- choose an article or a journal that is at least several pages in length; you can also choose two shorter related articles (attach with your article submission) - summarize what the article/journal is about (include main ideas from the article) - what did you learn from this article?
- how does this impact businesses?
- how will this new information help you as a business professional/accounting professional? - include other comments (what additional questions do you have for the author based on what you read, what other information could have been included to make this article even more insightful) - your summary should be minimum of two pages in length, single spaced, and double space between paragraphs - the third page should be a list of your reference(s)
Overall, I'm looking for your ability to find qualified reading material and summarize it in a professional manner, so that this assignment helps you to extend your AIS knowledge
http://www.getsurrey.co.uk/news/s/2116144_mole_valley_accounting_errors_cost_63k http://smallbusiness.chron.com/advantages-accounting-information-3949.html http://www.businessihub.com/advantages-of-using-accounting-information-system/ http://www.ehow.com/list_6588708_benefits-accounting-information-systems.html I chose two articles that illustrate the importance of accounting information systems in the modern business world. The first article details the hurdles a user can face when relying on substandard manual accounting information systems. The users in this case; the Mole Valley District Council, paid a significant penalty in the form of extra auditor’s fees for having poorly maintained accounting records. The finance department for the council reportedly made a number of clerical errors including arithmetic errors, incorrect calculations, and an insufficient audit trail. Few internal controls were in place to adequately prevent, detect, and rectify discrepancies resulting from user error. The second article is from the auditor’s side of the situation and how they can trace after potential frauds. - what did you learn from this article?
The benefits of using a standardized accounting information system can certainly help a business from a number of standpoints. Records can be maintained, stored, and easily referenced by the user. This allows for critical analysis of sales records, inventory, and any other pertinent information required by the user. Properly maintained records can also assist in the facilitation of audits, tax preparation, and other compliance requirements. Accounting information software can also help reduce inefficiencies in the finance department allowing a business to trim down the number of staff required by computerizing a large majority of the manual labor required in normal accounting procedures. As illustrated in the article regarding Mole Valley, the council paid an extra 58% in audit fees due to poorly maintained accounting records. The council would have been wise to implement an efficient accounting information system if the cost of implementation and maintenance falls below that excess payment. The council could also reduce the number of staff in the finance department which could lead to additional savings. - how does this impact businesses?
It’s quite clear how an efficient accounting information system can help a business build a competitive advantage. The main advantage to be had is a reduction in expense in the finance department. Computerized accounting systems that are fully integrated can heavily reduce the amount of manual labor normally required. This includes automatic data entry, ability to summarize periodic statements with ease, and ease of access to records. Businesses can also become efficient when it comes to dealing with regulatory bodies such as the IRS, SEC, and PCAOB. Properly maintained records can allow a user to more easily work with these regulatory...