Part 2* A 'system' is an entity consisting of interacting parts (subsystem) that attempt to achieve one or more goals
* Communication of relevant information between the subsystems achieves this interaction* Effective information improves decision making
* Accounting subsystem of an organization performs the service function of transforming financial data into useful information that aids management in making decision
* Traditionally,AIS was concerned only with financial data and accounting transactions (AIS was traditionally referred to as a Transaction Processing System)
* The Accounting Education Change Commission stated that accounting courses need to teach students that accounting is an information identification , development , measurement and communication process. There must be solid understanding of three essential concepts:
- Financial information reporting
- Use of information in decision making
- Nature / design / use and implementation of an AIS
[Accountants must not narrow themselves to just financial data , they must become an information specialist]
* In order to perform the above three functions affectivelly , an AIS must use all available tool. Concurrently , one of the best tools is the computer and other modern information technology
No comments:
Post a Comment