Literature Review in Accounting Information Systems

According to Rosemary Peavler (2017), There are multiple types or categories of

accounting information systems. What a business firm uses depends on the type of business, the

size of the business, the needs of the business, and the sophistication of the business. Manual

accounting information systems are used mostly by very small businesses and home-based

businesses. If a system is entirely manual, it would require the following: source documents,

general ledger, general journal, and special journals or subsidiary journals you might need.

Legacy systems are often in existing business firms and were used before information technology

got as sophisticated as it is today. Unfortunately, legacy systems also have significant

disadvantages. Often, they have no documentation. It is usually hard to find replacement parts

because hardware and software may become obsolete. Even the computer language that legacy

systems use is usually an older language.

According to Fernando Belfo and António Trigo / Procedia Technology 9 ( 2013 ) All

professionals from the accounting domain, the main idea about the information system of an

organization and particularly an AIS is embraced by the Enterprise Resource Planning (ERP),

which encompasses all the essential functions to support an organization and is implemented in

almost all large organizations. Current literature is moving away from this established view about

AIS domain, considering now a more modular approach to an AIS where new technologies like

Business Intelligence (BI) or Balanced Scorecard (BSC) systems play an increasingly important
role. The work presented in this paper surged from this idea that there is a huge set of new

technologies that can complement or integrate current AIS and its present available facilities

There are many types of accounting information systems and, as a result, they vary

greatly. A number of factors influence these systems such as the type of business, the size of the

business, the volume of data, the type of data management needs, and other factors. In the

article published by Rosemary Peavler, 2017. Most businesses, except for the smallest, use

computerized systems, also called electronic data processing (EDP) systems. These systems

handle every step in the accounting process from recording the financial transaction to preparing

the financial statements. Businesses are constantly improving their systems technology in order

to remain competitive and to stay in compliance with the Sarbanes-Oxley Act of 2002. Even the

smallest businesses may choose to use systems like Quickbooks.

Other types of Accounting information System published by Kate Bluest (2017) such as

AIS by Processing mode, Batch processing systems, online batch systems and online real-time

systems are the three types of accounting information systems classified by mode of processing.

In batch processing systems, you enter transactions when they occur and periodically process

and integrate the transactions into the accounting record by running a batch process either daily

or weekly. Online batch systems are the same as batch processing systems, except that you

record transactions and process batches using online-based accounting software. When using an

online real-time system, the software integrates transactions into the accounting record when

you record them. There is no batch processing.

 Another type of AIS is by System Objective. Transaction processing systems, decision

support systems and expert systems are the three types of AIS systems by system objective. The

primary objective of transaction processing systems is to process transactions and generate

reports. Decision support systems use different areas of business to build models. The software

can point managers toward potential problems and through decision models, and help the

manager resolve the problems. Expert systems incorporate specific expertise in the company's

industry to help the manager diagnose and solve problems.

The other type of AIS is by Interaction with Environment. Transformational

systems, such as batch processing and transaction processing systems, transform information

and generate reports based on that input. Reactive systems, such as expert systems, are event-

driven systems that react to external and internal stimuli continuously.

For almost all professionals from the accounting domain, the main idea about the

information system of an organization and particularly an AIS is embraced by the Enterprise

Resource Planning (ERP), which encompasses all the essential functions to support an

organization and is implemented in almost all large organizations [5, 6]. Current literature [7] is

moving away from this established view about AIS domain, considering now a more modular

approach to an AIS where new technologies like Business Intelligence (BI) or Balanced Scorecard

(BSC) systems play an increasingly important role [3, 8]. The work presented in this paper surged
from this idea that there is a huge set of new technologies that can complement or integrate

current AIS and its present available facilities.

https://www.thebalance.com/accounting-information-systems-392953

https://www.techwalla.com/articles/types-of-accounting-information-systems

https://ac.els-cdn.com/S2212017313002144/1-s2.0-S2212017313002144-

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