HomeworkLib
Question

Assess how corporate leaders may make improper assumptions related to accounting information systems and the related...

Assess how corporate leaders may make improper assumptions related to accounting information systems and the related information. Indicate the most negative potential impacts on business operations related to these assumptions. Provide support for your rationale.

Please include any references used

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer

An accounting information system (AlS) is a system that collects, records, stores, and processes data to produce information for decision makers (Romney & Steinbart, 2012). Accounting information systems has become one of the most popular tools in the business world. They have the potential of being inexpensive to slightly costly. However the benefits greatly outnumber the cost. Accounting information systems provide timely and very useful information to management. AlS are utilized to govern the functions of account payables and receivables, cash transactions and any other pertinent accounting functions. Due to the fact that the accounting departments deal with a numerous volume of transactions, it is of great importance to have an effective information system to handle the tasks. Nowadays it is automatically assumed that AlS is strictly a computerized system. However, AIS components include: people, procedures and instructions, data, software, information technology infrastructure, and internal controls and security measures (Romney & Steinbart, 2012). With all these components combined it is evident that unwarranted situations could arise starting with the head of the operation, corporate leaders. Corporate leaders may make improper assumptions related to accounting information systems and the related information. There are several key incorrect assumptions that management makes about its accounting information systems. According to the classic article entitled Management Information Systems written by Russell L. Ackoff, he presented five common assumptions about information systems. Ackoffs five common assumptions included: (1) management needs more information, (2) managers need the information they want, (3) giving managers the information they need improves their decision making, (4) more communication means better performance, and (5) managers need only to understand how to use an information system (Ackoff, 2012). Although these are assumptions are from December 1967, some are still prevalent today.The improper assumptions related to accounting information systems that corporate leaders make can all be avoided with proper knowledge. One improper assumption is giving employees the information that they need and they will be fine. Also, I feel that two of Ackoffs assumptions apply to corporate leaders today; more communication means better performance and managers need only to understand how to use an information system. All three of these are improper An individual can have all the information, as well as, communication in the world and not benefit from. There is more to accounting information systems than just having the manual. In order for the system to be efficient and effective proper training is needed. The more training and refresher courses one receives on AlS the better the decision making process would be for corporate leaders. Many negative potential impacts on business operations elated to these assumptions may arise. However, some are of greater importance than others. These negative impacts include a decrease in the financial reporting process integrity, a decrease in the financial reports quality, a loss of time and money for shareholders, and an improper reflection of the companys true assets. Corporate leaders should remember that an organizations AlS plays an important role in helping it adopt and maintain a strategic position. Therefore, training and refresher courses are of great importance

0 0
Add a comment
Know the answer?
Add Answer to:
Assess how corporate leaders may make improper assumptions related to accounting information systems and the related...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Based on your research, assess how corporate leaders may make improper assumptions related to accounting information...

    Based on your research, assess how corporate leaders may make improper assumptions related to accounting information systems and the related information. Indicate the most negative potential impacts on business operations related to these assumptions. Provide support for your rationale.

  • In today’s technology environment, hackers present a substantial risk to a firm’s accounting or business system....

    In today’s technology environment, hackers present a substantial risk to a firm’s accounting or business system. As the result of these attacks, firms suffer huge losses, ranging from financial losses to losses in confidence by consumers, creditors, and suppliers. Firms may have made a significant investment in financial and non-financial resources to secure these systems. Imagine that Target uses a third-party accounting system. Assess the level of responsibility of the software provider to both the business and its clients. Provide...

  • Suggest three to four (3-4) ways in which organizational performance may be improved when information is...

    Suggest three to four (3-4) ways in which organizational performance may be improved when information is properly managed within a business system. Provide support for your rationale. Please include any references used

  • Explain how the Wells Fargo accounting information system (i.e., components and functions) contributed to the fraud...

    Explain how the Wells Fargo accounting information system (i.e., components and functions) contributed to the fraud and / or embezzlement. You will need to focus on how each component / function of the accounting information system failed, which resulted in the scandal / case. Imagine that Wells Fargo uses a third-party accounting system. Evaluate the effectiveness of the firm’s stakeholder in the event that a third-party accounting system suffers a breach. Include an assessment of the level of responsibility of...

  • In today’s technology environment, hackers present a substantial risk to a firm’s accounting or business system....

    In today’s technology environment, hackers present a substantial risk to a firm’s accounting or business system. As the result of these attacks, firms suffer huge losses, ranging from financial losses to losses in confidence by consumers, creditors, and suppliers. Firms may have made a significant investment in financial and non-financial resources to secure these systems. evaluate the level of responsibility of Target in terms of the effectiveness of the response to the security breach. Provide support for your rationale. Please...

  • In today’s technology environment, hackers present a substantial risk to a firm’s accounting or business system....

    In today’s technology environment, hackers present a substantial risk to a firm’s accounting or business system. As the result of these attacks, firms suffer huge losses, ranging from financial losses to losses in confidence by consumers, creditors, and suppliers. Firms may have made a significant investment in financial and non-financial resources to secure these systems. Provide at least three (3) recommendations for businesses to secure their systems and assets from hackers. Provide support for your recommendation. Please include any references...

  • Competency Assess accounting information systems. Scenario Information BeGood Baking Supply is a small bakery supply company...

    Competency Assess accounting information systems. Scenario Information BeGood Baking Supply is a small bakery supply company formed as a closely held corporation. The company supplies raw baking materials, paper goods, and equipment to restaurants and bakeries in three states in the upper mid-west. Most of its business, however, is located in a large metropolitan area. BeGood wants to increase its presence in the region and serve five states. In fact, the owners of BeGood would like 75% of their business...

  • Accounting software systems collect vast amounts of data about the economic events experienced by a company...

    Accounting software systems collect vast amounts of data about the economic events experienced by a company and about the parties with whom the company engages, such as suppliers and customers. Business decision-makers take advantage of this wealth of information by using data analytics, which often employs both software and statistics, to draw inferences and make more informed business decisions. As both data access and analytical software improve, the use of data analytics to support decisions is becoming increasingly common at...

  • InformationSystem - It is related to accounting information systems. Extreme Sports Sdn Bhd manufactures sporting goods....

    InformationSystem - It is related to accounting information systems. Extreme Sports Sdn Bhd manufactures sporting goods. You have been asked to evaluate the proposed redesign of Extreme's purchasing system. The new system will use a materials inventory master file, an open purchase order master file, and a supplier history file, all organized in a relational database system. System inputs will include materials inventory receipts and issue transactions, which will be keyed in as they occur from online terminals located in...

  • Case: Geekdom Games Bob Phillips, the owner of Geekdom Games contacted your consulting company last week...

    Case: Geekdom Games Bob Phillips, the owner of Geekdom Games contacted your consulting company last week to discuss the expansion of his business and the role of information systems in that expansion. Geekdom Games is a small game design business located in St. Louis, Missouri. Geekdom has been in business for five years and has three full-time employees in addition to Mr. Phillips. Geekdom Games produces interactive, fantasy based board games and role playing games similar to Dungeons and Dragons....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT