A well-designed accounting information system should provide adequate controls in the general ledger and reporting system...

A well-designed accounting information system should provide adequate controls in the general ledger and reporting system (or any cycle) to ensure that control objectives are met. Discuss those control objectives.

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Expert Solution

1. AIS (Accounting Information Service) -

AIS is the computer program that used to Store, Process, Retrive and Report its financial data in a way that can be used by the Accountant, Managers, Auditors, and so on. to make decisions for the company,

Accounting Information system is bunch of verious computer programs that helps an organisation to process the data in a specifed manner.

Control objectives of the accounting information system are as follows -

1. Promote operational efficiency

2. Accuracy and Integrity of the accounting data

3. Safeguading of Assets (from fraud and error)

4. Preventive controls deter problems before they arise

5. Detective controls discover problems that are not prevented.

6. Corrective controls identify and correct problems as well as correct and recover from the resulting errors.

The following is the basic accounting process:

1. Identifying transactions

2. Passing entries.

3. Posting to ledger.

4. Trial balance.

5. Financial statements

The major exposures are security issues, data storage-related issues, risk of computer abuse, etc.

ekkarill92 answered 1 year ago

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