1、Advanced Management Accounting Lecture 8,Lecture content,Accounting Information Systems Revision,Accounting Information Systems,Definition Types How Management Accountants use AIS Problems Implementation of a computerised AIS,Definition,“An accounting information system is a collection of data and p
2、rocessing procedures that creates needed information for its users” Bagranoff, Simkin and Norman (2010) “Core Concepts of Accounting Information Systems” .11th Edition. Wiley,Data v Information,Data Raw facts about events that have little organisation or meaning Information Data must be processed in
3、to useful informationMost users of financial information require processed data for decision making purposes,Accounting Information Systems,Types of AIS : Manual Spreadsheets Computerised accounting software Small business accounting software Eg Quick Books, Peachtree Mid range accounting software S
4、age Specialised accounting software SAP, Peoplesoft, Oracle,Accounting and IT,Information Technology (IT) strongly influences the way most accountants work : Access to internet Reporting / communicating remotely Paperless reporting,Accounting Information Software,“The principal objective of Manageme
5、nt Accounting is to provide relevant information to managers (ie internal users)”Bagranoff, Simkin and Norman (2010) “Core Concepts of Accounting Information Systems” .11th Edition. Wiley,Management Accountants use AIS to assist in many areas: Activity Based Costing Traditionally had to assign overh
6、eads manually (eg using direct labour hours) Now more sophisticated (using all resources directly consumed by each activity) Performance Measurement Responsibility accounting Balanced Scorecard Key performance indicators Dashboards Budgeting Timeliness,“Dashboard”,Accounting Information Systems,Prob
7、lems with computerised AIS : Information overload Relevant information could be lost or overlooked Computers cant “sense check” everything eg negative hours worked Audit trails are harder to follow eg Kingston Communications plc Data organisation and storage IT controls not always visible,Exercise,(
8、to be introduced at the lecture),Implementation,A manufacturing company has decided to update its systems from a manual AIS to a fully integrated computerised AIS What role will the Management Accountant have in the selection of a new system ? What considerations does the company need to make before
9、 purchasing a system How will the new system be implemented ?,Accounting Information Systems,Underpin ALL processes within an organisation Maybe the hardest to control (visibility etc) “What can go wrong.”,Where are we ?,Revision / queries,Lecture : Go through previous lectures to remind us of what
10、we have covered Seminars (Thursday / Friday) Drop in sessions (same seminar rooms) with any specific queries Past paper queries Email me with SPECIFIC questions up to the exam date,AMA exam,Section A Compulsory one question (50 marks) May cover more than one specific area Section B Choice of THREE q
11、uestions (25 marks each) Required to do TWO,AMA exam,Length of exam = 2 hours (120 minutes)1 minute per mark 100 mins Read paper, and choose questions 5 mins Question planning (5 mins per question) 15 minsTOTAL time 120 mins,AMA exam,READ the question ANSWER the question Focus on main issues / point
12、s Use sentences rather than bullet points Give examples to show understanding of points made Consider both sides of the argument (alternatives) CRITICALLY evaluate Make a conclusion,AMA exam,Materials to revise from : Lecture slides and handouts Seminars Mock exam paper Text books Articles Examples
13、(real, commercial, hypothetical),Remember.,The module is not just all about numbers and calculations. You have to be prepared to answer questions such as“Are traditional management accounting methods adequate for an organisation in todays business world ?”and not just.“Calculate NPV etc, and say whi
14、ch investment is the better option”,AMA,As management accountants, it is essential to understand the organisation in which we work in order to contribute to the effective management of that organisation. This includes the characteristics, its history, its behaviours and the structure with which it t
15、ries to successfully determine and implement its strategy to achieve its mission. We need to appreciate why these factors exist, and determine if they are appropriate. There are a wide range of management accounting techniques / controls which can be used, and which may influence, or be influenced b
16、y, that organisation,Content of Lecture 1,Organisations Organisations and control Management Accounting history and context Management Accounting controls Reading,Content of lecture 2,Still mainly setting the scene before we move into specific topics. Organisations (recap) Organisation structure The
17、ories Reading,Lecture 3,Organisation strategy Strategic planning Strategy and structure Strategic management Strategic management accounting,Lecture 4,Performance and the organisation Organisation controls Types and perspectives Types of financial controls Accounting Budgets Standard costing Varianc
18、e analysis,Lecture 5,Decentralisation and Performance Management Divisional organisation structure Divisional controls Return on investment Residual Income Transfer pricing,Lecture 6,Performance Measurement Strategic Management Accounting Costing Strategic Management Accounting Non financial Balance
19、d Scorecard Benchmarking (including Total Quality Management) Business Process Re-engineering Activity Based Management,Lecture 7,Audit: internal and external Scope and content of internal audit Internal audit, internal controls and risk Internal controls and audit in practice: an example Usefulness of internal audit to management accounting,Lecture 8,Accounting Information Systems,
