Information System

ACCA F8考试： Information System

An information system consists of:

physical and hardware (if IT-based) infrastructure;

software (if IT-based);

people;

procedures; and

data.

It includes the accounting system and consists of the procedures and records established to initiate, record, process, report and maintain accountability of the records and information necessary to satisfy management and financial reporting objectives.

Transactions may be standard (e.g. in the normal course of business—sales, purchases, accruals, depreciation) or nonstandard (e.g. asset impairment, bad debt write-off, related party transactions). How the information system deals with all types of transactions must be understood (e.g. raising and authorising journal entries).

The information system must also be able to deal with errors and incorrect processing:

Is a suspense account used and regularly checked and cleared?

Is it possible to override the system or bypass controls?

If so, how does the management deal with such matters?

Management must be able to demonstrate that it understands the individual roles and responsibilities of those in the information system. Individuals in the system must also understand their roles and responsibilities and how they relate to others in the system.

The means of reporting exceptions to a higher authority must be clear and unambiguous. This includes reporting channels to management, those charged with governance and, if necessary, to an external authority (e.g. regulators).