CHAPTER 2
THEORETICAL FOUNDATION
accounting,
information,
system,
and
information
system.
Subsequently,
a
comprehensible concept of
Accounting
Information System (AIS)
and
its set
of
purposes could be generated.
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Accounting can
be
defined
as
the process of
identifying,
measuring,
recording
and
communicating
economic
information
to
permit
informed
judgments
and
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economic
decisions
by
users
of
the
information
(Hoggett,
Edwards
&Medlin
2006,
p.
8).
From
this
definition,
it
could
be
perceived
that
accounting
is
an
information system
in
its
own
nature since
it
consists
of various
systematic
processes that integrate one another to fulfill its particular purposes, which are to
attain sound management on the economic and financial information.
According to Laudon and Laudon (2004, p. 8), information is data that have been
shaped into a form that is meaningful and useful to human beings. It could also
be defined as intelligence that is meaningful and useful to persons for whom it is
intended (Wilkinson et al. 2000, p. 5).
Information is very valuable for users in
terms of decision-making, along with its improvement.
In
term
of
system,
McLeod and
Schell
(2001,
p.
9)
describes
it
as
a
group of
elements that are integrated with the common purpose of achieving an objective.
Another recognizes a system as a unified group of interacting parts that function
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