CHAPTER 2
THEORETICAL FOUNDATION
1)Collect and store data about organizational activities, resources, and personnel.
Formatted: Centered, Space After: 10 pt,
Don't add space between paragraphs of the
same style, Line spacing: Double
Formatted: Centered
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
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
14
 |