Discuss four ways that an accountant is often involved with the AIS acquisition?

Answer 1

Students should discuss four of the following items:
User
Analyst
Purchaser
Implementer
Consultant
Internal auditor
External auditor

User: Whether you are a staff accountant, controller, or CFO, you will be using an AIS on a regular basis. In any of these roles, you might be a business process owner as well, which means that you will be responsible for (or own) certain data sets (such as payroll, general ledger, or customer billing data). As such, you very well could be the person who initiates the AIS acquisition cycle because you will be in prime position to recognize deficiencies and incompatibilities related to the existing AIS.

Analyst: Because you will be intimately familiar with functionality and controllability aspects of accounting systems, you could be asked to participate on a systems analysis team to conduct a preliminary survey used to determine what is needed in a new AIS. Even when the accountant is not familiar with a particular business process, he or she can contribute skills in acquiring and documenting descriptions of processes.

Purchaser: You could also become a member of the AIS selection team. In this capacity, you will have to match the organization's requirements with the capability of various commercially available accounting systems, evaluate a set of potential AIS solutions, and help to make the final purchase selection.

Implementer: After the AIS is purchased, it is time to switch the old with the new, which is much easier said than done. You could become involved with this vitally important phase of the acquisition cycle. If so, you will have to be equally adept at dealing with people, accounting, and technology. In particular, your intimate knowledge of accounting and information technology will help you be successful in this role.

Consultant: Although the Sarbanes-Oxley Act prohibits CPA firms who audit a public company to also serve as systems consultants for the same company, AIS consulting is nevertheless alive and well. Even though most CPA firms have spun off their consulting divisions into separate entities, these new consulting companies continue to need accountants. There are also many opportunities for traditional management consulting firms. Furthermore, CPA firms still consult (they often call themselves "business advisors"), just not for their audit clients. As a consultant, you can become involved with any or all of the AIS acquisition phases.

Internal auditor: Because internal auditors are knowledgeable about AIS function and control requirements, they often serve as advisors or consultants during the acquisition cycle. Also, as agents of management and the board of directors, internal auditors ensure that the acquisition team has followed the organization's standard procedures for systems acquisition and that the process has been efficient and effective.

External auditor: As an external auditor, you will conduct an internal control assessment. During your assessment, you will have to determine how changes in the AIS might have affected overall audit risk. As discussed in Chapter 7 of this textbook, professional guidance in this regard is found in the Statement on Auditing Standards (SAS) 94, entitled "The Effect of Information Technology on the Auditor's Consideration of Internal Control in a Financial Statement Audit." Thus, external auditors will review the acquisition cycle and assess if and how internal controls have been impacted.