Read e-book online Accounting Information Systems PDF

By James A. Hall

ISBN-10: 1439078572

ISBN-13: 9781439078570

Excellent for realizing the accounting details structures and comparable applied sciences you will use on your enterprise profession, Hall's ACCOUNTING details structures, seventh version contains an emphasis on ethics, fraud, and the fashionable production surroundings. The ebook specializes in the desires and obligations of accountants as finish clients of structures, structures designers, and auditors. This variation presents whole built-in assurance of Sarbanes-Oxley because it results inner controls and different correct issues plagued by this laws, in addition to reorganized dialogue of transaction cycles that make the stability among handbook- and computer-based structures extra obvious.

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Example text

For the moment, however, we need to maintain a broad view of accounting to understand its functional role in the organization. The Value of Information The value of information to a user is determined by its reliability. We saw earlier that the purpose of information is to lead the user to a desired action. For this to happen, information must possess certain attributes—relevance, accuracy, completeness, summarization, and timeliness. When these attributes are consistently present, information has reliability and provides value to the user.

Nevertheless, no law requires company management to design optimal buyand-sell rules into their system. Once the buy-or-sell order is placed, however, the processing of this financial transaction must comply with legal and professional guidelines. The Accounting Information System AIS subsystems process financial transactions and nonfinancial transactions that directly affect the processing of financial transactions. For example, changes to customers’ names and addresses are processed by the AIS to keep the customer file current.

In addition, summarized information pertaining to operations and other activities flows upward to managers at all levels. Management uses this information to support its various planning and control functions. F I G U R E 1-1 INTERNAL AND EXTERNAL FLOWS OF INFORMATION Top Management ce an orm Inf Suppliers on ati Customers Operations Management Stakeholders rm rfo Pe Middle Management Bu d an get In dI ns form tru cti ation on s 4 Operations Personnel Day-to-Day Operations Information CHAPTER 1 The Information System: An Accountant’s Perspective A third flow of information depicted in Figure 1-1 represents exchanges between the organization and users in the external environment.

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Accounting Information Systems by James A. Hall

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