BUS707 T1 2019: Applied Business Research Accounting Systems Review

This report provides a structured literature review on the impact of Accounting Information Systems (AIS) on business operations, drawing from four academic articles. The review examines the core definition of AIS, its vital role in collecting and processing financial data, and its influence on organizational performance, stakeholder interests, and management efficiency. The articles highlight the importance of AIS in enhancing decision-making, improving cost control, and providing a competitive advantage. The research methodology employed in the articles includes qualitative methods, questionnaires, and primary data collection. The findings emphasize the relationship between AIS and profitability, the need for timely and comprehensive information, and the adaptation of AIS to specific organizational circumstances. Limitations and future research directions are also discussed, suggesting a need for broader data collection and sector-specific studies. The managerial implications of the articles underscore the importance of implementing and optimizing AIS for improved performance and stakeholder confidence.

Applied Business Research

The term accounting information system is considered as the system that helps the business
organisation to collect and utilise the information that is required by the company for its
operations. It is considered as the set of different data collection methods and tools which helps
in analysing the accounting evidence for the company and the organisation. In the four articles
that were used for this report commonly specified the requirement of accounting information for
the company and also helped in emphasising the outcome of accounting information on the entity
as a whole. These articles also specified the consequence of accounting information on the
profitability of the company. The article specified the link between the accounting information
system and overall productivity of the company. They also specified the role of managers in
formulating a good accounting information system so that the stakeholder’s interest can be
generated and also helps in increasing their functions.
It was seen that the in the research methodology used in the research depicts the way the
researchers has collected the data and the amount of time it took to collect the information and
the data. While in all of the four research articles the researchers used a theoretical way of doing
the research. Where they used the qualitative method to showcase the conclusion of the research
and to provide the evidence for the research (Chenhall and Moers, 2015). While the researchers
surveyed various employees of the companies of the manufacturing sector and the used a sample
of the people to come at the respective outcome. On various research so as to come at an
outcome the researcher utilised the questionnaire approach where he used to collect the
information that is related to the effect of the accounting information on the profitability of the
company in which the employees work.
While a primary source of data collection was used in all the four research where the primary
data collection means collection of the data which is first hand and is not used by any other
person or is published anywhere.
The four articles that were considered for the review helped in analysing the effects of
accounting information system and its result on the performance of the business. Also the articles
had a common objective of analysing the effect of the accounting information on the
performance of the financial performance of the company. All the research articles has a

common objective which discussed the core definition of the term accounting information for the
companies where he specified the accounting information system as a tool which is incorporated
in the system of the accounting to help the administration and the to control the topic that is
related to the organisations financial data (Eyring and et. al., 2016). He emphasised on the
discussion that accounting information system is considered to be vital for the organisation and
every organisation should maintain the accounting information tool so as to give the best
financial information to the stake holders of the company. While he also specified that the AIS is
considered to be related component which collect the financial information, raw data and the
process them into the financial data that is in the readable form to the users of the financial
information. This was also founded in the research that analysing the effect of accounting
information on the performance of the company is vital part as, various strategies are dependent
on the accounting information that the organisation is having. Organisation performance is based
on the fact that how better the implementation of the accounting information system is in the
organisation. While was also founded that accounting information system enhances the
management efficiency and does cost control which is supported by the rational operational
performance. Also the articles emphasised that the accounting information system is assembly of
the computer based electronic system that is used to collect the data of the company’s financial
performance of the year. Hence they founded that competitive advantage of the company is
hinged on the quality of the information that it provides to the user. This is also important for the
management of the company so as to build a long lasting strategy for the same. He also
emphasised on the size of organisation as the resources that are available in the company are
mostly dependent on the organisations structure and its size. While the articles also identified
about the implication of the company’s accounting statement and also specified the
characteristics of the accounting information (Gallemore and Labro, 2015). It was seen that the
term accounting information is considered to be of perceived usefulness where the accounting
information used for giving the optimum result of the company to various stakeholders and the
management of the company. Hence in this study they checked the characteristics of accounting
information system on the company’s performance. In this approach various hypothesis were
analysed which includes that positive impact in the highly task variability. This is also seen that
there are information which are timely provided to the users hence it will have positive impact on
performance of the organisation. It is also seen that accounting information system provides a

comprehensive scope which have a optimistic impact on the company’s performance. It was also
seen that all the articles helped in analysing accounting information system which fluctuates
widely in the world as this is adopted by different companies and organisation across the world.
It is analysed that the accounting information system are build or intended to be adopted
according to the circumstances that prevails in the organisation (Libby, 2017). They also stated
that the accounting information system helps in management planning and controlling process
which focuses on the relevant and the dependable information for decision making to the take
place within the organisation. The research that was made by them focused that accounting
information does not only provide the financial report but is considered to be focused on the
preparation and managing the business activities. Also the value of accounting information to the
users of the information is dependent on how reliable the information is which is processed by
accounting information system team.
The theme of the research are dependent on the literature and the objective of the research that
would be answered by the researcher in the research. This is seen that all the four research are
focused on the influence of the accounting information on the profitability of the company. This
is seen that these research articles were focusing on the common conclusion which was to
interpret the positive aspect of the accounting information on the performance of the company’s
operations (Mollanazari and Abdolkarimi, 2012). While this was seen that there was successful
integration of the accounting information in the companies all around the world. This was also
seen that researcher used various methods which helped in emphasising the connection between
the organisational performance and the accounting information system.
The managerial implication of the articles includes that how these information that are collected
in the article and the research can be used in practical world. This is seen that as the research
articles focused on the common theme which included the impact of the accounting information
on the organisational enactment.

In first article this is seen that accounting information of the company should provide true and
the fair affairs and the raw data that is processed should be carefully chosen so that the
information provides best outcome of the same.
While in the second article it was seen that it is important for the management of the company to
check the accounting information and to provide various ways to make it better as this will help
in achieving greater performance (Maskell, Baggaley and Grasso, 2016).
In the third article it was analysed from that in every organisation it is necessary to implement
the process of accounting information as this will help the stakeholders to have a good
knowledge about the performance of the company and will built a status confidence in them.
This is considered from the fourth article that various organisation requires a good accounting
information system which helps in achieving the objective of stakeholders interest. This is also
seen from the article that managers of the company are solely responsible for implementing
accounting information system in the company.
The limitations and the future research direction specifies the problems that the research has and
the future direction which it should follow so as to give a better conclusion and outcome.
In first research article limitation was found which specified the difficulty in measuring the level
of the organisations effectiveness on the accounting information system.
Also in the second article the investigator relied on the answers that were received through the
process of questionnaire which is considered to be one of the limitation for the researchers (Nitzl,
2016).
While in the third article the time for conducting the research was limited and thus lead to
limited information on the system.
However there are future aspects of the research so that the research that was conducted could be
more reliable and predictable.
As for the first article the data collection that was done by the researcher should be done through
various sources and not through one single source of data.
Also in the later three research articles the research study should be done more broadly and
should not be related to only one sector as the accounting information is used by various
organisation in the world (Otley, 2016). Hence this would have helped the researchers and the
articles to be more useful and impactful.

References
Booth, P., 2018. Management control in a voluntary organization: accounting and accountants
in organizational context. Routledge.
Chenhall, R.H. and Moers, F., 2015. The role of innovation in the evolution of management
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Eyring, V., Bony, S., Meehl, G.A., Senior, C.A., Stevens, B., Stouffer, R.J. and Taylor, K.E.,
2016. Overview of the Coupled Model Intercomparison Project Phase 6 (CMIP6) experimental
design and organization. Geoscientific Model Development (Online), 9(LLNL-JRNL-736881).
Gallemore, J. and Labro, E., 2015. The importance of the internal information environment for
tax avoidance. Journal of Accounting and Economics, 60(1), pp.149-167.
Libby, R., 2017. Accounting and human information processing. In The Routledge Companion to
Behavioural Accounting Research (pp. 42-54). Routledge.
Mahnaz Mollanazari and Elahe Abdolkarimi, 2012. “The Effects of Task, Organization and
Accounting Information Systems Characteristics on the Accounting Information Systems
Performance in Tehran Stock Exchange”. International Journal of Innovation, Management and
Technology, Vol. 3, No. 4, August 2012.
Maskell, B.H., Baggaley, B. and Grasso, L., 2016. Practical lean accounting: a proven system
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Nitzl, C., 2016. The use of partial least squares structural equation modelling (PLS-SEM) in
management accounting research: Directions for future theory development. Journal of
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Otley, D., 2016. The contingency theory of management accounting and control: 1980–
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