Accounting Information Systems

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...