Download IT and Accounting

IT and Accounting
Dr. Khaled Dahawy
Misconceptions about
Accounting
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Mathematics
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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
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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?
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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?
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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
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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?
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Auditing around the computer
Auditing through the computer
Auditing with the computer
Advantages of the use of IT in
Auditing
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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
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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?
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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?
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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?
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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