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Accounting Information Systems

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4. “The impact of innovations and developments in information and communication technology on corporate accounting information systems has removed the need for excessive internal control.” Discuss the truthfulness or falsity of this statement

Information and communication technology has been a major factor of efficient accounting system and great organizational performance recently. In order to maximize the benefits of information technology systems, the appropriate implementation and adoption procedures have to be used, or else, there is little or no impact of these technologies.

In recent times, the usage of computers and other advanced technology have been relevant in most practices including accounting. Prior to this, accountants were …show more content…

Organizations innovate and grow, meaning there is constant change and new ventures on the horizon. Whilst dealing with “new thinking” required for Internal Audit relating to strategic and innovative new ventures, we know that it is important not to shift focus from basic, hygienic risk and control management. We also know that it is important to keep up with the risk and control of the business as it evolves into a business of tomorrow. Therefore, organizations are investing more on specialized audits. Internal audit has advanced significantly in the last …show more content…

There are a number of types of audits that can be conducted, including the following:
• Compliance audit. This is an examination of the policies and procedures of an entity or department, to see if it is in compliance with internal or regulatory standards. This audit is most commonly used in regulated industries or educational institutions.
• Financial audit. This is an analysis of the fairness of the information contained within an entity's financial statements. It is conducted by a CPA firm, which is independent of the entity under review. This is the most commonly conducted type of audit.
• Operational audit. This is a detailed analysis of the goals, planning processes, procedures, and results of the operations of a business. The audit may be conducted internally or by an external entity. The intended result is an evaluation of operations, likely with recommendations for improvement.
• Tax audit. This is an analysis of the tax returns submitted by an individual or business entity, to see if the tax information and any resulting income tax payment is valid. These audits are usually targeted at returns that result in excessively low tax payments, to see if an additional assessment can be

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