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2.1.2 Objectives of AIS
The
main
purpose
of
any AIS
is
to
provide
accounting
information
to
a
wide
range of
users. The
users
may be internal users, who are
the
information
users
within
the company, or external
users, who are the company’s outsiders that
affected by
the circumstance
of the
company and the
decisions
it
makes.
There
are three specific objectives
identified that
will help
achieve
the
main
purpose
(Wilkinson et al. 2000, p. 8):
1)
To support the firm’s day-to-day operations.
Transactions are processed by
means
of
transactions
processing systems
(TPSs),
which
are
subsystems
of
the
AIS
that
“performs
and
records
the
daily routine transactions necessary to conduct business” (Laudon & Laudon
2004, p. 41). Users of output from TPS range from managers and employees
within the affected firm to a variety of parties external to the firm.
2)
To
support
decision-making
process,
particularly
by
internal
decision
makers.
A
very
crucial
purpose
is
to
provide
information
for
decision-making.
The
AIS
facilitates
the
firm’s
managers
who
are
the
primary
decision
makers
with information processing from where the output would be generated.
3)
To fulfill obligations relating to stewardship.
It
is
compulsory
for
every
firm to
fulfill
its
legal
obligations.
One
of
the
certain obligations is
to
provide mandatory
information
such as financial
statements to
external
users,
who
are
the
stakeholders-
persons
or
firms
having stake in the welfare of the firm.
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