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By :
Fildza Nabilla (1510534027)
Accounting Department
Faculty of Economic
Andalas University
2017
Introduction
In the era advance of technology, there is a change in the production processes and
fierce market competition. The development in information technology (IT) increased the
fallacy of cosumers and immoral activities of business. Accounting information system
(AIS) has an important thing in economic and business related to management business.
AIS as a tool that uses the IT component to help in controlling the economic activity of
an organization and also the component for recording financial data from raw data then
trannsform to data that useful financial information for decsion makers. Therefore, there
are some argumentations about the importance of AIS for an organization and need to
maintain it in organization, whether it is profit oriented or non-profit oriented. But, there
is an argument in accounting literature that AIS leads to the strategic success of an
organization and the impact of AIS on the organization for different designs and
strategies.
Organizational Effectiveness
According to Oguntimehin (2001), organizational effectiveness is the ability to
produce desire results. According to Daft (1983), the effectiveness of organizational
defined with the degree to which an organization realized its goals. The organizations
want to reach the goals, and it goals must be achieved in the face of limited resources,
and disagreement among interest groups. According to Chang (2001), to increase the
organization effectiveness in a global competitive environment, the organization can use
accounting information role. This statement reinforced by massive accounting fraud in
developed countries and can changing business environment rapidly and some researches
report that value relevance of accounting information has declined but some researches
claim that accounting information has not lost its value relevance. The organizational
effectiveness that every organization has the goals that they want to achieve and to
achieve the goals, the organization will face some problems such as disagreement, fraud,
etc but the organization has the ability and should realized its goals effectively.
Conclusion
In conclusion, based on the above discussion, the organization need AIS for its
financial reports. This report will be used for decison making process and will be used
for internal and external users. The quality of information in organization is important
because its one of competitive advantages and in AIS the quality of the information
provided is imperative to the success of the systems. The organization should aware for
the problems that will be occur such as data loss, stealing data, fraud and also for change
in technology may impact to AIS. The organization should keep update to that changes in
order toprocess the information. The organization should overcome these problems and
take the solution for every problem to make the organzation keep running well.
.
REFERENCE LIST
A, Onaolapo. (2012). Effect of Accounting Information System on Organisational
Effectiveness: A Case Study of Selected Construction Companies in Ibadan, Nigeria.
American Journal of Business and Management, 2012(1), 183-189.