In the digitalized era of the 21st century, the emergence of
Accounting Information Systems (AIS) has increased significantly.
The strategic use of AIS can influence the planning and decision0-
making processes in organizations (Al-Okaily, 2021). In the personal
workplace setting that has been identified, AIS plays an instrumental
role. It has helped in automating a diverse range of accounting
activities and processes, such as collecting, storing, managing and
processing financial data on a real-time basis. The reliance on manual
activities to capture financial data has reduced considerably, but it
has not been entirely eliminated in the organization. AI technology
plays a key role in checking the accuracy of values that have been
captured in financial statements.
Proposed changes in the internal control structure
A number of changes can be made in the internal control system and
structure so that the financial data of the business can be protected
in an efficient manner. The role of internal controls has increased
substantially in the digitalized era since such controls can help to
safeguard assets, verify financial records, prevent fraudulent
activities, monitor organizational performance, and ensure the
uninterrupted and efficient flow of business activities
(PricewaterhouseCoopers., 2019). Some of the changes that can be
made in the organization so that AIS can be optimally used without
compromising the safety and security of business data include
adherence to the COSO framework at the corporate level, providing
training to employees to strengthen their audit management
capabilities and adopting Governance Risk and Compliance (GRC). It
has been argued that the COSO framework strengthens the quality
of internal control with the help of its five integral components,
including control environment, control activities, risk assessment,
monitoring activities and information and communications (Dhillon,
2018). Creating ample training opportunities for staff within
organizations is also instrumental as it can help them to upgrade their
skills which can be applied while using AIS in the organizational
landscape. A detailed insight into accounting information is
instrumental to have in place quality Accounting Information
Systems that can help to optimally use it for managing financial data.
Similarly, by integrating Governance Risk and Compliance
technologies within the organization, there is an opportunity to
enable the senior management to have proper visibility into the risk
profile as well as the internal control environment
(PricewaterhouseCoopers., 2019).
Employees – Personal attitude, values and culture
Employees play an instrumental role in influencing the effectiveness
of the internal controls that are in place in an organization. In the
specific organizational context that has been considered, the
organizational personnel focus on ethical principles such as
transparency, honesty and integrity and responsibility. The emphasis
on ethical conduct within the workplace has helped to have better
control over the prevalence of fraudulent practices. It has been
argued that the manner in which employees function in a firm can
help to strengthen the overall effectiveness of internal controls and
help create a secure control environment (Ehis, 2021). In the
identified organizational setting, the existence of a secure culture
influences employees to act responsibly and value the importance of
internal controls in the AIS context.
Reference
Al-Okaily, M. (2021). Assessing the effectiveness of accounting
information systems in the era of COVID-19 pandemic. VINE Journal
of Information and Knowledge Management Systems.
https://doi.org/10.1108/vjikms-08-2021-0148
Dhillon, S., & Andri, A. (2018). The effect of internal control by using
COSO framework on revenue toward employee performance: A case
study in public hospital of south of Tangerang, Indonesia. SSRN
Electronic Journal. https://doi.org/10.2139/ssrn.3299235
Ehis, O. S., Ifunanya, O. S., & David, C. O. (2021). Internal control: Its
role in the reduction of fraud and professional misconduct among
smes. Asian Journal of Economics, Business and Accounting, 57–66.
https://doi.org/10.9734/ajeba/2021/v21i1930506
PricewaterhouseCoopers. (n.d.). Re-inventing internal controls in the
Digital age. PwC. Retrieved January 18, 2023, from
https://www.pwc.com/sg/en/publications/reinventing-internal-
controls-in-the-digital-age.html
