Module Study Guide
Taylor’s University
Undergraduate Business Program
ACC61104
Accounting Information Systems
August Semester 2027
HOW TO USE THIS STUDY GUIDE
The Table of Contents outlines all the fundamental topics in this Study Guide.
Specifically, note the learning outcome for each of the topic.
Organise your learning around the notes that are provided in this Study Guide.
Read your textbook (Romney, 2015) and look at the lecture slides for each of the topic
to gain an introduction and an overview of the topic prior to lecture.
Refer to the study guide which provides an initial understanding of accounting
information systems.
Attempt all the Topic Review Questions- this is essential for you to understand the
concepts and theories taught in the course, and their practical applications.
Finally, refer again to the learning outcomes and check that you have mastered each
learning outcome for the topic.
Welcome to your study in Accounting Information Systems.
1
,All topics are well constructed in an appropriate sequential manner, to ease your learning
process in this module. Each new topic develops concepts covered in the earlier topics;
therefore, you are encouraged to attend all lectures. Remember to attempt all tutorial questions
as they are designed to strengthen and assess your understanding of each topic in this module.
I believe that you will find your study in this module interesting, enjoyable, and valuable to
your career.
I wish you all the best in your studies and look forward to joining you on your journey through
this accounting information systems.
Contact Details
Lecturer/Tutor
Firdous Mohd Farouk
Taylor’s University Lakeside Campus
Email:
Consultation Hours: Online consultation via appointment
2
,Table of Contents
TOPIC 1: Overview of accounting information system..........................................................................................4
TOPIC 2: Overview of transaction processing and Enterprise Resource Planning Systems................................10
TOPIC 3: Relational Databases............................................................................................................................18
TOPIC 4: Accounting software.............................................................................................................................34
TOPIC 5: Control and accounting information systems.......................................................................................49
TOPIC 6: Controls for information security..........................................................................................................69
TOPIC 7: General ledger and financial reporting cycle........................................................................................78
TOPIC 8: The revenue and expenditure cycle......................................................................................................85
THE REVENUE CYCLE: SALES TO CASH COLLECTIONS..........................................................................................85
THE EXPENDITURE CYCLE: PURCHASING TO CASH DISBURSEMENTS.................................................................96
TOPIC 9: Data Science and Business Intelligence..............................................................................................107
TOPIC 10: System analysis, design, and application development...................................................................109
INTRODUCTION TO SYSTEMS DEVELOPMENT AND SYSTEMS ANALYSIS..........................................................109
TOPIC 11: System justification and selection.....................................................................................................123
AIS DEVELOPMENT STRATEGIES........................................................................................................................123
Topic 12: System implementation and operation.............................................................................................137
SYSTEMS DESIGN, IMPLEMENTATION, AND OPERATION.................................................................................137
3
, TOPIC 1: Overview of accounting information system
Learning Objectives:
1. Distinguish between data and information, discuss the characteristics of useful information, and explain
how to determine the value of information.
2. Explain the decisions an organisation makes, and the information needed to make them.
3. Identify the information that passes between internal and external parties and an AIS.
4. Describe the major business processes present in most companies.
5. Explain what an accounting information system (AIS) is and describe its basic functions.
6. Discuss how an AIS can add value to an organisation.
7. Explain how an AIS and corporate strategy affect each other.
8. Explain the role an AIS plays in a company’s value chain.
Systems, Data, and Information
Systems
A system is a set of two or more interrelated components that interact to achieve a goal
Systems are almost always composed of smaller subsystems
Each subsystem is designed to achieve one or more organisational goals.
For example, the college of business is a system composed of various subsystems known
as departments (e.g., Marketing, Management, Accounting, etc.).
When the systems concept is used in systems development, changes in subsystems cannot be made without
considering the effect on other subsystems and the system as a whole.
Goal conflict occurs when a decision or action of a subsystem is inconsistent with another subsystem or the
system as a whole.
Goal congruence is achieved when a subsystem achieves its goals while contributing to the organisation’s
overall goal.
The systems concept also encourages integration, which is eliminating duplicate recording,
storage, reporting, and other processing activities in an organisation.
Data
Data are facts that are collected, recorded, stored, and processed by an information system.
Several kinds of data need to be collected in businesses, such as:
1. Facts about the activities that take place (e.g., date)
4
Taylor’s University
Undergraduate Business Program
ACC61104
Accounting Information Systems
August Semester 2027
HOW TO USE THIS STUDY GUIDE
The Table of Contents outlines all the fundamental topics in this Study Guide.
Specifically, note the learning outcome for each of the topic.
Organise your learning around the notes that are provided in this Study Guide.
Read your textbook (Romney, 2015) and look at the lecture slides for each of the topic
to gain an introduction and an overview of the topic prior to lecture.
Refer to the study guide which provides an initial understanding of accounting
information systems.
Attempt all the Topic Review Questions- this is essential for you to understand the
concepts and theories taught in the course, and their practical applications.
Finally, refer again to the learning outcomes and check that you have mastered each
learning outcome for the topic.
Welcome to your study in Accounting Information Systems.
1
,All topics are well constructed in an appropriate sequential manner, to ease your learning
process in this module. Each new topic develops concepts covered in the earlier topics;
therefore, you are encouraged to attend all lectures. Remember to attempt all tutorial questions
as they are designed to strengthen and assess your understanding of each topic in this module.
I believe that you will find your study in this module interesting, enjoyable, and valuable to
your career.
I wish you all the best in your studies and look forward to joining you on your journey through
this accounting information systems.
Contact Details
Lecturer/Tutor
Firdous Mohd Farouk
Taylor’s University Lakeside Campus
Email:
Consultation Hours: Online consultation via appointment
2
,Table of Contents
TOPIC 1: Overview of accounting information system..........................................................................................4
TOPIC 2: Overview of transaction processing and Enterprise Resource Planning Systems................................10
TOPIC 3: Relational Databases............................................................................................................................18
TOPIC 4: Accounting software.............................................................................................................................34
TOPIC 5: Control and accounting information systems.......................................................................................49
TOPIC 6: Controls for information security..........................................................................................................69
TOPIC 7: General ledger and financial reporting cycle........................................................................................78
TOPIC 8: The revenue and expenditure cycle......................................................................................................85
THE REVENUE CYCLE: SALES TO CASH COLLECTIONS..........................................................................................85
THE EXPENDITURE CYCLE: PURCHASING TO CASH DISBURSEMENTS.................................................................96
TOPIC 9: Data Science and Business Intelligence..............................................................................................107
TOPIC 10: System analysis, design, and application development...................................................................109
INTRODUCTION TO SYSTEMS DEVELOPMENT AND SYSTEMS ANALYSIS..........................................................109
TOPIC 11: System justification and selection.....................................................................................................123
AIS DEVELOPMENT STRATEGIES........................................................................................................................123
Topic 12: System implementation and operation.............................................................................................137
SYSTEMS DESIGN, IMPLEMENTATION, AND OPERATION.................................................................................137
3
, TOPIC 1: Overview of accounting information system
Learning Objectives:
1. Distinguish between data and information, discuss the characteristics of useful information, and explain
how to determine the value of information.
2. Explain the decisions an organisation makes, and the information needed to make them.
3. Identify the information that passes between internal and external parties and an AIS.
4. Describe the major business processes present in most companies.
5. Explain what an accounting information system (AIS) is and describe its basic functions.
6. Discuss how an AIS can add value to an organisation.
7. Explain how an AIS and corporate strategy affect each other.
8. Explain the role an AIS plays in a company’s value chain.
Systems, Data, and Information
Systems
A system is a set of two or more interrelated components that interact to achieve a goal
Systems are almost always composed of smaller subsystems
Each subsystem is designed to achieve one or more organisational goals.
For example, the college of business is a system composed of various subsystems known
as departments (e.g., Marketing, Management, Accounting, etc.).
When the systems concept is used in systems development, changes in subsystems cannot be made without
considering the effect on other subsystems and the system as a whole.
Goal conflict occurs when a decision or action of a subsystem is inconsistent with another subsystem or the
system as a whole.
Goal congruence is achieved when a subsystem achieves its goals while contributing to the organisation’s
overall goal.
The systems concept also encourages integration, which is eliminating duplicate recording,
storage, reporting, and other processing activities in an organisation.
Data
Data are facts that are collected, recorded, stored, and processed by an information system.
Several kinds of data need to be collected in businesses, such as:
1. Facts about the activities that take place (e.g., date)
4
