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Enterprise Systems Integrates business process and information from all of an organization's functional areas
Enterprise Resource Planning (ERP) Systens Software packages used for the core systems necessary to support enterprise systems
E-Business Application of electronic networks to undertake business processes b/n individuals and organizations
Internal Control Process designed by BOD, management, and other personnel to provide reasonable assurance regarding achieving objectives in: efficiency and effectiveness of operations, reliability of reporting, and compliance w/ applicable laws & regs
SarBox (Section 404) Management must identify, document, and evaluate significant internal controls;
SarBox (Section 409) Requires disclosure to public on "rapid and current basis" of material changes in organization's financial condition
System Set of interdependent elements that together accomplish specific objectives
Subsystem Each part of a system; can be further divided into its component parts or subsystems
Central theme of AIS You must know a business organization's objectives to understand that business as a system and to understand the actions and interactions of that business's components or subsystems
Information Systems (IS) System that generally consists of integrated set of computer-based and manual components established to collect, store, and manage data and to provide output information to users
Information Process (IS) Portion of IS related to particular business process
Operations Process System consisting of people, equipment, organization, policies, and procedures whose objective is to accomplish the work of the organization
Management Process System consisting of people, authority, organization, policies, and procedures whose objective is to plan and control the operations of the organization
3 most important management activities Planning, controlling, decision making
Information Data presented in a form that's useful in decision-making activity
Data Facts of figures in raw form
Function of IS Capture and transform data into information
Effectiveness Information relevant and pertinent to business process as well as being delivered in timely, correct, consistent, and usable manner
Understandability Enables users to perceive the information's significance
Relevance When information’s capable of making a difference in a decision-making situation by reducing uncertainty or increasing knowledge for that particular situation
Efficiency Concerns provision of information through optimal (most productive and economical) use of resources. Measure of productivity of resources applied to achieve set of goals
Integrity Accuracy and completeness of information; validity in accordance with business values and expectations
Reliability Provision of appropriate information for management to operate the entity and exercise its fiduciary and governance responsibilities
Predictive Value and Feedback Value Information quality that improves a decision maker's capacity to predict, confirm, or correct earlier expectations
Verifiability High degree of consensus about the information among independent measurers using the same measurement methods
Comparability Information quality that enables users to identify similarities and differences in 2 pieces of information
Validity Information quality concerning the inclusion of actual events and actual objects
Enterprise Database Central repository for all the data related to the enterprise’s business activities and resources
Purpose of AIS Collect, process, and report info related to financial aspects of business events
Created by: niana23
Popular Accounting sets




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