1. Based on your research, assess how corporate leaders may make improper assumptions related to accounting information systems and the related information. Indicate the most negative potential impacts on business operations related to these assumptions. Provide support for your rationale.
An accounting information system (AIS) is acknowledged as a system that not only gathers and records data, but also stores and process that data to enhance the decision making process. Accounting information systems is highly appreciated and recognized in the business world. They have the potential of being inexpensive to slightly costly. The cost is not an issue as the value and worth it provides outweigh the cost. Accounting information systems is very useful as it accurately provides information to the management and on timely measures. AIS is employed to administer the working and processing of not only receivables but also payables along with other cash transactions along with additional information for imperative accounting functions. It is very significant to employ an effective and efficient information system for handling tasks in accounting as there are numerous values and transactions that have to be managed in accounting. (Peavler, 2014) These days it is naturally expected that AIS is strictly an automated system. Notwithstanding, AIS parts include: individuals, methods and guidelines, information, programming, information engineering foundation, and inward controls and efforts to establish safety. With all these parts consolidated, it is obvious that outlandish circumstances could emerge beginning with the leader of the operation, corporate pioneers. Corporate pioneers may make disgraceful suppositions identified with accounting information systems and the related information. (Gailly and Geerts, 2012)
There are several key incorrect assumptions that management makes about its accounting information systems. There are at least five common assumptions about...