This website uses cookies to ensure you have the best experience. Learn more

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 financial statements, and to institute and monitor effective internal controls over financial reporting. The cost of implementing an effective internal control structure are onerous, and SOX inflicts opportunity costs upon an enterprise as executives have ...view middle of the document...

The Public Company Accounting Oversight Board is the enforcement arm of the legislation, and is under the authority of the SEC to oversee accounting and auditing processes. Public companies are required integrate internal controls in their accounting information systems to ensure data validity and security.
The Sarbanes-Oxley Act of 2002
In the aftermath of several corporate financial reporting scandals involving large publicly held companies such as Enron, WorldCom, and Tyco, the United States Congress passed the Sarbanes-Oxley Act of 2002 and enacted it into law on July 30, 2002. The Sarbanes-Oxley Act (SOX) takes its name from its two primary congressional sponsors, Representative Michael Oxley (R-OH) and Senator Paul Sarbanes (D-MD) (Hoffman, 2005, p. 3). SOX instituted new strict financial regulations with the intent of improving accounting practices and protecting investors from corporate misconduct. The law is intended to protect stakeholders from corporate greed, fraud, and misleading financial reporting. SOX legislation tackles several important concerns including corporate responsibility, internal controls, auditor independence, financial disclosures, criminal and fraud liability, conflicts of interest, and corporate tax returns (Moffett and Grant, 2011, p. 3). Under the law, independent auditors and corporate officers of publicly traded companies must affirm both the accuracy of the financial statements and their supporting processes and data (Hoffman, 2005, p. 3). The law requires corporate officers to vouch for the effectiveness of the company’s internal controls and to be honest and transparent in financial reporting.
SOX is organized under eleven titles, with the majority of the compliance principles written under sections 302, 401, 404, and 409 (A Guide to the Sarbanes-Oxley Act, 2006). Section 302 requires company officers to certify the truthfulness and completeness of quarterly and annual reports. Additionally, the signing officers are responsible for establishing and maintaining the internal controls, and must have evaluated the effectiveness of the controls within 90 days prior to certifying the financial statements (Hoffman, 2005, p. 4). Section 401 of SOX requires corporations to issue financial statements that are complete and accurate and include all material off-balance sheet obligations or liabilities (A Guide to the Sarbanes-Oxley Act, 2006). This regulation was instituted to prevent public corporations from hiding liabilities from investors, and thus artificially inflating stock prices.
Section 404 requires public companies to establish internal controls and report annually on their effectiveness over financial reporting. The CFO and CEO are held personally responsible for the internal controls via the requirement to sign a statement certifying the adequacy of the internal control system (Moffett and Grant, 2011, p. 3). Additionally, the company’s independent auditor must issue an attestation...

Other Essays Like Accounting Information Systems Research Paper

Evolution of Health Care Information Systems Paper

1376 words - 6 pages systems. HIT initiative program was created to improve the quality of care by linking two providers and patient information through the meaningful use of EHRs. Other important objective of HIT is to increase coordination and quality through improved data collection. Not all physicians can participate in HIT initiative program. To be qualified practitioners must have license and may not be hospital-based. Another good example of health news

Information Systems Paper

1275 words - 6 pages “Information Systems Proposal” July 9, 2012 Axia University BIS 220 – “Introduction to Computer Applications and Systems” Alicia Snedeker A&R Records Inc. Table of Contents 1. Introduction 2. Table 3. Benefits of Information Systems 4. Drawbacks of Information Systems 5. Conclusion Operating a business is hard and what makes it harder is not being familiar with the information systems being used. A

Changing the Ais

609 words - 3 pages as lessons learned from implementing the accounting system. In addition to information that you may find during your research, please use the following IBM article to complete the assignment: (http://www.businessofgovernment.org/article/what-we-know-now-lessons-learned-implementing-federal-financial-systems-projects). Write a ten to twelve (10-12) page paper in which you: Identify three to five (3-5) factors that contributed to the

ACCT 504 Accounting and Finance, Managerial Use and Analysis

1275 words - 6 pages , 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 & Career Research, Part I & IIMidterm - Essays TypeMidterm Exam 1Midterm Exam 2Midterm Exam 3Midterm Exam 4Midterm Exam 5WEEK 5Case Study 2 - Internal Control - Paper 1Case Study 2 - Internal Control

ACCT 504 Accounting and Finance, Managerial Use and Analysis

1653 words - 7 pages , 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 & Career Research, Part I & IIMidterm - Essays TypeMidterm Exam 1Midterm Exam 2Midterm Exam 3Midterm Exam 4Midterm Exam 5WEEK 5Case Study 2 - Internal Control - Paper 1Case Study 2 - Internal Control

Computer Information System Paper

1056 words - 5 pages computer systems more effectively integrated to meet Kindler foods business needs to improve accounting operations. After conducting an environmental scan for key elements that were disseminated and are detailed below. These key elements represent accounting information systems and programs to consider when seeking upgrading current operating procedures. Key Business and Accounting Information needs

ACCT 504 Accounting and Finance, Managerial Use and Analysis

1527 words - 7 pages , 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 & Career Research, Part I & IIMidterm - Essays TypeMidterm Exam 1Midterm Exam 2Midterm Exam 3Midterm Exam 4Midterm Exam 5WEEK 5Case Study 2 - Internal Control - Paper 1Case Study 2 - Internal Control

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

5811 words - 24 pages , 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 & Career Research, Part I & IIMidterm - Essays TypeMidterm Exam 1Midterm Exam 2Midterm Exam 3Midterm Exam 4Midterm Exam 5WEEK 5Case Study 2 - Internal Control - Paper 1Case Study 2 - Internal Control

Mangaers and Accountinf

633 words - 3 pages Abstract The accounting services are vital for the success of a business, and their quality is very important, both for the users of accounting information, as well as for the providers of services. I want to highlights through this paper, the characteristics and important quality factors of management accounting that managers need to use during management decision-making process. Accounting information provides managers with data needed

Accounts Computers in Acounting

1732 words - 7 pages gradually migrated into computerized spreadsheets. Gradually, Accounting systems dedicated to this function were developed and the term Computerized Accounting was born ADVANTAGES * Faster and efficient in processing of information; * Automatic generation of accounting documents like invoices, cheques and statement of account; * With the larger reductions in the cost of hardware and software and availability of user-friendly

Valuation of Bonds

2275 words - 10 pages development of statistical probabilities of future financial results. CONCLUSION & FUTURE RESEARCH Financial accounting information is the product of corporate accounting and external reporting systems. In light of recent high profile business failures and economic crashes, it is imperative that investors have the appropriate tools and data resources to spot business success and business failures more accurately. Applying accounting information and

Related Papers

Accounting Information Systems Essay

1410 words - 6 pages AIS Improper Assumptions Muna Rodriguez Accounting Information Systems Dr. Mohammad Sumadi October 20, 2013 Abstract In 1967 Russell L. Ackoff produced "Management Misinformation Systems" to show the 5 assumptions managers make concerning accounting information systems (AIS) and the contentions for each of them. These five assumptions were based around the amount of information that managers receive from their

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

Information Systems Paper

806 words - 4 pages Information Systems Paper By Aram Abramyan CJA 570/Scott McMillan March 8, 2010 University of Phoenix, Online Introduction The United States of America is comprised many companies, organizations, and agencies, which contribute to our daily lives and they contribute to convenience of our daily routines. Some of these organizations and agencies are also directly responsible for the safety and the well being of the citizens and properties

Week 2 Paper Evolution Of Information Systems

975 words - 4 pages services along with long term care, the mission was very fast paced. At this point technology had entered the organization but was in the very early stages and paper documentation was very much in use. The use of technology was used for clinical systems but was segregated by clinics. Each clinic and or specialty had its own specific system and application that did not talk to the other clinics. This was not an effective way to share information