International Journal of Information Science and Technology
EVALUATION OF THE EFFECTIVENESS OF ACCOUNTING
H. Sajady, Ph.D. M. Dastgir, Ph.D.
Department of Economics and Social Sciences Department of Economics and Social Sciences Shahid Chamran University Shahid Chamran University
Ahvaz, I. R. of Iran Ahvaz, I. R. of Iran
Corresponding Author: firstname.lastname@example.org
H. Hashem Nejad, M. S.
Department of Economics and Social Sciences
Shahid Chamran University
Ahvaz, I. R. of Iran
Abstract - In this study the effectiveness of accounting information systems of finance managers of listed companies at Tehran Stock Exchange is evaluated. The results indicate that implementation of accounting information systems at these companies caused the improvement of managers’ decision-making process, internal controls, and the quality of the financial reports and facilitated the process of the company’s transactions. The results did not show any indication that performance evaluation process had been improved.
Keywords: Accounting Information Systems, Quality of Financial Reports, Internal Controls, Decision Making, Performance Evaluation.
In managing an organization and implementing an internal control system the role of accounting information system (AIS) is crucial. An important question in the field of accounting and management decision-making concerns the fit of AIS with organizational requirements for information communication and control . Although the information generated from an accounting information system can be effective in decision-making process, purchase, installation and usage of such a system are beneficial when the benefits exceed its costs. Benefits of accounting information system can be evaluated by its impacts on improvement of decision-making process, quality of accounting information, performance evaluation, internal controls and facilitating company’s transactions. Regarding the above five characteristics, the effectiveness of AIS is highly important for all the firms.
H. SAJADY, Ph.D. / M. DASTGIR, Ph.D. / H. HASHEM NEJAD
July / December, 2008 International Journal of Information Science & Technology, Volume 6, Number 2 50
AIS is defined as a computer-based system that processes financial information and supports decision tasks in the context of coordination and control of organizational activities .
Accounting information system is considered as a subsystem of management information system (MIS). To regard accounting as an information system, perhaps, is the latest definition of accounting. For the first time in 1966, the American Institute of Certified Public Accountants (AICPA)  stated that:
“Accounting actually is information system and if we be more precise, accounting is the practice of general theories of information in the field of effective economic activities and consists of a major part of the information which is presented in the quantitative form”.
In the above definition, accounting is a part of general information system of an economic entity. Boochholdt  defines accounting information systems as systems that operate functions of data gathering, processing, categorizing and reporting financial events with the aim of providing relevant information for the purpose of score keeping, attention directing and decision-making.
Accounting information systems are considered as important organizational mechanisms that are critical for effectiveness of decision management and control in organizations.
Studies have shown that successful implementation of accounting systems requires a fit between three factors . A fit must be achieved with dominant view in the organization or perception of the situation. Second, the accounting system must fit when...