Student
CHAPTER ONE
1.1 INTRODUCTION
Accounting Information System (AIS) is vital to all organizations according to (Borthick and Clark, 1990; Curtis,
1995; Rahman et al., 1988; Wilkinson, 1993; Wilkinson et al., 2000) and perhaps, every organizations
Either profit or nonprofit-oriented need to maintain the AISs (Wilkinson, 2000: 3-4) to better
Understand the term ‘Accounting Information System’, the three words constitute AIS would be
Elaborate separately. Firstly, literature documented that accounting could be identified into three
Components, namely information system, “language of business” and source of financial information
(Wilkinson, 1993: 6-7) Secondly, information is a valuable data processing that provides a basis for
Making decisions, taking action and fulfilling legal obligation. Finally, system is an integrated entity; Accounting information systems are a decades-old business function. These traditional systems often included various paper ledgers, journals and other reports for recording and maintaining financial transactions. Business owners or managers reviewed their company's financial information to ensure its accuracy and validity. Further analysis would provide additional insight on trends or other operational issues needing attention. While this system worked well for its time period, companies cost only develop new techniques for improving financial information reporting. Modern day accounting information systems are usually an automated function using computers, servers and intranets for electronically processing financial information. These systems allow companies to collect and gather financial information in a real-time format. This process ensures managers have the most up-to-date information for business decisions. Companies can also implement this system into multiple domestic or international business locations. The accounting information systems usually include several different modules. Modules include general accounting, fixed assets,
1.1 INTRODUCTION
Accounting Information System (AIS) is vital to all organizations according to (Borthick and Clark, 1990; Curtis,
1995; Rahman et al., 1988; Wilkinson, 1993; Wilkinson et al., 2000) and perhaps, every organizations
Either profit or nonprofit-oriented need to maintain the AISs (Wilkinson, 2000: 3-4) to better
Understand the term ‘Accounting Information System’, the three words constitute AIS would be
Elaborate separately. Firstly, literature documented that accounting could be identified into three
Components, namely information system, “language of business” and source of financial information
(Wilkinson, 1993: 6-7) Secondly, information is a valuable data processing that provides a basis for
Making decisions, taking action and fulfilling legal obligation. Finally, system is an integrated entity; Accounting information systems are a decades-old business function. These traditional systems often included various paper ledgers, journals and other reports for recording and maintaining financial transactions. Business owners or managers reviewed their company's financial information to ensure its accuracy and validity. Further analysis would provide additional insight on trends or other operational issues needing attention. While this system worked well for its time period, companies cost only develop new techniques for improving financial information reporting. Modern day accounting information systems are usually an automated function using computers, servers and intranets for electronically processing financial information. These systems allow companies to collect and gather financial information in a real-time format. This process ensures managers have the most up-to-date information for business decisions. Companies can also implement this system into multiple domestic or international business locations. The accounting information systems usually include several different modules. Modules include general accounting, fixed assets,