Final Question # 2

1.0.a Research one international company from the Internet and describe their MIS strategic plan in 1-2 paragraphs.

Answer:

Coca-cola Corporation



1.0.b Discuss too the impact of this strategic plan on the company's management,
competitors, customers and the company as a whole.

Answer:

MIS are interactive human/machine systems that support decision making for users both in and out of traditional organizational boundaries. These systems are used to support an organization's daily operational activities; current and future tactical decisions; and overall strategic direction. MISs are made up of several major applications including, but not limited to, the financial and human resources systems.

Financial applications make up the heart of an AIS in practice. Modules commonly implemented include: general ledger, payables, procurement/purchasing, receivables, billing, inventory, assets, projects, and budgeting.

Human resource applications make up another major part of modern information systems. Modules commonly integrated with the AIS include: human resources, benefits administration, pension administration, payroll, and time and labor reporting.

It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound decision - making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.

In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts.

MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.

It brings Co ordination : MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization .

It makes control easier : MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The used computers has increased the data processing and storage capabilities and reduced the cost .

MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information.

reference:

http://www.management-hub.com/information-management-advantages.html


2.0.a Evaluate how can this strategic plan be applied to any local company in the Philippines.

Answer:

Management information system is important tools to supports, analyse, delivery and adding reliability to any organization. Also this helps to solve businesses problems. The term MIS is often used to submit to a group of information management methods tied to the support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.

Reference:

http://www.ask.com/bar?q=What+Is+the+Role+of+MIS&page=1&qsrc=6&ab=0&u=http%3A%2F%2Fwiki.answers.com%2FQ%2FWhat_is_the_role_of_management_information_system_in_an_organisation


2.0.b Discuss too the possible effect on the company.

Answer:

MIS - capabilities

The term 'information system' is a general term for a system that facilitates access to information; however, a ' management information system' refers to integrated data sources and information systems, which meet the particular needs and requirements of planning and decision-making. In an ideal case, the major objectives of MIS are to:

1. reach an understanding of the relevant processes on the basis of the available historic information. This element forms the basis for the development of models, required for forecasting and simulation.
2. provide information on the current situation, especially for early warning purposes, for instance related to issues impacting on food security, water resources or pest and disease status.
3. forecast changes and impacts, either natural or man-made , as an element in vulnerability assessments.
4. forecast the consequences of policy decisions and measures before they are implemented in reality. This implies evaluating options for several given scenarios based on the possible results and predicted consequences, and selecting the most acceptable alternative.

Reference:
http://www.ask.com/bar?q=Objectives+of+MIS&page=1&qsrc=6&ab=2&u=http%3A%2F%2Fknowledge.cta.int%2Fen%2FDossiers%2FS-T-Issues-in-Perspective%2FMIS-for-environmental-monitoring%2FArticles%2FManagement-Information-Systems


3.0.a What is an Accounting Information System?

Answer:

An accounting information system (AIS) is the system of records a business keeps to maintain its accounting system. This includes the purchase, sales, and other financial processes of the business. The purpose of an AIS is to accumulate data and provide decision makers (investors, creditors, and managers) with information.

While this was previously a paper-based process, most businesses now use accounting software. In an electronic financial accounting system, the steps in the accounting cycle are dependent upon the system itself. For example, some systems allow direct journal posting to the various ledgers and others do not.

Accounting Information Systems (AISs) combine the study and practice of accounting with the design, implementation, and monitoring of information systems. Such systems use modern information technology resources together with traditional accounting controls and methods to provide users the financial information necessary to manage their organizations.

Reference:
http://en.wikipedia.org/wiki/Accounting_information_system


3.0.b Identify or list down different accounting information systems used.

Answer:

Financial reporting starts at the operational levels of the organization, where the transaction processing systems capture important business events such as normal production, purchasing, and selling activities. These events (transactions) are classified and summarized for internal decision making and for external financial reporting.

Cost accounting systems are used in manufacturing and service environments. These allow organizations to track the costs associated with the production of goods and/or performance of services. In addition, the AIS can provide advanced analyses for improved resource allocation and performance tracking.

Management accounting systems are used to allow organizational planning, monitoring, and control for a variety of activities. This allows managerial-level employees to have access to advanced reporting and statistical analysis. The systems can be used to gather information, to develop various scenarios, and to choose an optimal answer among alternative scenarios.

Reference:
http://www.ask.com/bar?q=accounting+information+system&page=1&qsrc=2417&ab=4&u=http%3A%2F%2Fwww.answers.com%2Ftopic%2Faccounting-information-system


3.0.c What are the benefits by the management, users and customers derived from these AIS?

Answer:

Accounting information systems are useful for companies and businesses wanting to make the accounting process easier by utilizing a computer program or other system that will perform payroll and other functions. These systems, commonly including accounting software, make it easier to compile financial data for use in taxes, payroll, and other bookkeeping requirements. Recording is the first step in these systems that are used by companies including pertinent data such as expenses and profits that are very important to keep on file. After the recording phase, the information will be processed for use. When processed, it is filed in the areas where it is most important. These systems have various groupings or categories to maintain files until they need to be used in the future for whatever reasons. The final step that is part of most software programs is the communication phase. This is the process of actually utilizing the records that have been recorded and processed. Common communications of this data will be used for payroll and tax purposes.

The use of information systems is very important in recording vital financial data that will be used in the future. Major corporations, especially in the retail industry, will keep such data as sales, profits, expenses, and many other items for future use in financial reports. Recording will be done often on a daily basis, if not on a minute-by-minute basis with more complex and detailed accounting software. This is very important also because it will not only be used for daily practices, but will be necessary for tax purposes for the remainder of the year. Also, much of this data has to be kept on file for a number of years, in the event of an audit or other financial issues that may arise. Legal issues can cause severe problems and even end in the destruction of a company. By using computerized accounting information systems to organize and retain this data, companies have a much better chance to survive and succeed.

After the process of recording information with software, the next step that is taken is processing. With most accounting software or programs, there are different files and categories where records can be stored. This filing or storage can be done manually by the individual or group of people who works with the accounting information systems. Programs can also be set to do this automatically as information is entered into the system. Certain criteria can be set up in the program to allow the program to place files and data in the places or areas where it is supposed to go. There will usually be different categories for different data and some of the categories may include accounts payable, accounts receivable, payroll, purchasing, and other information that needs to be recorded and retained.

The final step is the process of communicating the data in the area in which it should be communicated. First, and most importantly, tax records that are recorded and processed can be communicated at the time that filing taxes is done. Some major corporations that are broken down into quarters may utilize this data on a quarterly basis. Other companies, especially smaller businesses, may only be concerned with this information on an annual basis. For large corporations, like major retailers, there are often several smaller stores or branches of the company that must share information through accounting software or systems. This information can help the company forecast sales, profits, loss, and a variety of other things. Many corporations share this information on a daily, weekly, or quarterly basis. The process of communication is probably the most important stage of accounting information systems because this is the point where results are known and records will be put to use.

The use of these systems is a very big part of businesses and corporations. Using resources available through accounting information systems allows major corporations and small businesses to record transactions and other financial information for use in the future. These tools can make the process much smoother, save money for the business, and save a great deal of time. With accounting software, computerized documents will make it easy to file and send documents to the IRS or other interested individuals. Money will be saved by not having to utilize the services of an accountant or CPA. This will also save time because expenses, payroll, and other financial matters can be completed by the owner at the business, with no need to take paperwork or other materials to an accountant for tax and payroll purposes. Taking advantage of this type of system can provide many great benefits to a large or small business. Accounting is a very important part of running and maintaining a business and the success of a company will often heavily rely on the practices and procedures that are used in the bookkeeping efforts of the company.

Reference:
http://www.ask.com/bar?q=+benefits+of+accounting+information+system+to+the+company&page=1&qsrc=2417&ab=1&u=http%3A%2F%2Fwww.christianet.com%2Faccounting%2Faccountinginformationsystems.htm

3.0.d Cite any threat or misuse of these AIS by a specific company. How were the threats addressed? What were the damages?

Answer:

Threats to Accounting Information Systems

Threats to accounting information systems come from a variety of sources. If ignored, they can destroy the relevance and reliability of financial information, leading to poor decisions by various stakeholders. (For specific examples, the Sidebar lists the top 10 concerns identified by a 2006 AICPA survey.)

At the point of data collection, it is important to establish security controls that ensure that transaction or event data are valid, complete, and free from material errors. Masquerading (pretending to be an authorized user) and piggybacking (tapping into telecommunications lines) are examples of hacker activities that can seriously impact valid data collection.

Threats to accounting information systems can also occur during the data processing phase. Creating illegal programs, accessing or deleting files, destroying or corrupting a program’s logic through viruses, or altering a program’s logic to cause the application to process data incorrectly all represent threats. Threats to database management might include unauthorized access that allows altering, deleting, corrupting, destroying, or stealing data. The failure to maintain backup files or other retrieval techniques represents a potentially devastating loss of data. Threats to the information generation and reporting phase must also be considered. For example, the theft, misdirection, or misuse of computer output could damage the competitiveness or reputation of the organization.

Advances in information technology and increased use of the Internet require that management, accountants, auditors, and academicians become more knowledgeable and conversant in the design, operation, and control of accounting information systems.

Implications for Management

With the expansion of computer technology, traditional business processes have been restructured and unique internal control techniques are required to address exposure to many new dangers. The responsibility for establishing and maintaining a system of effective internal controls resides with management. Management’s responsibilities include the documentation, testing, and assessment of internal controls, including relevant general IT controls (e.g., program development, program changes, computer operations, and access to programs and data) and appropriate application-level controls designed to ensure that financial information generated from an organization’s information system can be reasonably relied upon

Reference:
http://www.ask.com/bar?q=what+are+the+possible+threats+of++Accounting+Information+System&page=1&qsrc=2417&ab=1&u=http%3A%2F%2Fwww.nysscpa.org%2Fcpajournal%2F2007%2F507%2Fessentials%2Fp34.htm

DIPAY, IVY MAE J.