List and describe the key features you would expect to find in an organisations policies and procedures document relating to the set up and operation of a computerised accounting system.
Answers
Explanation:
Computerised Accounting System 13
I
n chapter 12, you have learnt about the need for
use of computers in accounting the nature and
use of accounting information system. In this
chapter, we shall discuss the nature of computrised
accounting system, its advantages, limitations and
sourcing.
13.1 Concept of Computerised
Accounting System
A computerised accounting system is an accounting
information system that processes the financial
transactions and events as per Generally Accepted
Accounting Principles (GAAP) to produce reports as
per user requirements. Every accounting system,
manual or computerised, has two aspects. First, it
has to work under a set of well-defined concepts
called accounting principles. Another, that there is
a user -defined framework for maintenance of
records and generation of reports.
In a computerised accounting system, the framework
of storage and processing of data is called operating
environment that consists of hardware as well as software
in which the accounting system, works. The type of the
accounting system used determines the operating
environment. Both hardware and software are
interdependent. The type of software determines the
structure of the hardware. Further, the selection of
hardware is dependent upon various factors such as
the number of users, level of secrecy and the nature of
various activities of functional departments in an