Accounting Information Systems: An Overview Essay

4167 words - 17 pages

ACCOUNTING INFORMATION SYSTEMS: AN OVERVIEW

SUGGESTED ANSWERS TO DISCUSSION QUESTIONS

1.1 The value of information is the difference between the benefits realized from using that information and the costs of producing it. Would you, or any organization, ever produce information if its expected costs exceeded its benefits? If so, provide some examples. If not, why not?

Most organizations produce information only if its value exceeds its cost. However, there are two situations where information may be produced even if its cost exceeds its value.

a. It is often difficult to estimate accurately the value of information and the cost of producing it. Therefore, organizations ...view middle of the document...

a. Identify the key decisions you need to make to be successful entrepreneurs, the information you need to make them, and the business processes you will need to engage in.
b. Your company will need to exchange information with various external parties. Identify the external parties, and specify the information received from and sent to each of them.

The author turns this question into an in-class group activity. Students are divided up in groups, told to close their books, and given 15 minutes to:

a. Think through the business processes, key decisions, and information needs issues in their group.
b. Identify the external users of information and specify the information received from and sent to each of them.

One group is selected to present their answers to the class. The other groups are told to challenge the group’s answers, provide alternative answers, and chip in with additional answers not provided by the selected group. Since the group that presents is not selected until after the time has expired, students are motivated to do a good job, as they will be presenting to their peers.

The value of this activity is not in arriving at a “right answer” as there are many right answers and student answers will vary. Instead, it is in thinking through the issues presented in Table 1-2 (business processes, key decisions, and information needs) and Figure 1-1 (interactions with external parties). Student answers should contain many of the things in Table 1-2 and Figure 1-1 as well as others not shown, as a retail operation differs from an application development enterprise.

The author concludes the exercise by having the students turn to Table 1-2 and Figure 1-1 while he emphasizes the need for owners, managers, and employees of organizations to identify the information needed to make key decisions in the company’s business processes and the key information interchanges with external parties. All of the data needed to produce this information must be entered into the AIS, processed, stored, protected, and made available to the appropriate users.

While this active learning activity takes more time than a lecture does, it drives the point home much better than a lecture would. It also keeps the students more engaged in the material.


1.4 How do an organization’s business processes and lines of business affect the design of its AIS? Give several examples of how differences among organizations are reflected in their AIS.

An organization’s AIS must reflect its business processes and its line of business. For example:

• Manufacturing companies will need a set of procedures and documents for the production cycle; non-manufacturing companies do not.
• Government agencies need procedures to track separately all inflows and outflows from various funds, to ensure that legal requirements about the use of specific funds are followed.
• Financial institutions do not need extensive inventory control...

Other Essays Like Accounting Information Systems: an Overview

ACCT 504 Accounting and Finance, Managerial Use and Analysis

1275 words - 6 pages ACCT 504 Accounting and Finance, Managerial Use and Analysis Product Description WEEK 1Discussion Question, An Overview of Financial StatementsWEEK 2Discussion Question, Accounting Information System and Accrual Accounting ConceptsWEEK 3Case Study 1, The Complete Accounting Cycle, Parkview LandscapingDiscussion 1, CVP AnalysisDiscussion 2, Merchandising Operations and InventoryWEEK 4Assignment - International Business

Computer System Brief-Kudler Fine Foods Essay

1109 words - 5 pages store to the supplier will save time and money for Kudler Fine Foods. This is just one of many areas in the accounting department that can be upgraded with the help of a custom computer system based software. The accounting system overview consist of general ledgers, accounts payable, point of sales (POS), bank reconciliation and asset management and accounting (Accounting System Overview, 2003). Looking over this accounting systems, there are some

ACCT 504 Accounting and Finance, Managerial Use and Analysis

1653 words - 7 pages ACCT 504 Accounting and Finance, Managerial Use and Analysis Product Description WEEK 1Discussion Question, An Overview of Financial StatementsWEEK 2Discussion Question, Accounting Information System and Accrual Accounting ConceptsWEEK 3Case Study 1, The Complete Accounting Cycle, Parkview LandscapingDiscussion 1, CVP AnalysisDiscussion 2, Merchandising Operations and InventoryWEEK 4Assignment - International Business

ACCT 504 Accounting and Finance, Managerial Use and Analysis

1527 words - 7 pages ACCT 504 Accounting and Finance, Managerial Use and Analysis Product Description WEEK 1Discussion Question, An Overview of Financial StatementsWEEK 2Discussion Question, Accounting Information System and Accrual Accounting ConceptsWEEK 3Case Study 1, The Complete Accounting Cycle, Parkview LandscapingDiscussion 1, CVP AnalysisDiscussion 2, Merchandising Operations and InventoryWEEK 4Assignment - International Business

ACCT 504 Accounting and Finance, Managerial Use and Analysis - 5811 words

5811 words - 24 pages ACCT 504 Accounting and Finance, Managerial Use and Analysis Product Description WEEK 1Discussion Question, An Overview of Financial StatementsWEEK 2Discussion Question, Accounting Information System and Accrual Accounting ConceptsWEEK 3Case Study 1, The Complete Accounting Cycle, Parkview LandscapingDiscussion 1, CVP AnalysisDiscussion 2, Merchandising Operations and InventoryWEEK 4Assignment - International Business

Aat Unit 10 Managing Systems and People in the Accounting Environment

798 words - 4 pages relationships, building teams and motivating staff (Element 10.1). 4. The organisation • How the accounting systems of an organisation are affected by its organisational structure, its Management Information Systems, its administrative systems and procedures and the nature of its business transactions (Elements 10.1 & 10.2). • The overview of the organisation’s business and its critical external relationships (customers/clients, suppliers, etc

Accounting Standards Board

1370 words - 6 pages Accounting Standards Boards Paper April Jones University of Phoenix Abstract Accounting is an ever-evolving field with constantly changing objectives. In this world of accounting, standards need to be set whether they are in the United States or Overseas. The accounting boards will help with making sure that all of the information is done correctly and are reported in a consistent way so that investors can determine what company is better

Netw420 Cisco Network Management System

661 words - 3 pages insight into current usage patterns. Using usage-based accounting and billing system are an essential part of any service level agreement. Usage-based accounting and billing system provides both a practical way of defining obligations under an SLA and clear consequences for behavior outside the terms of the SLA. Conclusion This was a brief overview of what Cisco uses for their Network Management System. Cisco dominates the market for network

Effects of Technology on the Accounting Profession

989 words - 4 pages Effects of Technology on the Accounting Profession ACC Effects of Technology on the Accounting Profession Information systems are changing many aspects of business, especially in accounting. Accounting information systems (AIS) affect various aspects of the profession including: Financial Accounting, Managerial Accounting, Auditing, and Taxation. New technologies have made it much easier in many cases to accomplish tasks that

Software Applications

557 words - 3 pages Information Systems and Software Applications Information systems and software applications are integral part of most business nationally and internationally. Small businesses, like the local video store, to large corporations rely on information systems and technology to perform the essential functions of the business. “A computer-based information system is an information system that uses computer technology to perform some or all of its

The Effects of Technology on the Accounting Profession

965 words - 4 pages "accountant in their pocket" at all times. In the modern age, technology is constantly evolving and this has an effect on every profession, especially accounting. Processes and procedures are becoming less manual and more automated. Accounting begun being all written and having hard copies as the only backup. Systems are becoming more advanced and powerful which allows them to aggregate large amounts of data. As time went on, new software and

Related Papers

Accounting Information Systems Essay

1410 words - 6 pages information integrity within automated business systems. Introduction Management accounting systems are very necessary for the proper running of a business. This owes to the fact that accounting information systems offer information related to internal operations of the business in a timely manner. The managers of an organization require specific information and data regarding certain business processes for controlling costs, and expenses and also

Accounting Information Systems Research Paper

3295 words - 14 pages Accounting Information Systems Research Paper Abstract The Sarbanes-Oxley Act of 2002 (SOX) was enacted into law in 2002 in the wake of corporation financial reporting scandals involving large publicly held companies. SOX instituted new strict financial regulations with the intent of improving accounting practices and protecting investors from corporate misconduct. SOX requires corporate executives to vouch for the accuracy of

An Overview Of Forensic Accounting In Malaysia

883 words - 4 pages Versions View a record of changes made to a file. You can choose to go back to an earlier version of a file if you’d like. Browse on Dropbox Website View a file on the Dropbox website. Get Link Make a link to any file or folder in your Dropbox. You can then send this link to anyone you’d like to view the file — even if they don’t have Dropbox! The Dropbox Tray/Menu bar icon The Dropbox tray or menu bar icon is located on the bottom (Windows

Kudler Fine Foods Accounting System

1005 words - 5 pages integrated within all of the information systems in use. Therefore, before any system is updated or changed, the accounting system must be considered and analyzed for compatibility and integration. Kudler Fine Foods hired a consulting firm to “assist in the selection and installation of a comprehensive Retail Enterprise Management System (REMS)”, according to the Kudler Fine Foods intranet. REMS is a modular system which contains a General Ledger