The Information System: Accountant’s Prospective -Lecture 2

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Today we will discuss importance of AIS(accounting information system) from an accountant in an organization. After this we will be able to place AIS in prospective of an accountant.

Accounting information system ,e commerce and accounting information system case study solutions course is being taught in many university at undergraduate level to BBA.BCOM. MCOM, MIT, and many other classes.

Similarly In this category we will provide you best handouts of AIS course , AIS and E commerce from best recommend books like Addy Vassen, and Daniel.

Moreover Handouts will be the best source of preparation and learning.


The Information Environment

Similarly like other resources for example capital, raw material and labor, information is an also vital source for any organization.  However In Every business day, vast quantity of information flows from workers to decision makers to fulfill the internal informational needs. In addition, it also flows outside from organization to external users, such as customers, suppliers, and stakeholders.

Lecture 2 The Information System: an Accountant’s Prospective

Figure 1 presents an overview of these internal and external information flows.

Again the pyramid in Figure 1 shows the business organization divided horizontally four levels of activities. Moreover Day to day business operations are in the base of the pyramid. However these activities include manufacturing, sales, and distribution related to a product.

  1. Above the base level, we have three management levels that are operations management, middle management, and top management.
  2. Operations management controls all day-to-day operations.
  3. Middle management is responsible for short-term planning and coordination to accomplish organizational objectives.
  4. Top management is responsible for longer-term planning and setting organizational objectives.

However Every individual in the organization, from business operations to top management, needs information to accomplish his or her tasks.

Horizontal Flow of information

Information flows in two directions within the organization: horizontally and vertically. Moreover the horizontal flow supports operations-level tasks with highly detailed information about the many business transactions affecting the firm. It flows information between co workers or between the employees of same department.

Vertical flow of information

The vertical flow if information flows across the four levels in both directions upward and downward. Moreover It distributes summarized information about operations in the form of budget and instructions downward while performance information upward to evaluate and monitor the overall success of an organization at each level.

Internal and External Flow of information

Similarly like horizontal and vertical flow information flows internally between all levels of workers and managers and outside the organization. Moreover in above figure we can see the two main external users Stakeholders and Trading partners. However Trading partners further can be divided in to customers who require sales and billing information and Suppliers that require inventory information.

Stakeholders are all those entities/offices/organizations/personals outside (or inside) the organization with a direct or indirect interest in the firm. Stockholders, financial institutions, and government agencies are examples of external stakeholders. Information exchanges with these groups include financial statements, tax returns, and stock transaction information.

There are many functions of accounting information system . Similarly The functions offered by accounting information system are now available in many accounting information system software. Moreover You can use accounting information system software to accomplish or to complete your different accounting information system projects.

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Author: Habibullah Qamar

Its me Habib Ullah Qamar working as a Lecturer (Computer Sciences) in Pakistan. I have an MS(M.Phil) degree in computer sciences with specialization in software engineering from Virtual University of Pakistan Lahore. I have an experience of more than 15 years in the filed of Computer Science as a teacher. Blog Writing is my passion. I have many blogs, This one is special made with the aim of providing 100% Free online coaching and training to the students of under-graduate and postgraduate classes. Most of the students enrolled in computer sciences, information technology, software engineering and related disciplines find it difficult to understand core concepts of programming and office automation. They find difficult in understanding and solving their assignments.