Accounting Research Paper - 2095 Words



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Accounting Research Paper

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With the changes in businesses becoming more global and consumers buying online in greater numbers, the rapid and accurate flow of information is vital to accountants. This is where AIS or Accounting Information Systems come in, this practice was originally handled “in house” by most businesses, but as technology changed and businesses became more web based, software packages from developers such as Microsoft and Oracle are sold to assist businesses with their accounting needs. AIS was developed for the collection, storage, and processing of financial and accounting data. In most organizations A.I.S. are made up of interrelated components that interact to achieve a common goal. Throughout this paper we will look at the history of AIS, why the A.I.S. is important to corporate America, and what future developments are necessary to move ahead with the system History of the AIS

In order to understand Accounting Information Systems better it is important to break down what the term really means and why it is so important in modern day accounting. The development of AIS dates all the way back to Babylon, in the year 3600BCE, this is when the oldest known record of any business occurred. It is believed that AIS were used in many other countries before making it’s way to the U.S. Countries such as Greece, China, and Rome are all believed to have used this system during trade activities. A.I.S. were first comprised of someone jotting down notes with a pencil and paper and now years later it has developed into extensive software programs that take human error out of the equation. The emergence of the AIS discipline has arisen from the application and of information and communication technology in the accounting portion of the business. (Sutton, 1996). AIS are vital to all businesses (Borthick and Clark, 1990) in order to collect raw data and transform it into financial data to be presented to the decision makers. AIS and decision making in a firm.

Information systems are what companies rely on to provide adequate and necessary information to make decisions. AIS are used as a tool designed to help in the controls related to organizations financial areas. There are many different types of AIS, yet there is no specific way for a company to do their accounting. As long as companies are disciplined and compile all the facts, the accounting method may vary. It is very important for companies to identify and collect meaningful information in order to make important business and financial decisions. Advancements in information and communication technology have made decision-making processes better for management because now it is possible to improve and constantly upgrade the accounting information system. (Pierce, O'Dea. 2003) It is important for companies to reach a common ground between AIS, management, executive functions and external users. This is vital for compatibility of all functions in the company to be established. If a common ground is achieved, coherence between management and accounting information systems leads to the simplification of business and financial decisions. (Granlund, 2011) What do the AIS really do?

The AIS has many different functions but the most important task of the AIS is dealing with the following. -Recording monetary forms of business events
-Data processing and drawing account reports
-Publishing financial statements with financial communities
In todays business world besides the General Manager or President of a company the financial auditor has one of the most important roles in the company. The GM handles the daily operations and decision-making procedures of the operation but the financial auditor working within the AIS is responsible for the accurate and dependable financial reporting of the company. Malinic and Todorovic (2011) believe that within a company comprised of people, equipment, software, and data; the AIS, which includes communication... Show More

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