Tiêu đề Final AIS Dr.Diab.pdf ✅

Accounting Information System (AIS) Final Revision 2025 The art and science of algorithms that make sense of data. Dr.Diab
▪ For Example → Faculty of commerce English section is a system composed of various departments, each one of which is a subsystem. Moreover, the faculty of commerce itself is a subsystem of the university system. ▪ Each subsystem is designed to achieve one or more organizational goals. Changes in subsystem cannot be made without considering the effect on other subsystems and on the system as a whole. ▪ The systems concept also encourages integration, which is eliminating duplicate recording, storage, reporting, and other processing activities in an organization. ▪ For Example → companies that used to have separate programs to prepare customer statements, collect cash, and maintain accounts receivable records now combine these functions into a single application. Goal Conflict Goal Congruence Occurs when a decision or action of a subsystem is inconsistent with another subsystem or the system as a whole. It occurs when a subsystem achieves its goals while contributing to the organization’s overall goal. The systems concept also encourages integration. ▪ Businesses need to collect several kinds of data such as : A. The activities that take place. Example: collecting data about a sale (Date - total amount) B. The resources affected by the activities. Example The resource sold (Good or Service – quantity sold - unit price). C. The people who participate in the activity. Example (Customer – Sales Person). ▪ As a Rule → users make better decisions as the quality and quantity of information increase. ▪ Information overload → Exceeding the amount of information a human mind can absorb and process resulting in a decline in decision making quality and an increase in the cost of providing information. Distinguish Data from Information Explain System Concept, Goal Conflict, and Goal Congruence. Chapter (1): Accounting Information Systems: An Overview System → is a set of two or more interrelated components that interact to achieve a goal. often composed of smaller subsystems that support the larger system. Data → are facts that are collected, recorded, stored and processed by an information system. Information → is data that have been organized and processed to provide meaning and improve the decision making process.
▪ The value of information → is the benefit produced by the information minus the cost of producing it. ▪ Information overload is costly because decision-making quality declines while the costs of providing that information increase. ▪ Consequently, information system designers must consider how information technology (IT) advances can help decision-makers more effectively. ▪ The major benefits of information are a reduction of uncertainty, improved decisions, and a better ability to plan and schedule activities. ▪ The costs are the time and resources spent collecting, processing, and storing data as well as distributing information to decision makers. ▪ Information is provided to both external and internal users. ▪ External users primarily use either mandatory information (e.g., required by the government) or essential (needed to conduct business with external parties). ▪ An example of mandatory information is a report to the government on taxable income and tax withholdings. Examples of essential information include purchase orders and customer billings. ▪ In providing mandatory or essential information, the focus should be on 1- minimizing costs, 2- meeting regulatory requirements, 3- meeting minimum standards of reliability and usefulness. ▪ Internal users primarily use discretionary information. The primary focus in producing this information is ensuring that benefits exceed costs, i.e., the information has positive value ▪ Since choices must be made regarding what information should be made available, to whom, and how frequently. ▪ Internal reporting is more difficult than external reporting because → 1. most managerial decisions demand more detailed information than does external reporting and 2. there are more ways to report information to internal than external users. ▪ Information costs and benefits can be difficult to quantify, and it is difficult to determine the value of information before it has been produced and utilized. ▪ The expected value of information should be calculated as effectively as possible so that the costs of producing the information do not exceed its benefit. Discuss the Characteristics of Useful Information.