ACCM4600 - Accounting Theory: IT & Contemporary Business Issues

This report examines the role of information technology in business organizations, focusing on its impact on accounting. It evaluates the intended audience of the report, which includes organizational managers and senior executives, and discusses the key decisions management needs to make when implementing accounting information systems. The report highlights the importance of accounting information systems in decision-making and the benefits of efficient, fast, and accurate information systems. It also addresses the potential negative impacts of implementing accounting information systems, such as unsuitability and inability to incorporate changes. The report concludes that advanced technology and software have a positive impact on the accounting process, making it more efficient and leading to automatic updates of accounting information and generation of required business reports. Desklib provides access to similar case studies and solved assignments for students.

Running head: ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Accounting Theory and Contemporary Issues
Name of the Student
Name of the University
Author’s Note

1ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Executive Summary
The main aim of this report is to take into consideration the major aspects of the role of
information technology in the business organizations. The first part of the report shows the
purpose of the assessment. The next part involves in the evaluation of the intended audience of
this report. The next part discusses about the key decisions that the management is needed to
make at the time of the implementation of accounting information system.

2ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Table of Contents
Introduction......................................................................................................................................3
Purpose............................................................................................................................................3
Audience..........................................................................................................................................4
Key Decisions..................................................................................................................................4
Requirement of Information for Decision-making..........................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
Appendices....................................................................................................................................11

3ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Introduction
The main aim of this report is related to the requirement of technological development as
these developments are needed for the development of workplace so that it can bring
improvement in the overall business processes of the companies. Major parts of this report take
into account different kinds of technological advancements that have been occurred in the market
place. In addition, the report also takes into consideration the impact of these technological
advancements on the improvement of the overall business operations (Tongur and Engwall
2014). In the marketplace, the presence of certain business organizations can be seen that those
are solely dependent on the technological developments for ensuring survival in the immense
market competition. For this reason, the report will involve in proposing some of the major
technological changes that can be brought in different operational areas of business like
accounting, operations, accounting and others.
Purpose
The major purpose of this report can be found in the analysis of the present technological
developments those have taken place in the area of accounting. It can be observed that various
technological development in the field of accounting along with the development of advanced
accounting software have major positive impact on the process of accounting as they have made
the accounting process more efficient so that fast response can be provided to the financial
managers (Monahan 2013). For this reason, another major purpose of this report can be seen in
the analysis of the impacts of various technological accounting practices and advanced
accounting software on the accounting as well as financial reporting framework of the business
entities. This report will play a major role in informing the managers about the use of different

4ACCOUNTING THEORY AND CONTEMPORARY ISSUES
advanced accounting software along with advanced computerized system that play crucial part
for the companies in the purpose of the development and presentation of the financial reports
(Frame and White 2014).
Audience
This report related to the major advancement or development in technologies in the field
of accounting and the overall development in the business processes will be directed towards the
organizational managers of the companies along with the senior executives in the board of
directors of the companies. It needs to be mentioned that it is the responsibility of the senior level
managers and executives of the compares to make the major business decisions for the overall
progress and betterment of the business (Frame and White 2014). For this report, the report will
involve in providing major suggestions to the senior level managers of the business organizations
on the fact that where the companies can become majorly beneficial from the implementation of
advanced computerized software as well as accounting packages or not. The main reason for
directing this report towards the senior level managers of the companies because of the fact that
it is on the senior level manager of the companies to take the decision related to the suitability of
the advanced accounting software for the needs of the business operations (Laeven, Levine and
Michalopoulos 2015).
Key Decisions
Based on different kinds of requirements of the business, the senior level management of the
companies are needed to take crucial business decisions related to the accounting information
system and the advance accounting software that is needed to be selected so that it can cater to
the needs of the business. In the recent scenario, management of the companies provide great

5ACCOUNTING THEORY AND CONTEMPORARY ISSUES
importance to the accounting information system in the process to make the business decisions
and the effective management of the overall business operations of the companies related to the
financial information (Marshall and Steinbart 2017). The inclusion of accounting information
system can be seen in the overall business system of the companies. The main aim of the
accounting information system in the business organizations is the generation of required
accounting information for the purpose of the decision-making process. For this reason, the
accounting information system involves in gathering, analyzing and processing the financial
information of the companies in an efficient manner for providing support in the process of
financial reporting.
In the recent time, major growth can be seen in the process of business technologies and
the aim to bring development in technologies is to increase the overall efficiency of the business
operations so that the objectives can be achieved. In the business organizations, the presence of
efficient, fast and accurate information system provides great assistance in the decision-making
process (Richardson, Chang and Smith 2014). Apart from this, information technology can be
regarded as a tool that provides great assistance to the organizational managers in managing the
business operations in the smoothest manner. The application of effective information system
has major effects on the business operations of the companies along with the process of financial
reporting. For this reason, it can a business become successful in the effective implementation of
appropriate accounting information system, the it will provide major assistance to the senior
level management in bringing transparency as well as accountability in the whole process of
financial reporting (Lim 2013).
The management of the companies can expect that fact that the effective implementation
of an accurate accounting information system will provide major assistance in the generation and

6ACCOUNTING THEORY AND CONTEMPORARY ISSUES
analysis of the financial information of the businesses in the most accurate and fast manner. The
information that is generated from the accounting information system is effective in nature and it
is free from any kind of manipulation; for this reason, the top level management of the
companies uses this information for the purpose of decision-making. Apart from this, the
presence of effective accounting information system provides the management with the
opportunity to make the whole structure of the business more accurate and favorable (Apostolou
et al. 2014). It needs to be mentioned that the implementation of the kind of accounting
information system largely depends in the nature and size of the businesses. Moreover, in the
presence of accurate accounting information system, companies are not needed to record the
financial data and this aspect leads to the reduction in the cost of the business for maintain the
record of financial information. However, the implementation of accounting information system
has some negative impact on the business organizations. Some of the major negative impacts of
the implementation of accounting information system are unsuitability of the accounting
information system, inability of the system in incorporating changes taking place in the day-to-
day business and others (Napitupulu 2015).
Therefore, it is a major responsibility of the management of the companies to take crucial
decisions related to the selection of the type of information system that the management of the
companies will use in order to record and analyze the accounting and financial information. At
the time to make decisions related to the accounting information system, the management is
needed to consider the nature and requirements of the business. Most impotently, the
management of the company is needed to make decision on the aspect that whether they will
develop their own accounting information system or they are going to adopt the integrated

7ACCOUNTING THEORY AND CONTEMPORARY ISSUES
package software that can well cater to the needs of the business organizations (Apostolou et al.
2014).
Requirement of Information for Decision-making
The information that the senior level management of the companies needs to take into
account at the time to make decisions on the selection of accounting software needs to be based
on the basic requirement and the nature of the business along with the business operations. Apart
from this, the management is also needed to consider the size of the business organizations in the
process of decision-making (Laeven, Levine and Michalopoulos 2015).. At the same time, the
senior level management of the companies is needed to take into consideration the particular
accounting information system software that are in large use in other companies. Moreover, they
are also needed to consider the business of the competitors at the time of the selection of the
accounting information system for implementation (Napitupulu 2015).
Vast use of traditional method can be seen in most of the companies for the purpose of
recording the accounting and financial information. In early days, the accountants were
responsible for maintaining the books of accounts and they were required to update the books in
constant intervals for making the information up to date (Apostolou et al. 2014). They were
needed to do manual entry with the assistance of journal entries and were needed to post the
same in the ledger accounts. After that, financial statements were developed. After that, the
accounting programs and software were developed with the assistance of information system,
recording process and various IT resources. This system helps the businesses in maintaining the
information in computerized system and they can update the records with just one click. Some of

8ACCOUNTING THEORY AND CONTEMPORARY ISSUES
the popular accounting software packages are Enterprise Resource Planning (ERP), integrated
accounting package and others (Apostolou et al. 2014).
Conclusion
It can be seen from the above discussion that advanced technology and software have
positive contribution towards the accounting process. The implementation of effective
accounting software can bring rapid changes in the process of financial accounting and can make
the accounting process of the companies more efficient. The implementation of effective
accounting information system reduces the work of the accountants and can lead to the automatic
update of the accounting information. Moreover, it helps the companies in the generation of
required business reports.

9ACCOUNTING THEORY AND CONTEMPORARY ISSUES
References
Apostolou, B., Dorminey, J.W., Hassell, J.M. and Rebele, J.E., 2014. A summary and analysis of
education research in accounting information systems (AIS). Journal of Accounting
Education, 32(2), pp.99-112.
Frame, W.S. and White, L.J., 2014. Technological change, financial innovation, and diffusion in
banking. The oxford handbook of banking, p.271.
Frame, W.S. and White, L.J., 2014. Technological change, financial innovation, and diffusion in
banking. The oxford handbook of banking, p.271.
Laeven, L., Levine, R. and Michalopoulos, S., 2015. Financial innovation and endogenous
growth. Journal of Financial Intermediation, 24(1), pp.1-24.
Lim, F.P.C., 2013. Impact of information technology on accounting systems. Asia-pacific
Journal of Multimedia Services Convergent with Art, Humanities, and Sociology, 3(2), pp.93-
106.
Marshall, B.R. and Steinbart, P.J., 2017. ACCOUNTING INFORMATION SYSTEMS.
PEARSON EDUCATION LIMITED.
Monahan, T., 2013. Globalization, technological change, and public education. Routledge.
Napitupulu, I.H., 2015. Impact of organizational culture on the qualty of management accounting
information system: A theoritical approach. Research Journal of Finance and Accounting, 6(4),
pp.74-83.

10ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Richardson, V.J., Chang, C.J. and Smith, R., 2014. Accounting Information Systems. McGraw-
Hill Irwin.
Tongur, S. and Engwall, M., 2014. The business model dilemma of technology
shifts. Technovation, 34(9), pp.525-535.

11ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Appendices
Full citation of resource: Lim, F.P.C., 2013. Impact of information technology on accounting
systems. Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and
Sociology, 3(2), pp.93-106.
Author’s credentials: Francis Pol C. Lim1, 1Saint Anthony's College, San Jose, Antique,
Philippines
Author’s intended audience: Business organizations
Author’s main argument(s)/main idea(s): The critical role of information technology on the
success of accounting process in the companies
What evidence is provided to support the argument/idea? Give specific examples: The
author has provided the example of different kinds of accounting information system software
along with their uses
Does the source raise any questions you need to answer or have connections to other
sources you have seen? (For example, it supports or contradicts them) If so, name the
sources: The main question is that whether accounting information system provides great help to
the companies in accounting processes or not
Conclusion (overall value of the resource and use in the report): The accounting information
system has major positive impact on the overall development of the accounting process of the
business organizations
Full citation of resource: Apostolou, B., Dorminey, J.W., Hassell, J.M. and Rebele, J.E., 2014.
A summary and analysis of education research in accounting information systems (AIS). Journal
of Accounting Education, 32(2), pp.99-112
Author’s credentials: Barbara Apostolou (Department of Accounting, College of Business
and Economics, West Virginia University, Morgantown, WV 26506-6025, United States), Jack
W. Dorminey (Department of Accounting, College of Business and Economics, West Virginia
University, Morgantown, WV 26506-6025, United States), John M. Hassell (Kelley School of