for MBA Pursuing mgt Trainees

1. Computerized Accounting System

9. NEED Describe how organizations create value for their customers Describe the historical relationship between accounting and IT professionals Describe the ways that accounting professionals can increase their value Identify the justifications / reasons for changing the nature of accounting and how the use of information technology (IT) can enable such change

11. Management Activities Plan Evaluate Execute Control Information System Planning requires leaders to define the business objectives , to prioritize business processes, and to provide a blueprint for achieving the objectives. They must identify opportunities available to the organization as well as assess the risk associated with each opportunity. Control is exercised by reviewing the results of an activity or an entire business process to see if they are consistent with expectations. The review may cause a change in expectations or a change in the way an activity or a process is performed to bring the actual results in line with expectations. Periodically, managers evaluate the operating results to see if the business processes are achieving the organization's objectives. The results of the evaluation are used to modify the plans, objective, or expectations. Managers execute their plan by dividing business processes into smaller activities, assigning people to perform each activity, and motivating them to do a good job. A clearly defined plan increases the likelihood of proper execution

14. Exhibit 1-1 Types of Business Processes ORGANIZATION Conversion Process Customers Provides Finished Goods and Services to Customers Sales/ Collection Process Goods and services for customers Payment for Goods and services Suppliers Acquisition, Payment Process Provides input resources to the organization Requested input resources Payment for input resources

15. Information System Business event data Business Processes 1.0 Capture and record process Internal events External events 2.0 Maintain process External events Internal events 3.0 Report process Financial statements Reports Management Investors/Users

16. The Information System and Information Processes Business Processes Information System Primary Information Processes Management Capture Business Data Maintain Business Data Report Useful Information

17. Exhibit 1-4 Relationship between Business Processes, Information Processes and Management Activities Maintain Data Information System Management Activities Plan Execute Control Evaluate Business Processes Acq./Pmt. Process Conversion Process Sell/Collect Process Manage Business Processes Manage Business Processes Capture Data Provide Reports

19. Organizations, Accounting, and AIS Involved in profit or not-for-profit activities to produce valued goods or services for customers Organization support function: Delivers information products to help information customers plan, evaluate, and control the execution of business activities The structure used to store, produce, and report the accounting information products ORGANIZATION ACCOUNTING AIS

20. Top Management Middle Management Operations Management Operations Personnel

21. Top Management Middle Management Operations Management Operations Personnel Customers Suppliers Stakeholders

22. Top Management Middle Management Operations Management Operations Personnel Day-to-Day Operations Information Customers Suppliers Stakeholders Performance Information Budget Information and Instructions

23. Framework for Information Systems Information System (IS) Accounting Information System (AIS) Management Information System (MIS) The information system is the set of formal procedures by which data are collected, processed into information and distributed to users. A transaction is an event that affects or is of interest to the organization and that is processed by its information system as a unit of work

25. Accounting Information Systems

26. A General Model for AIS The External Environment The Information System Data Base Management System Data Collection Data Processing Information Generation External Sources of Data External End Users Internal Sources of Data Internal End Users The Business Organization