How the process of computerising accounting information systems (AIS) and telecommunicating accounting information over the web actually help the accounting functions in an organisation operating globally? However, the counter-claim is that the breaching of the security of such systems will be a great risk that needs to be properly managed in various ways.
The purpose of the essay is to identify how the process of computerising accounting information and telecommunication accounting information over the web can help the accounting functions in an organisation operating globally and to find out how large firm can protect their system and information by using different methods. Also, in this assignment the main function of computerizing accounting information system (AIS) and telecommunicating accounting information over the web will be discussed along with successful examples and failure examples. Also, it will link and explain why these functions will help the accounting functions to operate globally. Also, in this assignment it will explain the main threats of using such system and will point out how large organisations able to manage these potential threats.
Accounting Information System is vital to all organisations (Borthick and Clark, 1990). The process of computerizing accounting information systems (AIS) is a system of collection, storage and processing of financial and accounting data that is used by decision makers. The result can be used internally by management or externally by other interested parties including investors and creditors. Organisations depend on information systems to stay competitive, they see information as important as a resource such as plant and machines. Therefore, in order to stay competitive, organisations may have to computerising their AIS, to make the process automatic in order to; reduce effort, save time, improve efficiency and reduce labor cost. However, many organisations are not enjoying the benefit of computerization of accounting system as they have continued to be inaccurate due to increased number of interruptions due to system failure or breakdown and untimeliness with its reliability left in the question.
So how computerising accounting information system helps the accounting functions in an organisation operating globally? In a computer system, processing is carried out electronically, usually with little or no intervention from a human user. The components of a computer system include hardware and software. Hardware describes the physical components of a computer system. Example: Monitor, bar-code reader, Web camera and speakers. And software is a series of detailed instructions that control the operation of a computer system. Software exists as programs that are developed by computer programmers. Example: systems software and applications software. (Khaled Abdala, Financial accounting & information technology, p.510). But how they actually help the accounting functions in an organisation operate globally? When a firm has grown globally, they then have to deal with billions of information per day from many different countries, and the only way they can process the information is by using computer system, today’s computer system come in variety of sizes, shapes and computing capabilities. Categories such as mainframe, midrange and microcomputer systems are still used to help an organisation which operates globally, such as IBM, to express the relative processing power and number of end users that can highlight the major uses of particular types of computers.
Telecommunications is on a national or global scare, in order to allow telecommunications to operate it consist both software and hardware to set up these links. Hardware include; satellite and microwave transmissions. Telecommunications help the accounting functions in an organisation operating globally by enable a business that...