12
6)
The
internal
controls
and
security
measures that safeguard the data
in the
AIS.
Romney and Steinbart (2006, p. 7) also state that, together, these six components
enable an AIS to fulfill three important business functions:
1)
Collect
and
store
data
about
organizational
activities,
resources,
and
personnel.
2)
Transform data
into
information
that is
useful
for
making
decisions
so
management
can
plan,
execute,
control,
and
evaluate
activities,
resources,
and personnel.
3)
Provide
adequate
controls
to safeguard
the
organization’s
assets,
including
its data, to ensure that the assets and data are available when needed and the
data is accurate and reliable.
The
applications of AIS
within an
organization
are categorized
into
five
major
subsystems:
• Revenue cycle
•
Expenditure cycle
• Production/ Conversion cycle
• Human Resource Management cycle
•
General Ledger and Financial Reporting cycle
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