Chapter 20, Problem 1CQ

To determine

Identify the option that is not a reason for a company to make changes in their Accounting Information System.

Answer to Problem 1CQ

Option e

Explanation of Solution

Accounting Information System: AIS collects, records, stores and processes accounting and other data to produce information for decision makers. AIS can be a paper-and-pencil manual system, a complex system using the latest in IT, or something in between. It includes people, procedure and instructions, data, software, information technology infrastructure and internal controls and security measures.

The organizations try to changes or improve their information system frequently as to survive in the highly competitive and ever-changing world. Some of the reasons for a company to change its information system frequently is given below:

• Change in user or business needs.
• Technological changes.
• Improved business process.
• Competitive advantage.
• Productivity gains.
• System integration and
• System age and need to be replaced.

Option a: As per the above explanation, the given option is only a part of a reason for the changes in the accounting information system. Therefore, Option a is incorrect.

Option b: As per the above explanation, the given option is only a part of a reason for the changes in the accounting information system. Therefore, Option b is incorrect.

Option c: As per the above explanation, the given option is only a part of a reason for the changes in the accounting information system. Therefore, Option c is incorrect.

Option d: As per the above explanation, the given option is only a part of a reason for the changes in the accounting information system. Therefore, Option d is incorrect.

Option e: As per the above explanation, the given option contains all the reason for the changes in the accounting information system. Therefore, Option e is correct.