Accounting Information Systems Accounting as a System A well-designed accounting system is an example of a relatively closed system. Inputs to an AIS are the economic events and become accounting transactions. Internal controls help to prevent or detect disturbances from the environment. The accounting system is composed of application systems. An application system is a set of procedures and computer programs that perform a specific accounting objective.
Auditors look at an accounting system as a set of transaction cycles .
Transaction cycles are a set of economic events that normally follow each other in a cyclical manner. Expenditure cycle transactions that acquire material and supplies. Conversion cycle transactions recorded when converting inventory into salable finished goods n Financial cycle transactions recording the acquisition of capital from owners and creditors, and the use of that capital to acquire property necessary for generating income. MIS is a set of organized procedures that when executed, provides information to support decision making and control in the organization. The goal of any part of the IS is to help the decision making process.