Current Issues in the Design of Accounting Information Systems

This essay examines the current issues in the design of accounting information systems for management control. It explores the evolution from manual accounting to computerized systems and highlights the benefits of AIS, such as automated data processing and accurate information delivery. The essay identifies several challenges, including security risks like hacking and data loss due to power failures, as well as the high costs associated with expert systems, timely updates, and staff training. It also addresses the need for validation of input data and difficulties in gaining system insights. The essay concludes by emphasizing the crucial role of AIS in achieving organizational goals, while providing recommendations to mitigate risks, such as implementing antivirus systems, controlling external storage devices, and utilizing UPS for power failures. The essay references several journals and books to support its findings.

Current issues in accounting
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ESSAY
Title: The current issues in The Design of Accounting Information Systems for management
control.
An accounting information system is the system that acts as an aid in collecting, storing
as well as processing of the financial and accounting data which can be utilized by decision
makers. This system is computer based technique that tracks accounts activity in conjunction
with information technology resources (Ahmad, 2016). The systems relating with accounting
information are developed with the aim to support all the accounting functions and activities.
This involves auditing, financial accounting and reporting, management accounting as well as
tax. The most widely adopted systems of accounting information includes auditing and financial
reporting modules. Accounting information system is regarded as an essential resources for
different businesses. It is regarded as the essence of all the competitive organizations. The
concept of accounting information is very defined as several commercial packages as well as
appropriate systems have been devised (Grabski and et.al., 2011). However the accounting
system possess changing levels of efficiency and relatively higher costs for such information that
influence business world. Earlier accounting was entirely based upon manual approach. The
experience as well as skillfulness existing within the individual accountant is critical in the
process of accounting. Using manual approach can be ineffective as well as inefficient.
Accounting information system is effective in resolving various issues. It assists in offering
support to automatic processing of greater amount of data and producing timely and accurate
data.
In the present era the fusion among accounting as well as information technology field
offers essential resource for the organization in different areas. However, by making integration
among two different fields certain problem arises (Galliers and et.al., 2014). In the present essay
current issues in The Design of Accounting Information Systems for management control has
been discussed. Further it covers evaluation of the subject matter under investigation.
Earlier the accounting was entirely based upon the manual process. The role of
experience and skills is crucial in the process of accounting. The use of manual approach to
accounting has become ineffective and inefficient (Wilkin and et.al., 2010). The role of
accounting information system can be greatly viewed towards offering support to the automation
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of greater amount of data as well as producing information on time and in accurate manner.
Accounting information system (AIS) is widely adopted by the firms that are operating in private
as well as public sector. AIS is regarded as the specialized subsystem of information system that
acts as an aid in making collection, processing and reporting information that relates with
financial aspects of the organization. There has been ordinary thought regarding most of the
accounting information system issues (Geerts, 2011). This has been resulted from the absence of
constructive planning for refreshing their information system. This is in the light of various
progress that has been attained in the information technology field, quality of software,
sophisticated system design as well as development, employing quantitative models,
Determination of information requirements as well as proper auditing system. Integration of the
data is regarded as an essential part of internal control framework that relates with financial
statements auditing for external reporting.
There is presence of certain issues that arises due to the fusion of accounting and
information technology field in accountants. One of the major issue presents that computerized
systems are at constant risk that involves hacking, power failures, viruses as well as loss of
information. Accounting information system face major issue that relates with power failure that
can result in loss of data. Moreover hacking can also be done which can provide private
information of the accounting information of one company to another (Elbashir and et.al., 2011).
This can result in creating risk for the organization in terms that its valuable information can be
shared among everyone. Another issue relates with higher cost of accounting information expert
systems. Apart from this system requires timely updation as well as staff of the business needs
proper training courses for effective utilization of systems. There is presence of certain security
system that are majorly summarized with the computer fraud risk. The issues relating to security
are major in the accounting information system which can affect the business to a greater extent.
Several times human error is not determined quickly (Worrell and et.al., 2013). Therefore there
needs to be certain kind of validation for recording input needs for accuracy. Further there is
difficulty relating with gaining insight to the system of accounting information. Thus there needs
to be presence of adapted set for the business so that it does not result in causing chaos to the
accounts.
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From the findings it has been evaluated that issues to a greater extent affects the use of
accounting information system. But there is presence of several advantages as well. This
includes speed as well as safety. The major pros of information system within accounting relates
with speed of task processing (Hall, 2012). Further it also ensures safety in terms that once the
data is entered there are less chances of losing the data especially when regular backups are
created.
It can be concluded from the essay that role of accounting information system is
considered crucial for the firm in attainment of the organizational targets in an effective manner.
It has been inferred from essay that in the present era the use of manual accounting has been
reduced and there is greater increase in usage of accounting information system as such results in
minimizing the time taken for carrying out accounting process. Several issues have been
identified relating to accounting information system. This security risk of computer fraud which
can be resolved by hiring extremely talented workforce within the organization.
Several recommendations have been provided so that risk can be avoided. Te issues
relating to hacking and security can be addressed by making use of recommended anti-virus
system and through controlling the use of firms computers specifically external hard drives, flash
memories as well as keeping control on the web access (Gelinas and et.al., 2011). The problem
associated with power failure can be resolved by making use of USP's. Further the issues of theft
and damages can be solved by the ways such as safety deposit boxes as well as safes etc.
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REFRENCES
Journals and Books
Elbashir, M.Z. and et.al., 2011. The role of organizational absorptive capacity in strategic use of
business intelligence to support integrated management control systems. The Accounting
Review. 86(1). pp.155-184.
Galliers, R.D. and et.al., 2014. Strategic information management: challenges and strategies in
managing information systems. Routledge.
Geerts, G.L., 2011. A design science research methodology and its application to accounting
information systems research. International Journal of Accounting Information Systems.
12(2). pp.142-151.
Gelinas, U. and et.al., 2011. Accounting information systems. Cengage learning.
Grabski, S.V. and et.al., 2011. A review of ERP research: A future agenda for accounting
information systems. Journal of information systems. 25(1). pp.37-78.
Hall, J., 2012. Accounting information systems. Cengage Learning.
Wilkin, C.L. and et.al., 2010. A review of IT governance: A taxonomy to inform accounting
information systems. Journal of Information Systems. 24(2). pp.107-146.
Worrell, J.L. and et.al., 2013. Exploring the use of the Delphi method in accounting information
systems research. International Journal of Accounting Information Systems. 14(3). pp.193-
208.
Online
Ahmad, A. M., 2016. Problems and Internal Control Issues in AIS from the View Point of
Jordanian Certified Public Accountants. [Online]. Available through:
<http://www.cisjournal.org/journalofcomputing/archive/vol3no12/vol3no12_6.pdf>.
[Accessed on 3rd May 2016].
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