Assignment 1: Information Needs for the AIS (Accounting information Systems)

ACC564003VA016-1186-001 - ACCOUNTING INFO SYSTEMS

Week 2 Assignment 1 - Submit Here

Angel Pupo on Sun, Jul 22 2018, 11:09 PM

64% highest match

Submission ID: 5fc5d0fd-98eb-4bba-98d8-f76fcd9c959f

· Angel pupo Assigment 1 ACC 564 (AIS).doc

Word Count: 1,494

Attachment ID: 221718139

64%

Citations (8/8)

1. 1Another student's paper

2. 2Another student's paper

3. 3Another student's paper

4. 4Another student's paper

5. 5Another student's paper

6. 6Another student's paper

7. 7Another student's paper

8. 8Another student's paper

Running head: 1 ACCOUNTING INFORMATION SYSTEMS

1 ACCOUNTING INFORMATION SYSTEMS

7

Assignment 1: 2 Accounting Information Systems Angel Pupo Accounting Information Systems Dr.  1 Walfyette Powell, CPA

3 July 11, 2018 Accounting Information Systems

Introduction Accounting information system (AIS) have become more important in the organization operations and management as they facilitate the development of strategic decisions if properly utilized and ensures that organization achieves some good competitive advantages in the market. The system ensures timely provision of information, high cost effectiveness and efficiency in the operations or functionality of various accounting practices in the organization. 4 Accounting Information Systems provide helpful and timely accounting information because they perform accounting functions automatically rather than manually.  These systems are principally based on computerized procedures that typically encompass modules recognized as sub-systems. 5 While they remain a significant facet of organizational decision-making, administration may make incorrect assumptions concerning these systems.  6 In this paper I will evaluate how corporate leaders may make improper assumptions connected to accounting information systems and the related information.  I will provide the most negative possible impacts on business operations and recommend (3-4) ways that the organization performance may be enhanced when proper AIS is used. 6 Finally, I will assess the level of system security wanted to make sure information integrity within automated business systems.

Assumptions on AIS

Even though the accounting information system are largely used to facilitated effective and efficient operations in the organization the managers or leaders may develop negative or incorrect assumptions about the system which may affect the productivity and its effectiveness. 4 In regard to Ackoff (1967), there was an escalating attention in Management Information Systems by operations researchers and management scientists (p.147).  This gave way to the development of Management Information Systems that are identical with management science or functional research.  Although there was attention from the academic society in computerized management information systems, few automated management information systems were implemented outside of academia.  Additionally, to the minimal implementation of computerized management information systems, leaders appear to make common and incorrect assumptions regarding the design of these systems.  1 The initial incorrect assumption connected to accounting information systems is the reality that the administration tends to think the security of accounting information as a responsibility or liability of the Information technology team or department.  In most organization the security concerns or issues related to the accounting information system are delegated to the information technology team who are the responsible for designing the entire system. 1 This is a very incorrect assumption as the establishment of the various corporate regulations provides that that security of the accounting information systems is the responsibility of the top management.  4 Under the Section 404 of the Sarbanes-Oxley Act, the organizational top management (CEO) is responsible to ensuring that they preserve internal control over the financial reporting activities.  This automatically represents the accounting information systems as it’s the platform that is used to provide the financial reporting figures.

The other incorrect assumption used by the leaders is that the accounting information system provides accurate information always. Even though this might be correct as compared to manual system the accounting information system may have some error time and again and hence providing inaccurate information to the managers. This can be facilitated by human errors or the transaction of huge amount of data within a short period of time. For instances the common errors may include typing mistakes, incorrect accounting journal entries and misclassification of transactions. The other assumption is related to the cost of acquisition, and implementation of the accounting information systems attributed to significant reduction of operational costs (Romney & Steinbart, 2012). Many managers think that the system will come with direct and significant reduction of cost, but they fail to consider that there will be training of employees, management of the systems and other indirect cost that are associated like security that may increase the organizational spending as well.

4 Comparable to Management Information Systems, the assumption that a leader desires the information he needs is an assumption connected to accounting information systems.  In this scenario administration assumes that they can produce the financial information that they require to achieve specific objectives. 1 Accounting information assesses business activities and converses the information to investors and creditors.  4The last assumption is that accounting information systems ought to offer encouraging financial information in order to be effectual.  Given that these systems only assist administrators to manage, they demonstrate the real financial position of the organization.

The major negative possible impact of the incorrect assumptions is that they can facilitates to improper practices or poor decision-making process hence affecting the productivity of the organization and the ability to achieve competitiveness. The assumption may affect the use of the accounting information systems leading to inaccurate information provision, huge financial loses, poor security strategies and unethical accounting practices like exaggerated creative accounting to fill the gap that was misrepresented.

4 Organizational Performance and Proper Information Management

High organization performances and increased ability to achieve competitiveness in the market is linked to proper management of the information systems in the organization. There is need to have proper information management at every level in the organization due to the ever-changing business environment and technology (Mandke & Nayar, 2003). Organizational performances can be significantly enhanced in diverse ways when there is proper information management in the organization.

First, when organization’s management can management information system properly inside the organization means, that there will be effective and accurate flow of information within the department. This is vital as it will save time and facilitate the provision of accurate figures that can be used to develop strategic decisions within the organization. Proper management means there will be able time to countercheck and polish information before reporting it which will increase accuracy and trust from the people using the information. 5 While these management control systems use several techniques, they evaluate various areas in the business system to enhance performance and productivity.

On the other hand, organizational performance can be enhanced when information is correctly handled during conducting absolute and precise performance evaluations. These assessments assist in identifying a worker’s strengths and retaining resourceful and the most experienced personnel. 5 The third way for improving organizational performance in the presence of proper information management is through integrating systems to advance the competence of the produced information on the presentation of the business.  3 The integration of business systems makes sure proper flow of statistics among the different organizational divisions.  4 The adequate and proper flow of statistics in turn leads to effectual decision-making, which improves organizational performance.

Level of Security to Ensure Information Integrity

Privacy or confidentiality of the information system is facilitated by the development of effective information integrity approach in the organization. Information security is one of the most important aspects in the information system within the organization. Information is very valuable and sensitive. 4 This is primarily because unauthorized use or access to private and confidential information about a business could result in negative consequences, particularly with regards to the business’ competitiveness. Thus, protecting information and promoting information integrity is not only a business obligation rather a legal and ethical obligation.

1 Therefore, there is a need for high levels of security, to make sure information integrity within automated business systems.  4 The want for high levels of security for information integrity is because, this approach is connected with numerous major notions i.e.  privacy, accessibility, and genuineness (Potocki, & Brocato, 1995). High levels of information security are critical parts of this procedure since computerized business systems usually function in a complicated business setting described by fears. Additionally, the systems function as open systems that necessitate instrumentality of planning structure to encourage information reliability. The high security level assists in learning techniques through which the business interrelates with its surroundings to set up and achieve integrity objectives while sustaining development.

Conclusion

Accounting information systems comes with a lot of advantages to the organizations operations in terms of data processing speeds, ability to forecast future opportunities and facilitation of effective decision-making process. 4 While these systems have considerably improved the efficiency of organizational processes and productivity, they as well contain certain challenges that ought to be dealt with efficiently.  Some of these challenges are accredited to ordinary assumptions made by the administration regarding their performances.  On the other hand, the main issue that the administration ought to critically consider is the need to encourage information integrity while utilizing these systems.

References

1 Ackoff, R.L.  (1967, December). 4 Management Misinformation Systems. Management Science, 14(4), 147-156.  Retrieved from http://www.acasa.upenn.edu/ackoff67.pdf Mandke, V.V.  & Nayar, M.K.  A Planning Framework for Information Integrity for Complex Business Environment Characterized by Uncertainty.  1 Retrieved from:http://www.ciir.org.in/whitepapers/planningframework/planningframe.pdf Potocki, K.  6 A., & Brocato, R.  C. 6 (1995), “A System of Management for Organizational Improvement”.  Retrieved from: 7http://techdigest.jhuapl.edu/td/td1604/Potocki.pdf

Romney, M. 1 B., & Steinbart, P.  J. 8 (2012), “Accounting Information Systems”.  1Upper Saddle River, NJ:  Prentice Hall.