Accounting Information Systems Essay

1067 words - 4 pages

Information and Accounting FunctionsWhat is the function of contemporary accountants? What is an accounting information system (AIS)?Changes in technology have altered the role of accountants. Traditionally, AIS has had its own set of specific functions and has relied on its own devices, such as journals and ledgers, and its own procedures, double-entry bookkeeping. Accounting developed, maintained, and operated the AIS independently of other business functions. Accountants were narrowly focused on the production and validity of financial information. Now they are information services specialists and business consultants.Traditional View of AccountingTraditional functions of an AIS include recording, storing, processing, and reporting financial information and related non-financial information (for example, purchase dates and depreciation methods for fixed assets). Traditionally accounting has focused on periodic, historical, and aggregated data, primarily in the form of financial statements. It has been limited largely to financial transactions. Accounting systems are self-contained and standardized. Accounting information is restricted to stewardship and analysis decisions that use the financial accounting model. Emphasis is on objectivity and reliability of information. Accounting is separated from other business functions; the accountant plays the role of scorekeeper.Transition to ComputersThe original use of computers in accounting focused on automating the record-keeping function. Manual books were replaced by computer "books." The automated systems retained the same functions, orientation toward the accounting cycle, and retained an emphasis on financial statements as in the traditional view. Computers made accounting functions faster, less expensive, and more accurate.Database Accounting SystemsUnder a database system, accounting is part of the management information system. The system aims to capture all aspects of economic events relevant to decision makers. The orientation is toward decision making, not just financial statements. The emphasis is on relevance and timeliness. Transactions and financial statements are part of the system products, not the basis for the system. Flexibility and usefulness are keys to assessing the importance of the system. Systems are not standardized. Relational databases are the primary storage and processing engines.Challenges for AccountingChallenges associated with the change in technology and focus include maintaining traditional functions in light of changing technology. Aspects of systems that make them flexible and useable make them harder to control and audit; information reliability and integrity are major problems. Accountants must work as part of a larger system; not separate from it. Technical competence extends beyond traditional accounting expertise to understanding of information systems and information technology. Accountants work with a diversity of systems that change frequently.Role of...


Accounting in Relation to Management Function

859 words - 4 pages operational need of the organization. It provides specific information of accounting of present, past and future and this can be beneficial for basis management process. The financial data are so planned and steadily development that they become a unique tool for management decision. Unlike financial accounting, which produces annual reports mainly for external stakeholders, management accounting generates monthly or weekly reports for an

Financial Data Management Essay

1115 words - 4 pages Question: Can Financial Data Management Be Made More Efficient? A critical issue for timely financial reporting is data management: how easy does the raw data go into the company’s accounting systems? Bukevičius (2010) observes that “after the introduction of the records of the latest information technologies, accounting development trends…are often observed when this leads to an increase in workload of accounting staff” (p. 70). The information


884 words - 4 pages began swinging wide open with the use of information technology leading to diversification in the field of accounting. Businesses commenced the search for professional accountants and their technological advice. Accountants became more knowledgeable about which financial systems operated best. An accountant's main role was to help businesses become more productive. Integrating the client's technologies properly with the accountant's systems made

Accounting Career Resorces

1794 words - 7 pages Title Accounting Career Resorces Accounting my field of study The purpose of accounting is to provide the information that needed to make sound economic decisions. It is one of the oldest professions in the world today, and the backbone of any business operation. It is not just about numbers, accounting is about planning. Accounting has many subfields, which includes management accounting, financial accounting, and cost accounting

Accounting versus cash based accounting

1168 words - 5 pages . Tax bills will be incurred when sales occur rather than when payment is received. This common misperception is propagated by people who don't fully understand financial reporting and accounting systems. You can easily track financial information using accrual accounting, but still report to the government that you are using a cash accounting system. Accrual accounting captures all the information a cash system does, plus more. Therefore, you

factors affecting

4702 words - 19 pages influencing major selection by accounting and information systems majors are long- term salary possibilities, prestige of the profession, job security, and starting salary; the influence of a professor, family members and difficulty of the subject matter are rated much lower. Kim et al (2002) conducted a study on business majors (accounting, finance, general business, management, marketing, management information system and double major). They

Preferences of the Banks in Hiring Accounting Technicians

1770 words - 7 pages and Practice, Business and Transfer Taxes, Principles of Management and Organization, Principles of Marketing Business Statistics, Technical Writing: Business, Computer Application for Accountants, Accounting Information Systems. Second, they need to develop their computer skills where accounting technicians do their bookkeeping and clerking in computer. Third, choose a path of higher education. They can take the CAT exam that consisting three

information system and accounting

1544 words - 6 pages ion Formation 1Information system and accounting: 2Information system and accountingNameInstitutionIntroductionTechnological advances and the dawn of the information age have made its mark on every sector of the accounting field including financial, managerial, taxation and auditing. The information systems consists of the data input and processing systems, the applications, personnel, and procedures all used to aid the management in making

The Case for Principle-Based Accounting

1011 words - 4 pages with either of the approaches, lessons learnt and the evolving needs on the stakeholders. Smith and Hogan (2004) argue that Enron and other high profiled corporate scandals have intensified scrutiny of accounting standards-setting processes and regulatory systems that are being established to prevent the recurrence of such scandals. In their view, many stakeholders prefer principle-based compared to rule-based accounting standards. In his

Financial Accounting versus Managerial Accounting.

2039 words - 8 pages Commission (SEC). The FASB is the private-sector organization empowered to establish financial accounting and reporting standards ( According to Bushman, et al (2001), financial accounting information is the product of corporate accounting and external reporting systems that measure and publicly disclose audited data concerning the financial position and performance of publicly held companies. Financial accounting is typically

Accounting and computers

1408 words - 6 pages understand how the ideas for the computer evolved over the years. It is important that they understand how much simpler it is today to do Accounting on a computer.Accounting Information Systems (AISs) combine the study and practice of accounting with the design, implementation, and monitoring of information systems. Such systems use modern information technology resources together with traditional accounting controls and methods to provide users

Similar Essays

The Vulnerability Of Computerised Accounting Information Systems To Computer Crime.

1509 words - 6 pages are Internet illegal obtain and destroy program, unauthorised access and theft valuable information, and theft money by altering computer record. All in all, the best way to protect accounting information system far away from computer crime is to increase the system security.Bibliography:Bagranoff, N.A. , Simkin, M.G.. & Moscove, S.A. 2001, Core Concepts of Accounting Information systems, 7th edition, John Wiley& Sons Inc

Vulnerability Of Computerised Accounting Information Systems To Computer Crime.

1597 words - 6 pages computer spending on computer control and securities are increasing in recently years, as well as the larger proportion of companies suffers computer related losses, therefore, we can believe that the growing dependence on information technologies is making computerised accounting information systems more vulnerable to the computer crime.IntroductionAccounting, as everyone knows, plays a very important role in every organisation. In the recent

The Vulnerability Of Computerised Accounting Information Systems To Computer Crime

1916 words - 8 pages The vulnerability of computerised accounting information systems to computer crimeAbstractWith the information technology development day-by-day, Computerised Accounting Information System (CAIS) plays an increasingly significant role in the successful operation of today's business. CAIS has been used more and more broadly and had as much impact on organisations, however the computer crime is also an important issue related to CAIS. As the

Discussion Of Internal Controls That Are Placed In An Accounting Information Systems

2160 words - 9 pages the system my the company's own management and directors. Today more and more companies are moving from the manual accounting systems to computerized accounting information systems. The advantages of a computerized system are increases in the speed and accuracy of processing accounting information.However, as systems become computerized, the internal controls for that system has to be adapted accordingly. This is because computerized systems