ACCOUNTING INFORMATION SYSTEM (AIS): A BRIDGE FOR AN EFFICIENT

IMPLEMENTATION OF INTERNAL CONTROL MANAGEMENT

Rationale

Accounting Information Systems (AIS) are a tool meant to assist in the administration

and control of problems relating to an organization's economic and financial area (El Louadi,

1998). Accounting information systems' principal purpose is to ascribe quantifiable value to

past, present, and future economic occurrences. AIS generates financial statements such as the

income statement, balance sheet, and cash flow statement using its computerized accounting

system. Companies that are able to change their computerized internal control mechanisms in

accordance with AIS will be able to assure the accuracy of financial information processing and

improve the effectiveness of financial information reliability control measures (U.Hoitash and

Bedard, 2009).

Internal control is a procedure affected by the board of directors, management based on

information, and employees that is intended to provide assurance that the organization's

objectives will be met. The information sub-system includes both physical and non-physical

components that are interconnected and function in tandem to achieve the purpose of

converting data into information. Internal control can be primarily derived from the accounting

information system, which covers the breadth of accounting transactions that affect all parts of

the firm, as well as the methods used throughout the transaction process until financial reports

are generated (Agung, 2018). Internal control is carried out to guarantee that operational goals

and performance are met (Wilkinson etal, 2000).

Research Objectives

The study is designed to assess the used of Accounting Information System in the

efficient implementation of internal control management. Specifically, it intends to answer the

following questions below:

1. To evaluate the efficiency of Accounting Information System among the entities who

wishes to improved its:

1.1 Internal Control

1.2 Computer System

1.3 Quality of Financial Information

2. To assess the level of employee performance with regard to:

2.1 Decision-making strategy

2.2 Accounting of Cash flows

2.3 Management’s Efficiency

3. To observe certain changes in the Entity’s internal control performance with and

without the use of an Accounting System.