IT and Accounting by yurtgc548

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									IT and Accounting

      Dr. Khaled Dahawy
Misconceptions about
Accounting
   Mathematics

   The computer does it all
What is Accounting?

 An information system that measures,
 processes, and communicates financial
     information about an identifiable
             economic entity

        Information Database
Types of Accounting
   Financial and Managerial Accounting
   Auditing
   Tax Accounting
   Governmental Accounting
IT in Financial and Managerial
Accounting
How do we use IT in financial
and managerial accounting?
   Data entry
   Processing of data
   Storage of data
   Communication of information and reports
   Specialized software
   Budgets
   Communicating information across …
    branches…countries.. The WORLD
Advantages of use of IT in
financial and managerial
accounting?
   Save cost
   More mathematical accuracy
   Ease and flexibility in making changes
   Safety of information
   Controls
   Ease of retrieval of information
   Ease of generation of repots in different formats
   Ease of division of costs on activities and products
   Ease of analysis and comparisons
Challenges to the use of IT in
financial and managerial
accounting
   Cost of initial investment
   Training that is required
   Software in Arabic
   IT is not the enemy challenge
IT in Auditing
How do we use IT in auditing?

   Auditing around the computer
   Auditing through the computer
   Auditing with the computer
Advantages of the use of IT in
Auditing
   Allows us to audit larger samples
   Allows faster checks
   Allows us to check the actual process
    (trace transactions)
Challenges to the use of IT in
Auditing
   Cost of initial investment
   Training that is required
   Software in Arabic
   IT is not the enemy challenge
IT in Tax Accounting
How do we use IT in Tax
Accounting?
   Electronic tax returns
   Accumulation of information
   Linkage between different taxpayer files
   Linkage between different tax departments
   Easier to evaluate the tax return audit as it
    will be documented
   Easier communication between tax
    departments and tax payer
Why do we use IT in Tax
Accounting?
   Allow larger linkage between different
    files of the taxpayer
   Allow the generation of country level
    information
   Ease of communication
   Ease of payment (forthcoming)
IT in Governmental
Accounting
How do we use IT in
Governmental Accounting?
   Accumulation of country level information
   Aggregation of the financial position of the
    government
   Coordination of inventory across ministries
   Allocation of budgeted amounts across
    different levels of the government
   Ability to compare and evaluate companies,
    ministries.. etc

								
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