street address (PK) Cash;bank account # (PK)Type image Neibothood : neighborhood name (PK) Events: Rental contract; rental contract # (PK)Payment,cash receipt# (PK) Agent LBR agent, cashier employee# (PK)Renter:rental contract # (PK)renter number# (PK) LBR Cashier Steps in UML diagram 1. read the case2. Identify the clases 3. Identify the association 4. Identify the multiplicity. —-------------------------------------------------------------------------------------------Intro to UML: Value of business model Two types of business models UML/REA model Unified Resources Event and Agent ● Claseses tables are shown in tables ● Relationships are shows as line ● Min= 0 0 1 1 ● Max= 1 * 1 * ● Type image: specific class is not a resource event or anent ● Linking: specific class we need to put on the tables lsitign based on the many to many relatiomnship ● Foring keys; goes with primary key RUle of thumb; move away from the 1 to many —-----------------------------------------------------------------------------------------
Background image
Business Process Model notation 1. Purpose a. Sox, documents control procedures b. Redecined process c. Business casse for infomration technology d. 2. BPMN symbolsa. Events i. Start: Oii. Pane/intermidate Ⓞiii. ENd 3. Symballs a. Rask b. Flowsc. Pools d. Swimlanes Example: Morning routine 1Wake up: self 2Make coffee: mom 3Drink coffee: self 4Brush teeth; self 5Get dres self 6Wash or leave cup; self —---------------------------------------------------------------------------------------------------------------------------------------------------------------Cost added Not essentual● Motion ● Conveyance● Waiting Carried our bc defects, errors and omission occur or management worries tht they might occur ● Approvals● Corrections/revision Bureaucracy —-----------------------------------------------------------------------------------------------------Video The internal process perspective focuses on how well you are able to manage operations and customers. —-----------------------------------------------------------------------------------------------------What's the purpose of UML ● To build a structure model (blue-print) Access Purpose? ● Streamline the data management ● All data in one system BOMN: by diagramig every process we can see inconsistency ● Helps visualize the process for change in adaptiom/ management. ● To find weaknesses in internal control. Purpose of internal control ● To prevent fraud, separate duties whithing a process,
Background image
Purpose of Checklist ● acces control environment of orgz and offer feedback as growth occuersPurpose of strategy Map; ● Documents strategic initiatives across four prespective of the company. Business case IT Helps to decide on which direction to take Executive dashboard: Purpose of a report and presenaton for a client ● Summarize the data and information to presen tinfo clearly and helping mr z to see all the work we have done.● Purpose of income statement Propose of balance sheet https://docs.google.com/document/d/1q-Gb8Hc9GjnGqXruOpJUhguPPegCbi1X2_FlluLmsKY/edit
Background image