Accounting Information - Article Review

1580 Words Jan 31st, 2012 7 Pages
Article Review

Journal of Accountancy

UMUC

Accounting Information Systems 326

Professor T. Wood

December 4, 2011

Cloud Computing: What Accountants Need to Know, (Journal of Accountancy, Oct 2010). This article answers the questions that Accountants and CPA should be asking themselves in regards to the new technology that is growing fast. Cloud technology is growing so fast that, cloud services revenues were expected to surpass $68 billion dollars in 2010, which was almost a 17% increase over 2009 revenues. Cloud computing is like e-commerce but considered more cost effective because it reduces the need for a business or companies to have full IT department, purchasing software or maintaining on site systems.
…show more content…
This is one concept vendors are having trouble overcoming - the fear and risk companies have in storing their data off-site with other companies.
Vendors have to undergo audits to exam and evaluate the controls over the system and services it provides to users. The infrastructure, the software, the procedures, the data processes are audited along with a review of the personnel responsible for system operations. Just like a CPA would audit a client for the reliability of their internal controls. Vendors are also audit on how their internal controls match with the description of the controls designed by the AICPA service organization controls report.
There are a number of applications available for accounts and CPA and their clients to use in conducting business in the cloud. Examples are billing management, enterprise resource planning (ERP) applications, payroll, sales tax and tax preparation.
Our current text book might not have information regarding the use of cloud computing application for accounting information systems but the next version will have to. Data storage and computer applications are going to move skyward, new accountants and CPA’s need to be aware of how it will impact the way we manage clients and conduct audits on internal controls.

Article 2
TIGTA Finds problems with IRS – Purchase Cards, Network Security, (Oct. 2011 : The Treasury Inspector General for Tax

More about Accounting Information - Article Review

Open Document