Individual Assignment (56474) by Lismarie Mitchell Togang

Based on what I have learned in Learning Unit 1 and Learning Unit 2, Accounting Information System (AIS) does affect the accountant’s job scope in a broad view. Accounting Information System is a system that processes financial and some non-financial transactions, which contains three subsections known as transaction processing system (TPS), general ledger/financial reposting system (GL/FRS) and management reporting system (MRS). Accounting information system provides the financial information that enable the accountants for making decision such as producing managerial reports and financial statements in an organization. An accountant needs to produce financial reports in real time and most relevant for the used of internal and external user. By applying accounting information system in an organization, it will help to smoothen and supports the daily business operations.

Besides, the implementation of accounting information system helps to enhance the accountants’s skills in using the computer programs that is used for processing data. It is easier for an accountant to perform a task because most of accounting information system is a computer-based that consumed less time, effort and energy. For example, SQL Account Software System is a GST certified accounting software helps to organise the finances and monitors all the purchases, collections and sales. As auditing is one activity that usually performed by an accountant, through developing accounting information system in a company, it enables an auditor to conduct financial statement audits and evaluate the efficiency of operational progress of a firm easily.

Moreover, by implementing an internal control system, an accountant able to prevent fraud. There are two types of fraud, which is employee fraud and management fraud. Employee fraud is designed to convert cash or other assets for the employee’s personal benefit while management fraud does not involve direct theft and more harmful as it usually involves material mistatements of financial data. An accountant able to detect fraud happens within a firm easier. The internal control system consists of policies, practices and procedures which designed for an accountant to achieve the safeguard assets of the firm, the accuracy and realibility of accounting records and information, the firm’s operations efficiency and measuring the compliance with management’s prescribed policies and procedures. Thus, it is beneficial for the accountants to apply internal control system to ensure accurate accounting records and information.

Lastly, an accountant able to collect and store data of organization’s financial activities such as capture and formalize data from source documents, recording transactions in journals and posting data to ledgers without consumed more time, resources and effort especially in a large company as computerized accounting cycle can be done automatically using software provided. Data processing will be more accurately recorded as accounting software automates the process of recording in the system.

(449 words)

]]>