Information Needs for the Ais

1. Based on your research, assess how corporate leaders may make improper assumptions related to accounting information systems and the related information. Indicate the most negative potential impacts on business operations related to these assumptions. Provide support for your rationale.

An accounting information system (AIS) is a system that collects, records, stores, and processes data to produce information for decision makers (Romney & Steinbart, 2012). Accounting information systems has become one of the most popular tools in the business world. They have the potential of being inexpensive to slightly costly. However the benefits greatly outnumber the cost. Accounting information systems provide timely and very useful information to management. AIS are utilized to govern the functions of account payables and receivables, cash transactions and any other pertinent accounting functions. Due to the fact that the accounting departments deal with a numerous volume of transactions, it is of great importance to have an effective information system to handle the tasks.

Nowadays it is automatically assumed that AIS is strictly a computerized system. However, AIS components include: people, procedures and instructions, data, software, information technology infrastructure, and internal controls and security measures (Romney & Steinbart, 2012). With all these components combined it is evident that unwarranted situations could arise starting with the head of the operation, corporate leaders. Corporate leaders may make improper assumptions related to accounting information systems and the related information. There are several key incorrect assumptions that management makes about its accounting information systems.

According to the classic article entitled “Management Information Systems” written by Russell L. Ackoff, he presented five common assumptions about information systems. Ackoff’s five common assumptions included: (1) management needs more...