data quality issues for accounting information systems’implementation:systems, stakeholders, and...

Data quality issues for accounting Data quality issues for accounting information systems’information systems’

implementation:implementation:Systems, stakeholders, and organizational Systems, stakeholders, and organizational

factorsfactors

Submitted By-Tanvi Jain(09609102)Sachin Kumar Malviya(09609023)Jitendra Nailwal(09609092)

IntroductionIntroduction

Accounting Information System (AIS) has changed its way of Accounting Information System (AIS) has changed its way of capturing, processing, storing and distributing information. capturing, processing, storing and distributing information. Nowadays, more and more digital and on-line information is Nowadays, more and more digital and on-line information is utilized in the accounting information systems.utilized in the accounting information systems.

Organizations need to take an approach which considers both Organizations need to take an approach which considers both the system and the human related factors while managing their the system and the human related factors while managing their accounting information systems. Focus on critical factors is accounting information systems. Focus on critical factors is must to attain high-quality accounting information.must to attain high-quality accounting information.

Failure to do so has negative impacts on the organizations’ Failure to do so has negative impacts on the organizations’ financial process and decision makingfinancial process and decision making

7/08/2010 Data quality issues for accounting information systems' implementation: Systems, stakeholders and Organizational factors 7/08/2010 Data quality issues for accounting information systems' implementation: Systems, stakeholders and Organizational factors 1 1

BackgroundBackground

In AIS, stakeholders identified are as follows:In AIS, stakeholders identified are as follows:(1) Data producers are those who create or collect data for the (1) Data producers are those who create or collect data for the

AIS;AIS;(2) Data custodians are those who (2) Data custodians are those who design, develop and operate the AIS;design, develop and operate the AIS;(3) Data consumers are those who use(3) Data consumers are those who use the accounting information in their the accounting information in their work activities;work activities;(4) Data managers are those responsible for managing the entire (4) Data managers are those responsible for managing the entire

data quality in AIS.data quality in AIS.


MethodologyMethodology Case study research is used for which data was collected from multiple Case study research is used for which data was collected from multiple

sources.sources.

In-depth interviews with major AIS stakeholders were selected as the main In-depth interviews with major AIS stakeholders were selected as the main source of the data collection as well-informed respondents provide important source of the data collection as well-informed respondents provide important insights into the situation and quality data is obtained efficiently. insights into the situation and quality data is obtained efficiently.

Data collection sources also include relevant documents, such as- Data collection sources also include relevant documents, such as-

1.1. Position Descriptions- Provide the researcher explicit responsibilities of Position Descriptions- Provide the researcher explicit responsibilities of certain positions in AIS.certain positions in AIS.

2.2. Organizational structure charts- Used to understand the interrelationship Organizational structure charts- Used to understand the interrelationship among different divisions, such as IT and Finance, within an organization.among different divisions, such as IT and Finance, within an organization.

3.3. Training documents-provide evidence of training that has been undertaken by Training documents-provide evidence of training that has been undertaken by an organization.an organization.

4.4. Financial statements and annual reports-provide the general background Financial statements and annual reports-provide the general background information about an organization and its financial positioninformation about an organization and its financial position


Methodology contd..Methodology contd..

The analysis was done by transcribingThe analysis was done by transcribing and entering case study interviews and entering case study interviews together with the additional documentstogether with the additional documents obtained from the case study obtained from the case study organization into a software package for qualitative organization into a software package for qualitative

data analysis.data analysis. A content analysis of those documents and interview A content analysis of those documents and interview

transcripts was conducted. transcripts was conducted. All transcript material was coded and an All transcript material was coded and an index tree index tree

was also developed to aid in categorizing and was also developed to aid in categorizing and grouping of the qualitative materialsgrouping of the qualitative materials..


Case Study AnalysisCase Study Analysis

In this case study, there is no data manager position; therefore, three other In this case study, there is no data manager position; therefore, three other stakeholders are interviewed:stakeholders are interviewed:

• • Data producers: CFO and accounting officerData producers: CFO and accounting officer

• • Data custodian: IT managerData custodian: IT manager

• • Data consumer: General userData consumer: General user

Case Study Organization E is an education and training infrastructure Case Study Organization E is an education and training infrastructure companycompany

It partners with universities and professional education providers to It partners with universities and professional education providers to market and deliver their courses over the Internet to students and market and deliver their courses over the Internet to students and organizations. It’s a medium size organization with approximately one organizations. It’s a medium size organization with approximately one hundred staff. They use an off the shelf commercial software package hundred staff. They use an off the shelf commercial software package which basically performs the group’s accounting information. which basically performs the group’s accounting information.

The program is also used to report against budgets. The organization's The program is also used to report against budgets. The organization's business units throughout the world have different entities with their own business units throughout the world have different entities with their own local budgets and they run a separate analysis in the software package for local budgets and they run a separate analysis in the software package for each of those divisions.each of those divisions.


Data AnalysisData Analysis At the conclusion of the interviews with the stakeholders, eachAt the conclusion of the interviews with the stakeholders, each

of them was asked to rate a list of factors, generated from the of them was asked to rate a list of factors, generated from the

literature review, on a ten point scale for the importance of those literature review, on a ten point scale for the importance of those

factors, where ten represented extremely important, and one was not factors, where ten represented extremely important, and one was not important at all.important at all.

Findings of Case EFindings of Case E The importance of data quality issues in accounting information systems The importance of data quality issues in accounting information systems

were addressed by the case participants. This resulted that data quality was were addressed by the case participants. This resulted that data quality was regarded as a priority in the organization.regarded as a priority in the organization.

Case E transferred a substantial portion of its funds electronically, and that Case E transferred a substantial portion of its funds electronically, and that seemed easier to control than the traditional method. Typically, any transfer seemed easier to control than the traditional method. Typically, any transfer required two approvals from two senior employees. Therefore, Input required two approvals from two senior employees. Therefore, Input controls had been addressed as the most important controlcontrols had been addressed as the most important control..


There was no formal performance evaluation or rewards for employees’ data There was no formal performance evaluation or rewards for employees’ data quality control activities in Case E. Instead,they tried to employ well-trained and quality control activities in Case E. Instead,they tried to employ well-trained and experienced personnel to prevent the possible DQ problems. What they did was to experienced personnel to prevent the possible DQ problems. What they did was to put the DQ requirement as part of the job description for the appropriate position; put the DQ requirement as part of the job description for the appropriate position; this method worked as a negative incentive: ‘You do it right or you get sacked.’ this method worked as a negative incentive: ‘You do it right or you get sacked.’ At the same time, At the same time, Case E’s managers also made efforts on keeping good Case E’s managers also made efforts on keeping good personnel relationspersonnel relations

If employees were doing a good job and conducting If employees were doing a good job and conducting high quality controls, they would be recognized by seniorhigh quality controls, they would be recognized by seniormanagement.management.

In relation to responsibility for data quality, top management commitment to data In relation to responsibility for data quality, top management commitment to data quality was seen as most importantquality was seen as most important

Since it was a medium sized organization, Case E did not have a middle layer of Since it was a medium sized organization, Case E did not have a middle layer of management. Therefore, the ongoing implementation responsibility from day to management. Therefore, the ongoing implementation responsibility from day to day rested with the people at the front end. day rested with the people at the front end.

There was usually a timing pressure from each of the information customers, both There was usually a timing pressure from each of the information customers, both internal and external customers internal and external customers

. .


Example:- A board meeting normally had a deadline as to when everything Example:- A board meeting normally had a deadline as to when everything needed to be presented, which might be every quarter or bimonthly. There needed to be presented, which might be every quarter or bimonthly. There was also some monthly reporting that needed to be done by a certain day was also some monthly reporting that needed to be done by a certain day every month, as well as statutory annual reporting. Because timing was the every month, as well as statutory annual reporting. Because timing was the major influence for this type of information and reports, sometimes the major influence for this type of information and reports, sometimes the deadline might suffer inaccuracy of informationdeadline might suffer inaccuracy of information

Timing of deadlines was the major concerns in Case E.Timing of deadlines was the major concerns in Case E. Case E, it was believed that having a DQ manager position would not Case E, it was believed that having a DQ manager position would not

make a significant differencemake a significant difference Opposed to traditional data entry, Case E captured most of their Opposed to traditional data entry, Case E captured most of their

information online. In most circumstances, the information online. In most circumstances, the raw data supplier was the raw data supplier was the data entry person as they data entry person as they inputted raw data into the system. In order to inputted raw data into the system. In order to manage the quality of data from suppliers, Case E established a position manage the quality of data from suppliers, Case E established a position called ‘account relationship manager,’ who had all the details needed and called ‘account relationship manager,’ who had all the details needed and did all the communication back and forth between the technical staff and did all the communication back and forth between the technical staff and clients.clients.

Therefore, Therefore, input controls were divided into two main parts, the systems input controls were divided into two main parts, the systems controls controls and the human controlsand the human controls


ConclusionConclusion

Competent personnel is as important as the suitable system;Competent personnel is as important as the suitable system; Input control is the most important control, and in the online Input control is the most important control, and in the online

transaction environment , it should be incorporated with data transaction environment , it should be incorporated with data suppliers’ quality management;suppliers’ quality management;

It is hard to have DQ manager positions in small and medium It is hard to have DQ manager positions in small and medium organizations. However, organizations should incorporate DQ organizations. However, organizations should incorporate DQ manager functions into those relevant stakeholders’ job manager functions into those relevant stakeholders’ job

functions that should be responsible for DQ in AISfunctions that should be responsible for DQ in AIS..


Conclusion contd..Conclusion contd..

In order to have a successful accounting information In order to have a successful accounting information systems’ implementation, organizations should pay systems’ implementation, organizations should pay attentions to both systems and organizational factors.attentions to both systems and organizational factors.

Different stakeholders of the systems and data quality Different stakeholders of the systems and data quality controls need to work together to ensure the data controls need to work together to ensure the data quality in AIS.quality in AIS.


Thank You!!!Thank You!!!


data quality issues for accounting information systems’implementation:systems, stakeholders, and...

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data producers

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data custodians

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