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
While accountants, who are usually trained to be more conservative in accounting for assets and liabilities, would like to make more reliable recognition (in my opinion, would prefer historical cost method), corporate management and investors may want more relevant information in order to make strategic or investment decision. Due to the conflicts of different parties’ needs, the choice between two accounting models may continue. Still, in addition to the choice of accounting model, the issue of information overload is getting more attention than before. Besides reliability and relevance of financial information, selection of information and the way to present it for users also matters since these factors affect the users’ ability to effectively utilize the
The development in technology is seen to be rapid which results in the increasing usage of computers in keeping record, information storage and detecting issues. According to Kerby & Romine (2013), advanced software and ease in access to the internet have enabled management accountants to conduct more demanding analysis and decision-making. These software are often automated therefore it is required data entry and have mad...
Accounting 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.
First of all, this paper will define Accounting Information System (AIS) as a system which is designed to transfer any accounting information to become a reliable financial report and provide the report to stakeholders which will make any business decisions on the grounds of this economical statement. Related to the preceding definition, a Computerized Accounting Information System (CAIS) is a modified version of AIS with an involvement of computer, either hardware or software, in stages of the report production. Meanwhile, the term of Accounting Software can be explained as a tool which is providing features to ease bookkeeping tasks. To avoid the discussion goes too broad, Accountant interpretation will also be hedged as a person who has an educational bac...
Technology in the accounting field has come very far, from the abacus to modern day accounting software. E-Business, work being done through networks, is taking the accounting field to a more future computerized world, leaving the pen and paper behind. With all the new technologies, the profession of accounting is growing and expanding and proving that information and skills provided by accountants using modern technologies can spill over and help other parts of a business. Even with all the down falls that accounts have taken, from the stock market crash of 1929, and the fall of companies such and Enron, World Com, and Tyco. New technologies have brought new legislature and new forensic accounting titles, helping to keep the accounting and business world spinning.
Accounting is a human activity defined as the systematic and comprehensive recording of financial transactions concerning a business, thus referring to the process of summarising, analysing and reporting these transactions. Accounting rules are a set of conventional procedures or practices commonly adopted when preparing financial statements. Insights from accounting theories help in the process of continual improvement, meaning that relying on rules alone is not enough; failure of large companies like Enron is a distinctive case. Theory is a coherent set of hypothetical, conceptual and pragmatic principles forming the frame of reference for the field of inquiry (Hendriksen (1970, p. 1). Various theories used in accounting include, but are not limited to, positive, normative, system-oriented, decisive, and theories of regulation; further explanation of them will be made in this essay.
According to Professor Clark of APSU, “Accounting has changed more since 1980 than in the previous 4000 years” (Clark, 2016). The prime reason for this exponential growth in the last 35 years or so is the impact the internet has had on all of our lives. As access to the internet grows, more small businesses will be able to grow. The technology, access and speed of the internet will need to continue to match the exponential growth of the technology that uses it. So far, that seems to be the
I am interested in conducting research and teaching in managerial accounting, auditing and assurance services and accounting information systems. In particular, I am interested in exploring the role of accounting information systems in decision making, internal control, and auditing. In order to gain an appreciation of these and related issues, it is essential for me to have a strong grounding accounting, accounting information systems, information technology, managerial accounting, as well as gain a general economic and management perspective.
Since Information technologies develop progressively, the manual accounting information system have become insufficient for decision making, as a result, business firms which operate in either developing or developed economics consider computerized accounting system as an effective mean to ensures the effectiveness and efficiency of information flow in recording, storing processing, and analyzing financial data. This research paper will highlight the concept of Accounting Information System generally, and Computerized Accounting Information system specifically.
Accounting systems is very important tool for any type business such as corporation, Partnership, and Sole proprietorship. Accounting systems is also referred to as Accounting Information system. Accounting Information systems is process of collecting and processing transaction data and communicating with decision makers. Every business should have Accounting Information system because it helps us answer questions such as should we expend our company overseas? Do we have enough payroll for our employees? Accounting information systems can also help us understand what types of inventory we should use. As we learn more about accounting information systems throughout this paper we will discuss basic structures of assets, liabilities, and stock holder’s equity. We will also discuss four basic financial statements and effects of Revenues, expenses and dividends. Finally we will also discuss difference between net income and cash flow.
It has been said that pre-numerical counting systems pre-dated the written language. Business accounting is rooted in the organization of monetary claims throughout the history of the Western civilization, developing even before the ancient accountants could note the mathematical entries. Beginning in Mesopotamia around 3500 B.C, and developing throughout the 14th century in Europe, accounting has become one of the largest advancements in the Western world. This long standing form of collaborating financial data has evolutionalized the way we approach business in the 21st century. While today's accountants are involved in the analysis of financial data and the auditing of cash flow through a corporation, this hasn't always held true. The recording of financial transactions dates back to B.C with the use of clay tablets written by scribes, this process developed through the Eastern world gaining popularity through the Industrial Revolution when the accounting foundations were brought to the American land. As the career begins to take the driver's seat in the public sector, we must evaluate the evolution of the financial field while we continue to develop new ways to serve the money centered world we inhabit.
The significance of this article stems from the necessity of making the infrastructures of accounting knowledge more scientific. The infrastructures which would be the bases of assumptions, principles, and concepts of accounting knowledge. Only via making these infrastructures scientific, one can promote the status of accounting among other sciences. In addition, without any justification, reasoning, and argumentation, one cannot have scientific claims. The theory of accounting should ultimately enable the standards setters to deduce the standards. Considering the impact of accounting theory on standard setting, this article aims at analyzing the point that whether the type of reasoning applied in developing accounting theory and setting accounting
The accounting profession, along with its standards and regulatory sources, have changed dramatically in recent years. The accounting profession and its standards once consisted of standardized financial reporting compliance; however, it has now evolved into a specialized profession influenced by its constantly evolving standards resulting in accounting and legal technicalities. Many factors constituted the change, in addition to factors that constituted the need for its change; for example, corporate scandals and a global set of accounting standards respectively. The latter enticed its global trend for accounting harmonization among various private and governmental sectors that work cohesively to obtain its purpose. The various regulatory
Over the years, our accounting system has evolved from the tedious task of manual accounting to the ease of computerized accounting systems and programs. Computerized accounting has brought about a more efficient way of setting up and maintaining a company’s financial records.
Decision-making is a process where by managers respond to chances and threats. In this process managers analyze alternatives to deal with chances and threats and finally pass decisions about objectives and strategies. Managerial decision- making relies heavily on the availability of relevant, reliable and timely information. Till now , managers depend on the company’s management information system to obtain relevant, reliable and timely information needed to base decisions. The accounting information system is a sub-system of the over all management information system and originate information to be used in a managerial decision-making.