There are arguments to suggest many firms are yet to fully comprehend opportunit
ID: 2518384 • Letter: T
Question
There are arguments to suggest many firms are yet to fully comprehend opportunities
and benefits of integrated Accounting Information Systems (AIS), which can play a key
role in contributing to or enhancing business success
A. Critically comment on this statement including inherent counter arguments and undertake a brief literature review
to examine this phenomenon within a hypothetical company or a publicly traded
company of your choosing.
B. Argue the merits/demerits of a well-designed, poorly designed, or obsolete AIS system.
Explanation / Answer
2.A big advantage of computer-based accounting information systems is that they automate and streamline reporting, develop advanced modelling and support data mining.[1] Reporting is major tool for organizations to accurately see summarized, timely information used for decision-making and financial reporting
DEMERITS OF POORLY DESIGNED AIS SYSTEM
Unemployment and lack of job security – implementing the information systems can save a great deal of time during the completion of tasks and some labor mechanic works. Most paperwork’s can be processed immediately, financial transactions are automatically calculated, etc
Dominant culture – while information technology may have made the world a global village, it has also contributed to one culture dominating another weaker one. For example it is now argued that US influences how most young teenagers all over the world now act, dress and behave.
Security issues – thieves and hackers get access to identities and corporate saboteurs target sensitive company data. Such data can include vendor information, bank records, intellectual property and personal data on company management
Implementation expenses – to integrate the information system it require pretty good amount of cost in a case of software, hardware and people.
A. Hypothesis 1 (Software package in accounting
information system which affect qualitative features
of accounting information in organization population
was chosen)
Table 7. Hypothesis 1
Business
Performance
Reliability
Business
Performance
1 .194**
Efficiency .194** 1
**. Correlation is significant at the 0.01 level (2-
tailed).
As shown in the table 4.12 correlations for the relationship between reliability and business
performance was 0.194 that indicates. That reliability
of service of performance affect to the business
performance. It was significant at 0.01 level.
Therefore the result supports to the first hypothesis
of the study (H1).
Hypothesis 2 (Software package and AIS affect
relevance feature of information of financial
statement)
Table 8. Hypothesis 2
Business
Performance
Efficiency
Business
Performance
1 .535**
Efficiency .535** 1
**. Correlation is significant at the 0.01 level (2-
tailed).
The table shows that there is a 0.535 correlation
coefficient which is higher than the significant level.
Therefore, there is a strong positive relationship
between Efficiency and the Business performance
and it is significant. As a result of that, H2 is
accepted.
Hypothesis 4(Software package and AIS affect
reliability future of information of financial
statement.)
Table 9. Hypothesis 3
Business
Performance
User Friendly
Business
Performance
1 .482**
User-Friendly .482** 1
**. Correlation is significant at the 0.01 level (2-
tailed).
The results show that there is a 0.482 of
correlation coefficient between user-friendly and the
business performance. It is a positive performance
and it is significant. As well as it accepts H4.
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