By James A. Hall
Excellent for figuring out the accounting info structures and comparable applied sciences you are going to use on your enterprise profession, Hall's ACCOUNTING details platforms, seventh version contains an emphasis on ethics, fraud, and the trendy production setting. The publication makes a speciality of the wishes and tasks of accountants as finish clients of structures, platforms designers, and auditors. This version offers whole built-in assurance of Sarbanes-Oxley because it results inner controls and different correct subject matters plagued by this laws, in addition to reorganized dialogue of transaction cycles that make the stability among handbook- and computer-based platforms extra obvious.
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However, because of faulty record keeping, the information was incorrect. The actual inventory levels of the product were insufficient to meet the order, and the necessary quantities could not be manufactured by the deadline. Failure to comply with the terms of the contract may result in litigation. This poor sales decision was a result of flawed information. Effective decisions require information that has a high degree of reliability. Accounting Independence Information reliability rests heavily on the concept of accounting independence.
Management information is thus more summarized and oriented toward reporting on overall performance and problems rather than routine operations. The information must identify potential problems in time for management to take corrective action. External stakeholders, on the other hand, require information very different from that of management and operations users. Their financial statement information, based on generally accepted accounting principles (GAAP), is accrual based and far too aggregated for most internal uses.
ERP systems are discussed later in this chapter. SAP and Oracle are discussed in more detail in Chapter 11. 15 16 PART I F I G U R E 1-7 Overview of Accounting Information Systems THE FLOWS OF RESPONSIBILITY, AUTHORITY, AND ACCOUNTABILITY THROUGH THE ORGANIZATION President Vice President Marketing Vice President Production Vice President Finance Manager Plant 1 Manager Plant 2 Manager Plant 3 Manager Unit 1 Manager Unit 2 Manager Unit 3 Vice President Computer Services Responsibility and Authority Accountability Some firms use more than one method of segmentation.