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FLOWS,
ACTIVITIES
ACCOUNTING SYSTEMS
-
AND
STRUCTURE
OF
ACTIVITIES OF AN AIS
- An accounting system is a collection of activities that are designed to
produce and deliver information.
- The system is performing major activities: input (capture) data; process
data; store data, and output (communicate) data. In addition to these
major activities, an accounting system has support activities that
improve the quality of the major activities.
The support activities are manage people, manage technology,
and manage internal control.
- MAJOR ACTIVITIES:
1. Input (capture) data - an information processing activity that
captures and feeds transaction and other data into the accounting
system for processing.
Input is an interface between the users and the accounting
system.
The keyed data must be verified to ensure, to the extent possible,
that erroneous data will not be processed into erroneous output.
The verification may be performed by programmed error controls,
by visual checking, or by a combination of both.
2. Process data an information processing activity that transforms
data according to a prescribed set of instructions.
Basic types of processing:
a. Classification all transaction data are classified by the account
they affect. Classification is usually accomplished by transaction
coding.
b. Calculation, or computation data may be manipulated
mathematically