In order to properly understand the concept of accounting information systems, we need to understand what is a system, what is an information system, and what is management information system.
A system is a set of interdependent parts that together accomplish specific objectives. A system must have organisation, interrelationships, integration, and central objectives.
An Information System (sometimes called a data processing system) is a man-made system that generally consists of an integrated set of computer-based and manual components established to collect, store, and manage date and to provide output information to users.
A management Information System (MIS) is a man-made system that generally consists of an integrated set of computer-based and manual components established to facilitate an organisation's operational functions and to support management decision making by providing information that managers can use to plan and control the activities of the firm.
The Accounting Information System (AIS) is a specialised subsystem of the MIS. Its purpose is to collect, processm and report information related to financial transactions.
The relationship of MIS and AIS is demonstrated as below:
Gelinas, Sutton & Oram (1999), Accounting Information Systems
