An analysis of the topic of the companies moving to computerized accounting information systems

It took extraordinary effort to untangle these systems to obtain the necessary information. For the data to be useful, it must be complete, correct and relevant. It must also be protected from natural disasters and power surges that can cause data loss. For publicly-traded companies, no matter what software program and customization options the business chooses, Sarbanes-Oxley regulations will dictate the structure of the AIS to some extent.

On the other hand, examples of data that would not go into an AIS includes memos, correspondence, presentations and manuals. Managers rely on the information it outputs to make decisions for the company, and they need high-quality information to make sound decisions.

An AIS contains confidential information belonging not just to the company, but also to its employees and customers.

An AIS also needs internal controls that protect it from computer viruses, hackers and other internal and external threats to network security. An AIS must have internal controls to protect against unauthorized computer access and to limit access to authorized users which includes some users inside the company.

Internal Controls The internal controls of an AIS are the security measures it contains to protect sensitive data.

The system could even be outsourced to a specialized company. One way businesses can easily meet hardware and software compatibility requirements is by purchasing a turnkey system that includes both the hardware and the software that the business needs. A third use for an AIS is that when a business is in trouble, the data in its AIS can be used to uncover the story of what went wrong.

Get a free 10 week email series that will teach you how to start investing.

These can be as simple as passwords or as complex as biometric identification. It must also prevent unauthorized file access by individuals who are allowed to access only select parts of the system. The Bottom Line The six components of an AIS all work together to help key employees collect, store, manage, process, retrieve, and report their financial data.

The cases of WorldCom and Lehman Brothers provide two examples.

In addition to cost, factors to consider in selecting hardware include speed, storage capability and whether it can be expanded and upgraded. Having a well-developed and maintained accounting information system that is efficient and accurate is an indispensable component of a successful business.

System activity should be traceable as well. Perhaps most importantly, the hardware selected for an AIS must be compatible with the intended software.

Delivered twice a week, straight to your inbox. All of the data in an AIS should be encrypted, and access to the system should be logged and surveilled. Trading Center Want to learn how to invest? This data may include Social Security numbers, salary information, credit card numbers, and so on.

Quality, reliability and security are key components of effective AIS software. The Collapse of Lehman Brothers. Purchasing a turnkey system means, theoretically, that the business will get an optimal combination of hardware and software for its AIS.

Information Technology Infrastructure Information technology infrastructure is just a fancy name for the hardware used to operate the accounting information system. This is because SOX regulations establish internal controls and auditing procedures that public companies must comply with.

A good AIS should also include a plan for maintaining, servicing, replacing and upgrading components of the hardware system, as well as a plan for the disposal of broken and outdated hardware so that sensitive data is completely destroyed. Before there were computers, AISs were manual, paper-based systems, but today, most companies are using computer software as the basis of the AIS.

AIS software programs can be customized to meet the unique needs of different types of businesses.The existences of accounting research on ERPS has created an opportunity for further research on the Accounting Information Systems (AIS) quality and effectiveness in the decision making process.

An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve and report its financial data so that it. and Grabski, ), is well documented in the accounting information systems literature. Chenhall and Morris (), for example, examine the impact of contextual variables such as.

The process in the evolution of an accounting system that determines how the system should provide information and meet the users' needs is the _____ stage.

Introduction To Accounting Information Systems

Computerized accounting systems are used to simplify the record-keeping system. Large companies have their accounting systems integrated within the automated business systems of the firm.

The study examined the impact of computerized Accounting Information System (AIS) on the performance of banks in Nigeria. The objective of this research study is to evaluate the impact of computerized (AIS) on the efficiency of bank operations, employee performance, customer satisfaction, service.

An analysis of the topic of the companies moving to computerized accounting information systems
Rated 5/5 based on 21 review