Accounting information systems (AIS)

Accounting information systems are based on an automated structure that has been used by businesses in order to collect, store, manage, process, and retrieve the financial related to an organization. The reporting of financial data is also the responsibility of the accounting information. The reports are generated by using AIS systems, and these reports help managers, accountants, consultants, and chief financial officers in the process of making effective decisions. The reports generated by AIS systems are also highly effective, and they are used by auditors and also tax authorities. The use of the AIS system is helping the business in achieving success by improving their working efficiency as the bookkeeping and account making process has been automated (Watson and Monod, 2014).

Five fundamental principles related to AIS

It is becoming an increasingly important factor for businesses to identify that what are the five basic fundamental principles related to AIS systems, which are helping the businesses to grow and using the system effectively. The five basic fundamental principles which are related to AID reliability are as follows:

1. Security – this principle states that it is highly important for a business that they must ensure the security of their systems. The means that the data which can be collected by using AIS and financial data stored in the system must have limited access to ensure the security of systems
2. Confidentiality – this aspect indicates that it is highly important that the business is protecting the sensitive information related to business and in case of any unauthorized access the systems must disclose this factor
3. Privacy – the businesses must ensure that they are protecting the personal information of their customers and collection, use and making disclosure related to personal information must be done in an appropriate manner
4. Processing integrity – the use of the AIS system is helping the data to be accurate, complete and must also be timely processes and along with this the access must have to be authorized
5. Availability – It must be ensured that the AIS system is capable of meeting operational and contractual obligations. The operation of the system must ensure that they are keeping track of rules and regulation applicable to the industry (Mamedova, 2015)

Meaning of artificial intelligence

Artificial intelligence is described as an ability of automated programs that are capable of thinking and learning. This field of study ensures that Artificial intelligence is making computer systems smart. The artificial intelligence is based on programs that are based on human cognition, and it is also directly related to the learning or problem-solving capabilities of the system. Artificial intelligence is a growing concept which is helping the business in improving its working efficiency and operations (Rada, 2014).

Impact of AI applications on future AIS

There are various AI applications that are helping the functions related to account and finance. For the past many years, it has been depicted that the businesses operating in business sectors are helping in transforming the way the business activities are performed. Artificial intelligence is going to help the accounting information systems is going to have an impact on financial reporting standards. The use of modern AIS is going to transform as due to AI, the future application will be developed, which are going to bring innovation in the industry. The use of modern AI applications in the future will be capable of incorporating change in financial standards. It has been evaluated that the future AIS systems are capable of bringing change and positivity in the organization as they are capable of understanding the nature of operations and also adjusting to the working environment within the organization. The future AIS systems are capable of incorporating AI information as they are incorporating the current issues within the systems. AI applications in the future are also capable of storing the credit rating, and analysis of customers and factors helps in analyzing that what is the risk associated in respect of providing credit to the customers (Torresen, 2018).

An example related to AI applications

AI applications are bringing change in the financial sector as there are applications which are developed using modern AI technique, and this is helping the financial services sector in making their processes effective and operational. Robotic process automation (RPA) is an AI-based application which has been using rapidly in the financial sectors. The use of this application is reducing the audit and contractual processing time. The use of AI applications is also saving time to conduct the audit, and the processing has been taking place, which is causing the business to improve the working efficiency (Torresen, 2018).