Using student-generated cases to teach accounting information systems

This paper discusses the potential advantages of integrating student-generated cases into the accounting information systems course. The benefits of the traditional case method are discussed, and the student-generated case technique is presented as a way of further fostering a creative learning environment, which promotes a deeper understanding of the course material than the traditional case method. Further, this paper discusses how the student-generated case method can help students develop their group interaction skills, as well as their oral and written communication skills.     

Using accounting information systems by operations managers in a project company

This paper describes the results of a case study that investigated the use of accounting information by operations managers in a road building company. There was considerable preplanning before the execution of project activities, but task uncertainty during execution created the need to take corrective action. Information on prices and expected costs was crucial for preplanning purposes. During project execution higher-level managers depended upon accounting information about actual project costs to be able to focus on low performing projects. Lower-level managers observed work on-site and they used information about the prices of various resources. Learning over time happened on the basis of experimenting with practical ideas and building a repertoire of solutions that worked (or did not work). The study suggests that under high task uncertainty in projects, accounting information may not take on the role of a ‘learning machine’ to help managers decide on action, because managers may supply action-centred skills to manage cost. Action-centred cost management strategies for negotiation and improvisation are not informed by accounting information that supports analytical cost management strategies. The study also suggests that direct observation of processes is more informative compared to the representation of these processes through accounting information, if the complexity of these processes is limited (few different input and output resources).     

Management accounting and integrated information systems: A literature review

In order to further advance research within management accounting and integrated information systems (IIS), an understanding of what research has already been done and what research is needed is of particular importance. The purpose of this paper is to uncover, classify and interpret current research within management accounting and IIS. This is done partly to identify research gaps and propose directions for future research and partly to guide researchers and practitioners investigating and making decisions on how to better synthesise the two areas. Based on the strengths of existing frameworks covering elements of management accounting and IIS a new and more comprehensive theoretical framework is developed. This is used as a basis for classifying and presentation of the reviewed literature in structured form. The outcome of the review is an identification of research gaps and a proposal of research opportunities within different research paradigms and with the use of different methods.     

Using group decision support systems to acquire local information: an application to the Hong Kong dollar peg

Futurists often employ methods such as Delphi to construct forecasts of critical events. The events are typically of a technological, sociological, environmental, or economic nature and are sometimes directly influenced by political actors. The studies that examine the events are often conducted by researchers and knowledgeable participants who reside within the country in which the events may take place. It is often the case, however, that multinational firms would like to forecast such events in countries in which they have neither substantial presence nor informed expertise. Managers and analysts who have access to local information that is not widely disseminated can sometimes make immediate use of it to obtain a competitive advantage. An example is managers and other professionals who have formed impressions based on local information that is legally available to everyone but is not widely known at the moment. Access to this type of information may be limited, however, if local persons are reluctant to share opinions that are critical of government officials and policies. We present a method using Group Decision Support Systems (GDSS) that allows local knowledgeable people to discuss their views anonymously. We apply this to an analysis of Hong Kong monetary policy.     

Auditing standards,increased accounting disclosure,and information asymmetry: Evidence from an emerging market

The interest in accounting disclosure and audit quality by academics, practitioners, and regulators heightened following the various financial reporting scandals, and subsequent legislative and professional response to these scandals. An important question is whether the implementation of stricter auditing standards such as those mandated by the US Sarbanes-Oxley Act would improve the information environment of firms whose shares are publicly traded. In this paper, I investigate the link between information asymmetry, measured by bid-ask spread, and increased accounting disclosures following the adoption of new auditing standards in China—an environment in which disclosure hitherto was relatively low. I report the following primary results of the statistical analyses. First, information asymmetry cost is substantial in the Chinese order-driven emerging markets. Second, the firms in the sample experienced significant reductions in their bid-ask spreads subsequent to the adoption of the new auditing standards. Third, the reductions in the bid-ask spreads were abrupt and permanent. However, no significant result is found for firms in the control group with foreign ownership, whose financial statements were prepared in accordance with international accounting standards and were audited with international auditing standards. The results have implications for policy makers and regulators in general, and those in emerging markets in particular.     

Dialogic framing of accounting information systems in social and environmental accounting domains: Lessons from,and for,microfinance

The successful design, application and evaluation of accounting information systems (AIS) in social and environmental accounting (SEA) domains increasingly requires that stakeholder interests be addressed. Because various stakeholders have competing interests, new thinking about how these can be accommodated is needed. Brown (2009) proposes a dialogic framework following from agonistic democracy, which takes the position that when consensus is not possible, progress can be facilitated through ongoing commitment to accounting processes that represent and accommodate competing perspectives. Previous work in AIS (Blackburn et al., 2014; Dillard and Yuthas, 2013) builds on Brown's work to develop a theoretical perspective useful in the AIS-SEA context that takes pluralism seriously. We extend this line of research by exploring developments in the microfinance industry and illustrate how the agonistic accounting principles can be useful in considering AIS-SEA design, implementation and evaluation as well as the initiation of innovation and change in the industry. Microfinance provides an example of an antagonistic context where the social mission/values come into unambiguous conflict with the economic objectives of microfinance institutions. Agonistics suggests that such conflict, if acknowledged and facilitated, has the potential for fostering innovative responses and reducing the likelihood of one perspective dominating the others. Relating accomplishments in this field to the principles of dialogic accounting demonstrates how this perspective can be incorporated into the design and use of systems that address social and environmental objectives as well as economic ones. We explore both accomplishments and shortcomings in achievement of pluralistic systems in the microfinance domain.     

Strategic decision processes and the design of accounting information systems: Conceptual linkages

Although the literature on accounting systems has traditionally concentrated on the inputs and outputs of decision making, the decision process itself must also be considered if an information system is to be of maximum value. Therefore, in this paper we address the issue of designing accounting information systems which provide information in order to facilitate the decision making process. More specifically, we will explore the conceptual links between the strategic decision process and the specific information needed to facilitate such a process. In developing these links we draw heavily from the research on strategic decision processes; coupling that body of research with accounting theory allows the specification of design desiderata for accounting information systems.     

A conceptual foundation of design and implementation research in accounting information systems

This structured literature review focuses on the design and implementation of systems in Accounting Information System (AIS) research. The review has two objectives: 1) To look in depth at AIS research regarding the design and implementation of information systems related to accounting in the last fifteen years; 2) To understand design and implementation issues in AIS. To do so, this research examines the current state of design and implementation research in the domain of AIS, using a structured review of abstracts in top-level Information Systems, Accounting, and AIS journals. Using a design science in IS theoretical framework, the review categorizes themes and trends in AIS literature. Some of the most relevant themes include audit/auditors, enterprise resource planning, monitoring and control, adoption, and decision making. The most relevant issues include training, commitment, investment, culture, and existing business processes. The research includes gaps, limitations, and opportunities for future research.     

Using student response systems in the accounting classroom: Strengths,strategies and limitations

A Student Response System (SRS), often referred to as a “clicker,” enables students to individually answer instructor questions on a real-time basis using individual mobile devices, and have the aggregate responses displayed as feedback to the class at the instructor’s discretion. A mobile device can be a proprietary, vendor-specific remote, or a multi-purpose item such as a smartphone or computer. While SRSs have been used in education for some time, we perceive the adoption rate in accounting classes as still being quite low. This paper is a “how to” and “why” guide for accounting faculty who are considering using SRSs, and for experienced users who seek to refine or expand their SRS use.     

Exploiting comparative advantage: A paradigm for value added research in accounting information systems

Following the lead of recent papers by Demski [Demski J. Is Accounting an Academic Discipline? Account Horiz 2007;21(2): 153–157], Fellingham [Fellingham J. Is Accounting an Academic Discipline? Account Horiz 2007;21(2): 159–163] and Hopwood [Hopwood A. Whither Accounting Research? Account Rev 2007;82(5): 1365–1374] which questioned the direction and value added of non-AIS accounting research, we discuss the state of research in Accounting Information Systems. AIS researchers face a significant hurdle in undertaking value added research given that the financial and human resources that industry devotes to research and development of AIS technology dwarf the capabilities of academic researchers. In these circumstances, we put forward a paradigm for AIS research based on the principle of comparative advantage, which is the powerful economic force that ensures that trade can take place even between parties where one has an absolute superiority over the other. It is our contention that if AIS academics are to succeed in creating value added research then they have to identify what they can do that the AIS industry, despite all its financial and human resource advantages, cannot or will not do. And what economic theory indicates is that such opportunities to add value always exist — if only academics are willing to seek them out. We illustrate our paradigm by analyzing three potential sources of comparative advantage for AIS researchers and discussing illustrative examples of research in each of these areas.     

Changes in the value relevance of accounting information over time: Evidence from the emerging market of China

We investigate the changes in the value relevance of accounting information among Chinese firms over the past two decades, during which accounting reforms are launched to provide decision makers with increased disclosure and higher quality financial information. We also investigate the factors that differentiate firms showing significant value relevance improvement from firms showing little improvement. We find increases in the value relevance of some financial variables and decreases in others, which suggests that accounting numbers help to explain the pricing process of stock shares although at different levels. In addition, we find that value relevance improvements are more pronounced for smaller firms, firms with lower growth rates, and those with greater asset tangibility. We also document that value relevance improvements are generally lower in an exuberant stock market. These results have implications for a variety of information users and policy makers in emerging countries which are reforming their accounting systems.     

A contingency model of perceived effectiveness in accounting information systems: Organizational coordination and control effects

A contingency model is advanced that examines sources of requirements for organizational coordination and control as they affect the extent of integration in an accounting information system. Requirements that are contingent on the degree of organizational formalization, information interdependence among functional areas, and dependence in interorganizational information sharing and electronic data interchange links, are examined. The congruence or fit of system integration with those requirements is a key concept that influences beliefs about system effectiveness. Results of the empirical study indicated that, as hypothesized, the fit between the accounting system design and the contingency factors resulted in a more successful system. Specifically, system fit was a significant factor that explained variations in perceived AIS effectiveness, as measured by decision makers' perceived satisfaction with the accuracy and monitoring effectiveness of output information. The effect of system fit on a second factor of perceived AIS effectiveness, as measured by decision-makers' satisfaction with the perceived quality of information content in system outputs, was only marginally significant. The study addresses an important area in accounting systems research that directly relates to the decision facilitation and control objectives of accounting information.     

Enhancing the government accounting information systems using social media information: An application of text mining and machine learning

This study demonstrates a way of bringing an innovative data source, social media information, to the government accounting information systems to support accountability to stakeholders and managerial decision-making. Future accounting and auditing processes will heavily rely on multiple forms of exogenous data. As an example of the techniques that could be used to generate this needed information, the study applies text mining techniques and machine learning algorithms to Twitter data. The information is developed as an alternative performance measure for NYC street cleanliness. It utilizes Naïve Bayes, Random Forest, and XGBoost to classify the tweets, illustrates how to use the sampling method to solve the imbalanced class distribution issue, and uses VADER sentiment to derive the public opinion about street cleanliness. This study also extends the research to another social media platform, Facebook, and finds that the incremental value is different between the two social media platforms. This data can then be linked to government accounting information systems to evaluate costs and provide a better understanding of the efficiency and effectiveness of operations.     

Management accounting systems change and departmental performance: the influence of managerial information and task uncertainty

Despite the proliferation of new management accounting techniques amidst pressures of organizational and global change, the issue of changes in firm-wide management accounting and control systems (MACSs) has largely been ignored in the research literature. This study explores the indirect effect of MACSs change on departmental performance for a cross-sectional sample of 232 medium-sized Singaporean firms. It is hypothesized that MACSs change affects performance but not directly. Instead, this relationship is mediated by managerial-relevant information (MRI) that is impacted by MACSs change, which, in turn, enhances performance. Task uncertainty is expected to moderate the intervening linkages; specifically, the latter are anticipated to strengthen under conditions of more task variability and task difficulty and, thus, augment the indirect effect of MACSs change on performance. The results offer support for the positive indirect effect of improving departmental performance from more MRI, triggered by MACSs change. Although not large, the indirect effect is strengthened when task variability and task difficulty are high. Overall, the findings are consistent with the stated purposes of management accounting that are embedded in normative definitions, and which are relied upon to motivate the framework for analysis.     

Using a systems framework to develop higher level thinking skills in cost/management accounting: Experimental evidence

The teaching of learning and thinking skills has become a primary objective of accounting education. Recent cognitive research has emphasized the importance of a framework for the organization of knowledge in attaining these skills. This paper examines whether a systems framework leads to improved long-term learning and higher level thinking skills. The systems framework involves the identification of objectives, users, inputs, and outputs, in addition to the calculation process. A learning experiment was conducted in which the systems framework was used for organizing material presented to students and for practice exercises. This study suggests that the systems framework enhances long term learning and higher level thinking skills. These results support the recent emphasis on information systems in accounting education.     

Human information processing and its relevance to accounting: A laboratory study

The purpose of this research was to empirically test emerging behavioral science theories which have import in our understanding of the complex information processing and decision-making behavior of users of accounting information. A multi-stage laboratory experiment which utilized accounting students as decision-makers was used to test several research hypotheses. In the experimental tasks, the subjects knew the nature of the decision and had the opportunity to seek information at a cost to aid them in deciding on an alternative. The findings are supportive to the applicability of general and idiosyncratic information processing theories to managerial environments.     

Configuring blockchain architectures for transaction information in blockchain consortiums: The case of accounting and supply chain systems

This paper investigates alternative configurations of different blockchain architectures that can be used for gathering and processing transactions in a range of different settings, including accounting, auditing, supply chain and other types of transaction information. Although there has been substantial focus on the peer‐to‐peer and public versions of blockchain, this paper focuses primarily on cloud‐based and private configuration versions of blockchains and investigates use configurations, advantages and limitations as firms bring blockchain‐based market mechanisms into their organizations. In addition, this paper investigates some emerging issues associated with blockchain use in consortium settings. Finally, this paper relates some proposed uses of blockchain for transaction processing to other technologies, such as data warehouses and databases.     

Taking the ontological and materialist turns: Agential realism,representation theory,and accounting information systems

Karen Barad’s (2007) agential realism conceives the world as intra-acting agencies that take definite form only when an agential cut is made. In the information systems discipline, her theory underpins much of the work that goes under the rubric of sociomateriality. Importantly, her work challenges the validity of theories about the world based on representationalism and so-called Cartesian dualism. At least some scholars who subscribe to sociomateriality argue that one consequence of Barad’s theory is that information systems theories such as representation theory stand on shaky grounds. I subject this proposition to scrutiny. I begin by summarizing the major tenets of representation theory and agential realism. Next, I use agential realism to provide an account of phenomena that are associated with an accounting information systems case study. I then evaluate the account, particularly from the perspective of what novel, innovative insights occur by using an agential realism lens. Compared to existing theories such as actor-network theory and general systems theory, I conclude that little new is learned. Moreover, I argue that representation theory provides an alternative, robust account of the case-study phenomena. I also consider the question of whether agential realism potentially provides accounting information systems scholars with a means of identifying the core of their field and constructing theories about any core they might identify.