Question

The process of reviewing the recording procedures for an accounting information system should include three areas. What are they

Why is it necessary to introduce an AIS and how does recorded data contribute to problem-solving processes and to continuous improvement of products and service delivery? Discuss in 150–180 words.

Answer 1

Answer)

The process for reviewing the recording procedure for an accounting information system are as follows:

1) The initial transaction type for ensuring the reversing entity from that of the previous period would be reversed.

2) It should contain the steps required for recording the individual processes and business transactions in the accounting records process

3) This is where the period-end processing is needed to close the product's financial statements.

So when the beginning of the period processing is considered then it helps in ensuring that the transaction would not be recorded twice in the existing period. The reversal of the transaction should be made automatically.

For the individual transactions of the process, one needs to identify the transaction, prepare the document, identify the accounts and record the transactions.

For period-end processing, one needs to prepare the trial balance, adjust the trial balance, preparation of the adjustment, making a financial statement, then closing the processing.

The accounting information system is needed for designing and recording the transaction in the business which whenever information is needed it can be found on the computer and gets organized.

The accounting as the Accounting information system is meant for collecting, storing as well as processing the financial as well as an accounting of the data which is meant for decision-maker and as it has a computer-based method for tracking the accounting activity with that of the information technology resources hence it improves the products and service delivery.

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