Course Number Course Name Cr.

Hr CP/ETCTS
AcFn 4121 Accounting Information Systems 3 5
Instructor Wogayehu W/Eyesus
Degree Program: BA Degree in Accounting and Finance
Course Description:
The course is designed to impart the knowledge and skills accountants require in
analyzing, designing and implementing Accounting Information Systems. It acquaints
the students to the practical environment of what accounting information system is and
how it works in the given organization.
Course Objectives:
After successfully completing this course, the students should be able to:
 Understand the nature and functions of Accounting Information Systems (AIS) ;
 Distinguish the transaction cycles making up Accounting Information Systems (AIS);
 Identify the system documentation and development tools and techniques;
 Differentiate the various models of systems development life cycle;
 Realize the alternatives strategies of developing Accounting Information
Systems(AIS);
 Describe what a relational database is and how it organizes data;
 Recognize the varies stages of data base modelling and data base design;
 Apply the basic concepts of system control used by business organizations.
Course Contents
1. Accounting Information Systems: An Overview
1.1. An Overview of AIS
1.2. Why Study AIS?
1.3. The Role of AIS in the Value Chain
1.4. AIS and Corporate Strategy
1.5. The Future of AIS
2. Overview of Business Processes
2.1. Business Activities and Information Needs
2.2. Transaction Processing: Documents and Procedures
2.3. Internal Control Considerations
3. The System Development Process
3.1. System Development and Documentation Tools and Technique

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 3.2. Systems Development Process
3.3. AIS Development Strategies
4. Relational Databases
4.1. Files versus Databases
4.2. Database Systems
4.3. Database Systems and the Future of Accounting
4.4. Data Modeling and Database Design
4.5. Database Design Process
4.6. Data Modeling Diagrams
4.7. Developing an REA Diagram: For One Transaction Cycle
4.8. Implementing an REA Diagram in a Relational Database
4.9. REA Diagram for Documenting Business Processes
4.10. Extracting Information from the AIS
5. Transaction Cycles and Accounting Applications
5.1. Transaction Cycles
5.2. Processing Modes
5.3. General Ledger and Reporting System
6. Control and AIS
6.1. Overview of Control Concepts
6.2. Information System Control
6.3. Computer Controls and Security
6.4. Overview of Auditing of Computer Based IS
Mode of Evaluation
Continuous Assessment (50%) Final Exam Grand Total
Quiz/Test Projet#1: Project # 2:
1 &2 Group Assignment Group Assignment 50 % 100%
(20%) & its Presentation, & its Presentation, Class
Class Participation & Participation &
Attendance (10%) Attendance (20 %)
Roles of The success of this course depends on the students’ individual and collective
the contribution to the class discussions. Students are expected to participate
students voluntarily, or will be called upon, to contribute to set exercises and
problems. Students are also expected to read the assigned readings and
prepare the cases before each class so that they could contribute effectively
to class discussions. Students must attempt assignments by their own.
Proficiency in this course comes from individual knowledge and
understanding. Copying the works of others is considered as serious offence
and leads to disciplinary actions.
Text and reference books
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 Text Books
 Romney and Steinbart, 2007: Accounting Information Systems, 9th-
12thed, Prentice Hall, Inc. (http://www.prenhall.com/romney)
Reference Books
 Bodnar and Hopwood, 1998. Accounting Information Systems, 7th
Edition, Prentice Hall, Inc.
 A.Hall, 1998. Accounting Information Systems, 2nd Edition, West
Publishing Co.
 Moscove and et. al., 1997. Core concepts of Accounting Information
Systems, 5th Edition, John Wiley and Sons, Inc.
 Hoffer and et. al., 1999. Modern Systems Analysis and Design, 2nd
Edition, Addison Wesley Longman, Inc.
 Gelinas et al, 1999. Accounting Information Systems, 4th Edition, South
Western Publishing Co. USA.
 Boockholdt, 1999. Accounting Information Systems, 5th Edition,
Irwin/McGraw Hill.
 Jones Rama, 2003. Accounting Information System: A Business Process
Approach.
 Pressman, Rogers S., 2005. Software Engineering: A practitioner’s
approach.
 Whiten J.L; Bentley L.D; Dottman, K.C., 2000. System Analysis and
Design Methods.

Assignments (Projects)
A. Group Project I Guideline
1. Objective: To build up the skills of developing accounting information systems.
2. Group: Divide the class into five (5) equal groups, if possible, based on the intimacy of
relationship and report to the instructor ahead of time.
3. Title: Select one of the transaction cycles – Revenue, Expenditure, Payroll, Production or
Financing Cycle. The transaction cycles may be assigned to each group randomly. However,
the groups can interchange the cycles based on their preference provided that each class
has to be engaged for the five (5) cycles. (E.g. Revenue Cycle).
4. Content of Paper: The term paper should cover the basic aspects (theoretical foundation) of
the cycle you are assigned. As each transaction cycle interacts with the General Ledger and
Reporting System, you are also required to depict how the cycle you are assigned is
interacting to the General Ledger and Reporting System.

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5. Structure of Paper: The term paper should be organized in understandable and coherent
mode. It should contain but not limited to general overview of the cycle, its business
activities/processes, relevant diagrams about the cycle and the interaction of the cycle to
General Ledger and Reporting System, control objectives, threats and procedures, criticism
and solutions, if any and finally summary of the cycle/paper.
6. References: Provide a list of the source materials (books, manuals, internet sources, etc.)
you used in completing the paper.
7. Evaluation: The paper (both hard & soft coy) shall be submitted to the instructor within two
weeks before the end of the semester. Students will be evaluated based on their group work
and individual participation in the class during presentation. Moreover, attendance is
compulsory and no excuse for indefensible absence. It has been planned that maximum of 15
minutes will be allotted to each group and scheduled as per our convenience.
B. Group Project II Guideline
1. Objective: Familiarizing students to what accounting information system is and how it
works in the given organization.
2. Group: Form a group consisting of five (5) members, if possible, based on the intimacy of
relationship and report to the instructor ahead of time. You may pursue the group already
formed for Group Project I.
3. Title: Select a real organization and report the summary of its Accounting Information
System. (e.g., Accounting Information System of ABC Company)
4. Content of Paper: The term paper should cover the basic concepts and applications of
accounting information system of the selected organization. It may include but not limited to
background of the organization (e.g. name, nature, establishment, ownership, capital,
products/ services rendered, organizational chart indicating its finance and/or accounting
division, employees, etc.), basis of accounting, accounting period, accounting and/or
financial policies and procedures, internal control system, chart of accounts, source
document, records, software, accounting reports, budget and other internal reports, etc.).
You can attach some samples or formats of that documentation at annex.
5. Sources materials: Provide a list of the reference materials (books, manuals, etc.) you used in
completing the paper.
6. Evaluation: The paper (both hard & soft coy) shall be submitted to the instructor within two
weeks before the end of the semester. Students will be evaluated based on their group work
and individual participation in the class during presentation. Moreover, attendance is
compulsory and no excuse for indefensible absence. It has been planned that maximum of 15
minutes will be allotted to each group and scheduled as per our convenience.

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