Information Systems in Accounting

Paper Summary:

The paper discusses how updated information systems are reforming the most dominant aspects of the accounting profession, which have increasingly become the processes related to auditing and compliance. The paper explains that the Sarbanes-Oxley Act (SOX) has led to the development of technologies for better management of financial data including service oriented architectures (SOA) and the emergence of business process management (BPM) and business process reengineering (BPR).

Outline:
Executive Summary
The IT Requirements of Governance, Risk and Compliance
The Role of Service Oriented Architectures (SOA)
Business Process Management and Process Re-Engineering
Summary

From the Paper:

"The most significant change to occur within the area of how new technologies are influencing accounting is in the area of redefining processes by which financial data is capture, analyzed and reported to both shareholders and the government. The attainment of compliance to the SOX requirements has led to a reengineering of financial reporting processes within all publicly-traded companies in the U.S., and has also led to a more consistent approach to reporting financial results (Gordon, 2006) Compliance to SOX standards requires many organizations to significantly re-define how they capture orders from customers, track them, and input them into their Enterprise Resource Planning (ERP) systems for manufacturing and fulfillment."

Sample of Sources Used:

• Gary H Anthes (2003, June). Portal powers GE sales. Computerworld, 37(22), 31-32. Retrieved March 13, 2008, from ABI/INFORM Global database. (Document ID: 344913311)
• Gartner (2005) - Compliance Has Many Faces. Bace, Leskela, Rozwell. Industry Research Brief G00125885. Gartner Group. January 31, 2005.
• Gordon, S (2006, October). Where IT Accounting Raises Compliance Issues. Financial Executive, 22(8), 52-54. Retrieved March 12, 2008, from ABI/INFORM Global database. (Document ID: 1146396391).
• Plummer (2005) - Six Missteps That Can Result in SOA Strategy Failure. Gartner Group. Turnbill, CT. 22 June 2005.
• Richardson (2006), 'SOA Adoption: Web Services versus Point-to-Point Integration and EAI.' AMR Research Alert article. Thursday 27 April, 2006.

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