Accounting Information System Summary

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ABSTRACT

Every entity would aim to have an efficient and effective use of its resources as well as its proper management thereto. Accounting Information System played a very significant role in managing organization’s transactions and providing efficiency to the user who it aims to communicate the results. One of the most subtle impacts of accounting information system on company’s recording processes is the reliability on the outputs of the system. An understanding of the effects of the accounting system on the entity reflects the types of outputs the system intends to generate to its user. This study evaluates the Accounting Information System of VVA Trading Corporation which is engage in merchandising and trading activity. The researchers
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(Harash, 2017) Through the years, entities have adapted different methods to achieve their main goal – to earn profit. Technology has made its contribution to help managers in running the business smoothly, which paved the way to the existence of accounting information system. The accounting information system comprises the processes, procedures and systems that capture accounting data from business processes; record the accounting data in the appropriate records, process the detailed accounting data by classifying, summarizing and consolidating, and report the summarized accounting data to internal and external users.(Turner, 2013)The reports generated from the accounting information system are intended to help the management monitor and control the organization. With the use of AIS, it is more efficient and more reliable since the system provide a wide range of function like authorization, discounting, collection, and many…show more content…
Generally, accounting is the language of business. Accounting can be defined as an information system that supports business processes and decision making. Accountants are traditionally the organizer, keeper and disseminator of financial information for a business. In the mid 1960’s it became clear that information was going to be processed differently. Automation was inevitable.
Consequently, faculties understand that they can help students make the additional connections required in a world with automated information processing through learning Accounting Information System (AIS). Due to the improving technical areas in accounting, it seems to be impossible for an individual to specialize in everything accounting related, that includes systems.
Furthermore, in the 1986 The Bedford Committee of the American Accounting Association released its report. Broadly it made four points. First accounting is not a narrow discipline, but a process of information development and distribution. Next that learning accounting, like learning other areas is about learning to learn. The third point was that five years of education should be
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