Question

There are arguments to suggest many firms are yet to fully comprehend opportunities
and benefits of integrated Accounting Information Systems (AIS), which can play a key
role in contributing to or enhancing business success

A. Critically comment on this statement including inherent counter arguments and undertake a brief literature review
to examine this phenomenon within a hypothetical company or a publicly traded
company of your choosing.

B. Argue the merits/demerits of a well-designed, poorly designed, or obsolete AIS system.

Answer 1

2.A big advantage of computer-based accounting information systems is that they automate and streamline reporting, develop advanced modelling and support data mining.[1] Reporting is major tool for organizations to accurately see summarized, timely information used for decision-making and financial reporting

DEMERITS OF POORLY DESIGNED AIS SYSTEM

Unemployment and lack of job security – implementing the information systems can save a great deal of time during the completion of tasks and some labor mechanic works. Most paperwork’s can be processed immediately, financial transactions are automatically calculated, etc

Dominant culture – while information technology may have made the world a global village, it has also contributed to one culture dominating another weaker one. For example it is now argued that US influences how most young teenagers all over the world now act, dress and behave.

Security issues – thieves and hackers get access to identities and corporate saboteurs target sensitive company data. Such data can include vendor information, bank records, intellectual property and personal data on company management

Implementation expenses – to integrate the information system it require pretty good amount of cost in a case of software, hardware and people.  

A. Hypothesis 1 (Software package in accounting

information system which affect qualitative features

of accounting information in organization population

was chosen)

Table 7. Hypothesis 1

Business

Performance

Reliability

Business

Performance

1 .194**

Efficiency .194** 1

**. Correlation is significant at the 0.01 level (2-

tailed).

As shown in the table 4.12 correlations for the relationship between reliability and business

performance was 0.194 that indicates. That reliability

of service of performance affect to the business

performance. It was significant at 0.01 level.

Therefore the result supports to the first hypothesis

of the study (H1).

Hypothesis 2 (Software package and AIS affect

relevance feature of information of financial

statement)

Table 8. Hypothesis 2

Business

Performance

Efficiency

Business

Performance

1 .535**

Efficiency .535** 1

**. Correlation is significant at the 0.01 level (2-

tailed).

The table shows that there is a 0.535 correlation

coefficient which is higher than the significant level.

Therefore, there is a strong positive relationship

between Efficiency and the Business performance

and it is significant. As a result of that, H2 is

accepted.

Hypothesis 4(Software package and AIS affect

reliability future of information of financial

statement.)

Table 9. Hypothesis 3

Business

Performance

User Friendly

Business

Performance

1 .482**

User-Friendly .482** 1

**. Correlation is significant at the 0.01 level (2-

tailed).

The results show that there is a 0.482 of

correlation coefficient between user-friendly and the

business performance. It is a positive performance

and it is significant. As well as it accepts H4.