Understanding the Importance of Accounting Information Systems

School: Liberty University - Course: ACCT 332 - Subject: Accounting

Hi Katherine, Great job on your post, it was very informative. Richardson et al., (2021) defines accounting information systems (AIS's) as "...a system that records, processes, summarizes, reports and communicates the results of business transactions to provide financial and nonfinancial information to facilitate decision making," (p. 5). As you stated, AIS's are important instruments to provide value to a company. In order to be useful though AIS's need to be relevant and give a faithful representation of the information it provides (Richardson et al., 2021). If it is not, it could cause there to be too little information or information overload. As a result, an AIS must be carefully built to give the most critical and helpful information to the user (Richardson et al., 2021). Thanks for the discussion, Shannon Andrews