Accounting Information Systems: The Processes and Controls, 2nd Edition

THE IMPORTANCE OF CORPORATE GOVERNANCE IN THE STUDY OF ACCOUNTING INFORMATION SYSTEMS (STUDY OBJECTIVE 7)

Consistent reporting and management of information has never been more important, considering the recent increases in government oversight and audit requirements. In addition to the Sarbanes–Oxley Act and other corporate governance guidelines, even the income tax code has become increasingly complex. Overall, there is more focus on accounting information and improvements within financial systems.

CEOs and corporate managers must be in tune with the ever-changing financial picture of the company. IT departments are expected to help management achieve compliance by leveraging technology. Companies must be equipped with well-managed financial processes and related technological enhancements to make sure that corporate leaders have information readily available. Managers cannot be expected to sort through volumes of supporting documents when they need to get answers. Electronic record keeping is essential, but it depends upon an IT infrastructure that supports the company's strategies and goals. Even in nonpublic companies, in which compliance with the Sarbanes–Oxley Act is not required, IT managers are becoming increasingly popular as they provide corporate governance solutions to management.

THE REAL WORLD

The Dow Chemical Company and BASF have more in common than chemical products; these companies each use the Internet to deliver training on their ethics codes. Advanced technology ...