CHAPTER 2
THEORETICAL FOUNDATION
CHAPTER 2
THEORETICAL FOUNDATION
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This
chapter
covers
the
theoretical
foundation
and
framework
used
in
the
analysis in
Formatted: Highlight
terms
to
identify
the
potential
weaknesses
and
to support the
design
of
an
alternative
solution (system) for PT. LEVINA. The relevant terms and concepts, which are covered
in this segment, are Accounting Information System (AIS), , the Revenue Cycle (RC), and
the Expenditure Cycle (EC), along with explanation on the specifically related Internal
Control
(IC), and
the
Flowchart,
and
Data
Flow
Diagram
(DFD)
as
the supporting
instruments.
The
control
framework
used
in
analyzing
this thesis
is
COSO’s
Internal
Control-Integrated Framework.
2.1.2.1 Accounting Information System (AIS)
The
explanation comprises
the
definition of
AIS, which
includes
its
components,
business functions and applications, along with the AIS’ and objectives of the .AIS,
and its general relation to the Management Information System (MIS).
2.1.1.2.1.1
Definition of AIS
In
order
to achieve
an utter
understanding
about the
definition
of AIS
and
its
concept, it is important to initially be acquainted with its elements, which are the
8
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