The accounting information systems and the auditing environment are intertwined and dependent terms in the world of accounting. There is a need for both the accounting information systems and the auditing environment to be standard and useful for any business entity's proper working. Both the external and internal stakeholders of any company, organization, or business entities need to have an updated accounting information system and audit environment for better productivity.
Accounting information systems entails collecting, storing, and processing all accounting and financial data used by both the internal and external users in reporting the relevant information to both creditors, tax authorities, and investors in the company or business. In the modern world, accounting information systems are computerized for easy tracking and accessibility of all the accounting activities occurring in an entity through information technology resources (Belfo, & Trigo, 2013). Accounting information systems have various essential elements in the accounting cycle, including; expenses, revenues, employee, tax, and customer information. An effective accounting information system has a backed-up database structure to store various accounting information to avoid cybersecurity threats (Belfo, & Trigo, 2013). An accounting information system is important in a company since it strives to have an interface across various departments, thereby maintaining the required internal and external controls.
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However, the audit environment is the organization or entity environment in which there is an alignment of business risks and activities with internal audit activities. Most of the internal audit services focus on operational and strategic issues essential for the particular business entity with keen collaboration with the management (Belfo, & Trigo, 2013). Organizations with an effective audit environment ensure that; set objectives are realized, authorization of decisions is up to date, information reliability and integrity is standard, company assets are adequately safeguarded, compliance with set policies, regulations, laws, and contracts, minimization of organization frauds and effectiveness of economic and business ethics.
In conclusion, the audit environment and accounting information systems are required in any productive organization. They ensure that all the required policies, regulations and laws in the accounting process are adhered to, thereby increasing revenues and profits by minimizing occasioned frauds and miscommunications.
Reference
Belfo, F. & Trigo, A. (2013). Accounting Information Systems: Tradition and Future Directions. Procedia Technology, 9 , 536–546. doi: 10.1016/j.protcy.2013.12.060
