WHAT IS INFORMATION

Data are facts that are entered, stored and process by on AIS INFORMATION is organized, meaningful and useful data. Mandatory information (Taxable income) Essential information (Customer Billings)

CHARACTERISTICS OF USEFUL INFORMATION Relevant Reliable Complete Timely Understandable Verifiable SYSTEM A system is two or more components that interact to achieve a goal System are almost always composed of smaller subsystems each performing a specific function INFORMATION SYSTEM An information system is an organized means of collecting Entering and process data And of Storing, Managing, Collecting and reporting information so that an organization can achieve its objective and goals A. Formal information system has explicit responsibility to produce information Formal information system Manual information system Computer based information (People are the primary information processor) (Computer are used to process data)

ACCOUNTING INFORMATION SYSTEM (AIS) An Accounting information system (AIS) process data and transaction to provide users with information they need to Plan, Control an operate their business. For information decision makers need, the AIS must perform the following task. Collect transaction and other data and into AIS Process data Store data for future use Producing reports for user information

 Control whole process, so that information/ reports produced by AIS are accurate and reliable WHAT IS AN A/S Most organization engages in many similar and repetitive transaction e.g. Boy is pay for raw material Hire and pay employees Convert raw material into finished goods, Sell goods, Pay to creditors and receive debtors.

WHY STUDY AIS The A/s is fundamental part of your accounting Education Decision making Natures, design and use of an AIS Financial information reporting AIS skills are important to your career success AIS will be key component in your decision making You and other will make 03 level decisions. 1. Structured decision (Semi-structured decision) 2. Semi-structured decision (may be partially but not fully automated) 3. Unstructured decision (non-routine) You will also make decision about three types of activities 1. Operation controls Ensure effective and efficient operation 2. Management Control 3. Strategic planning Table 1.1 Managerial Activities and Decision-Making Taxonomy Management Activity Type of Decision Operational Management Strategic Control Control Planning Structured Inventory Linear Plant location recording programming for manufacturing Semi structured Bond trading Setting market Capital budgets for acquisition consumer project analysis Unstructured Selecting a cover Hiring Managers R&D portfolio for Time management magazine

Support Needed Clerical, EDP or management science models Decision support system Human intuition