Accounting Information System: Structure of a Business

Topics: Computer, Management, Computer program Pages: 2 (271 words) Published: February 21, 2013
Accounting Information System(AIS)

-is a structure that a business uses to collect, store, manage, process, retrieve and report its financial data so that it can be used by accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors and regulatory and tax agencies.

Components of AIS
-the system users
-professionals who may need to use an organization's AIS include accountants, consultants, business analysts, managers, chief financial officers and auditors

b.Procedure and Instructions
are the methods it uses for collecting, storing, retrieving and processing data. -these methods will be both manual and automated, and the data can come from both internal sources (e.g., employees) and external sources (e.g., customers' online orders).

-is all the financial information pertinent to the organization's business practices. -The data included in an AIS will depend on the nature of the business, but it may consist of the following:

sales orders
customer billing statements
sales analysis reports
purchase requisitions
vendor invoices
check registers
general ledger
inventory data
payroll information
tax information

-is the computer programs used to store, retrieve, process and analyze the company's financial data. e.Information Technology Infrastructure
-the hardware used to operate the accounting information system -they include personal computers, servers, printers, surge protectors, routers, storage media, and possibly a backup power supply -factors to consider in selecting hardware include speed, storage capability and whether it can be expanded and upgraded

f.Internal Controls
-are the security measures it contains to protect sensitive data. These can be as simple as passwords or as complex as biometric identification - security measures to protect sensitive data.
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