Ais Chap 1 Essay examples

1526 Words Nov 5th, 2013 7 Pages
|Subject Name |FIN3024 Accounting Information Systems |
|Topic |Introduction to Accounting Information Systems |
|Week |1 |

Chapter Overview

This chapter explains some fundamentals of accounting information systems and the historical development of it until the need to have one become so essential to meet the competitive environment. In addition, it discusses the role of systems within the organizational setting as well as
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• This had been developed by merchants to record profits made on trading voyages.

12 Later development

• Modern accounting began in the Industrial Revolution. • Record keeping was of course done by hand. • The growth of industry and the development of automatic methods of processing were first adopted for payroll processing and later by accounting. • Modern systems integrate accounting with other functions and are influenced by new information technologies and innovations.

Fallacies of Accounting Information Systems

• More is better. Greater information is produced, more efficient and effective the company will be. But, not true. Quality is expected along with quantity. • More communication means better performances. Results with quality information are needed. • More information means improved decision making. Gathering more information is costly and time constraint decisions are not possible with more information. • Users/managers know what they need and need what they want. Dynamic environment create uncertainty.

However, it is the quality of information and not the quantity of information that matters. Right of information while taking into the quality and quantity of important should concerns

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