Accounting Information System (AIS) and its Role in Today's Organizations

Running head: ACCOUNTING
Accounting
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1ACCOUNTING
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................3
Question 4........................................................................................................................................4
Question 5........................................................................................................................................4
Question 6........................................................................................................................................5
Question 7........................................................................................................................................5
Question 8........................................................................................................................................6
Question 9........................................................................................................................................7
Question 10......................................................................................................................................7
Question 11......................................................................................................................................8
Reference.........................................................................................................................................9

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Question 1
Accountant’s role in today’s information intensive organization
The accountant is responsible for the activities of the staff in any of the entity as they are
excluded in business division of revenue generation. However, they play important role under
the organization those are information intensive to analyse the operating as well as financial
performances of companies. Further the complex structure of business of the entities is needed to
be monitored by different departments in addition to different viewpoints (Apte 2014). Apart
from that, the accountant delivers financial data management through maintaining and collecting
the accounting data. These type of recorded data helps in evaluating the operating as well as
financial efficiency of entity. This analysis further assists in making business related decisions by
the managers. Information intensive entities are needed capturing the right information along
with sharing same with right people at the right time rather than just gathering additional
information. Further, accountant is responsible for managing the information in such manner that
the management is able to find right information at the right moment (Goretzki and Strauss
2017)
Question 2
Providing information to management through accounting information system (AIS)
AIS include information associated with accounting transactions and operating expenses
of business. Further, accountants maintain the records regarding the capital expenses and the
estimation of the return on investment. Apart from that, costing information is generated from
the accountant to measure the profit margin or the efficiency of any division that is making

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profit. Hence, AIS is considered as crucial while making the decisions as it delivers data
regarding operational efficiency, cost, cash flows, capital expenses, cost if the capital and
requirement of the working capital. Management may take capital budgeting related decisions
and other decisions like value addition, pricing, human resource management and inventory
control. AIS application is dependent on business transaction data to gather information
associated with operation like operating efficiency, inventory management, control of the cash
flows and product pricing. Accumulated information assists the management in taking decisions
through delivering right direction along with the flaws in business process (Abduljalil and
Zainuddin 2015).
Question 3
Three benefits of the information technology to AIS
Benefits of information technology to AIS are as follows –
 Providing system for information storage – it is the basis application for information
systems that delivers data for AIS for the purpose of analysis. Further, it is used for
safeguarding AIS of the entity as the information systems include valuable as well as
significant financial and the accounting related information of the business. Further, the
information technology offers different tools and methods for information security like
systems for password protection and biometric devices.
 Helping with the tool for decision making – this process is aimed with information
system to assist in decision making as the AIS accumulates data from system