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Date Submitted: 04/17/2014 10:24 AM
AIS Improper Assumptions
Muna Rodriguez
Accounting Information Systems
Dr. Mohammad Sumadi
October 20, 2013
Abstract
In 1967 Russell L. Ackoff produced "Management Misinformation Systems" to show the 5 assumptions managers make concerning accounting information systems (AIS) and the contentions for each of them. These five assumptions were based around the amount of information that managers receive from their systems and how they think they are lacking information and communication. In this paper, we will discuss how managers make improper assumptions and how they can negatively impact the business or reports that are relied on by the stakeholders. We will also formulate suggestions as to how organizational performance can be improved when the information is correctly managed. Lastly, we will evaluate the level of system security needed to ensure information integrity within automated business systems.
Introduction
Management accounting systems are very necessary for the proper running of a business. This owes to the fact that accounting information systems offer information related to internal operations of the business in a timely manner. The managers of an organization require specific information and data regarding certain business processes for controlling costs, and expenses and also executing sound deliberations. Every industry and organization has specific information needs for their accounting systems. For instance, the management requirements at a retail business will be far much different from those in a service or distribution type of organization. One type of management systems may not fill the needs of all these firms. With no management and accounting information systems, organizations will be less organized since this aspect is very important in accounting and management systems.
Improper Assumptions in Accounting Information systems
Ackoff (1967) writes on five assumptions that are made by organizational...