Critical Review: Accounting Information Systems Report - INFT6500

This report presents a critical review of an article titled 'The Impact of Accounting Information System on Organisational Performance: Evidence from Bangladeshi small and medium enterprises'. The report begins with an introduction to the importance of Accounting Information Systems (AIS) in financial management and its impact on organizational performance. It provides a summary of the article by Md Sajjad Hosain, focusing on the impact of AIS on SMEs, the research methodology including the use of questionnaires, and the application of regression analysis. The report highlights key factors such as Management Support (MS) and Record-Keeping Performance (RKP) and their influence on organizational outcomes. The critique section evaluates the article's strengths, including its comprehensive literature review, the use of primary data, and its practical implications, while also pointing out areas for improvement such as the use of older references and the potential for graphical notations to enhance the presentation of results. Overall, the report emphasizes the benefits of AIS in improving financial processes and organizational performance, especially within the context of SMEs.

2/19/2020
Running Head: ACCOUNTING INFORMATION SYSTEMS 0
ounting nfor ation ste sAcc I m Sy m
Report
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Contents
Introduction................................................................................................................................1
Summary....................................................................................................................................1
Critique.......................................................................................................................................1
References..................................................................................................................................1

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Introduction
Many firms have used technologies for financial management. Accounting is a
necessary process in a firm to manage all the things in an effective manner, such as
manufacturing, sales, finance, and more. Therefore, there is some basic need for financial
management. Besides, there are some basic needs of firms to manage their accounting works.
Many firms have used accounting information systems for managing their accounts and
financial processes. This report will analyze the article ‘The Impact of Accounting
Information System on Organisational Performance: Evidence from Bangladeshi small and
medium enterprises. This report will provide a summary of the article, which will be related
to the basic processes of a research article as well as it will critically analyze the selected
article. Moreover, this article will analyze based on critical factors. It will provide a critique
of the article. Accounting Information System (AIS) is a basic need for any firm to manage
its financial processes (Hosain, 2019). Moreover, it is necessary to create knowledge about
the information systems and their importance for the business. Therefore, many benefits can
be taken using AIS in a firm. The article was written by Md Sajjad Hosain. He has provided
better knowledge about the AIS and its impact on small and medium scale enterprises.
Summary
In this article, the author has included the impacts of AIS on organizational
performance, which is related to the employee’s performance as well. Therefore, the
Information System (IS) has provided help into the management of the business functions of
a firm. It can increase the productivity and performance of internal processes. Therefore,
small and medium enterprises (SMEs) have used traditional and legacy systems for managing
various accounting processes. Therefore, the banking industry has used AIS for loaning as
well (Shah, 2014), which requires a large amount of time and cost as well. Therefore, the
author has used a properly structured questionnaire for surveys and data collection. The
article has included 803 respondents, which are top-level managers in well-known 341 firms
of Bangladeshi SMEs. The author has used regression analysis for result analysis. Therefore,
Management Support (MS) is necessary for managing various things in SMEs.
The article has provided better outcomes that can be used for further research as well
(Hosain, 2019). Record-Keeping Performance (RKP) is an important factor for the

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performance of an organization. Thus, there are some important factors in a firm, which is
beneficial for managing various things.
The author has provided an introduction about the AIS and its key factors, which are
related to the economic condition of businesses (Belal, 2016). Thus, AIS has used IS and IT
to manage various processes in a firm, which are beneficial for the strategic management of a
firm as well. The author has explained the role of AIS in a firm, which can be used for the
collection of primary data that can be transformed into financial information. That financial
information is beneficial for policymakers as well. Thus, AIS has provided help in the
business environment and working culture of a firm. AIS provides enhanced supervision of
corporate records, which is helpful in the changing business environments (Belfo & Trigo,
2013).
Moreover, Organization Performance (OP) is the main objective of the research,
which has deepened on internal and external processes management. Besides, accounting
knowledge (AK) is necessary to manage various things, which are beneficial for the
profitability of the company. The author has provided three research questions, which have
included the role of AK, MS, and RKP on OP. Besides, information systems provide help in
data management and analytics (Bélanger & Crossler, 2011).
Besides, OP has based on the two things that are operational and financial outcomes.
The author has provided a definition of AIS using various good sources. Moreover, it is a
system that can process and compile data for financial decision making and other things
(Bélanger & Crossler, 2011). The article has provided nature if SMEs in Bangladesh using a
proper table format, which is a good experience for many firms. Besides, small enterprise
from the manufacturing field has managed their services and assets in a better way using AIS.
IS provides help in the improvement of performance (Chaffey, Dave & White, 2010).
Therefore, SMEs are more eligible for a loan because of their good status and data
analysis reports. Therefore, many firms have included various services that are Benefield for
SMEs. The Bureau of Statistics (BBS) has provided various types of information including a
number of workers, and manufacturing units as well. Businesses can be successful because of
information systems (Davoren , 2019). Many things can be used for collecting data about the
various processes. SMEs can use the AIS system for improving its operating profit as well.
Moreover, operational efficiency can be increased using AIS in SMEs especially
manufacturing fields. Moreover, AIS is helpful in many processes, which are important for

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the financial decision-making process, such as the flow of cash, financial reports,
performance outcomes, and many more (Hosain, 2019).
The economy has affected form businesses (Dey, 2014). In the context of accounting,
financial reports are beneficial for business management as well as strategic alignment. The
author has provided deep analysis in the literature view of the article. Besides, the theoretical
framework has provided by the author to understand the role of AK, MS, RKP on OP.
moreover, data collection was based on the primary data, as secondary data is not suitable in
this case. AIS is the base of a firm in the present era (Gillett, 2016). Therefore, basic
processes have used for designing a questionnaire for research as well. It is a basic need for a
survey to manage all the things in a better way. Besides, many processes can be used data
analysis, including Pearson’s Correlation Coefficient and regression analysis. Besides,
different types of IS can be used in a firm (Guru99, 2018).
Furthermore, thermotical and practical implications have provided by the author in
detail, which can be used in further research work as well. Therefore, a developing country
has focused on SMEs (Rouf, 2011). Mostly, articles have not included this topic, but the
author has provided it in a separate topic as well. It has included limitations and future work
as well. Therefore, accounting is the business process of a firm as well (Gynther, 2014).
Information technology is helpful in many processes, as there are many technological
innovations, which are helping in the manufacturing processes through automation and data
analytics.
Moreover, information systems have managed different business functions, such as
marketing, finance, marketing, and many others. Besides, the manufacturing industry has
based on automation as well. However, accounting is necessary for managing of inventory
system as well. A firm can manage its buyers and suppliers using financial reports as well,
which has generated by the AIS. Besides, performance can be measured using reports and
data analysis of a firm, which is good for employees and organizations as well (Hosain,
2019).
Critique
AIS provides better reports for data analytics, which is easy and faster than other
processes. Moreover, the author has provided detailed knowledge about accounting and its

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importance. The paper was based on the impact of AIS on the OP including evidence of
Bangladeshi SMEs.
The manufacturing industry has included many small-scale firms, which have
employed less than 50 employees. Moreover, Artificial Intelligence (AI) can be used for
improving performance as well (Hagerup, 2019). The article has covered all the parts, which
are necessary for a research paper. Therefore, the author has provided a good literature
review based on different reputed journals. Besides, financial reports can be used for
decisions for various processes (Rashid, De Zoysa, Lodh, & Rudkin, 2010). It is a good way
to analyses a particular area for managing all the things. Moreover, basic processes can be
managed using AIS in a better way. Moreover, the author has included good sources for
providing a critical analysis of the AIS system. AIS can (Hall, 2012). The author has defined
AIS with different points of view. The paper has included three research questions, which are
necessary for a research paper. Besides, the article was based on the primary data from a
firm. Moreover, the author has designed a questionnaire for the analysis of the different
impacts of the AIS on OP. Thus, accounting should be proper in a firm (Rahim & Alam,
2014).
Thus, regression analysis was used for managing result analysis. The author has used
the correlation coefficient for result orientation as well. The paper has provided theoretical
and practical implications in the research, which can be used for future research as well. The
author has used quality work in the article, which is good for the readers. Besides, MNCs
have focused on the performance of an organization (Momin & Parker, 2013). However,
readers have required deep and critical analysis. Moreover, secondary data has not used in
this article, which is a small issue for readers as well. There are different types of
methodologies to avoid accounting issues (Hoque, 2018).
Moreover, IT makes a huge impact on the accounting systems of a firm (Lim, 2013).
The author has discussed about most of the parts of AIS as well as other related topics.
Besides, the author can use graphical notations for a better understanding of the results.
Besides, the paper has included old references, which is not a better approach to provide the
latest knowledge about the systems and their impacts. However, the theoretical framework
has used for describing the connection between AIS and other things, such as OP, AK.
Furthermore, the AIS system is beneficial for the financial decisions of a firm. It can improve
the performance of financial processes including data collection and other processes.

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Additionally, the author has provided outcomes of regression analysis in tabular form, which
is a standard for a research paper. It has included good sources to define AIS and other terms
that are related to SMEs.
Accounting is a common process of a firm that can be used for managing financial
processes. There are many good ideas in this article, which can be used for future work as
well. However, the information system can improve the performance of the organization, as it
can manage various processes. The article has provided the current scenario of AIS and its
impacts on the OP. Thus, all the processes can be improved using AIS, which is a good
source for managing performance. There are some important factors of the AIS system,
which are beneficial for managing different issues and challenges. Thus, multiple regression
analysis has been used by the author to confirm whether the assumed hypotheses are valid or
not. Moreover, accounting knowledge can be used for improving accounting processes.
Besides, MS is necessary for OP, as top management can take decisions based on the
financial reports as well (Hosain, 2019).
It has concluded based on the above parts that AIS has provided many benefits to a
firm. The article has included different sources to provide a high-level of information about
the impact of AIS on OP. the author has used good research methods for correlations and
regression analysis, which is the best way to know actual results. Therefore, the paper has
included primary data for analysis, which is a good source as well. The author can include
peer-reviewed articles for critical analysis as well. There are some changes in the basic
processes of a system. However, AIS can be used for managing the financial records of a
firm. It will be better for their business processes in the future as well. Even though having
some limitations, the features of utilizing Accounting IS are enormous (Hosain, 2019).

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References
Belal, A. R. (2016). Corporate social responsibility reporting in developing countries: The
case of Bangladesh (1st ed.). London: Routledge.
Bélanger, F., & Crossler, R. E. (2011). Privacy in the digital age: a review of information
privacy research in information systems. MIS quarterly, 35(4), 1017-1042.
Belfo, F., & Trigo, A. (2013). Accounting information systems: Tradition and future
directions. Procedia Technology, 9(1), 536-546.
Chaffey, Dave, & White, G. (2010). Business information management: improving
performance using information systems. Pearson Education.
Davoren , J. (2019). The Three Fundamental Roles of Information Systems in Business.
Retrieved January 26, 2020, from https://smallbusiness.chron.com/three-fundamental-
roles-information-systems-business-23681.html
Dey, S. (2014). Adverse Rohingya Impacts on Bangladeshi Economy and its Solutions.
American Journal of Trade and Policy, 4(3), 129-132.
Gillett, P. R. (2016). Accounting Information Systems (1st ed.). John Wiley & Sons.
Guru99. (2018). Types of Information System: TPS, DSS & Pyramid Diagram . Retrieved
July 7, 2019, from https://www.guru99.com/mis-types-information-system.html
Gynther, R. S. (2014). Accounting for Price-Level Changes—Theory and Procedures:
Pergamon International Library of Science, Technology, Engineering and Social
Studies (1st ed.). Lonodn: Elsevier.
Hagerup, A. (2019). AI for Accounting and Finance Blog. Retrieved January 22, 2020, from
https://blog.vic.ai/blog/how-the-right-ai-can-transform-your-accounting-business
Hall, J. A. (2012). Accounting information systems (1st ed.). Lonodn: Cengage Learning.
Hoque, Z. (2018). Methodological issues in accounting research (1st ed.). Spiramus Press
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Performance: Evidence from Bangladeshi Small & Medium Enterprises. Journal of

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Asian Business Strategy, 9(2), 133.
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Rouf, D. (2011). The relationship between corporate governance and value of the firm in
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