Question

1. Identify 10 purposes/ objectives of AIS communication procedures.

2. Why is system documentation important to the success of a new accounting information system? Discuss in 100–120 words.

3. When designing user documentation, what should the focus be? Discuss in 50–80 words.

4. What are the benefits of involving staff in the development and implementation of an AIS? Provide at least four examples.

Thank you

Answer 1

Purposes/ objectives of AIS communication procedures can be given as follows:

1. Ascertainment of results

Every business concern is interested to know its operating results at the end of a particular period.

The amount of profit or loss for a particular period of a business concern can be ascertained by preparing income statement with the help of ledger account balances of revenue nature.

Surplus or deficit of revenue for a particular period of a non-trading concern can also be ascertained by preparing income and expenditure account or statement.

2. Ascertainment of financial affairs

Ascertainment of debts-liabilities, property, and assets i.e. total financial affairs of an organization at a particular date is another important object of Accounting.

Financial affairs of a concern at a particular date can be ascertained by preparing a balance sheet.

The balance sheet is the statement of assets and liabilities of a concern at a particular date.

3. Control over assets and liabilities

For running a business successfully a businessman is to acquire various assets like land, building, machinery etc.

He is to face various debts and liabilities like accounts payable, notes payable, loan, bank overdraft etc. side by side with die acquisition of assets.

The actual position of these debts-liabilities, property, and assets can be ascertained through the proper keeping of accounts.

A businessman can take the right steps for controlling the quantity of assets decrease and liability increase.

4. Controlling money defalcation and cost

Prevention of money defalcation through fraud and forgery and controlling of the cost of a concern are also the main objects of Accounting.

Prevention of money defalcation and cost control become easier if accounts are kept scientifically.

5. Providing economic data

Another noble object of Accounting is to provide the concerned parties with all economic information preparing financial statements and reports etc. in time.

6. Helping tax fixation

Accounts prepared on the basis of accepted accounting principles in considered reliable to the income tax and VAT authorities for easy determination and settlement of tax and VAT.

7. Determination and evaluation of policy

The object of Accounting is to help the management in determining and evaluating the management policies in running the business successfully by supplying necessary, information, interpreting and analyzing the financial statements.

8. Acceptability to others

Banks or financial institutions are interested to know the accurate financial position of a business concern for sanctioning loans.

On the other hand, government or other authorities may also ask about the financial position of a business concern for various reasons.

In these cases, the accounts maintained in a disciplined way become easily acceptable to the interested institutions or authorities.

9. Creation of values and accountability

The object of accounts maintained in an acceptable way is to create higher values among individuals and organizations and thereby creating awareness in preventing money defalcation, misappropriation of fund and cost control by ensuring transparency and accountability.

10. Following legal bindings and prohibition

As all kinds of business organizations have to abide by some legal bindings and prohibitions, they are to maintain their accounts accurately.

For example;

Partnership law, income tax law and company law etc. compel business organizations to maintain their accounts in an appropriate manner.

Main objectives of accounting are maintaining a complete and systematic record of all transactions and analyzing the financial position of a business.

Every individual or a business concern is interested to know the results of financial transactions and their results are ascertained through the accounting process.

A businessman can ascertain the operating results and financial position of his business at any time through Accounting.

2)

Documentation includes all the flowcharts, narratives, and other written communications that describe the inputs, processing, and outputs of an AIS. Here are few reasons why documentation is important to AISs:

1. Depicting how the system works.

Simply observing large AISs in action is an impractical way to learn about them, even if they are completely manual. In computerized systems, this task is impossible because the processing is electronic and therefore invisible. On the other hand, studying written descriptions of the inputs, processing steps, and outputs of the system make the job easier.

2. Training users.

Help files or ‘‘get-started tours’’ of microcomputer applications, these documentation aids help train users to operate AIS hardware and software, solve operational problems, and perform their jobs better.

3. Designing new systems.

Documentation helps system designers develop new systems in much the same way that blueprints help architects design buildings. For example, professional IT personnel commonly hold structured walkthroughs in which they review system documentation to ensure the integrity and completeness of their designs, and to identify design flaws.

4. Controlling system development and maintenance costs.

Good documentation helps system designers develop object-oriented software, that is, programs that contain modular, reusable code. This object-orientation helps programmers avoid writing duplicate programs and facilitates changes when programs must be modified later.

3)

While designing user documentation, the focus should be:

• Ensure a logical flow of information

Study the AIS well enough to understand what happens first, next, and last, in a progressive fashion. This vastly improves the accessibility of information.

• Use modules

Break your information into small and manageable chunks, where each portion supports one specific purpose or idea. Modular writing promotes ease of maintenance, and makes it possible to reuse information through internal linkage.

• Use a table of contents

A table of contents gives a birds-eye view of the scope of the document. Ensure that this is comprehensive, well structured, and has a modular layout. This approach enables users to better identify the information they need.

• Write in a conversational tone

Adopt a Frequently Asked Questions (FAQ) approach. This methodology allows you to bridge the gap between the product and the user with greater ease, and also include the most common information a user would need.

• Tabulate information wherever possible

Tables improve the readability of information. Use tables when objects need to be described on different bases, or when comparing objects across different dimensions.

4) The benefits of involving staff in the development and implementation of an AIS can be given as follows:

The following are the benefits of the user involvement in systems development:

1. Imporoved quality of the system arising from more accurate user requirements.

2. Avoidance of costly system features that user did not want or cannot use.

3. Improved levels of acceptance of the system.

4. Greater understanding of the system by the user resulting in more effective use.

5. Increased participation in decision making within the organisation.