Role of the AIS in Modern Organizations

Section 1) Introduction

Modern organizations are type of organizations that are using information systems extensively, which are computer-based and it can be in several forms. The project assignment is focusing on accounting information systems that will be serving accounts department in any organization or for accounting purposes1. The purpose of project assignment is to identify role of the accounting information systems and to analyze how they are playing these roles in modern organizations. By the end of project assignment, there will be realization how effective role that accounting information systems is playing to develop and to maintain modern organizations. Section 2) Role of the AIS

The role of the accounting information systems is based on business function and nature of a particular modern organization. Moreover, it is varying based on the size and type of organization and their business or services industry. However, its general role is to facilitate reward systems allocation that modern organization will need to reward2. The capturing of financial data is in the traditional accounting information systems while non-financial data capturing was in the other such as it can be redundant systems. One of the examples is enterprise resource planning that will be including to support and to provide financial and non-financial information along with accounting information systemss traditional functions3. It is another role played by accounting information systems where specific system is integrated with other departments for aligning and processing needs equally.

1 2

Moeller, R. R. (2005). Brink's Modern Internal Auditing. New York: John Wiley and Sons.

Sisaye, S. (2001). Organizational Change and Development in Management Control Systems: Process Innovation for Internal Auditing and Management Accounting. New York: Emerald Group Publishing. Jackson, Sawyers, and Jenkins. (2008). Managerial Accounting: A Focus on Ethical Decision Making. New York: Cengage Learning.
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Zubaidah Abdul Rehman, 20042080

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Role of the AIS in Modern Organizations

Accounting information systems works towards success of the organization when there is incorporation of information and communication technologies, which is important role. Therefore, it will be driving towards innovation of accounting practices. Some of the responsibilities relatively are process management and operational activities, internal reporting and external reporting4. In most of the modern organizations, it has become essential that accounting information systems produce information that is aligned with strategic perspective. This is one the major roles that accounting information systems are into. Therefore, accounts department will not just review internal operations but they will be working towards producing information that will benefit making external decisions. This will be related to the external environment of the organization and competition5. 2.1) Role by Accountants in General

An important role that accountants are playing is data processing in accounting information systems. It will be answering the below questions6: What are the data to be stored and entered? Who are the employees to access these data? How are the data supposed to be retrieved, accessed, stored, updated and organized? What are means for meeting information needs that are unanticipated or scheduled?

D'Atri, Marco, Braccini, and Cabiddu. (2010). Management of the Interconnected World: ItAIS: the Italian Association for Information Systems. New York: Springer.
4

Adams, D. (2006). Management Accounting For The Hospitality, Tourism And Leisure Industries: A Strategic Approach. New York: Cengage Learning EMEA.
5

Lehman, C. R. (1995). Accounting's Changing Role in Social Conflict. New York: Markus Wiener Publishers.
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Zubaidah Abdul Rehman, 20042080

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Role of the AIS in Modern Organizations

2.2)

Role by Specific Accounting Professions

General accounting in accounting information systems varies from specific accounting professions. Therefore, the discussion related to role by specific accounting professions is mentioned and all the following should be prepared by using accounting information systems showing roles of each accountant7: Financial accountants are preparing financial information that is for external decision-making. Managerial accountants are preparing financial information that is for internal decision-making. Auditors are evaluating controls and attesting financial statements to the fairness. Accounting managers are controlling all accounting related activities. Consultants are devising accounting information systems specifications. Section 3) Conclusion

In conclusion, no accounting information systems can play role in modern organizations until and unless there are resources and good effectively working system to do that. The only reason that the organization is modern is because of information systems and specifically for accounts department. The role of the accounting information systems is to meet the needs of the accounts department as aligned with modern organizational needs. Modern organization will fail to make decisions when there is absence of effective accounting information systems. Therefore, accounting information systems will enable in providing information that modern organization can use to make proper and sound decision. Moreover, it is varying from one accounting profession to another. This shows that accounting information systems should support all accounting profession to play the role of supporter and enabler of effective decision-making. Wilkinson, Raval, and Wing. (2008). Accounting Information Systems: Essential Concepts and Applications. Retrieved 1 November 2011 from http://www.wiley.com/college/acc/wilkinson253529/site/ppt/ch_01.ppt
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Zubaidah Abdul Rehman, 20042080

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Role of the AIS in Modern Organizations

References

1)

Moeller, R. R. (2005). Brink's Modern Internal Auditing. New York: John Wiley and Sons.

2)

Sisaye, S. (2001). Organizational Change and Development in Management Control Systems: Process Innovation for Internal Auditing and Management Accounting. New York: Emerald Group Publishing.

3)

Jackson, Sawyers, and Jenkins. (2008). Managerial Accounting: A Focus on Ethical Decision Making. New York: Cengage Learning.

4)

D'Atri, Marco, Braccini, and Cabiddu. (2010). Management of the Interconnected World: ItAIS: the Italian Association for Information Systems. New York: Springer.

5)

Adams, D. (2006). Management Accounting For The Hospitality, Tourism And Leisure Industries: A Strategic Approach. New York: Cengage Learning EMEA.

6)

Lehman, C. R. (1995). Accounting's Changing Role in Social Conflict. New York: Markus Wiener Publishers.

7)

Wilkinson, Raval, and Wing. (2008). Accounting Information Systems: Essential Concepts and Applications. Retrieved 1 November 2011 from http://www.wiley.com/college/acc/wilkinson253529/site/ppt/ch_01.ppt

Zubaidah Abdul Rehman, 20042080

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