preparation for exam.

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lOM oA RcPSD |266 833 4 Compact summary of the entire book – excellent preparation for exam.Accounting information systems and internal control Chapter 1 – Organizations and their systems

• roles in information provision

1.The information manager:

2.The controller: A generalist whose competences concern the entire company, as he is the one pulling the financial strings.

3.The auditor: Core task is to audit financial statements and to provide reports on these statements based on his findings.To realize the strategic organizational goals, strategic management will perform the following

activities:

-Formulating the strategic organizational goals (planning) -Creating cross-functional collaboration between employees (structuring) -Allocating task assignments and providing resources to these employees (execution) -Testing the realization of the goals (evaluation) -Undertaking corrective or preventive measures if goals are not or are insufficiently realized (adjusting) Strategic business goals can be divided into more concrete goals (operational level) that, in turn, can be further concretized as well. Information provision is never a goal as such. Information is always provided because there are users of that information.

Using information for 3 purposes:

1.Information for delegation and accountability: Sometimes labor has to be divided. Then power and responsibilities are delegated between hierarchical management levels to mitigate problems stemming from managers’ limited spans of control. However, if power and responsibilities are delegated the need for management control arises.

2.Information for Decision-making: For example: you need information from the warehouse to know how much to purchase. (vertical) 3.Information for Operating the Business: Making the organization function as intended.Sharing knowledge to enable the organization to realize its goals, coordinating the activities of two different organizational units, or communicating a decision made by management. (horizontal) Managerial information provision: The systematic gathering, recording and processing of data aimed at the provision of information for management decision making, for operating the entity and controlling it, including accountability.Information: All the processed data that contributes to the recipient’s understanding of applicable parts of reality.Information and Communication Technology Plays an important role in the recording and processing of data, and in information provision.IT: All the electronic media used to collect, store and process data, to produce information, and to support or enable communication.System: An organized way of undertaking actions in order to attain certain goals. An organized way of inputting data, processing data and providing information aimed at the attainment of organizational goals.

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