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Impact of AIS in decision making of a company

Impact of AIS in decision making of a company

 Impact of AIS in decision making of a company 



Accounting can be considered as a means of recording, categorizing and at the same time summarizing in a proper way and in suitable perspectives of money, business transactions along with events that are, partially financial in character, and help in analyzing the results. In essence, the current section of review of literature highlights accounting as a specific information system that enumerates, processes and at the same time aptly communicates pecuniary information regarding a business unit. This segment also throws light on the fact that advancement in IT-information technology have radically enhanced accounting systems and at the same time transformed useful life. Essentially, computers together with other digital technologies are said to have enhanced office productivity helped the speedy exchange of requisite documents, proper collaboration with diverse partners along with compilation as well as data analysis. In actual fact, this study also presents evidence from prior works scholars regarding the way information technology provided different kinds of economic actors and novel effective tools for recognizing and undertaking economic as well as business opportunities. 

Discussion Accounting Information System

As suggested by Trigo et al., (2016), accounting information system (AIS) is a complete set of interconnected subsystems that operate together to acquire, process and at the same time store up, transform and give out information for the purpose of planning, decision making as well as exercising control. AIS is regarded as a tool that was integrated in the field of Information as well as Technology System. This system can be considered to be very crucial for business enterprises. Essentially, this is the accountable in creating dependable pecuniary information requisite for the purpose of decision making (Susanto, 2017). Basically, there are different designs of this AIS system and specific factors need to be taken into consideration that in turn influences the manner in which information is collected and at the same time reported. Particularly, this depends on anticipated users of this specific information and diverse kinds of decisions that they are expected to arrive at. 

General Model for the Accounting Information System

The general model for particularly Accounting Information System (AIS) can be regarded as a

general model since it is applicable to different systems of information, irrespective of architecture of technology (Schaltegger& Burritt, 2017). The components primarily comprises of end users, diverse sources of data, processing of data, management of data, generation of requisite information as well as feedback. 

The first operational phase in the area of AIS is the collection of data. The objective is to make

certain that the data entering are valid, complete as well as free from material mistakes. As such this stage helps in promoting relevance along with efficiency in the process of decision making which depends on the AIS. In addition to this, the system needs to capture pertinent data and acquires the same once. However, data sources can essentially be taken from two different sources namely, internal or else external. Myers et al., (2017) suggests that after successful collection of the data it gets stored in the database and need to be processed for generation of information and decision making. In essence, activities which pertain to processing of data necessarily differs from simple to complex and includes algorithms, statistical procedures, forecasting of sales, and summarizing processes utilized in accounting. Particularly, the information acquired can then be forwarded to different external end users plus the internal end users (Millo et al., 2016). Thereafter, feedbacks are delivered back to business enterprise so that individuals can understand things that need to be retained and things that need to be improved.  

Objectives of Accounting Information System

Maskell et al., (2016) suggest that one of the primary objectives of AIS is to pass the principle of

cost principle or else cost benefit association. As such, financial information is not in itself free and firms essentially spend millions each and every year for the purpose of gathering and organizing financial information and assembling the same into financial assertions. Libby (2017) states that under this specific principle, the cost of delivering financial information in pecuniary statements need not outweigh overall advantage of the information to different users. 



Appelbaum, D., Kogan, A., Vasarhelyi, M., & Yan, Z. (2017). Impact of business analytics and enterprise systems on managerial accounting. International Journal of Accounting Information Systems, 25, 29-44.

Brown-Liburd, H., Issa, H., & Lombardi, D. (2015). Behavioral implications of Big Data's impact on audit judgment and decision making and future research directions. Accounting Horizons, 29(2), 451-468.

Cleary, P. (2017). Introduction to Accounting Information Systems. In The Routledge Companion to Accounting Information Systems (pp. 25-34). Routledge.

Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for decision making.

John Wiley & Sons.

Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.




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