Impact of AIS on Management's Decision-Making in Australian Telecom

This research project investigates the impact of Accounting Information Systems (AIS) on management's decision-making processes within the Australian telecommunications industry. It identifies the value and usage of accounting information, the challenges faced by managers, and the potential for both positive and negative impacts on decision-making. The study addresses the problem of declining profit margins due to high competition and the need for effective decisions based on accurate and timely financial information. The research aims to provide insights for managers in the telecommunications sector and future researchers, focusing on the importance of appropriate AIS implementation to enhance revenue and overall GDP. The conceptual framework explores the relationship between accounting information, decision-making, and organizational performance, with hypothesis development focusing on the effectiveness of accounting information in supporting managerial decisions. The proposed methodology includes a positivist research philosophy, data collection methods, and data analysis techniques to address the research questions and objectives.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Problem statement.......................................................................................................................3
Research Aims and Objectives....................................................................................................4
Justification and potential output of the Research.......................................................................5
Conceptual framework and hypothesis development......................................................................6
Accounting information system...................................................................................................6
Types of accounting information.................................................................................................6
Positive impacts on decision making...........................................................................................7
Issues faced by managers.............................................................................................................7
Negative impact on decision making...........................................................................................8
Hypothesis development..............................................................................................................9
Methodology..................................................................................................................................10
Research philosophy (positivist)................................................................................................10
Research Approach....................................................................................................................10
Research Design........................................................................................................................11
Data collection...........................................................................................................................11
Population sampling..................................................................................................................12
Data Analysis.............................................................................................................................12
Organization of the study...........................................................................................................13

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Gantt chart.................................................................................................................................14
Project Budget and Budget justification....................................................................................15
Reference list.................................................................................................................................16

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Research proposal topic: The Impact of the Accounting Information on Management’s
Decision-Making Process of Telecommunication in Australia
Introduction
An Accounting Information System (AIS) refers to a system that involves collecting,
storing s well as processing of financial and accounting data that are used by the managers of an
organization. The term ‘accounting’ in business language is a tool for recording, reporting as
well as evaluating economic events as well as transactions that has the potential to impose both
positive and adverse impact on the business organizations. It is the process by which all the
documents of the financial perforce of an organization that includes payroll, capital expenditure,
cost as well as other obligations to sale revenue along with owner’s equity are processed. The
accounting information process provides financial information associated with the financial
position of the organization, like profit and loss, cost and earnings, liabilities and assets and
others to the managers about the internal as well as external users, like employees, potential
investors, financial institutions as well as other stakeholders of the company. The chief purpose
of an account Information system is to help managers as well as other crucial stakeholders of a
business enterprise to make effective decision based on the information provided by the system.
It becomes highly difficult for the management of an organization to make effective
decision for the company if there prevail a lack of financial information about the same. In order
to make efficient decision, information based on genuine facts and figures needs to be there.
Inappropriate decision making has the potential to lead to a disaster by imposing highly negative
impact on the profit and revenue of the organization. Accounting provides the management with

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information associated with the financial position as well as statistical data on the basis of which
managers are able to make an effective decision.
Problem statement
When it comes to the Australian telecommunication, it is referred to the sector of
information and communication technology that is comprised of telephone companies and
internet service providers along with playing the crucial role in the evaluation of information
society and mobile communication. With the rising demand of Australia’s wireless connection,
the telecommunication industry is expecting annul growth of 0.2 percent in by the year 2020.
However, high competition between the existing telecommunication companies has led to
declination of the profit margin of the organization. With te abrupt rise in demand for enhanced
mobile connectivity driven by increased mobile data consumption, more than 8 to 10 mobile
service providers are compitating against each other. In order to gain competitive advantage,
these competitors are lowering their profit margin which in turn is resulting in drop in the overall
profit margin of the industry.
In order to enhance their profit margin while dealing efficiently with the increasing
competition in the telecommunication industry, mangers of telecommunication companies are
trying to make effective decisions based on the accounting information system of the companies.
However the problem lies in the quality as well as validity of the information, that includes
whether the information provided is timely, adequate and clear. While the purpose of the
accounting system is to reduce the risk, uncertainty as well as failure of a decision made by a
leader along with staying competitive in the market, often it is seen that lack of efficiency of the
accountants lead to generation of inaccurate information which in turn leads to failure of the
organization to achieve desired goal. However, accounting tools used for accounting

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information varies from one organisation to another. That is, one tool that efficiently works for a
particular telecommunication enterprise may not work for another one. Therefore employees
must have an
In a nutshell, the major problem detected when making effective decisions in an
institution includes identification of primary concept of accounting information that needs to be
incorporated by each organization that can affect the same both positively and negatively. This
problem has resulted in failure in the use of accounting information in the business.
Research Aims and Objectives
The aim of this research paper is to analyse the impact of the Accounting Information on
Management’s Decision-Making Process of Telecommunication in Australia. When it comes to
the objectives of the research, they are as follows:
1. To understand the value of accounting information in the decisions making process of an
organization
2. To identify as well as evaluate the usage of accounting information by the managers in
the telecommunication industry of Australia
3. To identify various ways in which each user has the potential to implement the usage of
information in order to obtain the benefit from them.
4. To find out the chief reasons of failure in the attainment of the objective of the
organization as a result of inadequate utilization of accounting information
5. To make effective suggestions that has the potential to enhance the potential of the
managers to more effectively implement the accounting information in their decisions
making process.

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The research questions that will be answered in the research paper are as follows;
1. Does the accounting information system impose positive impact or negative impact on
the decision making process of the managers or not?
2. Does appropriate usage of accounting information possess the potential to help the
organization in making effective decisions?
3. What are the issues faced by the managers of the Australian telecommunication industry
that prevents them from making effective decisions based on the accounting information
system?
4. What steps should be implemented by the leaders of the organization in order to ensure
implementation of effective accounting information system in the organization?
Justification and potential output of the Research
After reviewing a good number of articles associated with the topic, it has been seen that
while a lot of research has been conducted on several types of accounting information systems
and their impact on decision making process on the management, very limited number of
researches has been conducted in order to find out the impact imposed by accounting information
on the Decision-Making Process of the management of Australian Telecommunication. Thus, a
gap in literature has been detected. Considering the fact that the chief purpose of the research
paper will be to identify the impact imposed by accounting information on the Decision-Making
Process of the management of Australian Telecommunication, this research will show path to the
future researchers who wants to research on the specific topic. Not only this, this research will
also help the managers of the telecommunication industry of Australia to understand the impact
of accounting system on their decision making process and which accounting system will be

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most beneficial for them. This in turn will enhance the revenue of the organizations leading to
enhancement of GDP of the nation.
Conceptual framework and hypothesis development
Accounting information system
An accounting information system can be defined as the system that collects, store as
well as financial as well as accounting data that are used by internal users for reporting
information to the investors, creditors along with the tax authorities. Libby, (2017) stated that an
accounting information system possess three primary users that includes internal users, external
users and the government. When it comes to the Australian telecommunication industry, there is
no exception. The chief internal users of the accounting information system include the managers
as well as owners of the organization, AIS provide them with significant financial information on
the basis of which effective decisions are made.
Types of accounting information
Collier, (2015) pointed out that in different sector in Australia, three type of accounting,
each with different characteristics are used in order to make effective discussions. Three types of
accounting information includes Tax accounting, which are used by the Australian Government
tax authorities, financial accounting system, used by the investors, lenders as well as government
agencies and finally, management accounting that is for internal management. Brown-Liburd,
Issa & Lombardi, 2015) stated that it is highly crucial for an organization to identify which
accounting managing system needs to be implemented for the organization to ensure effective
decision making. The management accounting is focused on preparing reports that in turn
enables the management of the Telecommunication organizations in Australia to make effective

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decision about their business. Some of the major reports that are associated with the management
accounting include projection of cash flow, production costing, variance reports as well as
business acquisition analysis report.
Positive impacts on decision making
With the implement of effective and appropriate accounting information system,
managers are able to make effective decision that in turn enhances the profit margin and revenue
of the organization to a great extent. Wieder & Ossimitz, (2015) pointed out that the statistical
data provided to the managers about the financial position of the business like profit and loss,
liabilities and assets and cost and earning, makes it easier for them to develop effective strategies
that can enhances the financial condition of the organization.
Developing effective strategy, as being opined by Schaltegger & Burritt, (2017), helps
the mangers to gain competitive advantage in a highly competitive industry. Therefore, in the
telecommunication industry of Australia, accounting system does possess the potential to impose
highly positive impact on the decision making of the mangers if implemented in an appropriate
way.
Issues faced by managers
The chief issue faced by the mangers that lead to failure of accounting information
systems in organizations is the lack of efficiency of the employees to handle the accounting
information system effective. Appelbaum et al., (2017) pointed out that even a slightest mistake
can lead to inappropriate calculation and information that in turn lead to ineffective decision
making. Hence it is highly crucial to train employees so that effective usage of the accounting
information system can be ensured. Another major issue detected is the lack of effective

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understanding of which accounting tool will be appropriate for the organization. While one
accounting tool is found to be highly efficient for one organization, it may not be that effective
for another.
Negative impact on decision making
As a result of the issues detected, inappropriate accounting information impose highly
negative impact on the decision making process of a manager. The first negative impact that is
imposed includes inappropriate decision making due to wrong statistical information. This in
turn can lead to negative impact on the revenue of the organization as well as the reputation of
the same (AlKhajeh & Khalid, 2018). Another negative impact of accounting system on the
organization includes loss of information through power crashes or power outages. Considering
the fact that the information system of telecommunication industry is highly dependent on the
information stored digitally, it can be clearly understood that loss of information does adversely
impose the decision making process of the managers.

Accounting
Information
Types
Tax accounting
financial accounting
system
financial accounting
system
Positive Impacts
enhances the profit margin and
revenue
proper execution of the
important functions of
management organization
Issues
lack of efficiency
of the employees
inappropriate
calculation and
information
Descision
making of
managers
Negative impacts
inappropriate decision making due to wrong
statistical information
loss of information through power crashes or
power outages
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Figure 1: Conceptual framework
Source (Created by Author)
Hypothesis development
Hypothesis 1 H0 Appropriate usage of accounting information does not help the mangers of the
Australian Telecommunication industry to make effective decisions
H1 Appropriate usage of accounting information does help the mangers of the
Australian Telecommunication industry to make effective decisions
Hypothesis 2 H0 Appropriate usage of accounting information does not enhances the profit margin

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of the organization
H1 Appropriate usage of accounting information does enhances the profit margin of
the organization
Methodology
Research philosophy (positivist)
In order to conduct this research, the positivist research philosophy will be used. As a
research philosophy, the positivist research philosophy adheres to the point that only factual
knowledge that is gained with the help of senses possesses the potential to be trustworthy. In
positivist research papers, the researcher’s role is limited to interpretation as well as data
collection in an objective way. In this type of studies the findings of the researcher are both
quantifiable as well as observable (Kumar, 2019). Considering the fact that for this research the
researcher will use a lot of real-time data in order to find out imposed by accounting information
on the Decision-Making Process of the management of Australian Telecommunication, for this
research, the positivism research philosophy will be used.
Research Approach
A deductive research approach can be defined as the approach related to the development
of a hypothesis that is based on the existing theory. The term deductive means reasoning from
the “specific” to the general (Kumar, 2019). Considering the fact in this research, the aim of the
research is to analyse imposed by the accounting information on the Decision-Making Process of
the management of Australian Telecommunication, deductive reach approach will be used.