An Accounting Information System for Harmonization, Article Critique Example

Critique of the Article, “An Accounting Information System for Harmonization” Written by Dr. Siva Sankaran and Dr. Dhia D. AlHashim Published in 2006

Summary Section

In this article, “An Accounting Information System for Harmonization,” by Siva Sankaran and Dhia AlHashim (2006) provide an argument for the harmonization of such accounting systems, that are varied in nature into a common platform of web-based type. At present, different corporations are using varied accounting systems which is consdiered as a practice that is largelyt different from the developing globalized economy. In order to facilitate the interntional method that various organizations are running their businesses, Sankaran and AlHashim (2006) highlght the the need for international system of accounting that is capable and sifficicient to adapt or harmonize these varied sytems of accounting. Creating the internet-based programs would addiontally allow for a more global economy of synergistic nature, because the programs that are web-based would be globally accessible.

Critique Section

The writers of this article establish a strong scenario for the necessity of harmonized procedures and standards of accounting. Number of large organizations have considereable trade both locally and internatinally in various parts of the world, establishing the need of such system that could manage its different accounting needs. In the same way, numerious investors are required to take economic decisions, and their effectiveness is increasingly effected by their potential to complete financial information. The financial reports harmonization also confirms that organizations and watchdogs in both industries from international and national governments — are able to identify any corporate misconduct.

In planning a harmonized accounting model, Sankaran and Dhia AlHashim (2006) noted that there are number of challenges. At first, they observe the present incompatibility of software and hardwware programs within corporations, and the relevant threats of security that harmonization involves. They also identify that different practices of accounting has been using in different regions of the world. However, the Sankaran and Dhia AlHashim (2006) believe that their globalized model offers a practical structure for such techniques that are computer-assisted. The model that they provide involves an interface that is user friendly, a detailed service directory to assist a user in placing data and a system that is algorithm-based in order to run the commads. This generalized system then could be modified according to the requirements of different companies.

Siva and AlHashim (2006) create an attractive case concerning to the need for harmonized procedures and standards of accounting. Furthermore, they also properly highlight the benefit of such harmonization of organizations – involving an larger potenial to keep the track of expenses and a greater reconciling system for different practices of accounting in its worldwide branches. In addition, Sankaran and AlHashim (2006) also worried about that harmonization is similar to implementing only one practice of accounting around the globe. Sankaran and AlHashim (2006) point our the necessity for sharing attributes for an internet based system of accounting that devotes itself to the practices of accounting.

In conclusion, the paper establishes a sturdy discussion, and the data concerning to the harmonized system of accounting is compelling. Whereas this article may provide few challenges to those readers who are do not have sufficient knowledge of programming language even of basic level, the generic algorithm inclusion for the proposed program that are computer based assisted adds to the argument of authors that this type of database is probable in the initial place and to the strengths the methodology of this paper.

Reference

Sankaran, Dr. Siva and AlHashim, Dr. Dhia. (2006). “An Accounting Information System for Harmonization.” California: California State University.

Walton, P.J., A. Haller and B. Raffournier. (2007). International Accounting. New York: Thomson Business Press.