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Accounting Information Systems

  Image © 2008 - Delwyn D. DeVries

What is AIS? A model of business processes and controls in an Enterprise System context.

Business processes are at the core of the study of AIS. A simple view of AIS is that it incorporates all of the business processes and controls necessary for a company to engage in business events and transactions with the vendors and customers in their value chain. Enterprise information systems are important components of AIS as these systems provide the financial, operational, and strategic information processing capabilities required by the business. An important part of the AIS is summary financial reporting (represented in the graphic above as a trial balance and a SEC 10Q regulatory filing). However, the financial reporting component of the AIS is only the tip of iceberg of information available. The business processes represent all of the business operations and financial transactions. Order entry to Cash (or the Sales / Cash Receipts cycles) and Procure to Pay (or Purchasing / Cash Disbursements cycles) are examples of logical groupings of these business processes.

Understanding Information Systems

1. Enterprise Systems
2. Technology
   1. starting to fill in the blanks ...
   2. XBRL
      1. US GAAP Taxonomies, 2009
   3. more gaps to fill in ...
3. Controls
4. Fraud

   1. IT Secrets from the Madoff Scandal ... The systems and technology he and underlings used to create - or fake - the most detailed set of customer accounts underlying a fraud in the history of the securities industry. ... What was on the 17th floor? The fake trading floor where a second IBM AS/400 known internally as "House 17" processed historical price information on securities allegedly bought for clients. The end result was phony trade confirmations and wholly manufactured-but official-looking-statements for 4,903 investment advisory clients. ...Among 10 fraudulent functions detailed in the criminal complaint, the special programs altered trade details by using "algorithms that produced false and random results;" created "false and fraudulent execution reports;" and "generated false and fraudulent commission reports." from The IT Secrets from the Liar's Lair in Bank Technology News, December 2009 by John Dodge _2009-12-19

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