The Importance of Accounting Framework, Roles of Accountant, and Accounting Information System


Accounting holds a crucial component in the performance of any organization or enterprise. It underlies the basic principle in measurement of output, progress and monitors the level of satisfaction of goals. The accountant thus holds a central role in maintaining and outlining the fiscal records of the enterprise (Hall 2008, p. 34). A properly managed monetary system constitutes an accounting framework. According to AASB (2007), this framework outlines the major objectives and other concepts that underlie fiscal accounting plus reporting by various bodies. Fiscal accounting together with reporting goals constitute the basis for a framework. Consequently, these concepts originate from objectives and characterize framework of doctrines underlying fiscal reporting. “Accounting Information System” AIS consists of three main sub-systems that engage in processing of fiscal and nonfinancial transactions, which directly influence processing of monetary transactions (Hall 2008, p. 8).

Considering practical situations, any enhancements to client’s names or contacts needs processing through the AIS to maintain the file current. Accountants intervene in the system as designers, users, and mostly auditors. The accounting operations in most organizations emerge as the greatest applier of information technology. Accountants are thus strategic in ensuring smooth operation of all financial systems within organizations, providing timely fiscal reports and performance analysis when required. This paper outlines the significance of accounting framework, duties of an accountant plus the AIS. Furthermore, it describes the interplay that exists between an organization’s AIS and the accounting framework.

Importance of Accounting Framework and its Relationship with AIS

Accounting framework outlines the foundations for the fiscal accounting criterion of an accounting or auditing body. This tool satisfies the need to put in application a common guideline that dictates the accounting and fiscal reporting to all beneficiaries. Broadly viewed, accounting as a discipline and practice embodies variety of areas such as fiscal accounting, managerial, cost accounting, plus general-purpose accounting (Hall 2008, p. 34). Therefore, a framework would provide directions for identifying the borders of fiscal accounting plus reporting. Additionally, it provides guidance on choosing the dealings, other events, situations, and status for representations, and the manner of their recognition. Consequently, the framework may highlight on procedures for derecognizing, valuing, disclosure, and presentation of fiscal information (AASB 2007). This framework aids in proper comprehension of accounting data included within general-purpose fiscal reports. In any financial system, this conceptual framework provides several other benefits. The framework outlines basic principles that set the base for any AIS, there exists a mutual association between the AIS and accounting framework.

The framework encourages harmonization through the provision of a foundation for choosing the most desirable accounting treatment tolerated by the fiscal accounting standards. Secondly, it acts as a steer for the improvement of upcoming accounting standards and aids in handling transactions, occurrences, situations, or circumstances neglected by fiscal accounting standard established by relevant financial bodies. Another vital importance of these frameworks is in assisting users of fiscal data in interpreting information, in financial statements organized in consistency with fiscal accounting principles. Additionally, the framework aids national standards establishment bodies in creating national accounting values or standards. Furthermore, it acts as a guide and monitor of prejudiced verdicts crafted by the administration when developing fiscal statements plus other financial information (AASB 2007). There is a dependency of the AIS on the framework as a chief reference point and guide to setting operational indicators and monitoring standards.

Overall, this framework outlines various concepts underlying the development and presentation of fiscal statements for outdoor beneficiaries. In this context, it helps various “Accounting Standards Boards” ASB in the preparation of upcoming and reviews of present Accounting Standards, notwithstanding evaluation of anticipated “International Accounting Standards Board” IASB pronouncements (AASB 2007). Emphatically, the framework empowers harmonization of guidelines, accounting benchmarks, and procedures regarding presentation of fiscal statements. This is achievable through the provision of a foundation of limiting substitute accounting treatments tolerated by various Accounting Standards. In the Australian context, this framework aids the preparers of fiscal statements in inclusion of “Australian Accounting Standards”, AAS and in handling topics expected to constitute the theme of an AAS (AASB 2007). Additionally, auditors are capable to develop judgment concerning the conformity of fiscal statements with AAS. Moreover, beneficiaries of fiscal statements are able to interpret information present in fiscal statements developed in compliance with AAS. Lastly, the framework helps in availing information to persons with interests in operations of various accounting boards and their formulation.

Roles of an Accountant

An accountant refers to an individual with essential skills and familiarity in setting and maintaining precise fiscal records for enterprise or an organization. The personality has the responsibility to evaluate records presented by a bookkeeper. Consequently, the accountant presents the outcomes of such analysis as losses, profits, leakages, or transformations in value (Hall 2008, p. 34). This helps to unearth advancements or failures of an organization and forecasts its future constraints and competencies. In their capacity as end users of information technology, accountants present their demands to other professionals who develop these systems. They specify accounting norms and approaches suitable for application, internal control necessities, and unique algorithms like depreciation models (Hall 2008, p. 35). Additionally, they develop a system of fiscal records and dictate the methodology of accounts capable of providing relevant information. Designing and monitoring record procedures, auditing books, developing fiscal statements, provision of tax direction, and preparation of tax returns include some of the major roles of an accountant within any organization.

Accountants as system designers have traditionally performed several tasks. These include assessment of record requirements, defining components and layout of output information, specifying data sources, choosing relevant accounting norms, and identifying desirable controls (Hall 2008, p. 36). All these roles serve to enhance the integrity and efficacy of an information system. Accountants perform auditing operations within organizations. This refers to an independent attestation conducted by skilled personnel who presents a view regarding the transparency of an organization’s fiscal statement. Both internal and outdoor auditors perform their roles to ensure a high degree of compliance and transparency within organizations. In such context, public accountants provide accounting or at times even auditing services to other firms or employees at a specified fee (Hall 2008, p. 36). Noticeably, all accountants have obligations to perform with high standards of ethics and professionalism and failure to this leads to legal sue. For successful audit conclusion, accountants liaise with auditors who may be within either the organization or external resource.

For most business enterprises, the accountants develop financial statements, periodical closings, plus cost accounting briefs. Secondly, they assemble and evaluate fiscal information to make postings to accounts and document enterprise transactions. Setting, maintenance, and management of accounting plus its control processes are another core responsibility of an accountant (Hall 2008, p. 34). Additionally, accountants assess and appraise budgets plus expenses meant for domestic, national, federal, or private support, and grants. They also monitor and appraise accounting and allied organization reports for precision and completeness. In addition, they develop and assess budget, payroll entries, returns, outlay, invoices, and other accounting documents (AASB 2007). Analysis of revenue and expense patterns followed by recommendations on desirable allocation levels to ensure expenditure control remains a central role of the accountants. Moreover, apart from solving accounting discrepancies, accountants also explicate billing invoices together with accounting guidelines to personnel, vendors, and customers. They recommend, advance, and sustain fiscal databases, processor software applications, and physical filing systems. Finally, accountants are involved in supervision of inputs and treatment of fiscal data plus reports for an organization’s automated monetary systems.

Roles of the Accounting Information System, AIS

AIS integrate the application and study of accounting with design, execution, and information systems monitoring (Hall 2008, p. 8). There are both applications of contemporary information technology resources and customary accounting controls and approaches to acquaint dependants with adequate fiscal information for organizational management. AIS can also refer to a subset of an organization’s overall “Management Information System”, MIS applied to support business resolutions and enhance profitable operations (Hall 2008, p. 12). Through the application of AIS, both fiscal transaction recording and information reporting are achieved within an organization. This is because the AIS contain both the two outlined components. This means that after posting fiscal transactions into the AIS, there is a consequent generation of reports to help in the review (AASB 2007). Since most AIS programs present as web based, departmental heads are able to collect and evaluate fiscal information from a variety of sources at a time. This enhances centralized reporting, which reduce turnaround duration for executing changes within the organization. Compliance with the framework enhances credibility and effectiveness of the AIS, increasing the organization’s transparency and good public, fiscal image.

AIS harbors the “Transaction Processing System” TPS that aids routine operations with several reports, filings, and texts for users in the entire organization (Hall 2008, p. 44). Another component known as general ledger produces customary fiscal statements like income statements, revenue returns, balance sheets, and additional reports legally needed. The “Management Reporting System” MRS, avails special-purpose fiscal reports plus information necessary in decision-making like budgetary allocations, variance, and responsibility reports to internal administration (Hall 2008, p. 45). AIS thus cover almost all business operations right from accounting TPS to complex fiscal management scheduling and dispensation systems. Through this system, the organization realizes vital business undertakings such as routine manufacturing and selling services.


Financial management plays a central role in the success of any enterprise or organization. With the development of information technology, various organizations adopt unique approaches and management systems focusing on monetary aspect. The AIS, for example, constitutes a set of mechanism that is operational in most organizations, focusing on enhanced accountability through active asset cash monitoring. An accountant remains key personnel within any organization, with an obligation of coordinating all financial operations and presenting summarized and understandable reports regarding fiscal performance. These personnel remain pointers of organization’s financial performance and ought to possess a high degree of skill, experience, and competency. Finally, the accounting framework provides a guideline for fiscal management and reporting. Its general adoption by different parties and organizations thus ensures compliance to codes of practice and accounting doctrines, which in the end helps to streamline a nation’s economy.


Australian Accounting Standards Board, AASB 2007, Framework for the Preparation and Presentation of Financial Statements, Web.

Hall, J 2008, Accounting information systems, Cengage Learning EMEA, Ohio.

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