Task: Assessment 1 – Questions & Interview
* Learners and assessor should refer to the assessment evidence checklist & record as below:
|Assessment Task 1 Assessment Evidence Checklist & Record
Learner’s ID: ______________________
Learner’s Name: ___________________________________
|Performance & Knowledge Evidence||C/NYC||Comments|
|Identify and document record and systems requirements|
|Evaluate alternative systems and acceptance test systems|
|Outline the key features of statutory requirements, codes of practice and organisational policy and procedures relating to accounting systems|
|Signed by Learner:
|Signed by Assessor:
Question 1An accountant is the practitioner of accounting which is the process of identification, measurement and communication of economic information relating to the business of a firm to allow the users of information to make informed decisions. Accounting has various branches such as management accounting, financial accounting, cost accounting etc. For all these areas of accounting, accountant performs various roles and functions but the prime role of accountants is to collect, process and provide necessary financial information to the intended users of his services so that correct information is communicated at the correct time to the correct places about the entity’s business and its related areas.
Question 2: In order to cope with the rapidly changing business environment, business managers require an adequate source of information that can support their regular decision making. Accounting information system is of those tools that can serve their information needs. It is a system under which entity’s accounting information is identified, measured and recorded to be communicated in the form of various reports to the users. AIS provide such accounting information that helps managers at each level in the business to manage their operations and functions in accordance with the overall financial goals and targets of the entity (Salehi, Rostami & Mogadam, 2010).
Question 3: Benefits of information technology to AIS:
Question 4: There are mainly 6 components of accounting information system:
Question 5: AIS can add value to any business organization by improving its decision making process through the provision of necessary information on the right time to the right persons (Roska & Bubic, n.d.). It can improve the accuracy of financial results of the company as humans are prone to errors which the use of machines can prevent. Further, it allows the users to take advantage of artificial intelligence and use the knowledge of experts in performing their functions. Use of AIS also promotes speedier processing of accounting information in real time.
Question 6: AIS can enhance the efficiency and effectiveness of value-chain of company by providing the useful information to improve the quality of products and services at the lower costs (Hall, 2012). It can be designed to enable the users to directly access the inventory system as well as the system of sales order entry so that they can undertake more of the work that is traditionally done by selling & marketing and administration department. It allows quick orders placing and labour cost cutting and creating more values to the customers to satisfy them by fulfilling their requirements on quick basis (Sajady, Dastgir & Nejad, 2008).
Question 8: Accounting information system is the system developed with the use of information technology that aids the managers in making various sound economic decisions for their business by providing them relevant and necessary information AccountingEdu.org, n.d.). It basically performs the task of identification, measurement and recording of the accounting information that can be disseminated to the users in the forms of various accounting and financial reports. It processes significant accounting transactions undertaken by business organization such as sales, purchases and inventory management etc. For example: it records all the data relating to the sales made during a particular year such as amount collected, amount due, name of customers etc.
Question 9: To obtain information from the use of accounting information software involves cost of obtaining as well as maintaining such AIS and information provided by it. These costs involve investments in user’s training and acquiring of various hardware and software on a regular basis. Therefore the cost of such information is quantifiable to an extent. However, some benefits of using such AIS involve use of various estimates and assumptions. Hence the quantification and measurement of such information depends upon the accuracy and reliability of such assumptions. The usefulness i.e. the relevance of information in decision making will determine its value.
Integrated enterprise system is the use of various software and hardware systems of computer in the business to enhance the operational efficiency of the business. These systems help the managers in conducting their business functions more effectively and efficiently. In the current case of Mom and Pop, a small business organization dealing in grocery items, the implementation of integrated enterprise system will support its growth to a great extent. It will help in maintaining the adequate records of significant economic transactions undertaken by the business (Lim, 2013). It would rather be a cost effective decision to implement such system as it will allow the manager to perform more appropriately with the use of accurate information provided by such system (Onaolapo & Odetayo, 2012)
Question 11: Storage: The most important function performed by accounting system servers is the storage of relevant data relating to entity’s financial activities.
Processing: The second vital function of accounting system servers is to accurately record and process the data so as to extract useful accounting and financial information from it for the users.
Information supply: Another vital function performed by accounting system servers is to provide necessary information to the users of such systems so that they can undertake effective decision-making in regards to their business.
AccountingEdu.org, n.d. What are Accounting Information Systems? Available at: https://www.accountingedu.org/accounting-information-systems.html> Accessed on 25-01-2018.
Hall, J.A., 2012. Accounting information systems. Cengage Learning.
Lim, F.C., 2013. Impact of Information Technology on Accounting Systems. Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology, 3(2), pp. 93-106.
Onaolapo, A.A. and Odetayo, T.A., 2012. Effect of Accounting Information System on Organisational Effectiveness: A Case Study of Selected Construction Companies in Ibadan, Nigeria. American Journal of Business and Management, 1(4), pp.183-189.
Roska, V. and Bubic, J., n.d. Accounting Information Systems for Management Decisions: Empirical Research In Croatia (a). Available at :< https://bib.irb.hr/datoteka/805635.ACCOUNTINGINFORMATIONSYSTEM.pdf> Accessed on 25-01-2018.
Sajady, H., Dastgir, M. and Nejad, H.H., 2008. Evaluation of the effectiveness of accounting information systems. International journal of information science and technology, 6(2).
Salehi, M., Rostami, V. and Mogadam, A., 2010. Usefulness of accounting information system in emerging economy: Empirical evidence of Iran. International Journal of Economics and Finance, 2(2), p.186.
Soudani, S.N., 2012. The usefulness of an accounting information system for effective organizational performance. International Journal of Economics and Finance, 4(5), p.136.