Section 1: Information systems:

1. Definition and issues:

According to Souhila Kheira Boukssessa (2017), an information system will consist of a

first place the set of procedures that allow the management of information in a
organization. To fulfill its role, the information system uses several tools including the
accounting.
The information system (IS) is an organized set of resources that allows for
collect, store, process and distribute information, generally using anetwork
computersIt is about asocio-technical system composed of two subsystems, one
social and the other technical. The social subsystem is made up of thestructure
organizationaland people linked to the IS. The technical subsystem is composed of
technologies (hardware, softwareand equipment oftelecommunication) and of theprocess

businessconcerned by the IS.

According to [Link], "An information system is an organized set of resources: hardware,
software, personnel, data, procedures, enabling to acquire, process, store,
communicate information (in the form of data, texts, images, sounds...) in the
organizations.
A S.I is a complex network of structured relationships involving people and machines.
and procedures aimed at generating orderly flows of relevant information
coming from different sources and intended to serve as a basis for decisions" according to Hugues
Angot.
These capabilities for processing large volumes of data, interconnecting sites or
of geographically distant operators, explain that they are, today, largely
used (for example, in logistics activities) to process and distribute information in
real-time, instead of traditional manual methods, which are slower, such as
theformson paper and thetelephone.
These processing capabilities are also highly appreciated because they
reinforcing the character "systemicdata and processes carried out: the coherence and the
consolidation of activities when sought and well-designed allows to increase the
quality ofinternal control of organizational management, even when they are
deconcentrated or decentralized.
The information system is the vehicle of the organization's entities. Its structure is
consisting of all resources (the personnel, the equipment, the software, the
procedures) organized to: collect, store, process, and communicate information. The
The information system coordinates the activities through the structuring of exchanges.
the organization and thus allows him to achieve his goals.
An information system is built from the analysis ofprocess professionof
the organization and their interactions/interrelations, and not simply around solutions
more or less standardized by the market. The information system must
carry out thestrategic alignmentof thebusiness strategyby amanagementspecific.

Thegovernanceinformation systems or IT governance

refers to the management and regulation methods of the information systems implemented
in an organization in order to achieve its objectives3In this regard, the governance of the IS makes
an integral part of the organization's governance. The methodsITIL(IT infrastructure
library) andCOBITare for example, tools that allow to put an IS under control
and to evolve it according to the organization's strategy.

2. Composition of a corporate information system:

A - Classical composition:

In the works of the 1980s-1990s, the "classical" composition of the systems of

the information of a company was like a pyramid of information systems that
reflected the hierarchy of the company.

The systems that handle basic transactionsTPSat the bottom of the pyramid, followed
by the systems for information management (MIS), and after the support systems of
decisionsDSSand ending with the information systems used by the management most
higherEIS), at the top.

Although the pyramid model remains useful, a number of new technologies have
have been developed and some new categories of information systems have emerged and
do not correspond to the different parts of the pyramidal model.
 Figure 1: Pyramid of information systems reflecting the hierarchy of the company

B- Current composition:
In the information system of a large company, there are:
. aERPEnterprise Resource Planning (in French: ERP formanagement software
integratedwho theoretically integrates all computerized transactional systems
whose operating procedures are now well known to computer scientists
and craftsmen from every trade. The ERP allows to support the
functioning of the company;
. so-called 'integrated business' or 'verticalized' systems, which are software packages
trades, and which cover both front-office, middle, and then back-office and
which are not custom-designed, but were built by a specialized publisher on
a profession whose software operating methods correspond to the best
practices observed at a given time among the most efficient in their sector
of excellence;
. remaining systems called 'specific' (or also: non-standard, of
concept 'house', custom-developed, unavailable on the market, etc.), where
 more applications are found in the fields of cost calculation,
billing, production support, or ancillary functions.

The proportion between ERP and specific systems varies greatly from one company to another.

Theurbanizationdeals with the mapping of enterprise systems and thus the way
to organize its information system in order to achieve its evolution in a sustainable way
forecast, in accordance with the company's general strategy. The strategy of
the company is led by the general management and urbanization allows for leading
the alignment of the IS with the strategy. In ERPs, there are modules covering different
areas of activity (such as production management, relationship management
customer relations, human resource management, accounting,
finance, mergers, accounting integrations of recent acquisitions, etc.) around a
common and unified database.

It is common for a company to be equipped with several different software packages depending on its
areas of activity. In this case, the software packages are not fully integrated like in
an ERP, but interfaced with each other, as well as with specific applications. One will find
for example, applications of:

. customer relationship managementGRC, or CRM for customer relationship management

group all the functions that allow integrating clients into the system
company information.
. extended relationship management XRM for Extended Relationship Management
enterprise information system, conceived by Nelis XRM in 2005, whose
Relational processes are the foundation of information organization.
. supply chain management GCL, or SCM for supply chain management:
group all the functions that allow integrating suppliers and logistics into
company information system
. Human Resources Information System(HRIS) for theresource management
humanHRM, or Human Resource Management.
. Technical Data Management System (SGDT), or PDM for product data
management: functions to assist in the storage and management of technical data.
Especially used by thedesign officesIn fact, the PDM is the evolution of the function
SGDT, up to new ways of managing the data lifecycle.
 . Product lifecycle management (or PLM for product lifecycle management :
notion that includes in addition to the PDM, design and support for innovation, as well as
the end of the product's life, hence its recycling).

Other components can be included in an information system to provide

technical characteristics or specific features:

. Business applications,
. Databasesof the company,
. Access control,
. Devices ofsecurity,
. Network infrastructure,
. Computer workstations,
. Access to networksInternet, intranetorextranet,
. Application servers,
. Servers ofdataand systems ofstorage,
. Electronic payment system,
. Security system (protection andencryption),
. Tools ofgroupware, agendas, document sharing space, exchange
information (electronic forums), contact management, electronic conference
(chat, videoconference).

3. The functions of the information system:

There are 4 functions of the information system:

 Figure 2: The 4 functions of the information system

A- The collection of information:

For any organization, information is valuable and essential for its sustainability.
it provides more detail, but it allows the organization to make decisions,
supervise the pilots' activities and even create value.

The information collection of the IS is therefore to gather the information, then to input it, that is to say to do it.
entering the IS. One can say that information collection is the act of recording information.
in order to proceed with its processing. The information thus gathered will generally be decomposed into
in a structured way to facilitate the storage and subsequent processing.

It remains true that information is costly because its entry requires, as a rule
generally, a human intervention which is therefore costly for the company.

B- The memorization of information:

Once collected and entered, the information must be stored permanently.
stable and secure in order to be used later or simply to
to respond to legal obligations.

This is what your telephone operator does when you receive or make calls.
Each call is timestamped and recorded in a database. This allows for the establishment of your
detailed invoices, but also to provide your call logs when required by the judicial authorities.
To organize the storage of information, technical and organizational means are
implemented as archiving methods, of techniques
backup, protection against hacking or methods to prevent
the destruction of data. As information is valuable, it is imperative that the IS
they securely store this information.

C- Process the information:

Once the information has been collected and stored, it is available for processing.

The processing of information consists of producing new information from

existing information through computer programs or operations
manual.

For example, you sometimes call a hotline when you have a

problem with your Internet access. In most cases, you are asked to interact
with the system with basic answers to questions like 'YES' or 'NO'.

This is an example of processing. We use voice recognition to collect your

responses and thus produce new information.

D- Disseminate the information:

Whatever its origin or what it represents, information has value only if it

is communicated to the right recipients, at the right time and in a directly related form
exploitable.

Let's take your phone bill. Every month, you receive it in electronic format or
by mail, a statement of your telephone communications as well as the cost of each
your calls and the total amount you owe to your operator. This bill is
a means of disseminating information.
Section 2: The accounting and financial information system:

According to Souhila Kheira BOUKSSESSA (2017), the financial accounting system does not impose

a standard and unique model for the presentation of financial statements, but a minimum
information to be presented in these statements.

The accounting and financial information system of a company encompasses a set

organized resources for acquiring, processing, storing, and communicating
financial information in various forms within organizations. The system
The accountant has become a key component of the company's information system, ensuring
indeed a unifying role by ensuring the consistency of management information for use
internal and external, its effectiveness today depends on the performance of its applications
Information technology. The accounting information system is a centralized system fed for the
upstream systems, primary data collectors for each operating cycle. Downstream,
the control system communicates with the information system to channel the
data entering the decision-making process. This view of systems is
particularly interesting in that it is easily transposable to the field
of management and accounting.

In all types of businesses, the necessity of having reliable accounting and

performance appears to be a given while its implementation is no small matter.
always very easy.

The science of information in the management system:

It is important to note that the main requirement that precedes any information system is
to duly and accurately appreciate all the decision-making factors within an organization, the
Most specialists accept the activity of creating information systems in terms
of using the computer technique for two purposes:

. The use of computers as working tools in the activity to support the

decisions.
. The use of computer equipment as working tools within the
components of information systems.
The first position is characterized by the existence of specialized software products in
the analysis of decision alternatives in order to find the most appropriate decision for
the organization, upon their adoption.

On the other hand, the second position aims to develop commercial applications of
data processing at the level of the activity or group of activities within the company.
The implementation of these applications has led to the introduction of the term 'information system /
management subsystem.

The accounting and financial information system is designed to record and control the
activities and assets of the organization, and it automatically processes the manipulated data
within the organization.

1.1. The Accounting Function:

The accounting function manages the financial information resource of the company. This
The function plays two fundamental roles in transaction processing. First,
Accounting captures the financial effects of the company's transactions.

Namely, the movement of raw materials from the warehouse to production, the shipments
finished products to customers, cash flows to the company, deposits to the bank,
the acquisition of stocks and the settlement of financial obligations.

The accounting function distributes transaction information to the operations staff.

The accounting activities that directly contribute to business operations.
include inventory control, management accounting, payroll, accounts
suppliers, accounts receivable, billing, fixed asset accounting, and the
general ledger.

Indeed, it is necessary to maintain a broad view of accounting to understand its role.

functional in the organization.

1.2. The value of information:

The value of information for a user is determined by its reliability. However, the
information must be characterized by: relevance, accuracy, completeness,
recap and news. When these attributes are present, the information is reliable and
provide value to the user. If the information is unreliable, it can lead to
dysfunctional decisions.

Giving the example of a marketing manager who signed a contract with a client for
provide a large quantity of product by a deadline. He made this decision by
based on information regarding finished product inventories. However, if the
the information was incorrect. The actual inventory levels of the product were
insufficient to meet the order and the necessary quantities could not be
manufactured on time. Non-compliance with the terms of the contract may lead to disputes.

This poor decision is the result of incorrect information. Effective decisions

require information with a high degree of reliability.

1.3. Accounting independence:

The reliability of information largely rests on the concept of independence.

accountant. In simple terms, accounting activities must be separated and
independent of the functional areas that ensure the custody of

The finance function manages the company's financial resources through its activities.
banking and cash management, portfolio management, credit assessment, disbursements and
collections.

Due to the cyclical nature of business, many companies oscillate between

positions of surplus funds and cash deficits. In response to these models
of cash flow, financial planners seek profitable investments
in stocks and other assets and low-cost credit lines from banks. The
The financial function also manages the daily cash inflows and outflows of
the company.

1.4. Accountants as users:

In most organizations, the accounting function is the largest user of

computer science. All systems that process financial transactions have an impact on
accounting function one way or another. As end users, the
accountants must provide a clear picture of their needs to the professionals who
design their systems. For example, the accountant must specify the rules and techniques
accountants to use, internal control requirements, and special algorithms such as
the amortization models.

The accountant's participation in the development of systems should be active rather than
passive. The main cause of design errors that lead to system failure
is the absence of user involvement.

2. Information technology and information systems:

Information technology broadly refers to the set of systems

computing used by an organization. Information technology refers to
technological side of an information system. It includes the hardware, the software,
databases, networks and other electronic devices. It can be considered as
a subsystem of an information system. The term information technology is
also used interchangeably with the information system.

2.1. Systems and subsystems:

A system is a set of interdependent elements that, together, accomplish tasks.

specific objectives. The system must have an organization, interrelations, a
integration and central objectives.

The term computer science in its broadest sense is used to describe the entire
information systems of an organization, their users, and the management that oversees them.

A major role of computing is to facilitate activities and processes.

organizational. This role will become more important over time. Therefore, it is
necessary for every manager and professional staff member to familiarize themselves
with computing not only in its area of specialization but also in
the entire organization and in inter-organizational contexts.

The financial accounting information system provides managers with the

financial accounting information on which the development of plans is based
business, the formulation of policies and the control of activities within the organization,
the system aims to meet external legal requirements and standards
accountants.
To benefit from a reliable accounting information system, it is necessary to meet
the conditions that guarantee the fairness and viability of information, namely reality, the
polyvalence, conciseness, synthesis capability, timeliness, operability, precision and
security, efficiency, and of course eliminates the major deficiencies of the system by
exploitation such as distortion, filtering, and redundancy of information.

2.2. Functions of an accounting information system:

Accounting information systems have three basic functions:

. The primary function of a SIC is the efficient and effective collection and storage of
financial data of an organization, in this regard, obtaining the data of
transaction using source documents then comes the recording of
transactions in journals then the recording of journal data in
the great books.
. The second function of an IS is to provide useful information for decision-making.
decisions, namely the production of management reports and financial statements.
. The third function of a SIC is to control the recording in order to deal with
precision the data.

2.3. The components of an accounting information system:

An accounting information system consists of six basic parts:

. The users of the system: accountants, managers, and analysts

commercials
. The procedures and instructions by which the data is collected, stored,
extracted and processed
. Data including all information that enters a SIC
. The software consists of computer programs used for processing
data
. The information technology infrastructure includes all the hardware used.
to operate the SIC.
 2.4. The reliability of accounting information systems:

Given that a CIS stores and provides reliable business information with a
vital importance. The American Institute of CPA (AICPA) and the Canadian Institute of
Certified accountants (ICCA) have identified four important basic principles for reliability.
of the accounting information system.

Figure 3: The principles of the reliability of an IS

. Security: Access to the system and its data requires authorization.

. Confidentiality: control the collection, use, and unauthorized disclosure.
. Integrity of processing: complete and timely processing requires authorization
. Availability: in order to meet operational and contractual obligations.

Uses of the accounting information system:

An accounting information system is generally a computerized method of tracking

In accounting, he is responsible for the collection, storage, and processing of data.
financial and accounting information used for internal management decision-making, including
non-financial transactions that directly affect the processing of transactions
financial.
Typically, the accounting information system consists of three subsystems.
main

. The transaction processing system that supports daily

Commercial operations
. The general ledger system and financial information system
. The Management Reporting System is responsible for supporting operations or the
daily commercial transactions. These transactions can be grouped into
three transaction cycles: the revenue cycle, the expenditure cycle, and the cycle of
conversion.

The purpose of the first information systems was to automate business processes, which
shows that the accounting field was one of the very first to use systems
information to support its activities

In order to achieve remarkable performance, the organization must have an integrated system.
of financial and accounting management and information and which has the following functions:

. Reactive information to support the manager's decisions

. Budget control and real-time cost monitoring
. Correlation between costs and prices
. Plan production based on forecasts and contracts, plan
supply based on a global view of existing stocks
. Integration of commercial systems, revenue collection systems,
payment or collection systems, remuneration, etc.
. Master the ongoing investment projects and the budgets grouped into operations
in real time, as well as track the expenses of investment projects.
. A centralized database that includes information on customers and suppliers
and the high costs of service provision.
. The possibility of eliminating redundant information.
. Shorten decision-making time and direct access to information for everyone
decision levels.
. Channel financial resources in one direction, thereby eliminating costs
of integration.
. The possibility of correlating results and performing complex analyses regarding
the activities.
 . The system must comply with the usage requirements in the environment
international commercial, multiple reporting systems, chart of accounts
multiples, the reports in accordance with Western European standards.
. A comprehensive solution for maintaining an accurate inventory of goods and equipment,
providing the opportunity to choose the best accounting and tax strategy.

3. Accounting information system (AIS) and information system of

management (SIG):

Conceptual view; physical information systems are generally not organized.

in discrete packages. Most often, the SIG and SIC functions are integrated to achieve
operational efficiency.

The information system accepts inputs, called transactions, which are converted by
various processes in the output information that goes to users. Transactions are
divided into two categories:

. Financial transactions
. Non-financial transactions.

Let's start by broadly defining a transaction as an event that affects or

presents an interest for the organization and is processed by its information system as
a unit of work.

This definition encompasses both financial and non-financial events. Because the
financial transactions are particularly important for understanding the
information systems by the accountant, we need a precise definition of
this class of operations:

A financial transaction is an economic event that affects assets and equity.

Owns of the organization, is reflected in its accounts and is measured in monetary terms.

Such as sales of products to customers, purchases of inventory from suppliers, and the
disbursements and receipts. Any commercial organization is legally required to comply
and to handle these types of transactions.

Non-financial transactions are events that do not meet the definition

narrow of a financial transaction, the addition of a new supplier of raw materials to
the list of valid suppliers is an event that can be processed by the system
Company information as a non-financial transaction.

Financial transactions and non-financial transactions are closely linked and are
often treated by the same physical system.

Let's consider a financial portfolio management system that collects and tracks the prices of
non-financial actions. When the stocks reach a threshold price, the system places an order
automated buying or selling: financial transaction. Buying high and selling low is not
contrary to the law, but it's bad for business. Nevertheless, no law requires the
management of the company to design optimal purchasing and selling rules in its
system. Once the buy or sell order is placed, however, the processing of these
financial transactions must comply with legal and professional guidelines.

3.1. The accounting information system :

The subsystems process financial transactions and non-financial transactions that

directly affect the processing of financial transactions, namely the modifications of
Client names and addresses are processed by the SIC to keep the client file updated.
Although not technically financial transactions, these changes
provide vital information for the processing of future sales to the customer.

The SIC is composed of three main subsystems:

. The transaction processing system (TPS), which supports operations

daily commercial activities with numerous reports, documents, and messages for
users throughout the organization.
. The general ledger or financial information system (GL / FIS), which produces the
traditional financial statements, such as the income statement, balance sheet, cash flow statement
treasury, taxes, returns, and other reports required by law.
. The management reporting system (MRS), which provides internal management with
financial reports for specific use and the information necessary for decision making
decision, budgeting, variance reports, and accountability reports.

3.2. The management information system:

Management often requires information that goes beyond the capacity of the IS.
as organizations grow and specialized functional areas
emerging, requiring additional information for production, planning
and obviously the control, sales forecasting, warehouse inventory planning,
market study, etc. The management information system (MIS) handles non-transactions
financial matters that are normally not handled by traditional SIC.

The decision is the main axis of management activity as it is found in all

its functions, namely forecasting, organizing, training, coordination and
the evaluation then the control, and even more, the integration of the organization within
the environment depends on the quality of the decision. At the same time, the quality of
the decision-making process influences cost reduction, the efficiency of fund utilization,
as well as profit growth.

As is evident from both the specialized literature and the practice and experience of
In many organizations, the quality of the decision depends on various factors such as the
quality of the information underlying the basis of the decision, the level of management
to which urgency, reliability, and accuracy are taken into account.

Finance and accounting represent the specialized management function tasked with
collection, recording and analysis of financial data and presentation of
states and financial information of all types of managers and other individuals
within the organization or externally.

There is common interest accounting information, but also information that

only interest a certain category of users, just like the regulatory body
The IASB acknowledges that not all information requirements of users can be met.
satisfied with the financial statements. However, implicitly, investors are
privileged users. And so meeting their information needs will mean satisfying
the majority of the needs of the other categories of users.

3.3. PGI (the integrated management software):

The accounting information system is highly computerized. In recent years

a new tool has emerged: the enterprise resource planning (ERP) software.
ERPs modify the organization of the accounting information system.
PGI relies on the use of a database.

ERP systems do not only deal with accounting information. Other information
coming from the different information systems of the company: production, resources
Human, commercial...) are contained in this database. This tool must
allow an informational integration of the different activities of the company.

Financial management is a very critical function of any business. The ERP system
must contain solid accounting tools. ERP systems help manage accounts
suppliers and accounts receivable, asset management as well as the management of
risks and tax management.

ERP platforms provide exceptionally robust tools to manage all

the aspects of sales and revenue of your company. A robust ERP system enables
to automate many accounting functions, including payment processing,
sales analysis, expense management, etc. An ERP system improves accuracy and the
processing time of accounting functions, thereby reducing your workload
staff and their working hours. For a comprehensive list of financial capacities,
check our checklist of accounting software requirements.

3.4. The advantages of using an accounting information system:

Access to accounting data anytime and anywhere. For businesses of all kinds.
size, generate, display and download financial statements and reports in just a few clicks.

Easier collaboration, one of the main advantages is that everyone has access to
real-time accounting and financial data. So, all your employees have to do
is to connect to the platform and do what they need to do.

Save time with automation A large part of the work that an accountant or
An accountant must perform daily tasks that are very manual and repetitive. For example:

. Create an invoice for each sale

. Tracking transactions and creating respective journal entries
. Sending reminders for late payments to your clients
You can also automate financial reports (for example: create a report
every X days of the month). Or you can even set up automated payments of
suppliers.

Accounting security means that your data is covered by layers.

high-end encryption algorithms, which makes them much more secure than
to keep on the desk shelf.

And the best part is that all your data is synchronized at all times. So,
Not only is it safer, but it is also fresh.

Real-time reports

Real-time monitoring and reporting. With the help of a dedicated dashboard allows you to
follow all the accounts and metrics you want to track.

Simplified tax compliance Let's face it, no business owner

does not like to manage taxes. This is where accounting software comes into play. By having some
precise accounting records, up-to-date financial statements and reports, it is extremely
simply gather the documents and information needed to file the declarations
of income.

One of the biggest advantages is perhaps that it will allow your business to perform
accounting tasks without having to hire additional accountants. Given that
the SIC is accessible and can be easily used by everyone, including specialists
non-accountants, you can lighten the workload of your financial team and avoid
to have to employ additional labor during tax periods
charged.

As already mentioned, the use of an ICT system can increase the level of productivity of
the company. As an all-in-one system, it also facilitates the team's work
accounting software is generally equipped with tax compliance features, in
particularly in those dedicated to payroll assistance.

An additional bonus if, of course, customer satisfaction. Since the levels of

increased productivity, customers are more likely to feel satisfied. They
will appreciate the fact that the company sends invoices quickly and efficiently,
billing reports and other financial requirements.
 The accounting team is not only improving its productivity, it is also becoming more
credible - and that is what customers are looking for and really want.

Figure 4: The features of an accounting solution

Section 3: The importance of good operations management

financial and accounting:

Trends and challenges in accounting:

In June 2010, a large online survey was conducted by the Chartered Institute of
Management Accountants (CIMA) and by the University of Bath in the United Kingdom at 5426
senior finance professionals and non-financial professionals worldwide.

The respondents to this study were a wide range of finance professionals,

all the regions of the world, with responsibilities divided into six categories: The
accounting operations, which include the processing of transactions, the accounts
suppliers and debtors and internal financial reports; external reporting, which includes
the statutory reports.

the financing of businesses, cash flow and financial risks, and regulation, there
understood internal audits, compliance with regulatory requirements and taxes; preparation and
interpretation of management accounting information, such as forecasts,
budgeting, costs and variance reports, as well as cash flow management;
support for management, which includes the identification and analysis of strategic options, the
decision support, design and monitoring of key personnel indicators, benchmarking,
strategic management accounting, and business risk management; develop, implement
implement and maintain management information

The CIMA study showed that the most significant recent trend among professionals
the accounting is the change of responsibilities of accountants, of operations
traditional accountants to strategic management advice and support. This trend,
The consequence of the 2008 financial crisis represents an increase in added value.

The research conducted by Bidan et al. in 2002 emphasized two types of impacts: the
flexibility of ERP tools and the flexibility of the company: operations, structure, and strategy.

The organization and contribution of accountants. Nowadays, large companies of

The entire world needs professionals who understand risk management and flows
of treasury, financial instruments, and other complex functions that can offer
a strategic direction to senior executives. The results also highlighted the
the necessity for professionals to remain faithful to the traditional duties of operations
accountants.

Reporting is probably the most frequently performed activity by accountants.

Just as a curiosity, the word must be able to produce real-time reports.
and in an interactive way (allowing them to choose what they report, perform analyses
and create scenarios) without the involvement of the information technology team.

Furthermore, with the recent international financial crisis, the use of SIC by parties
external stakeholders (reporting) is becoming increasingly important and especially, much more
critique.

The audit, generally divided into two main groups, is an activity usually carried out
by the accountants :
Internal and external (or independent) audit. The internal audit covers a wide range of activities.
on behalf of the organization, including the conducting of financial statement audits, the review
the compliance of an operation with the organization's policies, by examining the
compliance of the organization with legal obligations, by assessing operational efficiency,
detection and pursuit of fraud within the company, among others. The internal auditors
need to support their activities with the use of information technology
like workflow management systems

The activities of external auditors are similar to those carried out by auditors.
internal but are more focused on specific laws or rules regarding financial statements
of an organization and not on operational issues

External auditors are external third parties, while internal auditors

serve on the board of directors of the organization

Audit firms are constantly looking for ways to increase their efficiency by
conducting targeted audits and increasingly relying on internal audit services and
effective controls. Teams are required to participate in meetings of
brainstorming to identify risks resulting from errors or fraud, as well as
means of coping with these risks. Consequently, audit firms are turning more towards
in addition to IT support

Thus, the horizontal nature generated in the company is the result of the continuous process of implementation.

place of computing, which promotes the proper management of functional units (Alsène,
Gamache, 1997). It represents one of the expected effects of the implementation of a system of
integrated accounting management according to Al-Mashari, 2003.

Regarding the questions related to the subject of this document concerning the importance
financial accounting information for management action, British Galutier and Underdown
have appreciated accounting and by default financial accounting information since 1991,
as being the most important element of the organization's information system

. The accounting information system enables managers and users

external accounting information in order to obtain an overview of the whole
the organization.
 . The accounting information system connects the important information systems of
the organization can present them in monetary terms and value the data
recorded in the accounting.

The information needs of managers are mainly covered by reports based on

the information derived from management accounting and financial accounting. The
Reports are established based on the manager's objectives, which are related to the functions.
managerial, we mention, the administrative function, the planning function,
control function, decision function.

1.1. The organization's information system - general considerations:

According to Christophe Rieder (2019), to have an accounting system that is regularly updated,
it is important to engage a modern fiduciary with an online platform,
accessible at any time and from anywhere to access accounting information in case
of need.

The information system is defined as an integrated set of methods and procedures.

and the means used to collect, transmit and process data, analyze, store,
disseminate and capitalize on information and knowledge.

The information system as an important integrated element in development

the continuation of the financial and economic processes of any organization is influenced by a
series of external factors, taking into account that the analysis cannot be carried out in
its set. Knowledge requires a detailed analysis of components such as
information, the nature and origin of them, the meaning and usefulness, the path they
traverse and the transformation they undergo in the process, their goal, the material basis
on which they are registered, the means of collection, processing and storage, etc.

An information system can be defined from a technical perspective as a set

of interdependent components that collect, process, store, and disseminate information
for the decision-making and control bodies of an organization.

Another definition that would lead to the same ideas would be that the information system
represents a set of human, financial, and material resources for collection and
the processing of data with the aim of obtaining and then transferring the necessary information to
the planning and control of an organization's activity.

Figure 5: The three subsystems of an IS

The content of the information system supports the operation of the organization and
understands in turn three operating systems:

. Operating system in which operational activities are developed.

. Management system that contains all decision centers and their action on the
operating system.
. Information system that ensures the connection, in both directions, between the
decision-making system and the operational system, and on the other hand between them and
the outside environment.
In the information system, the development of processes is ensured by a
component of the organizational structure involving specialists,
an accounting technique for scientific instruments, and also a flow of information between
the sources of information, the components of the system, and the decision levels.

The system The system

information of information
for the of the activity
production commercial

The system
The system information
of information for management
accountant resources
financial humans

Figure 6: The ranking of information systems within an organization.

1.2. The accounting and financial information system: a milestone of activity

the organization:

Considering the fact that a country's accounting system is influenced by a series of

factors such as the legal system, the dominant mode of financing organizations,
the tax system, the level of inflation, the economic system, politics, etc., generating some
differences between the accounting systems of countries, and be more precise.
The accounting information system is influenced by the nature of the activity and its
operations, by its size, by the volume of data processed and by the information needs of
the management and external users.

The accounting and socio-economic environment in which it operates interacts.

mutually, being thus in a relationship of interdependence, and influencing each other.
Professors B. Esnault and Ch. Hoarau (1994) identified the paradigms of
accounting in:

. Inductive approach: implies that the development of accounting theory should be done at
through the generalization of the observations provided by accounting practices;

. Deductive approach: the prior definition of the objectives from which the postulates are derived,
conventions, methods and accounting rules;
. Predictive approach: testing accounting methods and rules, based on their
predictive capability, thereby facilitating the decision-making process;
. Behavioral and psychological approach: the study of user reactions
individual when publishing accounting information and emphasizes the
relevance of accounting information in the decision-making process;
. Economic approach to information: accounting information as an asset
economic.
. Systematic approach to accounting: collection, processing, storage and
communication of information in order to make decisions.

It is necessary to mention that the nature and quantity of information published

dependent on the supply of manufacturers of accounting information and the demand for
the user. The free market of information implies an accounting standardization in the
measure where this market becomes efficient and available for potential users.

The double representation of the reality of accounting information in the system

internal and external accounting information, shapes the organization's image externally to
through financial or general accounting, and on the other hand it makes internal processes
through management accounting.
The management accounting system is designed to meet internal needs.
the organization, but the two systems must be combined in order to ensure integrity and
the accuracy of the information produced.

Financial accounting has the fundamental role of recording the transactions of a

organ 1sation with its external environment, in order to periodically determine and
systematically the financial situation and the results of the operations carried out

NB: financial accounting information is retrospective and is made public,

in accordance with the legislation in force.

Management accounting produces the majority of the information intended for processes.
decision-making, as well as data on the ongoing management of customer-supplier relationships
can be extracted from financial accounting, to correct the effects of inflation on
the decisions of management. The information produced by financial accounting makes
part of the economic and financial analysis and contribute to the basis of managerial decision-making.

Management accounting does not act for communication with the outside.
the organization, so it is not standardized, more clearly it is a tool of
modeling of companies that comes into the hands of managers in the processes
It is complex to lead the organization; it is an extremely effective tool.

Taking into account the role and functions of financial accounting, but also of those
from management accounting, it can be said that these two elements are complementary and
facilitate the efficient, effective, and economical management of an organization, through the
The information they provide competes with managerial decision-making.

The financial accounting information system provides managers with the

financial accounting information on which the policy formulation is based,
the development of business plans and the control of activities within an organization and have
to meet external legal requirements and certain standards and rules
accountants.

Conditions for the existence of a financial accounting information system

In order to meet the necessary conditions to benefit from an information system

reliable accountant, two categories of restrictions must be imposed as follows:
A. Imposition of certain requirements that must ensure the accuracy and viability of
information:

. Reality of the information concerning how to carry out processes within

the economic entity, this requirement being correlated to the social characteristics
economic factors of the entity and the environment in which it operates. In this
context, the quality of information is a determining factor for the realism of the
decision and to achieve long-term economic performance, thereby ensuring the
stability in the economic market.
. The versatility of information is generated by the complexity of processes and
phenomena that occur within the
. economic entities and should highlight the economic aspects,
techniques, the most important human or scientific.
. Conciseness and ability to synthesize information, imposed by a selection
rigorous selection of the most significant information in terms of degree of novelty and
of importance for the entity's activity.
. The accuracy and security of information require correct identification of
the most recent and essential elements, and the nature of the information must be
concise, synthetic and multilateral.
. The opportunity of information involves its timely use, which
requires knowing the recipient, reaching them on time, and triggering the action
concerned.
. The efficiency in information processing is directly imposed by adoption
and the implementation of decisions, because regardless of the value of information, if it
reaches the recipient after the processes have already started or are finished,
this information becomes obsolete.
. Dynamism of information, required by the shortening of time
functioning, through the compression of the management process, and especially by necessity
to reflect the changes in work processes and to anticipate their evolution.
. Adapt the information to the specific personnel involved, so that they are
presented according to the level of understanding and qualification of each
beneficiary.
. The effectiveness of information involves an assessment of the results of the information.
transposition in decisions.
 . Reliability of information refers to the availability of information related to
coordinates that interest the decision-maker.
. Relevance of the information to the needs imposed by this level of decision
hierarchical.

B. Elimination of the main gaps in the accounting information system

operational finance:

. The distortion of information is the unintentional partial modification of

message of information during the process of collection, processing and
transmission from the sender to the recipient. Distortion is the consequence of a
irregular coordination, heterogeneity in the training of the involved personnel
in the transmission of information, the inadequate training of those who emit
information, the poor quality of information materials
. Information filtering is a deliberate alteration of the message and its content.
during the flow of information. Filtering introduces the voluntary element, expressed by
the intervention during the creation, transmission, and processing of information
from certain people who have an interest in the beneficiary receiving a message
erroneous; The distortion and filtering of information have detrimental effects on the
recipient of the information due to its total or partial misinformation,
thus affecting the management process.
. The redundancy of information consists of recording, transmitting, and processing in multiple ways.
reprises due to a poor correlation of different functions, positions or
services within the entity, poor coordination or a lack of
coordination, resulting from the non-respect of the principle of unity of decision and action.
. The overload of information circuits with information results from redundancy or
the pyramidal nature of the information system, caused by poor design
of the current information system, a lack of training for managers and
executors, tendencies to overestimate the achievements and activities undertaken.

An information system contains information and the environment in which the

Information is recorded, and the link between them is extremely complex, referring to
by the way that the information can be stored permanently or temporarily,
may be modifiable or not, environments can be reproducible,
transportable or not available, fixed or extensible.
Information represents a substance with a certain structure that can be
produced, stored or held by a person or a group of people and transmitted from one
person or a group to another.

By developing the issue of ways to support the financial accounting system -

a special place dealing with the elements through which existing processes and relationships
are developed and which, together, contribute to an efficient and effective management process
to ensure the functionality of the organization through procedures and manuals
procedures.

In order to achieve the organization's objectives, a balance must be ensured between the tasks,
the skills and responsibilities with the obligation to meet the objectives) and the
procedures must be defined.

Procedures represent the steps to follow (algorithm) in carrying out tasks.

the exercise of skills and the taking of responsibilities. These procedures must be: the
written knowledge, formalized, individual and collective must be stored and made available
in the order that meets the objective of the public entity; simple and specific. Indeed, the
Written procedures consist of a working instrument for performing artists.
You executors need to know the legal rules that must be imposed for each
public entity

Financial resources play a role just as important as material resources.

and humans in the normal development of the system's activity and to ensure
the efficiency and effectiveness of the system in achieving its objectives.

Regarding the means of human nature involved in supporting the system

in financial accounting, the emphasis is on achieving the organization's objectives,
a defined role at the senior and hierarchical management. They must possess a series of
managerial skills such as: perseverance, self-control, acceptance of
change, assume different roles (examiner, examined person, candidate,
supervisor, planner, interpreter, coordinator, organizer, advisor, etc.) adoption of
effective behavior to overcome crisis situations, etc.

These skills are exercised through the continuous updating of knowledge and
the improvement of professional skills, learning and the obligation to comply
 ethical principles, the demonstration of appropriate behavior during competitions,
competitions, exams, etc.

The technical and material means that support both the accounting system and
funding and all the activities of the organization:

The Organization and Operating Charter: The document in which the structure
a detailed presentation of the organization is provided, describing the operating mechanism of
the company by defining the missions of each department; defining the tasks, the
skills and responsibilities of each existing position within the company.

The status of organization and operation has two objectives:

. It defines the tasks, skills, and responsibilities of management positions.

collectives, frameworks, execution positions;
. Each employee has the opportunity to become familiar with the assignments and
responsibilities of his department in relation to the other departments of the structure.

Information systems are considered the essence of financial information and

The accounting system as well as the information systems are very important for the
development of activities related to the accounting-financial system, and logistics for
the implementation of information systems (software, hardware, data migration); of
Moreover, it is necessary to have a team that provides technical support for analysis.
the adjustment, the implementation of applications in financial matters: accounting activities
and commercial, production, investment projects, human resources and management.