Enhancing Value Creation: The Importance of Accounting

Hi Anna, I enjoyed reading your post and found it very informative. As I stated in my reply to Katherine, accounting information systems (AIS's) are only useful if they provide relevant information and that information is faithfully represented (Richardson et al., 2021). One tool that companies can use to verify that their AIS is in fact creating value is by looking at the income statement (Richardson et al., 2021). Good quality information is imperative. Phomlaphatrachakom (2020) states, "Accounting information quality can benefit both value creation and firm success," (p. 171). Creating such a system is not easy and will take time to refine as Davall and Wilkinson (1971) state "building an accounting information system model that is sufficiently comprehensive and realistic as well as probabilistic is not easy, quick nor inexpensive. Several man-years of work by high salaried analysts may be required," (p. 26). However, due to the benefits AIS's provide, it should be worth it in the long run. Thanks for the discussion, Shannon Andrews