In most organizations, the accounting function is the single largest user of IT. All systems that process financial transactions impact the accounting function in some way. As end users, accountants must provide a clear picture of
their needs to the professionals who design their systems. For example, the accountant must specify accounting rules and techniques to be used, internal control requirements, and special algorithms such as depreciation models.
The accountant’s participation in systems development should be active rather than passive. The principal cause of design errors that result in system failure is the absence of user involvement.
Accountants as System Designers
An appreciation of the accountant’s responsibility for system design requires a historic perspective that predates the computer as a business information tool. Traditionally, accountants have been responsible for key aspects of the
information system, including assessing the information needs of users, defining the content and format of output reports, specifying sources of data, selecting the appropriate accounting rules, and determining the controls
necessary to preserve the integrity and efficiency of the information system. These traditional systems were physical, observable, and unambiguous. The procedures for processing information were manual, and the medium for
transmitting and storing data was paper. With the arrival of the computer, computer programs replaced manual procedures, and paper records were stored digitally. The role accountants would play in this new era became the
subject of much controversy. Lacking computer skills, accountants were generally uncertain about their status and unwilling to explore this emerging technology. Many accountants relinquished their traditional responsibilities to
the new generation of computer professionals who were emerging in their organizations. Computer programmers, often with no accounting or business training, assumed full responsibility for the design of accounting information
systems. As a result, many systems violated accounting principles and lacked necessary controls. Large system failures and computer frauds marked this period in accounting history. By the mid-1970s, in response to these
problems, the accounting profession began to reassess the accountant’s professional and legal responsibilities for computer-based systems