Accounting & information Technology Essay

How the bidding of reckonerising account statement data brasss (AIS) and telecommunicating explanation in lineation oer the electronic network actually helper of process the accounting functions in an brass instrument in operation(p) globally? However, the counter-claim is that the breaching of the security of such outlines volition be a great risk that needs to be properly managed in various vogues.The project of the essay is to identify how the process of computerising accounting culture and telecommunication accounting information over the wind vane can help the accounting functions in an organisation operate globally and to find out how abundant riotous can protect their dust and information by development different methods. Also, in this grant the main function of computerizing accounting information corpse (AIS) and telecommunicating accounting information over the web allow be discussed along with successful examples and failure examples. Also, it will link and explain why these functions will help the accounting functions to operate globally. Also, in this assignment it will explain the main threats of development such system and will point out how large organisations able to manage these potential threats.See more strategic Management Process EssayAccounting Information System is vital to all organisations (Borthick and Clark, 1990). The process of computerizing accounting information systems (AIS) is a system of collection, storage and treat of financial and accounting data that is apply by decision makers. The result can be used internally by caution or externally by other interested parties including investors and creditors. Organisations dep force out on information systems to rub competitive, they see information as important as a resource such as plant and machines. Therefore, in order to stay competitive, organisations may have to computerising their AIS, to make the process automatic in order to reduce effort, sav e time, cleanse efficiency and reduce labor cost. However, many organisations atomic number 18 not enjoying the benefit of computerization of accounting system as they have continued to be inaccurate due to increased number of interruptions due to system failure or breakdown and untimeliness with its reliability left in the question.So how computerising accounting information system helps the accounting functions in an organisation operating globally? In a computer system, processing is carried out electronically, usually with little or no intervention from a human user. The components of a computer system include hardware and software. hardware describes the physical components of a computer system. Example Monitor, bar-code reader, Web camera and speakers. And software is a series of detailed instructions that control the operation of a computer system. packet exists as programs that are developed by computer programmers.Example systems software and applications software. (Kh aled Abdala, fiscal accounting & information technology, p.510). But how they actually help the accounting functions in an organisation operate globally? When a firm has grown globally, they then have to deal with billions of information per day from many different countries, and the still way they can process the information is by using computer system, todays computer system come in variety of sizes, shapes and computing capabilities. Categories such as mainframe, midrange and microcomputer systems are still used to help an organisation which operates globally, such as IBM, to express the relative processing power and number of end users that can highlight the major uses of particular causas of computers.Telecommunications is on a national or global scare, in order to allow telecommunications to operate it consist both software and hardware to set up these links. Hardware include satellite and microwave transmissions. Telecommunications help the accounting functions in an organi sation operating globally by enable a business that operating from different locations to run as a unmarried unit. . (Khaled Abdala, Financial accounting & information technology, page. 571). This means that the information can be managed centrally and control maintained from a central location. Also, an organisation can use telecommunications to collaborate with other companies such as their suppliers by using electronic data interchange or web-based e-procurement with partners.One of the main expediencys of using telecommunication is improving the communications within and outside a business. Due to poor communication, diseconomies of scale maybe appear where there is withal much information to deal with at the same time and leading to some information are being ignore. This will then increase the cost per unit and may pull down the shareholders interest and may lead to a business failure.Also electronic business (e-business) and Electronic commerce (e-commerce) are also inclu ded in the telecommunication, where the term e-business is credited by the former IBM chief operating officer Lou Gerstner. E-business involves several key activities improving business processes, enhancing communications and providing the means to carry out business executions securely. And e-commerce is not only a type of industry where buying and selling of product or service is conducted over electronic systems such as the internet and other computer networks also e-commerce encompasses the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services transacted on internetworked, global marketplaces of customers, with the support of a worldwide network of business partners. (James A.OBrien, management information systems. P.284).A great example of e-business and e-commerce is ASOS.com, ASOS is the UKs largest online-only way of life and beauty store. ASOS is a global online fashion and beauty retailer and offers over 500 00 branded and own label product lines across women wear, menswear footwear, accessories and jewelry. ASOS has websites targeting the UK, USA, France, Germany, Spain, Italy and Australia and also ships to over 190 other countries from its central distribution in the UK. (Online, Available at http//www.asosannualreport2008.com/Doc/pdf/AnnualReport2008.pdf). Without a single shop, they able to automating many of the administrative tasks associated with ordering, supplying and delivering goods, therefore the cost of a typical business transaction can be reduced significantly. Also, due to operating their business through internet, they are able to operating at any time of the year, this then lead them to have an advantage of having a much malleable time and place to sell their products than the tradition international organisation such as Topshop.However, is there only advantage of using AIS and telecommunicating accounting information for organisation to operate globally? Is there an ything stopping organisations using it? Yes, is the answer. There is no question that the uses of information technology in an organisation presents major security challenges, poses ripe ethical questions, and affect society in significant ways. (James A.OBrien, Management information systems, p.439).Computer crime is a growing threat to society caused by the criminal or irresponsible actions of individuals who are taking advantage of the widespread use and vulnerability of computers and the internet and other networks. Also, intrinsic disasters can also be a great risk to a system. All information systems are susceptible to damage caused by natural phenomena, such as storm, lighting strikes, floods and earthquakes. For example, in Japan and the United States took the great care to protect vital information system from the effect of earthquakes.There are five major categories of controls that can be use to information systems. There are physical protective covering, biometric co ntrols, telecommunications controls, failure controls and auditing. (khaled Abdala, Financial accounting & information technology, page. 627) Physical protection is simple, this involves the use of physical barriers intended to protect against theft and unauthorized access. Lock, barriers and security chains are examples of this form of control. Secondly, biometric controls, these type of controls make use of the unique characteristics of individuals in order to restrict access to sensitive information or equipment, this can be achieve by using scanners that can check finger-prints, voice prints or even retinal patterns.Thirdly, the telecommunications controls, this type of control involve identity of a particular user. Common type of communications controls includes passwords and user validation routines. As an example, when a new network account is created for a attached user, they may be asked to supply several pieces of personal information. The fourth control is failure contro l, failure controls crusade to limit or avoid damage by the failture of an information system. Typical examples include recovery procedures and invariable backups of data. The last type of control is auditing, Auditing involves taking stock of procedures, hardware, software and data at regular intervals.With count to software and data, audits can be carried out automatically with an appropriate program. Auditing software works by examine the hard disk drives of any computers, terminals and servers attached to a network system. In conclusion, we can see that organisation have to be carefully managed with their AIS and information due to natural disasters and individuals who are taking advantage of the widespread use and vulnerability of computers, because if you dont cope care of your accounting information system, others will take care of it for you. But if can be carefully manage, we can say that computerising accounting information systems (AIS) and telecommunicating accounti ng information over the web can actually help the accounting functions in an organisation operating globally, with great example of ASOS.References1. Borthick, A.F. Clark, R.L. (1990). Making accounting information systems work An empirical investigation of the creative intellection paradigm. Journal of information System, p. 48-62 2. Khaled Abdala, Financial accounting & information technology. Page. 284) 3. (Khaled Abdala, Financial accounting & information technology, page. 571) 4. (Online, Available at http//www.asosannualreport2008.com/Doc/pdf/AnnualReport2008.pdf) 5. (James A.OBrien, Seventh edition, Management information systems, p.439) 6. (Khaled Abdala, Financial accounting & information technology, page. 627)