CHAPTER 2
THEORETICAL FOUNDATION
together to achieve its purposes (Wilkinson et al. 2000, p. 6). The primary
Formatted: Centered, Space After: 10 pt,
Don't add space between paragraphs of the
same style, Line spacing: Double
Formatted: Centered
characteristic of a system that could be derived from these definitions is that it
contains a group, whose elements interact one
another and function together to
achieve its purposes, in supporting the accomplishment of one’s (in this case, it
would be the company) objectives.
Referring to Romney
and Steinbart (2006, p. 782), an information system is an
organized way of collecting, processing, managing, and reporting information so
that
an organization
can achieve its objectives and
goals. It
can as well be
described as interrelated components working together to collect, process, store,
and
disseminate
information
to support
decision-making,
coordination,
control,
analysis,
and visualization
in
an
organization
(Laudon
&
Laudon
2004,
p.
8).
These descriptions of information system are derived from the terms’
compilation
betweencombination
of
the
terms
information
and
system,
which
possess their concepts and characteristics.
As a result of the preceding descriptions of accounting, information, and system,
an AIS can be defined as a unified structure within an entity, such as a business
firm,
that
employs physical
resources
and other
components
to
transform
economic
data
into
accounting
information,
with
the purpose
of satisfying the
information needs of a variety of users (Wilkinson et al. 2000, p. 7). Moreover,
10
 |