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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JANURAY 2011
VOL 2, NO 9
As a term, Accounting Information System can be defined as an essential part of the
management information system in an entity that collects and aggregates financial data from
various resources whether inside or outside of the economic entity and transform the collected
financial data into meaningful financial information for users inside and outside of the entity
(Hussein, 2004) .
Another definition is that an Accounting Information System is one of computer-based
information systems in a business organization aiming at collecting, processing and storing
accounting information (Al-Hifnawi, 2001). Functions of Accounting Information Systems
(AIS):
Typically, Accounting Information Systems achieve various functions (Al-Meliji, 2003), most
importantly :
Aggregation of accounting data
Accounting data review, entry, storage to the Accounting Information System
Accounting data processing to be usable serving objectives of the entity
Storage of the accounting information
Display in summary the quantitative data as diagrams or periodical reports as demanded
Components of Accounting Information Systems (AIS):
As a system Accounting Information System (AIS) consists of a set of components in order to
be able perform the purpose for which it was designed (Qasem, 2004), including -:
- Documents and other evidential papers supporting financial processes take place in the entity
- Databases on which financial data pertaining financial processes are stored .
- Computer software programs used to process and transform stored data into suitable and
meaningful information .
- Accounting procedures that are predetermined and designed for the seriated financial
processes in the entity .
- People dealing with one or more of the Accounting Information System (AIS) components .
- Electronic and communication technological means employed in the Accounting
Information System (AIS ( .
The most influential factor in the Accounting Information System (AIS) is people who
undertake such system and gather, process and store data and make related decisions, in
addition to devices and means used to accomplish the specific objective an Accounting
Information System (AIS), tat is to generate decision-supporting accounting data.
Characteristics of Accounting Information Systems (AIS(
Information systems are characterized with a number of characteristics that make it functions
a vital role in the entity and achieves its objective .
Characteristics that shall be available in order for an Accounting Information System (AIS) to
work properly include :
- The Accounting Information System (AIS) should be highly accurate and rapid when
processing financial data to change them into meaningful accounting information .
- The ability to provide managers with timely accounting information they need to decide on
an alternative
- Provide managers with information necessary to control and evaluate activities of the entity .
- Provide managers with information helpful in performing basic managerial functions of
planning for the entity on the short, mid and long run .
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