Accounting Assignment 1: Need for AIS Student’s name: Lecturer’s name: Date of Submission:  

An accounting information system (AIS) is acknowledged as a system that not only gathers and records data, but also stores and process that data to enhance the decision making process. Accounting information systems is highly appreciated and recognized in the business world. They have the potential of being inexpensive to slightly costly.  The cost is not an issue as the value and worth it provides outweigh the cost.  Accounting information systems is very useful as it accurately provides information to the management and on timely measures.  AIS is employed to administer the working and processing of not only receivables but also payables along with other cash transactions along with additional information for imperative accounting functions. It is very significant to employ an effective and efficient information system for handling tasks in accounting as there are numerous values and transactions that have to be managed in accounting.(Peavler, 2014)

These days it is naturally expected that AIS is strictly an automated system. Notwithstanding, AIS parts include:  individuals, methods and guidelines, information, programming, information engineering foundation, and inward controls and efforts to establish safety. With all these parts consolidated, it is obvious that outlandish circumstances could emerge beginning with the leader of the operation, corporate pioneers. Corporate pioneers may make disgraceful suppositions identified with accounting information systems and the related information. (Gailly and Geerts, 2012)

There are several key incorrect assumptions that management makes about its accounting information systems.

There are at least five common assumptions about information systems which are mentioned by Walther in his writing of “Principles of Accounting”.  These common assumptions regarding the writing are outlined below:

  1. Management needs more information
  2. Managers need the information they want
  3. Giving managers the information they need to improve their decision making
  4. More communication means better performance, and
  5. Managers need only to understand how to use an information system

(Walther, 2014).

These assumptions are not all true and they are identified and implemented from last many years in accounting as depicted in some past researches.The improper uncertainties identified with accounting information systems that corporate pioneers make can all be staying away from with legitimate learning. One improper suspicion is giving workers the information that they need and they will be fine. Additionally, I feel that two of Walther’s suppositions apply to corporate pioneers today; more correspondence means better execution and administrators require just to see how to utilize an information system. Every one of the three of these are improper. An individual can have all the information, and also, correspondence on the planet and not profit from. There is something else entirely to accounting information systems than simply having the manual. In place for the system to be effective and successful fitting preparing is required. The additionally preparing and refresher courses, one gets on AIS the better the choice making methodology would be for corporate pioneers.

These improper assumptions have a direct and potentially negative impact on the business operations due to their significance in accounting functions and decisions. Some of the negative effectsare related to a decrease in the integrity of the financial reporting process, a decrease in the quality of the financial reports, a loss of time and money for shareholders, as well as an improper manifestation of the true assets of the company.  It should be considered and acknowledged by the executives of firms that an AIS of organization plays a significant role in facilitating it toapprovein addition topreserve a strategic position.  Consequently, training and development along with some small courses are of significantconsequence. (Lengauer et al, 2006)

Through exploration it is delineated that the authoritative execution is recognized as an examination of an organization’s execution as contrasted with objectives and targets (Mcgraw, 2013). Albeit, in the business world, the principle objective and target of numerous organizations are to expand benefits. In light of this, it is crucial to comprehend an organization’s hierarchical execution as it identifies with business systems.

There are a few courses in which hierarchical execution may be enhanced when information is appropriately overseen inside a business system. With the business world being so focused, authoritative change is a prerequisite. There are five guided standards being utilized to make remarkable upgrades in authoritative execution:  benchmarks/estimations, authority, representative inclusion, process change, and client center (Duminica, 2010). Be that as it may, out of the five standards, three is the most key to the change of authoritative execution. They are benchmarks/estimations, representative inclusion, and client center. Every one of the three of these standards ought to mix as one. Benchmarks/estimations are utilized to discover the best of the best inside an organization. By pushing representatives to create their best expands the organization assurance. On the off chance that a worker know where they ought to be, possibly they will push hard to get there and keep up that status. Next is worker contribution. Worker contribution is discriminating all organizations. Most people feel that the substance of the organization is the corporate pioneers. Be that as it may, it is the individual workers. Urging representatives to make proposals, arrange, and settle on choices concerning their work. Consolation to worker contribution is focused around the reasoning that the individuals included in a procedure know it best, and on the perception that included representatives are more inspired to enhance their execution (Duminica, 2010). At long last, client center is the fundamental key. They are the ones that keep your business coasting. Representatives ought to give careful consideration to clients and really need to help them. Workers must recall that clients settle on a definite choice of what business they choose. By the head honchos and workers being client centered the organizations can possibly pick up deep rooted clients.

Automated business systems allude to measure and controls that guarantee classifieds, respectability, and accessibility of the information transformed and put away via automated information systems. In today’s opportunity, numerous have ended up loose with the information of people. We have arrived at an age where organizations deal a singular’s information (without assent) for benefit. That is the reason it is essential that automated business systems have a certain level of system security. At the point when managing individual and non-individual information an abnormal state of security ought to be set into spot. This will guarantee that an individual’s rights are not abused and laws aren’t broken.

An abnormal state of security minimizes an organization’s presentation to numerous components that represent a danger. A low level security permits the organization to be powerless. This thoughtfully opens the avenue to potential programmers who lie on the outside of the organization. Then again, negligible security invites dangers and dangers. Last having a low level of security will leave the organization totally uncovered. Presentation realizes the misfortunes and harms that will most likely be destructive to the organization. That is the reason it is essential for an organization to keep up an abnormal state of security. Taking over is a rundown of standards that can support.

The thirteen systems developed for guaranteeing the security system of an organization are discussed below:

  1. Secure the weakest link
  2. Defend in depth
  3. Fail securely
  4. Grant least privilege
  5. Separate privileges
  6. Economize mechanism
  7. Do not share mechanisms
  8. Be reluctant to trust
  9. Assume your secrets are not safe
  10. Mediate completely
  11. Make security usable
  12. Promote privacy, and
  13. Use your resources

(McGraw, 2013).

A usage of these thirteen standards would doubtlessly profit the automated business systems, in addition to the organization in general as well. An option to the level of system security recorded above is to execute a multi-level security system. A multi-level security (MLS) has been a heavenly chalice following the time when the beginning of applying machine systems to help military and brainpower systems (Walther, 2014)  As expressed in the article, a solitary level security over arranges date and makes redundancies and inefficiencies in the system. Having an MLS will take out the requirement for multiple areas. Hence, either alternative will give incredible profits. The administration must settle on what they are searching for inside a security system, research potential systems, and settle on an educated choice that will demonstrate compelling for the organization. Organizations must recollect that information, trustworthiness is a discriminating obligation to an organization’s fund.

Accounting information systems (AIS) have encountered unlimited changes in a few decades, enhancing from paper-based diaries and records to totally automated, paperless systems. In any case, the movement from paper towards machine has its dangers to the organization. It contains the private information which gets to be bargained on the off chance that it is unprotected. The unapproved utilization of the accounting system might be abused and included in the loss of the information, lamentable and terrible information data. Security of accounting systems is a need in numerous organizations. In later decades, the changing environment has represented a risk to the organization.The danger is identified with the probability of misfortune, the likelihood of setbacks and the likelihood of peril or damage. In addition, danger could be characterized in a few routes, for example, the possibility of awful results, the introduction to disaster and the likelihood of misfortune. These dangers and dangers can lead an undesirable effect on both the presence and fate of the organization’s budgetary exercises and soundness.

References:

Duminica, (2010), “Enhancing Organizational Performance”. Retrieved from:

http://bloghresources.blogspot.com/2010/02/enhancing-organizational-performance.html

Gaillya F. and Geertsb G. L., (2014), “Business Process Modeling: An Accounting Information

Systems Perspective”. International Journal of Accounting Information Systems, Volume 15, Issue 3, September 2014, Pages 185–192

Lengauer V., et al, (2006), “The Impact of Accounting Information on Management’s Decision

Making Process”. Retrieved from:

http://lnu.diva-portal.org/smash/get/diva2:207165/FULLTEXT01.pdf

McGraw, G, (2013),“Thirteen principles to ensure enterprise system security”. Retrieved from:

http://searchsecurity.techtarget.com/opinion/Thirteen-principles-to-ensure-enterprise-system-security

Peavler R., (2014), “What Are Accounting Information Systems And What Are The Different

Types?” Retrieved from:http://bizfinance.about.com/od/accountingandcash/f/what-are-accounting-information-systems.htm

Walther L., (2014), “Principles of Accounting”. Retrieved from:

http://www.principlesofaccounting.com/chapter15/chapter15.html#Key