Question

Learning objective: Describe technology and its impact on business decisions Prompt: Describe the four components of an information system. Why is it important to consider each of them when desioning and installing an information system?

Answer 1

The main motive of AIS is to assist management in controlling the business, safe guarding the assets of the organization, preparation of the financial statements to maintain complete and complying with the relevant legislation. The four main components include:

-- People: AIS should be reliable in operation and thus should give trustworthy information to its users in form of reports in the time frame and in formats that are relevant as per their requirements. Professionals who require AIS include business analysts, managers, accountants, consultants, chief financial officers, and auditors. The well-designed AIS, everyone within a company who is authorized to do so can access the same system and grab the same information.

--AIS Data: The data included in AIS is all the financial information pertinent to the company's practices in business. Any data that impact the company's finances must be considered into AIS

-- Established Procedures: It includes the procedures and policies governing how information is collected. It’s designing by AIS can be either automatically or with manual intervention. The software programs can be designed to meet the requirements of different types of businesses

-- Internal control: It ensures that company's information is recorded correctly. Internal control includes the checks, procedures, tools, systems adopted by a company to ensure the prevention of frauds, integrity of financial information, safeguarding of assets, errors, etc.