Accounting Information Systems Essay

1653 words - 7 pages

Table of Contents

Introduction ……………………………………………………………………………………….3

Critical aspects of Accounting Information Systems………………………………….................3

People…………………………………………………………………………………….3

Procedure and Process Analysis…………………………………………………………4

Data Analysis…………………………………………………………………………….4

Decision Analysis………………………………………………………………………..4

Design…………………………………………………………………………………….5

Importance of Safeguarding Information ………………………………………………………..6

Network Security………………………. ……………………………………………………….6

Advantages of Accounting Information Systems..……………………………………................7

Disadvantages of Accounting Information Systems……………………………………………..7

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Therefore, when developing a system, the ergonomic principle must form the central thinking area. In that sense, workers within an organization will be able to use the system to the benefit of the organization successfully. People must understand the system and it should not be too difficult to implement, utilize, or comprehend. A system that is hard to understand makes it extremely hard for the users to make any good use of it. Secondly, the system must make the accountants or users working experience enjoyable, which is especially true in a world where job satisfaction is paramount to the success of organizations. If employees are dissatisfied with their job experiences, they will do little for the engineers of profits and constant revenues within an organization (Drever, Santon and McGoan, 2007).
Some of the devices used in an internal Accounting information system include the output, input and processing devices. Some of input devices include scanners, personal computers, fax machines. Process machines are software installed in the hardware. An employee uses these tools to engage the system to come up with meaning full data. If the whole process is frustrating, the output may not be conclusive enough which may make an organization have a problem with decision-making and strategy (Liyanarachchi, 2008).
Procedure and Process Analysis
Procedure and process analysis is the manner in which the Accounting information system supports the decision making process of an organization, at all levels of an organization, through top management. It covers a broad category of the fundamental accounting, which include keeping, and making records to complex organization strategic planning and management.
Data Analysis
The company must make a comprehensive data analysis outlook to ascertain the amount of data that it is handling. This will largely be the determiner of the size of the accounting information system. A company or a small medium enterprise that handles large data requires a comparatively larger accounting information system than a small company. It also requires a huge budgetary allocation to ensure that it successfully adopts the automatic system (Carnal, 2007).
Decision Analysis
The International Financial Reporting Standards (IFRSs) clearly gives the major characteristics that financial statements must possess for them to give a true and fair representation. Relevance and reliability make up the content related characteristics. Relevance means that the given information shown on the financial statements should be good enough to influence stakeholders, managers and the public who may have interests of investing in the company (Liyanarachchi, 2008). Reliability means that the information provided should be very precise, such that it gives no room for misinformed decisions on the user’s part. The information given should relate to that specific organization and it should not be a form of misrepresentation designed to...

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