Accounting Information System

1811 WordsSep 29, 20128 Pages
Discussion I. I. Accounting information system is a combination of collecting, recording, storing, and processing data of a business. The advancement of technology initiates business firms to seek for new innovations that would greatly help in business functions. As what Dillon and Kruck (2004) had explained, “at the start of the 21st century, business organizations are facing an explosion of global competition and innovation and facilitating this explosion is the increasing ability of organizations to make good business decisions based on the large amounts of information their enterprise produces”. In this environment, it is necessary for a successful business to integrate information technology into its basic process. And with…show more content…
With the six components of AIS the three important business functions would be met. One of the business functions is to get and store information about business operations, resources, and personnel (K.T. Smith & M.L. Smith, 2002). Another function is to make the data useful for decision making so that the management can control, work, plan, and check its activities, resources, and the personnel (Vitez, 2010). Finally because of the components of AIS the business can give right control to ensure the safety of assets, authorize the transactions and to safeguard the reliability and accuracy of the accounting records to prevent the problems that will arise in an organization (Herrera, n.d.). AIS design is affected by three factors as indicated by K.T. Smith & M.L. Smith (2002) are organizational culture, strategy, and information technology, in connection to this matter information technology is used to enhance the performance of the AIS in a business while to understand more the strategies of the organization and how information technology affect the design of AIS, strategies and information technology should be incorporated to develop the current strategies and AIS design and it must reflect also the traits of the organizational culture. According to Dillon and Kruck (2004) in recent years the accounting information technology has changed the environment dominated by mainframe computers that were specialized only for the recording of business
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