Question

1. What level of understanding should accountants obtain regarding information technology? 2. Give your opinion on the following circumstances: An owner of a small company argues that a computer system will not be of use to his company and he will lose control of the company's operations because of computers. 3. How does network configuration influence decision making? 4. State the difficulties in implementing the C / S processing model. 5. Implementation of LAN-based C / S software will reduce paperwork, documents, and accounting reports. Reports will be sent around the network and will appear on the screen. How will removing paper for documents and reports affect accountants' work?

Answer 1

1. The rapidly evolving relation between accounting and information technology means accountants now need to understand how technology impacts business, and how it can be used to improve operational efficiency, achieve regulatory compliance, support financial reporting and management and even increase revenues.

2. Computers help in research, production, distribution, marketing, banking, team management, business automation, data storage, employee management, and very helpful to increase productivity at a lower cost, less time with high quality. That's why the use is very important in business. Either it be big one or a small business, automation of process and maintenance of accounts through computers is very easy. So, the intention of the owner is not correct.

3. Network Configuration is so crucial because it boosts the ability to scale IT infrastructure without correspondingly scaling up on IT administrative staff to manage those devices/ systems. This makes it feasible to implement the decisions in the entitty and keeps the business. hence it helps in effective decision making with updated facts , figures and stats.

4. The server is expensive to purchase, A specialist network operating system is needed and Specialist staff such as a network manager is needed. If any part of the network fails a lot of disruption can occur.

5. Due to the implementation of the software , the work become paperless and the repetitive work are done by the systems , Since most of the documentation is paperless , the effort of maintaining those physical documents burden is reduced. The efforts of correcting the mistake is reduced and accuracy is maintained which reduce the work of accountant.