Impact of accounting information System Assignment

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IMPACT OF ACCOUNTING INFORMATION SYSTEM IMPLEMENTATION IN
ACCOUNTING
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Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................1
Background Information..............................................................................................................1
Research Problem........................................................................................................................3
Justification..................................................................................................................................4
Aims and Objectives....................................................................................................................5
Expected Outcomes......................................................................................................................6
Literature Review............................................................................................................................6
What is accounting information system (AIS)?...........................................................................6
Organizational Effectiveness and Automated Accounting Information System.........................7
Internal Control and Accounting Information Systems...............................................................9
Research design and methodology................................................................................................10
The Research Design.................................................................................................................10
Sample Population.....................................................................................................................10
Data Collection..........................................................................................................................11
Data Analysis.............................................................................................................................11
Validity and Reliability of Data.................................................................................................12
Testing of the Hypothesis..........................................................................................................12

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Ethical consideration.....................................................................................................................13
List of References..........................................................................................................................14

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Executive summary
With the advancement of technology, several accounting tools have been developed with the aim
of helping business unites as well as solving long-term environmental challenges for managers.
These tools have been developed to focus on facets of cash flow, costs, and financial prices in a
manner the will competitively support the functionality of the business. It has helped the
integration of different organizations in the dynamic and competitive business environment. On
the relationship between organizational effectiveness and automated accounting information
system, the result of the study will indicate that existing relationship between the organizational
effectiveness and the AIS. This can as well be interpreted that access to accounting information
can lead to the success of the organization meeting its strategic objectives. Other recent studies in
the value of the accounting information for share price, equity valuation, as well as earning
prediction have posted questions to the financial financing models currently used in the market
place
Introduction
Background Information
The current business environment is very complex and competitive. In a systematic study, Chen
(2016) denotes that with advancement in technology, ICT has become the center stage of
business. It is providing or rendering a stiff and competitive advantage to different businesses in
different facets depending on their respective industries of operation. For instance, the financial
institutions, banking industries, and accounting professional are now using technology in various

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aspects of business with the aim of improving efficiency and effectiveness on their financial
services and responsibilities. Communication technology has led to the design of software and
physical devices that link different facet of computer hardware components in the transfer of data
and information from one point to another as pointed out by Kisely and Kendall (2017, p. 1271).
The same issue can raised in Yaya Consultancy Center about the impact and value relevance of
AIS. In another study, Malikova and Brabec (2016) asserted that AIS often play a very essential
role regarding the strategic management of different organizations. In other words, AIS acts as a
mechanism that enables the completeness and effectives of organization strategy. Past scholars
had the assumption that the organizational performance in a role of the financial performance,
AIS, and performance management. Therefore, fitness can be achieved in the combination
between AIS and strategy with the aim of the organization to effectively achieve financial
performance.
In another study, Kisely and Kendall (2011) denote that business organizations tend to use
accounting information system in providing support for such strategies. In analyzing several
studies, gaps still exist on clearly explaining the impact of AIS, an aspect that forms the major
ground of objectives for this study. Johnson (2011) also point out quality information is
regarded as an aspect of competitive advantage for the organization. For every accounting
system, the quality of information that is generated from the AIS is essential for the management
to support effective processes in making decisions within the organization.
Facco, Cargnelutti Filho, Mendonça Alves, Burin, Oliveira dos Santos, Andiara Kleinpaul, and
Márcio Neu (2016) examined the effectiveness and impacts of accounting information system as
well as their influential factors in determining the performance of small scale and large scale

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organizations in Asia. He adopted the use of a proposed model in the examination of the impact
of accounting information system sophistication, participation of managers in the
implementation process, management skills and knowledge, as well as the effectiveness of the
external experts like consultants, vendors, accounting firms and government agencies (Peshori
2014, p. 9). The result of the study found out that the knowledge and skills of the management,
effectives of accounting firms and vendors have no significant contribution to the effectiveness
of accounting information system as supported by Lewon, Munoz Blanco, & Hayes (2011, p.
90).
Research Problem
In a systematic study, Facco et al. (2016) denotes that accounting information system is an
essential topic for researchers and managers alike. The same study denotes that there is evidence
of many gaps existing between research and practice of the same concept. On management
decision and accounting information systems, Coen and Thiel (2011) opine that the
implementation and management of an internal control system crucially depends on the role the
accounting information system plays and the impact on the business. However, it is relevant to
question the fit of accounting information system with organizational requirements for control
and information communication. The study will thus help in evaluating the effectiveness of the
information generated from the accounting system in relation to the process of making decisions
in the organization. At the end the purchase, usage, and installation of the system may be
beneficial in case the benefits exceeds the costs.
In the current business environment, many organizations continue to increase the level of their
financial expenses on information system, an aspect that leads to the rise of their budget. At the