Information Systems

Accounting Information Systems

A blog by my students Jenny Dayao, Carol Vergara and Dondon Dy

Information Technology and the Overarching Themes of this Course

The world today is primarily powered by information technology. Supercomputers, multifunctional gadgets, and the internet are concrete manifestations. It is a super gateway of information, transferring and receiving data in a blink of an eye. We ourselves are witnesses to this as we daily visit Facebook, tweet our thoughts on the web, and check our mails every now and then.

Information technology will continue to be with us as we become accountants of different companies. And as we become executive officers, it will always be a main consideration for us to take advantage of. Companies nowadays use IT to gain competitive advantage. It is used for better monitoring of operations to aid in making wiser and more useful decisions. However, we always have to keep in mind that IT, if not properly managed, can also lead to serious problems and threats to us.

Thus in this semester, as we use information technology to create our own accounting information systems, we are to be guided by the following overarching themes:

1. Internal Control
2. Risk Management
3. Corporate Governance and Business Ethics

The Committee of Sponsoring Organizations of the Commission on Fraudulent Financial Reporting defines internal control as a process designed to provide reasonable assurance regarding the achievement of objectives in the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. It can be thought of as monitoring the company’s operations and its compliance with laws, regulations and standards. Several famous internal control procedures are separation of the recording and custodian function (as such in the case of a controller and a treasurer), and verification of transactions by authorized personnel.

Strategic Thought Group defines Risk Management as a process which provides assurance that objectives are more likely to be achieved, damaging things will not happen or are less likely to happen, and that beneficial things will be or are more likely to be achieved. An example of which is assessing the expected outcome of a decision after considering the probability of the occurrence of several events.

Corporate Governance is simply referred to by the University of Iowa Center for International Finance and Development as the governance of corporations. It is simply an articulation of the sentiment “conduct business with integrity.” It is a way for management to be very careful on the decisions they make as their actions are monitored by the company’s stakeholders. On the other hand, business ethics is defined by as the behavior that a business adheres to in its daily dealings with the world. Ethics is of utmost importance to us, especially when we are faced with decisions considering money and integrity.

These are 3 overarching themes we should always bear in mind as we pursue this course. Accounting information systems are useless no matter how sophisticated they are if they can’t properly monitor the company’s operations; provide the company with the necessary information for managing risk; and if it will not be founded on ethical decisions and principles.

Effectiveness vs. Efficiency

Talking about information systems, systems as always said must be both effective and efficient. But what do effectiveness and efficiency exactly mean?

In simple word combinations, effectiveness is “Doing the RIGHT THINGS” and efficiency is “Doing THINGS RIGHT.”

Above all, objectives should be met and actions taken must always be steps toward attaining these objectives. For example, a system set to monitor all inventory transactions should be able to monitor all inventory transactions. Nevertheless, as objectives are met, costs and resources should be considered as well. The costs of our decisions should not outweigh the benefits to us as it will also be useless to meet our objectives after having exhausted all what we have.


An efficient and effective system will all be put to waste if such systems are unsecured. Almost all systems are haunted by security issues which is more aggravated by the inventiveness of the world wide web. The internet is a rapidly changing space, with technology evolving at a pace which is often hard to keep up with. That one gadget you bought today might be obsolescent by the end of the month. Similarly, security risks and dangers are also changing rapidly, with new and clever methods to try and rob you of your money, or your very identity. But what can Internet users like us do to minimize the chances of these happening?

An ounce of protection is worth a pound of cure. Thus, let’s all make sure our computers are bulletproof. Install an anti-virus program, set up some form of anti-spyware and top it off with a firewall. Remember that the process does not end with software installation alone. We have to update and run it frequently as well. After we have softwared up, the last and most important security tip is to use our common sense.

Passwords. The goal is to make it really hard to guess. We can include a great mix of upper and lowercase letters and numbers to form our killer password. Once we have picked our killer password, we should always, always remember the golden rule—keep it secret. And don’t write it down.

Spam E-mail. Spam is one of the most insidious side effects of the internet revolution and has only gotten worse over time. Best solution to this problem: common sense. If you’re not expecting an email, and it’s offering you a fabulous deal, well it isn’t. Add it to your spam filter. If you get an email from your bank or online service, and they’re asking for personal details, it’s NOT your bank or online service. Most of all, if it’s an email with an attachment from someone you don’t know, don’t open it. Your computer will thank you for this.

Social Networking Sites. According to a recent study on internet security trends for the first half of 2009, a stunning 95% of user-generated comments to blogs, chat rooms and message boards are either spyware or contain links to malicious programs. This depressing problem can be reduced by the combined power of our own hands, mind and fingers—and of course, common sense. Know what and what not to put in your status messages. If you’re rich, do not enter personal information into your tweets or updates, unless you want to be kidnapped. Our Facebook photos are a reflection of our soul. So we should always keep them nice and lovely. Remember we can always un-tag or report a photo if we thought of it as offensive or provocative, or if we think we don’t look good in it.


Extreme caution is the core of building security both in one’s own self and in all other systems in the world. This is what we define as prudence. As explained by the Lord in Matthew 10: 16, “I am sending you out like sheep among wolves. Therefore be as shrewd as snakes and as innocent as doves.” Stay alert. This is hazardous work I’m assigning you. You’re going to be like sheep running through a wolf pack, so don’t call attention to yourselves. Be as cunning as a snake, inoffensive as a dove.

Aristotelian Sense of Good

One of the many characteristics a good manager must possess is prudence. Aristotle’s ethics is an ethics of the good life. How does one achieve the good life? In order to answer this question, we must have some understanding of what is meant by “the good”. We begin with a description of “the good” as it is commonly understood by most of us. We speak of a good pen, a good computer, a good car, a lousy car, a lousy computer, and so forth. If we look very carefully, the good is directly linked to a thing’s operation. When a thing has a proper operation, the good of the thing and its well being consist in that operation. The proper operation of a pen is to write, and so a good pen writes well. The proper operation of a knife is to cut food, so a good knife will cut well.

Now, a thing operates according to its nature. We know that it is of the nature of a plant to grow, reproduce, and nourish itself. A good plant will be one that does this fully. Thus, it will look healthy and strong. An animal, on the contrary, is more than a plant. An animal has the powers of sense knowledge and the powers of sense appetite ,as well as the power of locomotion. So, it is not enough for an animal to be able to grow, reproduce, and eat. A good animal will be one that functions according to its nature. Hence, a good animal will sense well, be able to move well, have a healthy appetite, etc. A good dog has acute senses, runs and fetches sticks, eats well, and so on. Man, though, is much more than a brute animal. Man is specifically different than a brute in that he has the specific powers of intelligence (the ability to apprehend essences) and will (desiring not merely sensible goods, but intelligible goods, such as truth, life, beauty, leisure, friendships, integrity, religion, marriage). So, it is not enough that human beings sense well, run fast, and eat the right foods, etc. A good man is one who functions according to his nature, which is a rational nature. Hence, a good man is one who reasons well and chooses well.
In every large organization, there’s a hierarchy of management that keeps the whole operation running smoothly. Whether you’re a senior (upper level) manager, middle manager, or supervisor, you’re responsible for directing people so that the organization’s goals are accomplished. A good manager can motivate people, learn from previous mistakes, and gain respect from a team. So a manager, to be considered a good one at that, should be able to function according to his nature.

The Accounting Information System

Accounting Information System is literally accounting plus information technology. It makes use of IT in collecting data from within and outside the firm. The system will then transform this data into information for the company’s perusal. This information also serves as a feedback that is considered as data for the firm’s next period of data processing. All data and information are stored in the company’s database. Management Reporting is one system that makes use of AIS. Example of information generated by AIS and Transaction Processing Systems are financial statements generated for external users and for management purposes.

“In AIS, you wear both Accounting and IT Hat,” says Prof. Aliza Racelis. You have to know every nooks of IT in order to maximize its potential in designing your AIS. Not only that, you to have the knowledge and logic of an accountant in order to know what to actually design. This is especially true with internal controls. You have to design a system that will not be easily corroded by collusion or fraud.

Ricchiute, D. N. (2009). Auditing. Cengage Learning Asia Pte Ltd.


UNIV Digital Continent

“Digital Continent” // “Continente Digital”


En el mensaje de la Jornada de las Comunicaciones, el Papa Benedicto XVI dice: “A vosotros, jóvenes, que casi espontáneamente os sentís en sintonía con estos nuevos medios de comunicación, os corresponde de manera particular la tarea de evangelizar este “continente digital“. Haceos cargo con entusiasmo del anuncio del Evangelio a vuestros coetáneos”.


In the message for the World Communications Day, Pope Benedict XVI said: “It falls, in particular, to young people, who have an almost spontaneous affinity for the new means of communication, to take on the responsibility for the evangelization of this “digital continent“. Be sure to announce the Gospel to your contemporaries with enthusiasm.”


UNIV 2010:

Can Christianity Inspire a Global Culture?

What does ‘evangelizing the DIGITAL CONTINENT’ entail?

¿Qué comporta ‘evangelizar este CONTINENTE DIGITAL’?

🙂  🙂  🙂


Este envío se basa por completo en la entrevista que hizo a Antonio González, una de las diez personas con más amigos en Facebook a nivel mundial:

This blog is based entirely on the following Interview done by with Antonio González, one of the top 10 persons with the most number of Facebook friends worldwide:


🙂  🙂  🙂


“Precisamente eso es lo que trato de hacer: evangelizar el continente digital. Y las redes sociales son un medio para conseguirlo. Al principio, todos éramos reacios a tener un teléfono móvil, y ahora casi todo el mundo tiene. Luego nos costó hacernos con una cuenta de correo electrónico, y ahora casi todos tienen una o varias. Pues con las redes sociales pienso que pasará algo parecido: casi todos acabaremos metidos. Y pienso que es preferible llegar al principio, que al final.”


“It is precisely this that I try to do: evangelize this <digital continent>.  And those social networking sites are a means of getting there.  At the start, all of us may have been rather reluctant to have a mobile phone, but today almost everyone has one.  Afterward, it was a struggle to open an email account, but now almost everybody has one or several.  Well then, with social sites, I think something similar will take place: almost all of us will get into them.  And I think that it’s better to get there at the start, rather than at the end.”


♦ Posibles cuestiones de estudio para el UNIV // Possible UNIV Paper topics:


1. Evangelización y el Internet: La Iglesia [Grupos cristianos] y Modos de aprovechar los medios avanzados

1. Evangelization and the Internet: How the Church [specific Church groups] has/have been taking advantage of advanced means.


2. Superar la fobia tecnológica y lanzarse a la ‘evangelización en línea’

2. Overcoming Technophobia for the Sake of Online Evangelization


3. Las redes sociales: Un análisis comprensivo para el cristiano

3. Social Networking Sites: A Sociological, Religious, Political and Economic Analysis for the Christian.



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Pregunta: A su juicio, ¿qué más puede hacer un católico a nivel personal para aprovechar mejor las modernas tecnologías de modo que pueda propagar con mejores resultados el mensaje de Cristo?

Respuesta: Participar en los nuevos generadores de opinión que están en internet. Tener su propio blog. Poner sus comentarios en los blogs y foros que lee. Publicar nuevos contenidos. Tener su perfil en las redes sociales e intervenir cuando sea oportuno, por ejemplo, para defender al Papa Benedicto XVI …


Q: To your judgment, what else can a Catholic do at a personal level, in order to take advantage of these modern technologies so that he/she may propagate the message of Christ with better results?


A: By participating in the new opinion generators which are found on the Internet.  Having one’s own blog; putting one’s comments on those blogs and forums which he/she reads.  Publish new content; having one’s profile on those social networking sites and intervening whenever opportune, for example, to defend Pope Benedict XVI…


♦ Posibles cuestiones de estudio para el UNIV // Possible UNIV Paper topics:


4. Evangelizar la Blogosfera: Desafíos y propuestas

4. Evangelizing the Blogosphere: Challenges and Recommendations


5. Estrategias tecnológicas para la Jornada Mundial de la Juventud

5. Technological Strategies for the World Youth Days.


6. En defensa de la Iglesia y de la vida humana: Análisis y Estrategias

6. In Defense of the Church and of Human Life: Analyses and Strategies


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Antonio González es uno de los administradores del grupo “Opus Dei Today” en Facebook: pido que te unas al grupo…

Antonio González is one of the administrators of the Facebook group “Opus Dei Today”: I hope you’d join the group…

🙂  🙂  🙂

También es uno de los administradores del nuevo Foro en inglés:

Te ruego te registres para que puedas dejar preguntas o ayudar a responderlas.

He is likewise one of the administrators of the new English-language Forum:

I’d highly encourage you to join the discussion [post questions or answers], by registering…




UNIV – Idea of ‘Mission” // La Idea de ‘Misión’

Hola // Hi!

En un previo envío, hablamos de la idea de “misión”. ¿Qué es? ¿Qué quiere decir? ¿En cuál sentido somos ‘misioneros’? Ojalá algún grupo de estudio UNIV aborde este tema para el año 2010…


Earlier on, we sent the “Idea of ‘Mission’” as something to think about: What is it to have a mission? or to be a missionary? We thought it appropriate, as we began the “Year for Priests”.  It would indeed be a very interesting RESEARCH topic…

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1) Los itinerarios morales de los chicos: ¿dependen de qué? El papel de la familia, el ambiente, de los educadores.

1) Moral Itinerary of the Youth: Its Formation, and the Role of Family, Environment and Education

2) Fundaciones importantes en la historia: Un esbozo, y los casos concretos de XX, YY y ZZ

2) Important Foundations in History: A Review, and Case Studies of XX, YY and ZZ

3) Las realidades últimas: Relación entre la escatología y la llamada a una ‘misión’

3) The Last Things: Relationship between Eschatology and the Call to a ‘Mission’

4) “Te encomiendo”: La necesidad de la oración para el misionero moderno

4) “Pray for me”: The Need for Prayer in the Life of a Modern Missionary

5) La llamada al celibato: Misión propia, su sentido, problemas, y propuestas

5) The Call to Celibacy: A Mission all its own, Its True Meaning, Problems, and Recommendations.

6) La película ‘The Mission’: Características de un verdadero misionero

6) ‘The Mission’ the Movie: Characteristics of a True Missionary

7) El Año Sacerdotal: Metas, Retos, Propuestas.

7) The Year for Priests: Objectives, Challenges, Recommendations

🙂  🙂  🙂

Año Sacerdotal // Year for Priests

Para el tema de “Sacerdocio”, sugiero que visitéis esta web que se desarrolló precisamente con ocasión del Año Sacerdotal que ha anunciado el Papa Benedicto:


For the topic of “Priesthood” in general, may I ask you to proceed to this page which was developed on the occasion of the announcement by Pope Benedict of the “Year for Priests”?


For a “Class Outline” on the topic of “Priesthood” which I developed as a suggestion for my friend’s website above, you may click here:

El original en español del esquema arriba (“Sacerdocio”) se encuentra aquí:

🙂  🙂  🙂

facebook logo

En Facebook, hay un grupo “Sacerdote yo? por qué no?” Espero te unas…


If you’re on Facebook, I hope you’d join the group “Sacerdote yo? por qué no?

🙂  🙂  🙂

St Francis Xavier

St Francis Xavier


Fiesta na, Pasko pa! sa Xavierville Phase II!


Hi neighbors! This is

(1) a blog on the above-named Saint, after whom our Village is named, and

(2) an advanced notice page on an exciting FIESTA cum CHRISTMAS celebration you surely don’t wanna miss 🙂 So, since “Christmas is for KIDS” as they’d say, all kids (I guess that includes all of us) are WELCOME to this FIESTA celebration 😉


1) We plan to have this celebration on DEC.5, Sat., the Saturday closest to Dec. 3, FEAST of St Francis Xavier, beginning with a Mass at 5pm at the Shrine (Alvero cor. N. Reyes).  On the same spot will follow our “Fiesta-cum-Christmas celebration” !

2) It’s a potluck event, with families bringing the food they can bring ;

3) The THEME will be “PASASALAMAT AT PAG-ASA” to express: our solidarity with those who went through crises lately due to typhoons, our awe at the generosity of the human spirit helping out those who suffered, our HOPE that, if we keep UNITED, we can overcome problems & build a better COMMUNITY leading up to a better SOCIETY 🙂

5) Just like during Halloween last Oct.24, this is gonna be a COSTUME party, according to the COLORS of CHRISTMAS & the theme of SOLIDARITY, e.g., each Street will have a specific color assigned to them 🙂

6) And lots more exciting SURPRISES for everyone! And of course there’ll be GAMES galore! and PRIZES 🙂 which I’m sure the kids will enjoy!

🙂  🙂  🙂



FRANCIS XAVIER, ST. (1506-1552). Born in the family castle of Xavier, near Pamplona in the Basque area of Spanish Navarre on Apr. 7, he was sent to the University of Paris 1525, secured his licentiate in 1528, met Ignatius Loyola and became one of the seven who in 1534, at Montmartre founded the Society of Jesus. In 1536 he left Paris to join Ignatius in Venice, from whence they all in tended to go as missionaries to Palestine (a trip which never materialized), was ordained there in 1537, went to Rome in 1538, and in 1540, when the pope formally recognized the Society, was ordered, with Fr. Simon Rodriguez, to the Far East as the first Jesuit missionaries. King John III kept Fr. Simon in Lisbon, but Francis, after a year’s voyage, six months of which were spent at Mozambique where he preached and gave aid to the sick eventually arrived in Goa, India in 1542 with Fr. Paul of Camerino an Italian, and Francis Mansihas, a Portuguese. There he began preaching to the natives and attempted to reform his fellow Europeans, living among the natives and adopting their customs on his travels. During the next decade he converted tens of thousands to Christianity. He visited the Paravas at the tip of India. near Cape Comorin, Tuticorin (1542), Malacca (1545), the Moluccas near New Guinea and Morotai near the Philippines (1546-47), and Japan (1549- 51). In 1551, India and the East were set up as a separate province and Ignatius made Francis its first provincial. In 1552 he set out for China, landed on the island of Sancian within sight of his goal, but died before he reached the mainland. Working against great difficulties, language problems ( contrary to legend, he had no proficiency in foreign tongues ), inadequate funds, and lack of cooperation, often actual resistance, from European officials, he left the mark of his missionary zeal and energy on areas which clung to Christianity for centuries. He was canonized in 1622 and proclaimed patron of all foreign missions by Pope Pius X. Feast Day Dec. 3.

🙂  🙂  🙂

Technology Business Incubator

Technology Business Incubator


WONDERFUL WORLD OF MOBILE. Be part of something big. Go beyond what is offered. Challenge the equation. Let your newest mobile application ideas come alive through this latest mobile applications competition in the Philippines. AyalaTBI and its partner organizations hope to discover pioneering technologies in entertainment, fun and games; enterprise and productivity solutions, and cause-oriented field.

Today, this “Big Apps Competition” was launched at the Conference Room of UP-Ayalaland TECHNOHUB in Quezon City.  I was so delighted to see my idols Bill Luz & Dicky Gonzalez, my student Anna Pasetes, and all those many tech people interested in making a pitch for this mobile applications contest.

We first heard from the resource persons, who talked about: the sponsorship of this competition by Ayala Foundation and the TBI (Bill Luz), the contest mechanics (Dicky Gonzalez), and other wonderful speakers!

img736Bill Luz

img738Dicky Gonzalez

😉  😉  😉

For those interested in submitting entries, or for those who simply wanna know about this great project or get some tips through the Forum or form part of an online community that’ll take you into the mobile world, visit and register at:

May the best man win!

😉  😉  😉

Thanks to Globe! I won a GLOBE T@TTOO pack during the raffling off of 5 of those!

Globe Tattoo

😉  😉  😉

About the UP-Ayala Technology Business Incubator (TBI):

Ayala Foundation

Technology – the branch of knowledge that deals with the creation and use of technical means and their interrelation with life, society, and the environment, drawing upon such subjects as industrial arts, engineering, applied science, and pure science.

Business – a building or site where commercial work is carried on, as a factory, store, or office; place of work; profit-seeking enterprise or concern.

Incubator – an apparatus in which eggs are hatched artificially; an enclosed apparatus in which prematurely born infants are kept in controlled conditions, as of temperature, for protection and care.

Put them together and what have you got? A TBI is where you incubate technology businesses! (oops, I’m violating an important rule on definitions: you don’t repeat the term in the definition).  So, a TBI is a place or venue where tech startups are “cared for” and “nursed” until they are able to take off on their own.

At the UP-Ayala TBI along C.P. Garcia, the following businesses are present:

AET-Tech Corporation
Astra Philippines, Inc.
JAVA Education and Development Initiative
MICOM Technologies Corporation
Optiserve Technologies, Inc.
Shared Asia-Pacific Project of the Center for Economic Policy and Research
Symphony Consulting
Systema Computer Solutions Corporation
Tekno Logika Pilipinas Inc.
Manila Water Total Solutions Corporation
Global Trade Infosys Services, Inc.

UP-Ayala TBI

I usually take my I.T. students on a tour of the TBI.  If interested, contact:

Michi M. Barcelon
AyalaTBI Project Lead
Room 201, Tech Portal
UP-AyalaLand TechnoHub
Commonwealth Avenue, Diliman
Quezon City 1101 Philippines

🙂  🙂  🙂