Essay about Accounting Systems

1644 Words Nov 23rd, 2013 7 Pages
Accounting information – Coursework

Some academics believe that there is a direct relationship between accounting information systems and organisations. It is thought there is a two-way system whereby organisations shape their accounting information systems but are also shaped by them. This report will look at the highlighted relationship and in the context of the information literacy and management skills that are needed by an accountancy graduate in the 21st Century. The report will also cover the importance of the factors that shape an accounting information system and what the needs are essential to have an effective and efficient system in this present day.
The purpose of accounting information systems is to support management
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Risk assessment and information/communication area also components of internal control where management need to use their skills and expertise in the process of accounting information systems. A common time where company’s may evaluate the risk assessment is during the annual review where the can use company budgets. With this component factors such as policies and procedures and informing employees of roles and responsibilities need to be targeted to ensure effectiveness of controls. Lastly, monitoring is a component of internal controls which involves the evaluation of internal controls and also whether to initiate corrective action when necessary. The monitoring process of the internal controls can sometimes be known as an annual check-up where management evaluate the accounting information system and determine if any improvements are needed.
With the process of choosing accounting information systems organisations also have to take account of corporate governance codes. This is the system in which companies are directed and controlled by the government. There are four main elements of corporate governance; managing, control, supervision and transparency. Therefore, organisations need to shape their accounting systems around these elements to ensure they are following governance codes. Corporate government codes have three components which managers will have to consider. The first being, objective

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