Accounting Information Systems - Information Needs for the AIS - Research Paper Example

However, it is noteworthy that the benefits of the package generally outnumber the development cost. Accounting Information System delivers useful information to its user in a timely and systematic manner. The system is utilised by management for governing various organisational functions such as cash transactions, account receivables, account payable and so on and so forth. In every organisation, the accounts department is responsible for management of large volume of transactional data. The excess load of the accounts department is eased by the AIS.

The AIS collect these data, arrange and store them accordingly and deliver them whenever necessary. The AIS is a computerised system comprising almost all automated functions; even so, the components of the system include involvement of human resource, instructions, procedures, data, information technology, security measures and internal controls. Considering all these factors, it can be ascertained that AIS is not completely automated and this is the reason that the software is prone to certain drawbacks.

It has been observed that may corporate leaders and managers often make wrong assumptions regarding AIS resulting to ineffective performance of the system (Fuhong, 2012; Romney, et al., 2000). Argument: According to various authors, the excessive availability of information to a decision maker is considered as noise to the information environment. Consumers, presently, have significant access to vast data through internet and telecommunication channels which consequently enhances their options and confuse them.

A number of authors advocated that managers can make influential decision only when they can consciously distinguish between necessary information and noise within a particular system. Noise generally incapacitates even the most resourceful decision maker, resulting to poor outcome (Lau, 2008). Argument: Research suggests that learning various aspects of the accounting information system can be time