Accounting has been defined as the set of idea and method wherein the financial information is being based upon, while auditing is the examination on the correctness of the financial information of a company (Principles of Accounting.com, n.d.). Companies are experiencing…
In the field of accounting and auditing, the performance of functions has a great role in which auditors and accountants should expand their knowledge to adapt to these changes. Accounting information system (AIS) is the new way of preparing and analyzing financial statements in relation to technology advancement (Orwel, n.d.). This newly acquired system does not only end up to the preparation but also it extends up to the auditing process.
The aim of this paper is to investigate the impact of accounting information system (AIS) on the audit process. It is important to know how AIS is affecting the audit process and on the work of the auditors and accountants. The focus is to give an overview, objectives and motivations, and some proposals of the implementation.
According to Orwel (n.d.), “accounting information system (AIS) is a system of records, usually computer based, which combines accounting principles and concepts with the benefits of an information system...” Making the accounting activities with the use of computer makes it easier and time safe, but threats in data collection and data processing should not be ignored for it comes from variety of sources (Beard & Wen, 2010). Decision makers should have a control on the system so that threats can be avoided. Enormous amount is needed in the implementation of AIS, it is quite expensive for those small enterprises but the benefits can surpass the amount of investment (Salehi, et al., 2010, p.188). On the other hand, the appropriateness of financial information produced by an accountant is being examined by an auditor, either by operational, internal or compliance. It is the role of auditing to objectively evaluate the entries based on established criteria before the results are given to the interested users (Kelechi, 2007, p.14). The information subject for audit process is now computerized that is why auditors are disturbed whether the information in the system is reliable for ...
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A number for scandals have taken place not only in the United States but also across the globe mostly related to corporate governance, which has caused upheaval among various stakeholders of the company ranging from equity owners, government, and the public at large, which calls for strict measures to build trust among various stakeholders of the company.
Accounting Information System Various activities are performed in order to achieve Top Burger desired output. Processes are the input activities that are performed on the inputs. From the case study, the following activities are performed: Feeding sales- this is the activity that involves entering of the sales transactions in the company data in order capture the amount of sales and the details by the use of the software.
The focus here could be on audit committee and its role in corporate governance or even the role of audit committee as it relates to financial projection of companies and government expenditure and the audit committee whether in private or public sector could be primary or central to the financial reporting of a company and is an essential part of maintaining open and transparent financial systems within any firm.
The purpose of an external audit is to provide assurance about the reliability of the published accounts of the particular audited body. It also provides the reassurance regarding the regularity of the fundamental transactions. External audits provide information concerning the efficiency and effectiveness with which a particular organization is performing its functions (Henley, 1989).
Accounting information systems are a vital part of an organization’s day-to-day operations. Every transaction has to be recorded in order to produce financial statements or any type of informal report that management may want to use for analysis. For this reason, accountants were some of the first people to need information systems.
of information maintained by the company to formulate opinion on various accounting assertions and communicate the results to the users of financial information, needs to be carried out with an objective of determining the possibility of occurrence of the errors and
Increasing complexities in the business operations and the financial transactions over a period of time underlined the inadequacy of the auditing system, especially after liberalization of the economies and globalization.
The inception of information systems into the business process design brought about a significant revolution in the corporate sector, especially in relation to the corporate roles and organizational roles of the company. Information systems brought about a turnaround in the way things worked out in these companies and redefined the roles.
In such a case, the intention of auditing FXT International Limited’s is to determine the accuracy of the books of account and to express an independent opinion on the financial statements. Audit planning is a two-way function that involves setting goals and
h to evaluating and improving the efficiency of the company’s governance, internal controls, and risk management (Institute of international Auditors, 2010, p. 1).
The quality of the audit plays a vital role in maintaining an efficient market environment. However, an
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