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IMPACT OF ORGANISATIONAL CULTURE ON THE PROCEDURES AND TECHNIQUES OF ACCOUNTING

April 26, 2019
B612 20181023 185259 480 - IMPACT OF ORGANISATIONAL CULTURE ON THE PROCEDURES AND TECHNIQUES OF ACCOUNTINGOrganizational culture represents a company’s common beliefs and concepts that create the social and psychological environment of an organization. It refers to a system of shared meaning held by members that distinguishes the organization from others.
Culture has proven to have an important influence on the transparency of accounting disclosures within organizations all over the world. One influence of culture is resistance to planned change from existing accounting procedures to new accounting procedures.
Accounting procedures are immensely influenced by organizational culture, which includes ethics and value system in the organization. Most of the corporate frauds take place through manipulation of accounting procedure, window dressing of accounts being a common phenomenon.
According to Kotler, organizational culture can create cohesion between the members and the organization as a social control in the company in the face of information systems.

ACCOUNTING INFORMATION SYSTEM

An accounting information system as an organizational component, accumulates, classifies, processes, analyzes and communicates relevant finance-oriented, decision making information to a company’s external parties (Reviews such as current and potential investors, federal and state tax agencies and creditors) and internal parties (principal management)

Organizational cultures and subcultures are important determinants of how people use information and information systems. By grounding information systems in the context of the organization as a larger system, it is possible to realize that numerous factors are important and should be taken into account when ascertaining information requirements and designing and implementing information systems. An important factor in the development and implementation of information systems is identifying, understanding the meaning, norms and power within the organization.

Implementation of information systems in the financial services sector needs strengthening organizational cultural values associated with customer orientation, flexibility, quality, and performance orientation.

20190423 172639 0000 - IMPACT OF ORGANISATIONAL CULTURE ON THE PROCEDURES AND TECHNIQUES OF ACCOUNTING

Getanjali Bhatia,

B.A(Hons.) Business Economics

Gargi College

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