Introduction To Accounting Information System
Accounting Information System is an essence of all organizations; it is the process of computerizing accounting information system (AIS) in which there is the collection, storage and processing of these data. These are related to financial and accounting and it is used by decision ma
Every organization depends on information system to make their process automatic to regulate their system design implementation and operational phase of the system, so the decision makers of the organization can take correct decisions (Kathiravan, 2003).
Task 1: Factors That Contributed To The AIS Failure In Business
An accounting information system (AIS) is a system which includes collection, storage, manage and processing of financial and accounting data which is used by decision makers in business. This financial data is used by accountants, business analysts, managers, auditors and other chief financial officers, to avoid failure of AIS these persons work with the highest level of accuracy in a company’s financial transactions (Storbacka, 2012).
Task 2: Responsibility Of Management In Faliure Of (AIS)
Management is responsible for any failure in accounting information and thus internal control structure possesses the risk of a company. This control includes the responsibility of human resource policies and practices which define the operational work of the company. Audit practices with the help of which the final data and whole final information are measured and checked. But the last responsibility is of management and operational controls who control the overall work and efficiency of accounting information system (Hall, 2011), whereas in the computerized accounting information system, management should implement those policies for controlling the overall changes to systems and to take care at the time of development of new system procedures.
Task 3: Most Significant Failure Occurred In System Design And Company Can Avoid This Failed Outcome
The failure of accounting information (AIS) may be for several reasons they may be occurred within system design, implementation design or operational phase of the process of accounting information system. But most of the failures occurred in system design failure because the software may be outdated and due to which it is not efficient in fulfilling all the needs of the accountants, financial analysts, users of financial information and auditors of the company (Boonmak, 2008).
Task 4: Reducing The Chances Of Faliure In Implementing Best Practices
Companies are experiencing many failures which provide challenges to management to take corrective actions to reduce those chances of failures in accounting information system. Management of the company has to establish that system which provides controls to policies and procedures of the company. It is the responsibility of the management to maintain best practices for testing, documentation and assessment of internal controls which relate to financial information (Xu-dong, Lu & Aiken, 2007).
Task 5: Best Practices That Organization Should Used To Reduce The Chances Of Failure
If an organization wants to reduce the chances of failure in accounting information system they should use the information and system in such manner that they can avoid the failure.
Task 6: Principles Designed By Ibm Which Provide Effective And Efficient Strategies In Deploying Financial Management System
These principles of IBM designed to provide imminent into effective and efficient strategies for deploying financial management system and these principles are based upon multiple financial management system deployments.
- Simplification process: In the simplification process there is a need to identify and prioritize the business process that need to be standardized in a such a way that it can optimize the effective use of commercial-off-the-shelf (COTS) software.
- Engage of stakeholders: This principle defines about the establishment of shared vision and objectives of the organisation including stakeholders of the company. It identifies and develops the goals of business with senior management.
- Plan Acquisitions: In plan acquisitions there is need to understand the requirements with their links to the mission of the organisation and to know about mitigation of risk at the time of delivering in the system.
From the above study it can be concluded that if the AIS is designed in a good manner, then everyone in an organization can implement best practices towards the optimum use of financial resources. It will be beneficial to both internal and external users of the organization. Principles of IBM which are provided by them for effective and efficient deployment of financial management system can be used in every organization.
Furthermore, You May Like-
- Angela S.M. & et. al. (2013). Are the financial transactions conducted in virtual environments truly anonymous?: An experimental research from an Australian perspective. Journal of Money Laundering Control.
- Baskin, M. & Pickton, D. (2003) Account planning–from genesis to revelation. Marketing Intelligence & Planning. 21(7).
- Joshi, L. P. & Al-Bastaki, H. (2002). International accounting and the accounting curriculum: A survey of the perceptions of corporate chief accountants from Bahrain. Meditari Accountancy Research 10(1).
- Kathiravan, N. & et. al. (2003). Financial accounting of ISO 9001:1994 based on quality information system. The TQM Magazine. 15(4).