Essay On Accounting Information System
explanatory Essay
1216 words
Introduction Modern information system is now popular all over the world, it also change the accounting area. Instead of the old manual analysis, many companies making effort in developing a fitted accounting information system for themselves, as they realize the advantages that the new technology brings in - more efficient and accurate in processing, integrated data, detailed record etc. However, even though there are so many benefits, the functional system also brings challenges, making new requirements to the accountants and auditors. This paper will discuss the impact of technology to the accounting information system, as well as the necessary capability ethics that the accountants should learn in this 21th century. The technological impact …show more content…
The main function of AIS is to provide information derived from the financial transactions. The daily paper record, receipts and invoice, the electronic copies, any kinds of documents could be the source of the financial transaction. The piecemeal data is hard to trace and follow. The traditional accounting information system solves this problem. It collects the information, sorting and processing, making a record and then providing it to the users who are interested in it. However, with the development of technology, the function is being improved. Under the network environment, the accounting information system trends to base on internet to realize the financial information processed electronically and automatically. The emerging functions, such as cloud computing, shadow data, giving convenience to the users via mobile devices. The non-network AIS is no longer meeting the new requirements. In current business world, innovations and improvements are needed to satisfy the varieties requests of customers under the context of multi-cultural. Companies and organizations hope to use information to help planning and solving problems. In the pwc report, the new accounting information system needs efficiency, speed, and real time information to meet the definition of excellence. Given that this is an information era. These factors need the cooperation between IT and Accounting. The system creator according to the …show more content…
The function of accounting information system transforms from simple storage to a supportive tool of decision-making, producing high quality information and detailed analysis, bringing about real economic benefits. However, it also challenges the skills and ethics of modern accountants, putting forward the new demand for the professionals who use the accounting information system. As a result, two capabilities are recognized to be essential for the professionals. One is the competency, it lists out a pattern of knowledge used in the job as well as be aware of the link between information systems and decision-making. On the other hand is the ability of analyzing and diagnosing, which is good at problem solving. Another challenge is about ethical issue, requiring integrity and confidentiality as a professional quality of an accountant. To conclude, the accounting information system integrating the information, analyzing and supporting decision-making will become more important in the forming of a company’s strategy. Understanding the structure of accounting information system would lead to a competitive advantage over competitors in the
In this essay, the author
- Explains that modern information system is popular all over the world, and it also changes the accounting area. the paper will discuss the impact of technology on accounting information systems and the necessary capability ethics that the accountants should learn in this 21st century.
- Explains that the function of the accounting information system is improving. it collects information, sorting and processing, making a record, and then providing it to the users who are interested.
- Opines that despite the prosperity of modern ais, the potential risks and security problem are gradually revealed. the report shows the same concern about the security of cloud-based application.
- Explains that modern information system is popular all over the world, and it also changes the accounting area. the paper will discuss the impact of technology on accounting information systems and the necessary capability ethics that the accountants should learn in this 21st century.
- Explains that the function of the accounting information system is improving. it collects information, sorting and processing, making a record, and then providing it to the users who are interested.
- Opines that despite the prosperity of modern ais, the potential risks and security problem are gradually revealed. the report shows the same concern about the security of cloud-based application.
- Explains that accounting information system develops in the direction of online and openness, providing shared and analyzed data for users. it challenges the skills and ethics of modern accountants, putting forward the new demand for the professionals who use it.
- Explains that accounting information system has changed the traditional working method of accountants, and the new technology brings new challenges to their ethics.
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- Explains that science and technology have made major changes to the way we live. technology has provided many tools that increase efficiency in any business.
- Explains that computerized accounting has enhanced the accountant's ability to interpret data efficiently and effectively.
- Concludes that computerized accounting is an accountancy development of inevitable direction.
- Explains that science and technology have made major changes to the way we live. technology has provided many tools that increase efficiency in any business.
- Explains that computerized accounting has enhanced the accountant's ability to interpret data efficiently and effectively.
- Concludes that computerized accounting is an accountancy development of inevitable direction.
- Explains that the internet is a giant network of computers located all over the world that communicate with each other.
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- Explains that credit cards are used to buy expensive goods and to pay bills. the emergence of electronic money improves the efficiency of capital turnover, but it intensifies the instability of money demand.
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- Opines that both historical cost method and fair value model have their merits and demerits, and users of financial reports hold different purposes.
- Argues that historical cost method is too conservative and fails in estimating current values of assets and liabilities, but it is more reliable in terms of finding supporting documents, such as contracts and receipt, to verify the amount and record time.
- Opines that there is a dilemma of putting more emphasis on "reliability" or "relevance". corporate management and investors may want more relevant information in order to make strategic or investment decision.
- Opines that both historical cost method and fair value model have their merits and demerits, and users of financial reports hold different purposes.
- Argues that historical cost method is too conservative and fails in estimating current values of assets and liabilities, but it is more reliable in terms of finding supporting documents, such as contracts and receipt, to verify the amount and record time.
- Opines that there is a dilemma of putting more emphasis on "reliability" or "relevance". corporate management and investors may want more relevant information in order to make strategic or investment decision.
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- Opines that businesses should report their financial conditions and operating performance to the public as accurately as possible, and that both historical cost method and fair value model can help support the goal.
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- Analyzes how the article critiqued focuses on the main characteristics used when planning for an ais improvement, including timeliness of problem-solving, planning horizon, and external/internal focus.
- Explains accounting information systems: the challenge of extending their scope to business and information strategy, a scholarly journal from the american accounting association accounting horizons.
- Analyzes how accounting/management information systems (a/mis) can be developed and improved through the discussion of "the business focus of a system application and its design characteristics".
- Analyzes how the article critiqued focuses on the main characteristics used when planning for an ais improvement, including timeliness of problem-solving, planning horizon, and external/internal focus.
- Analyzes how the article critiqued focuses on the necessary requirements that are imposed by an information system’s master plan as well as the information technology (it) design life.
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- Explains that an abacus is the ancient form of accounting technology. it used different color beads, ten on each slide that were moved up and down to represent numbers.
- Explains that microsoft excel gave accountants a computerized spread sheet instead of ledger books. the job became less tedious and there was less room for error.
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- Opines that future accounting employees can look at this information as positive feedback, openings in the accounting field means more jobs. with advances in technology and the requirement of high knowledge of such technology future employees will be in high demand.
- Opines that technology advances could mean a great deal to decision makers in the field, with more accurate predictions being able to be made faster, and helping to make the company run smoother.
- Explains that business trusted their employees to be honest and that their work was for the good of the company and not just for personal gain. with the devastating consequences of corporate fraud with companies like enron, and tyco, forensic accounting opened up.
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- Explains that accounting is one of the most important processes in business. professor chen introduced us to accounting, which is an integral system of every organization.
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- Explains that the accounting system is divided into two categories: financial accounting and managerial accounting. the flow of accounting is collecting, classifying, summarizing, analyzing data.
- Explains that the balance sheet, income statement, and statement of cash flows are included in the accounting cycle to summarize the organization's financial activities.
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965 wordsRead More - Professional Accounting Case Studyanalytical essayThe field of accounting as a profession has over the past decade come under scrutiny in terms of its standards of ethics and professionalism. The morality of businessman and their confidence in the accounting profession has become questionable due to the reported decline of public confidence in financial reporting. On the contrary, the accounting profession is a growing field of interest in higher education as it draws on various interests largely because it is considered the language and basic tool of business.
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- Examines the extent to which ethics training and education can empower professionals to conduct themselves ethically in the accounting profession post-graduation.
- Aims to identify the challenges that accounting professionals face in the workplace and understand holistically how professional approach challenges.
- Explains the role of ethics to professional alumni/postgraduate students in the workplace from the centre of accounting: university of the free state case study.
- Examines the extent to which ethics training and education can empower professionals to conduct themselves ethically in the accounting profession post-graduation.
- Aims to identify the challenges that accounting professionals face in the workplace and understand holistically how professional approach challenges.
- Investigates the existence of post-graduation institutional support for accounting professionals around ethical dilemmas in the workplace.
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- Describes the professional accountant's responsibility to maintain professional knowledge and skills to ensure a client receives the best professional service based on current developments in the profession, legislation and techniques.
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2819 wordsRead More - The Effects of Technology on the Accounting Professionargumentative essayIn today’s business society, the accounting technology whether it be software or hardware is a vital part of just about every major business. Many people overlook the importance of the role of accounting technology in business and in the accounting profession. The fact is technology such as accounting information systems can make or break a business.
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- Explains that accounting technology is a vital part of almost every major business in today's business society. technology such as accounting information systems can make or break businesses.
- Explains that wal-mart and other businesses rely heavily on accounting technology to track information about their customers and inventory. software technologies such as microsoft access databases enables them to search, retrieve, and order additional inventory faster.
- Analyzes how accounting technology has made the accounting profession more competitive. accounting software is an important part of information technology that enables a company to generate, store, program, and retrieve data as and when needed.
- Explains that accounting technology is a vital part of almost every major business in today's business society. technology such as accounting information systems can make or break businesses.
- Explains that wal-mart and other businesses rely heavily on accounting technology to track information about their customers and inventory. software technologies such as microsoft access databases enables them to search, retrieve, and order additional inventory faster.
- Analyzes how accounting technology has made the accounting profession more competitive. accounting software is an important part of information technology that enables a company to generate, store, program, and retrieve data as and when needed.
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- Explains that organisational design is the process of choosing and implementing structures that best arrange resources to serve the organisation’s mission and objectives.
- Explains that they can provide information on external environment like customer preferences, condition of the economy, new products and trends and most importantly market share of an organisation.
- Opines that information provided should be relevant and timely so that management can compare future expectations of customers with current or historical events.
- Explains that organisational design is the process of choosing and implementing structures that best arrange resources to serve the organisation’s mission and objectives.
- Explains that they can provide information on external environment like customer preferences, condition of the economy, new products and trends and most importantly market share of an organisation.
- Opines that information provided should be relevant and timely so that management can compare future expectations of customers with current or historical events.
- Explains that ais helps in collection of financial and non-financial information especially information new product, consumer preferences, new competition in the market, and change in government policies.
- Provides information on cost and budget variances and points out things which are not going smoothly as per plan.
- Opines that accounting information should be focused more on non-financial measures and the use of profit conscious or not-accounting styles may be appropriate. financial measures alone will not provide information about upcoming trends.
- Explains that adaptive organisations follow decentralised authority to provide information department or functional based so that it will be easy for top management to assess the performance and the personnel responsible for them.
- Explains the difference between bureaucratic design and adaptive design, stating that they are not proposing any new accounting information system.
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1344 wordsRead More - Four Qualitative Characteristics Of Relevance And Reliability Of Business Accountinganalytical essayThe main role and concept of accounting is to collect, compile, create and communicate information to investors, creditors, shareholders and other parties that are responsible and take part in making decisions for a business entity. This financial information need to be understandable and comprehensive to the people responsible for making decisions regarding the business. Otherwise if this information is incomprehensive then it would be a complete waste of time for everyone involved in the process. Therefore the FASB decided that financial information should be compiled by the following four qualitative characteristics:
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- Explains that the fasb decided that financial information should be compiled by the following qualitative characteristics.
- Argues that there is a trade-off between relevance and reliability, which is supported by the fasb.
- Argues that while researches support a positive relationship between reliability and relevance in accounting, some believe that the main cause of this trade-off is the need to provide more relevant information to investors, creditors and etc.
- Explains that the fasb decided that financial information should be compiled by the following qualitative characteristics.
- Argues that there is a trade-off between relevance and reliability, which is supported by the fasb.
- Argues that while researches support a positive relationship between reliability and relevance in accounting, some believe that the main cause of this trade-off is the need to provide more relevant information to investors, creditors and etc.
- Explains that the u.s and the international conceptual framework accept relevance and reliability as the two main qualities of accounting information that make it decision useful for investors, creditors, and auditors.
- Explains that different researches contradict the statement for the existence of a trade-off between relevance and reliability.
706 wordsRead More - AIS: A Model Of An Accounting Information Systemexplanatory essayAccounting information system (AIS) perfomed a firms’s data processing tasks that gathers data describing the firms’s activities, transforms the data into information, and makes the information available to users both inside and outside the firm.
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- Explains that the firm has not decided whether it wants to perform data processing. the firm is required to maintain records of activities with the law.
- Explains regulations and accepted practice to state how the data processing to be performed. organizations of all types of data process them basically the same way.
- Explains that an audit trail is a timeline of activities that can be traced from the beginning to the end, and vice versa.
- Explains that the firm has not decided whether it wants to perform data processing. the firm is required to maintain records of activities with the law.
- Explains regulations and accepted practice to state how the data processing to be performed. organizations of all types of data process them basically the same way.
- Explains that an audit trail is a timeline of activities that can be traced from the beginning to the end, and vice versa.
- Explains that data collected by the ais helps explain what happened in the past, especially when batch processing is used.
- Explains that the ais produces some information output for the firm’s managers. the standard accounting reports such as the income statement and the balance sheet are examples.
- Explains how to collect and keep data about the organization’s business activities and transactions efficiently and effectively.
- Explains that manual systems provide information in the form of reports that fall into two main categories.
- Explains that ais offers a fully integrated accounting system. when recording accounting transactions manually, some entries are usually required for each transaction.
- Explains that an ais offers a faster way of recording financial information and allows employees to find records more quickly. accuracy is much easier to obtain because an accounting clerk enters only one set of numbers.
- Explains computerized accounting systems can be set to pay bills and print checks automatically, create purchase orders, invoices and credit memos, and perform payroll tasks automatically.
- Explains the advantages of computerized systems for end-of-month business. adjusting and closing entries are recorded easily, and the creation of financial statements is made easy.
- Recommends regular back-ups of information stored to prevent loss of the information. computers are convenient places to store information because it does not take much space.
- Explains that learning an accounting information system can be difficult and time-consuming, and this can bring a disadvantage to companies in terms of time and manpower.
- Explains that accounting information systems are computerized, so there is always a risk of losing information through power outages or system crashes. companies take precautions for this problem by backing up their files regularly and performing regular maintenance.
- Explains that companies change their way of doing business to keep up with the latest trends, which may affect an accounting system.
- Explains that the accounting information system (ais) is the only cbis subsystem that has the responsibility of meeting information needs outside of the firm and to furnish information to each environmental element except competitors.
- Explains that the ais maintains a detailed financial record of the firm's operations and produces information that describes those operations. data processing performs necessary tasks, adheres to relatively standardized procedures, handles detailed data, and provides problem-solving information.
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- Explains that managerial decision-making relies heavily on the availability of relevant, reliable and timely information.
- Explains that firms can reduce unit costs when faced with expensive price sensitive customers by spreading fixed costs over a high volume of output to achieve its profit biggest objective.
- Identifies four pricing situations for industrial goods pricing, namely: new product, competitive, cost-based, and product line. they also identify pricing ways adopted under each pricing situation.
- Explains that managerial decision-making relies heavily on the availability of relevant, reliable and timely information.
- Explains that firms can reduce unit costs when faced with expensive price sensitive customers by spreading fixed costs over a high volume of output to achieve its profit biggest objective.
- Identifies four pricing situations for industrial goods pricing, namely: new product, competitive, cost-based, and product line. they also identify pricing ways adopted under each pricing situation.
- Explains that cost analysis is very important to profit planning. it helps management understand the relationship of cost, volume and profit and decide on the optimal operational activity level.
- Explains the role of cost analysis in managerial decision making in profit-oriented companies.
- Explains that managers face a lot of problems, some external and others internal in nature. they realize that costs must be controlled and reduced if continuous profits were to be earned
- Explains that target costing is a cost management concept aimed at the early stages of product and process design to influence product cost structures resulting from market-derived requirements.
- Explains that cost analysis is used in managerial decision-making in setting product or services prices. business organizations adopt cost-based pricing, market-basic pricing and target pricing strategies.
- Presents a general decision model for cost-volume-profit analysis which takes into account the crucial elements of random demand and level of production in the determination of actual sales and resulting profits.
- Defines cost-benefit analysis as the widely used technique for deciding whether to make a change or not and involves adding up the value of the benefits and subtracting the costs associated with it.
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