Ackoff’s Management Information System

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Information Technology (IT) control and audit play critical roles in enhancing the uprightness of Information Systems (IS) as well as reporting of organization finances. Actually, such mechanisms are imperative in circumventing and deterring financial flops within such organizations. Indeed, the utilization of IT auditing in corporations has greatly progressed over the years. The paper explores the applicability of Ackoff’s Management Information System (MIS) assumptions in the contemporary global and digital society. Additionally, the paper tends to modernize the assumptions to reveal the current international economy. Besides, the report analyzes the competencies that accountants should have to provide managers with efficient information.

The Applicability of Ackoff’s Management Information System Assumptions Today

The first assumption postulates that most managers operate under acute scarcity of relevant information. As such, the management requires extra information to perform their work effectively. The supposition does not apply today because in the contemporary business environment, provision of supplementary information to managers often leads to superfluity of immaterial statistics. For instance, the stream of surplus information leads the Management Information Systems (MIS) to spend extra time in condensing and filtrating information. In other words, information overload normally leads to ineffective operations within organizations since managers spend significant time in sorting out the relevant information from immaterial data (Siyanbola, 2012). In this regard, the assumption can be upgraded to postulate that MIS should be designed to offer only relevant information to the management.

The second supposition asserts that executives are fully aware of the needed information. The hypothesis is not applicable in contemporary business world. In fact, with the changing aspects experienced in financial management models, managers are seldom unaware of adequate models that should be utilized in making financial decisions. For instance, to appraise correctly the sales volume anticipated within an organization, the identification of variables to be used in performing linear regression is fundamental. In principle, managers are able to identify the statistics needed in making decisions only after the construction and testing of the explanatory models for decision processes (Siyanbola, 2012). In this regard, the supposition should be updated to hypothesize that managers can only describe and predict the information they need.

The third assumption hypothesizes that the choices made by managers often increase when the administrators are supplied with the statistics they require. Nonetheless, considering the emergence of techniques and models that utilize mathematics in business decisions, managers are incapable of making optimal choices since most executives lack knowledge concerning mathematical programming, sequencing and network problems (Siyanbola, 2012). Due to the complexities involved in decision-making, the hypothesis needs an advancement proposition that offer managers with decision guidelines and performance responses. The provision of guidelines would improve decision-making through identification emerging gaps and learning experiences.

The fourth assumption asserts that through better interdepartmental communication, managers are capable of synchronizing decisions effectively. Essentially, augmented communication levels enhance the general output of the firm. However, the supposition is not applicable in today’s global business environment. For example, considering a departmental store with purchasing and merchandising departments where the former is responsible for purchases and the latter is accountable for sales, turnover rate of inventory and maximization of sales are the measures of performance of the purchasing and merchandising departments respectively. The merchandising manager may decide to come up with a price where gross sales are maximized by utilizing the perspectives of competition and consumption. As such, the merchandising manager would instruct the purchasing manager on the products that should be availed.

However, with perfect communication between the departments, the purchasing manager has information relating to price and demand. As such, agreeing on the amounts of products to be purchased and sold becomes difficult. In other words, more communications between departments prohibits effective performance. Without doubt, the assumption should be updated to postulate that appropriate organizational structures augment performance (Malecki & Moriset, 2008).

The fifth hypothesis suggests that executives should only comprehend the procedure involving the use of MIS. In fact, the assumption is invalid in the contemporary business environment. Undeniably, without proper understanding of how MIS works and used, organizations are incapable of achieving efficient and optimal output. For instance, the current global business environment is characterized by the use of computerized production inventory control systems. Comprehending such systems enables managers to avert errors involved in plotting stock levels. In this regard, the hypothesis should be upgraded to suggest that having the knowledge of MIS components and how such systems operate is fundamental to managers’ execution of their responsibilities (Malecki & Moriset, 2008).

Importance of CPA Vision Project 2025 in Aiding Accountants to Provide Right Information to Managers

In the fluctuating and multifaceted business world, the CPA Vision Project 2025 has been significant in aiding the certified public accountants particularly in maintaining relevance within the global and digital business environment. Indeed, the project recognizes technology as one of the fundamental aspects regarding the services offered. Essentially, due to quick diffusion of computer technologies, the project advances the accounting profession by addressing the increasing multiplicities realized in the accounting practice (Malecki & Moriset, 2008).

Through the project, the continuance vivacity of the profession is ensured. In fact, the CPA Vision 2025 xz employs a proactive approach in predicting the values, proficiencies and services that are deemed core to the profession of accounting due to constant changing global trends in terms of emergent expertise as well as demographic shifts. In other words, the project has developed in terms of innovative frameworks designs vital in ensuring success of the profession.

The project has also undertaken measures including collaborating with the Internal Revenue Service (IRS) to revise the rules involved in the registration of paid tax returns. In this regard, accountants are provided with invaluable prospects on the preparation of efficient information in the right formats for business managers. Besides, the CPA Vision 2025 has been critical in equipping accountants with the requirements of international accounting standards. Additionally, the project promotes financial auditing literacy among the certified public accountants (Malecki & Moriset, 2008). As such, the accountants are equipped with valuable guidance relating to enterprise management and auditing. Such competencies are critical in the preparation, identification and mitigation of hazards arising from business decisions.

The project has also enabled accountants to stay ahead of the emerging trends realized in the accounting landscape. Without doubt, cloud and mobile computing have greatly influenced the accounting techniques that are used in the contemporary digital and global business. With such technological advancements, the CPA Vision 2025 Project educates accountants as well as positioning the certified public accountants for success with the transformative expertise (Malecki & Moriset, 2008). Further, the project maintains a web page that provides accountants with important information and links to critical resources that facilitate the work of auditors regarding the submission of precise information to managers in the right formats.

Inspiring high quality and internationally acknowledged accounting principles for global corporates has been a major concern of the project. Essentially, the project is involved in facilitating the unification of international reporting systems as well as preparing the certified public accountants to utilize their expertise in the international and digital business landscape. In other words, the project enables accountants to access international accounting standards’ requirements in addition to extra materials that are of significance in the preparation and presentation of precise data to the managers. Moreover, through the project, the CPAs are offered with accounting briefs, which improve international auditing standards. Therefore, the accountants are able to present accurate accounting information to managers in the correct formats. The CPA Vision 2025 Project also provides the accountants with regular and timely updates on personal financial planning practices to ensure that CPAs stay pertinent in the dynamically shifting business environment (Siyanbola, 2012). In this regard, the accountants are capable of offering precise and quality information that are compliant with the accounting principles to the managers.

Necessary Skills Needed by Accountants

In the contemporary business environment, technology continues to play critical roles in the management of business information. In essence, the incorporation of information technology solutions in business organizations has been invaluable in ensuring effective business operations. With such developments in the digital and global business environment, accountants are also affected particularly in their professional development. In principle, with the development of accounting software, accounting features have been remodeled. In this regard, accountants must have efficient technological skills to comprehend and communicate the value added by the novel accounting software. In reality, the conventional accounting systems of internal controls have become obsolete in the current global business environment. As such, accountants must embrace the current accounting software including Enterprise Resource Planning (EPR) systems to ensure that information presented to the managers is correct and in the correct format (Jackson, 2000).

Accountants must also have planning as well as analytical skills. Essentially, with such skills, accountants are capable of accurately appraising the financial statements of corporations (Jackson, 2000). Besides, the analytical expertise provides accountants with a systematic comprehension of business operations. In this regard, the auditors are capable of carrying out competent and sufficient assessments of corporations and provide managers with correct information.

Another important competency that auditors should have is the comprehension of internal control processes of firms. In other words, accountants should be equipped with knowledge concerning the processes that deliver rational assurance to realize an entity’s purposes. In addition, the ability of accountants to understand the control activities of a corporation precludes the fabrication of accounting facts (Jackson, 2000). In principle, understanding the internal control activities of a business enables accountants to categorize, amass, process and report pertinent information in correct format to managers.


In summary, Information Technology (IT) control and audit play critical roles in enhancing the uprightness of Information Systems (IS) as well as reporting organization finances. Additionally, in the contemporary business environment, technology continues to play critical roles in the management of business information with emerging technological innovations. As such, accountants must embrace skills that are consistent with advancements in expertise to realize efficient performance.


Jackson, M. C. (2000). Systems Approaches to management. New York: Springer.

Malecki, E. J., & Moriset, B. (2008). The digital economy. Oxford, UK: Routledge.

Siyanbola, T. (2012). Accounting information as an aid to decision-making. International Journal of Management and Social Sciences Research, 1(3), 29-34.

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