In actuality, it is hardly possible to give a positive answer on any of these questions. The set-up costs and staff training costs are the initial costs that organizations need to incur which makes application of accounting information systems to be generally expensive.
To alleviate the security risks associated with AIS integration, firms need to implement effective AIS management in various ways. For instance, in manual accounting system, each of the steps in the accounting cycle is performed by hand. The reliability of accounting standard with the context of accounting information systems has been widely recognized by many organizations to produce reliable financial accounting statements.
At first glance the use of a manual accounting system seems to be a bit paradoxical since it is less efficient, slower and more complicated than a computerized one.
First of all, it should be said that small businesses still use a manual accounting system and the main reason is the basic principle of the efficiency of an accounting system, i.
The perceived threats of CAIS Computerized accounting information systems CAIS have become the essential tools for conducting business as well as for bringing those in charge to account e.
Consequently, one may wonder how and what is more important why then a manual accounting system still persists and is still applied. In the contemporary global business environment, organizations are increasingly facing stiff competitions where more customers are demanding for more custom products at shortest possible period.
Internal control can be classified according to its purpose: However, the explanation of such a paradox will simple: Otherwise more substantive tests need to be conducted to obtain sufficient appropriate audit evidence. There are also some occasions where organizations may experience AIS failure if AIS implementation is not effectively implemented and tailored to their business needs.
Hackers could interfere with the company files over the network and steal sensitive information for financial gains.
To put it more precisely, a manual accounting system is basically used in small businesses, while a computerized accounting system is use in larger companies.
Authorization is about restricting access of authenticated users to specific portions of the system and specifying the type of actions they are permitted to perform e. Instead, larger corporations, for which time is crucial and accounting is too difficult to be done manually with sufficient reliability and correctness, prefer to use a computerized accounting system which costs are substantially overweighed by benefits from its use because of short time spent on accounting processes, reliability and accurateness of information received.
This is why small businesses which, as a rule, does not have exorbitant benefits, attempt to minimize costs on accounting system in such a way.
Finally, a computerized accounting system does not need time on many long lasting and, consequently, time wasting, manual computations from ledger balances. In fact, it is a natural and inevitable process since the larger business means more information to be analyzed in shorter terms. Preventive controls Several important examples of preventive control are authentication, authorization, physical access control, host and application hardening, encryption and training.
However, organizations generally rely on the digital accounting technologies to implement accounting information system and this involves the use of electronic technology to transfer accounting data online. At first glance the use of a manual accounting system seems to be a bit paradoxical since it is less efficient, slower and more complicated than a computerized one.
Computerised Accounting System - The following essay aims to analyse in depth a computerised accounting system and its aspects such as its history, what technologies is based on, and how it has developed since its beginning. The objectives of the report are to investigate the perceived threats of computerized accounting information systems (CAIS) and to discuss how the impact of these threats can be reduced.
The report covers the 19 perceived threats of CAIS, preventive controls, detective controls, corrective controls and auditors’ attestation of internal controls.
Open Document. Below is an essay on "Computerized Accounting System" from Anti Essays, your source for research papers, essays, and term paper examples. A Computerised Accounting Information System Information Technology Essay. Accounting information system (AIS) is a system that collects and stores data and processes the data into information for decision making.
In the past, AIS was done manually, but today, it becomes computer-oriented. A Computerised Accounting Information System Information Technology Essay. Accounting information system (AIS) is a system that collects and stores data and processes the.
Excerpt from Essay: Computerized Accounting Information Systems In a global contemporary business environment, the computerized accounting information systems have become an integral part of organizational accounting systems.Computerized accounting system essay