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The application of computer-based IS in accounting has become more widespread as a way to improve the accuracy and dependability of the output.Typically, this data is presented in the form of annual financial statements, which include notes to the accounts, the statement of cash flows, the statement of changes in equity, the income statement, or statement of comprehensive income, and the statement of financial condition.The entity's assets, liabilities, equity, revenue and costs (including gains and losses), contributions from and distributions to owners, and cash flow are all disclosed in financial reporting, which also offers information about the stewardship of the management.These reports are examined by outside auditors in an effort to increase users' perceptions of their dependability and confidence.But the latest wave of financial scandals has seriously questioned the accuracy of audited financial reports that are being distributed in the corporate world.
The application of computer-based IS in accounting has become more widespread as a way to improve the accuracy and dependability of the output. Because a computer-based IS can process data more quickly and easily than a manual data processing system, an organization can generate information more quickly and easily with it. Using IT has an impact on a company in two ways: first, it helps with business operations by utilizing technology, but second, it has a negative effect due to the increased vulnerability that comes with the development of IS for corporate security.
The entity's assets, liabilities, equity, revenue and costs (including gains and losses), contributions from and distributions to owners, and cash flow are all disclosed in financial reporting, which also offers information about the stewardship of the management. Typically, this data is presented in the form of annual financial statements, which include notes to the accounts, the statement of cash flows, the statement of changes in equity, the income statement, or statement of comprehensive income, and the statement of financial condition. These reports are examined by outside auditors in an effort to increase users' perceptions of their dependability and confidence. But the latest wave of financial scandals has seriously questioned the accuracy of audited financial reports that are being distributed in the corporate world.
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