By James A. Hall
Perfect for realizing the accounting info structures and comparable applied sciences you will use on your enterprise profession, Hall's ACCOUNTING details structures, seventh variation contains an emphasis on ethics, fraud, and the trendy production surroundings. The publication makes a speciality of the wishes and tasks of accountants as finish clients of structures, platforms designers, and auditors. This variation offers entire built-in insurance of Sarbanes-Oxley because it results inner controls and different correct issues plagued by this laws, in addition to reorganized dialogue of transaction cycles that make the stability among handbook- and computer-based platforms extra obvious.
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Extra resources for Accounting Information Systems, 7th Edition
These topics and more are covered in several chapters of this text. The purpose of this chapter is to place the subject of AIS in perspective for accountants. Toward this end, the chapter is divided into four major sections, each dealing with a different aspect of information systems. The first section explores the information environment of the firm. It introduces basic systems concepts, identifies the types of information used in business, and describes the flows of information through an organization.
However, materiality is a difficult concept to quantify. It has no absolute value; it is a problem-specific concept. This means that, in some cases, information must be perfectly accurate. In other instances, the level of accuracy may be lower. Material error exists when the amount of inaccuracy in information causes the user to make poor decisions or to fail to make necessary decisions. We sometimes must sacrifice absolute accuracy to obtain timely information. Often, perfect information is not available within the user’s decision time frame.
This type of reporting is called nondiscretionary because the organization has few or no choices in the information it provides. Much of this information consists of traditional financial statements, tax returns, and other legal documents. Management Reporting System The MRS provides the internal financial information needed to manage a business. Managers must deal immediately with many day-to-day business problems, as well as plan and control their operations. Managers require different information for the various kinds of decisions they must make.