ACC2400

Why is AIS important?

AIS looks at how businesses create sales to generate data that can be used for decision-making and improving operational efficiency. It provides a framework for collecting, processing, and analysing financial data, which aids in strategic planning and enhances overall business performance.

What is a system?

A system is a set of interconnected components that work together to achieve a specific goal or function, often involving inputs, processes, and outputs.

What is an information system?

An information system is a coordinated set of components for collecting, storing, and processing data, enabling the management and dissemination of information to support decision-making in an organisation.

What does AIS do?

AIS captures financial data, processes it, and provides information for decision-making and performance evaluation.

• based on data from many transactionsto help businesses improve their efficiency and effectiveness.

Breakdown an information system

An information system can be broken down into four key activities:

1. Input

2. process (storing, sorting, summarising)

3. store

4. output (the result of the process that provide information for decision making)

List how data should be portrayed or stored.

1. Access restricted

2. Accurate

3. Available

4. Reputable

5. Complete

6. Concise

7. Consistent

8. current

9. objective

10. relevant

11. timely

12. useable

13. understandable

14. verifiable

What is the value of information?

The benefit produced by the information minus the cost of producing it.

What is a business process?

A set of activities and tasks that, once completed, will accomplish an organisational goal. It involves the transformation of inputs into outputs to create value.

Get things done operationally and strategically

How does AIS add value to an organisation?

• improving quality and reducing cost of goods/ services

• improving efficiency

• sharing knowledge

• improving effectiveness and efficiency of supply chain

• improving internal control structure

• how we uses resources

What are the different modes of access and data capture?

• cloud computing - using a browser to remotely access software, data storage, hardware and applications

• infrastructure as a services (IaaS) -provide resources

• platform as a services (PaaS) - includes the infrastructure and resources needed to develop your own platform

• Software as a service (SaaS) - host applications that are uses by a range of organisations and delivered over the internet

What is virtualisation?

• Running multiple systems simultaneously on a physical computer

• allows hardware resources to be more efficiently used

• reduce total cost of ownership

• provides economies of scale

• energy efficient

How to improve data control for input data?

• Using prenumbered source documents

• Assign a sequential number to each new transaction = prevent misplacement and completeness

• Approving or verifying a transaction = make sure inventory being sold is not out of stock

• Checking the customer's credit before making a credit sales

What is source data automation

• Collection of transaction data in machine-readable format the time and place of origin

• Examples ATM, POS, bar codes and XBRL (financial data encoded, allowing other computer to use and analyse the information)

What is a turnaround document?

• Records of the company data sent to an external party and then returned to the system as input.

• Reduce data entry

• Increase efficiency of processing transaction

List the type of coding for data storage

• Systematic assignment of numbers or letters to items to classify and organise them

• Sequence codes = numbered consecutively

• Block code = blocks of numbers are reserved for specific categories of data (example product code)

• Group codes = two or more subgroup of digits used to code an item

• Mnemonic codes = derived from description of the item

List the type of data processing activities

1. Creating new data records

2. Reading, retrieving or viewing existing data

3. Updating previously stored data

4. Deleting data

What is batch processing?

• Updating done periodically

• Cheaper and more efficient

• Only for applications that do not need frequent updates

What is real time processing?

• Update as each transaction occurs

• Information is always current = increase decision making usefulness

• More accurate = data can be corrected in real time or refused

• Provide significant competitive advantage

What is online batch?

• The transaction occurs and is recorded in a temporary file

• All data in temporary data is used to update master data

How are information output used?

• Reports are used by employees to control operational activities and by managers to make decision and to formulate business strategies

• External users = evaluate company profitability, judge creditworthiness, or comply with regulatory requirements

What is an ERP system?

• Integrate all aspects of an organisation's activities

• It is modularised which catered to company's specific needs

• Collects, process and stores data and provides the information managers and external parties need to assess the company

• Centralised database to share information across business processes and coordinate activities

List the advantages and disadvantages of an ERP system

Advantages:

• Provides an integrated, enterprise-wide, single view of the organisation's data and financial situation

• Data input is captured or keyed once

• Management gains greater visibility into every area of the enterprise

• Better access control

• Standardised across business units

 

Disadvantages:

• Cost

• Amount of time required = high risk of project failure due to the time taken to fully implement an ERP system

• Changes to business processes

• Complexity

What are the control objectives?

• Safeguard assets = prevent or detect unauthorised acquisition, use or disposition

• Maintain records in sufficient details to report company assets accurately and fairly

• Provide accurate and reliable information

• Prepare financial reports in accordance with established criteria

• Promote and improve operational efficiency

• Encourage adherence to managerial policies

• Comply with applicable laws and regulations

What are the function of application control?

1. Preventive controls deter problems before they arise

2. Detective controls discover problems that are not prevented

3. Corrective controls identify and correct problems

Explain COBIT

• General model for how organisations can manage their technology and think about the risk of technology

• Internationally used framework

• Framework for the governance and management of IT