PART

Overview of Accounting Information Systems
Chapter 1 The Information System: An Accountant’s Perspective 3 Introduction to Transaction Processing 31 Ethics, Fraud, and Internal Control 91 Chapter 2

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Chapter 3

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The Information System: An Accountant’s Perspective nlike many other accounting subjects, such as intermediate accounting, accounting information systems (AIS) lacks a well-defined body of knowledge. Much controversy exists among college faculty as to what should and should not be covered in the AIS course. To some extent, however, the controversy is being resolved through legislation. The Sarbanes-Oxley Act (SOX) of 2002 established new corporate governance regulations and standards for public companies registered with the Securities and Exchange Commission (SEC). This wide-sweeping legislation impacts public companies, their management, and their auditors. Of particular importance to AIS students is the impact of SOX on internal control standards and related auditing procedures. Whereas SOX does not define the entire content of the AIS course, it does identify critical areas of study that need to be included for accountants. These topics and more are covered in the chapters of this text. The purpose of this chapter is to place the subject of AIS in perspective for accountants. Toward this end, the chapter is divided into three major sections, each dealing with a different aspect of information systems. The first section explores the information environment of the firm. It identifies the types of information used in business, describes the flows of information through an organization, and presents a framework for viewing AIS in relation to other information systems components. The section concludes with a review of the key elements of the general model for AIS. The second section of the chapter deals with the impact of