Task Team of FUNDAMENTAL ACCOUNTING School of Business. Sun Yat-sen University Less ote Lesson 8 Accounting Information System Learning objectives 1. Describe the principles of properly designed accounting system 2. Describe and illustrate the principles of internal control of accounting information system 3. Describe and illustrate the use of t special journals and subsidiary ledgers to process accounting data more efficiently 4. Describe the use of electronic data processing(EDP) systems to process accounting data Teaching hours Students major in accounting: 3 hours Others. 2 hours Teaching contents: An accounting information system (Als)is the system of records that a business keeps to maintain its accounting system. This includes the purchase, sales and nominal ledgers and cash books of the business In a more general sense. it includes the entire network of communications used by a business organization to provide needed information While this was previously a paper-based process, most modern businesses now use computerized accounting systems Fundamental Principles ofAIs Because of differences in businesses, in the number of transactions to be processed, and the uses made of accounting data, accounting systems will vary from business to business However, a number of broad principles apply to all systems, which are Cost-Effectiveness Balance. The information value of the reports produced should be at least equal to the cost of producing them Flexibility to meet future needs. The accounting system not only must be tailored to meet the specific needs of each business, but also must be flexible enough to meet the changing demands from new government regulations, changes in accounting principles, organizational changes necessary to meet practices of competing businesses, changes in data processing technology, or other factors Adequate internal control. The system should aid management in controlling operations Effective reporting. When financial reports are prepared, the req nd knowledge of the user of accounting information should be recognizedTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University Lesson notes Lesson 8 Accounting Information System Learning objectives 1. Describe the principles of properly designed accounting systems. 2. Describe and illustrate the principles of internal control of accounting information systems. 3. Describe and illustrate the use of t special journals and subsidiary ledgers to process accounting data more efficiently. 4. Describe the use of electronic data processing (EDP) systems to process accounting data. Teaching hours Students major in accounting: 3 hours Others: 2 hours Teaching contents: An accounting information system (AIS) is the system of records that a business keeps to maintain its accounting system. This includes the purchase, sales and nominal ledgers and cash books of the business. In a more general sense, it includes the entire network of communications used by a business organization to provide needed information. While this was previously a paper-based process, most modern businesses now use computerized accounting systems. Fundamental Principles of AIS Because of differences in businesses, in the number of transactions to be processed, and in the uses made of accounting data, accounting systems will vary from business to business. However, a number of broad principles apply to all systems, which are Cost-Effectiveness Balance. The information value of the reports produced should be at least equal to the cost of producing them. Flexibility to meet future needs. The accounting system not only must be tailored to meet the specific needs of each business, but also must be flexible enough to meet the changing demands from new government regulations, changes in accounting principles, organizational changes necessary to meet practices of competing businesses, changes in data processing technology, or other factors. Adequate internal control. The system should aid management in controlling operations. Effective reporting. When financial reports are prepared, the requirements and knowledge of the user of accounting information should be recognized