Yolanda Jackson, James Jones, Leah Kozicki, Brandy Martinez, and Mark Nye
Liberty University Online
8 September 2011
This Opinion Paper creates an understanding of the group vision concerning the future of the PCAOB's pronouncements as they impact Accounting Information Systems. This paper takes a close look at the pronouncements in regards to the direction the amount of control and impact imparted by these pronouncements. Views will be discussed pertaining to the opinions of the group in regards to determinations of whether these pronouncements will tighten, relax, or maintain status quo in directing and impacting Accounting Information Systems (AIS). This paper includes a synopsis of all Pronouncements of the PCAOB to date and a sampling of articles which call for the SEC to relax the Sarbanes-Oxley Rule 404 requirements for smaller companies. The PCAOB pronouncements will be carefully researched and evaluated and selections of scholarly journals and articles will be utilized in order to establish a baseline for determining the direction of impact in order for the group to fully evaluate and determine a consolidated opinion to present in the paper.
Keywords: AIS, accounting, information systems, PCAOB, PCAOB Pronouncements
Group Opinion Paper: PCAOB Pronouncement Impact on Accounting Information Systems
In order to understand just how PCAOB pronouncements impact Accounting Information Systems (AIS) it is necessary to understand the role of AIS in business.
Accounting information system (AIS) is a system of records, usually computer based, which combines accounting principles and concepts with the benefits of an information system and which is used to analyze and record business transactions for the purpose to prepare financial statements and provide accounting data to its users. (Orwel, 2009, para. 1)
Accounting information systems have changed how tasks are directed and fulfilled. "The days of green paper pads are gone, and instead businesses have a centralized place where all accounting transactions are entered and saved" (Shanker, 2011, para. 1). "Accounting information systems are considered important organizational mechanisms that are critical for effective decision management and control in organizations" (Nicolaou, 2000, p. 92). "Accounting information systems cover all business functions from backbone accounting transaction processing systems to sophisticated financial management planning and processing systems" (Henson, 2006, para. 7).
The biggest benefit of AIS is speed and efficiency in streamlining the collecting, processing, and retention of data. "Reporting is driving force behind an Accounting information systems development. If the system analysis and design are successful, the reporting process provides the information that helps drive management decision making" (Henson, 2006, para. 15). After the data is entered the system, the data can be used and reused to generated reports and retrieved entries by couple clicks of the button. When correction to entries are required, it is easily accomplished due the relational properties of AIS in that it results in a global change in the system and subsequent reporting is accurate, due to this factor. With large corporations, such Lowes and Home Depot, AIS makes generating financial data faster and more error free by just a couple of clicks of the button. They can filter out certain data that they want to find at a given time.