An AIS also needs internal controls that protect it from computer viruses, hackers and other internal and external threats to network security. All of the data in an AIS should be encrypted, and access to the system should be logged and surveilled.
For publicly-traded companies, no matter what software program and customization options the business chooses, Sarbanes-Oxley regulations will dictate the structure of the AIS to some extent. This data may include Social Security numbers, salary information, credit card numbers, and so on.
These can be as simple as passwords or as complex as biometric identification. Internal Controls The internal controls of an AIS are the security measures it contains to protect sensitive data. A third use for an AIS is that when a business is in trouble, the data in its AIS can be used to uncover the story of what went wrong.
Information Technology Infrastructure Information technology infrastructure is just a fancy name for the hardware used to operate the accounting information system. Purchasing a turnkey system means, theoretically, that the business will get an optimal combination of hardware and software for its AIS.
On the other hand, examples of data that would not go into an AIS includes memos, correspondence, presentations and manuals.
Having a well-developed and maintained accounting information system that is efficient and accurate is an indispensable component of a successful business. The cases of WorldCom and Lehman Brothers provide two examples. In addition to cost, factors to consider in selecting hardware include speed, storage capability and whether it can be expanded and upgraded.
Managers rely on the information it outputs to make decisions for the company, and they need high-quality information to make sound decisions. It must also be protected from natural disasters and power surges that can cause data loss.
Perhaps most importantly, the hardware selected for an AIS must be compatible with the intended software.
Before there were computers, AISs were manual, paper-based systems, but today, most companies are using computer software as the basis of the AIS. The system could even be outsourced to a specialized company. Quality, reliability and security are key components of effective AIS software.
AIS software programs can be customized to meet the unique needs of different types of businesses. Get a free 10 week email series that will teach you how to start investing. The Bottom Line The six components of an AIS all work together to help key employees collect, store, manage, process, retrieve, and report their financial data.
Delivered twice a week, straight to your inbox. It took extraordinary effort to untangle these systems to obtain the necessary information. System activity should be traceable as well. An AIS contains confidential information belonging not just to the company, but also to its employees and customers.
The Collapse of Lehman Brothers. This is because SOX regulations establish internal controls and auditing procedures that public companies must comply with.An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve and report its financial data so that it.
The study examined the impact of computerized Accounting Information System (AIS) on the performance of banks in Nigeria. The objective of this research study is to evaluate the impact of computerized (AIS) on the efficiency of bank operations, employee performance, customer satisfaction, service.
The existences of accounting research on ERPS has created an opportunity for further research on the Accounting Information Systems (AIS) quality and effectiveness in the decision making process.
and Grabski, ), is well documented in the accounting information systems literature. Chenhall and Morris (), for example, examine the impact of contextual variables such as.
Computerized Accounting Information Systems An accounting information system is a system that collects, processes, summarizes, and reports financial data.
The Impact of Computerized Accounting System on Financial services to understand how computerized accounting information systems can be used to reduce costs of medical services (el-Dalabeeh and Alshabiel, ). followed by a descriptive analysis using tables, frequencies and percentages.
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