Question

Some individuals argue that accountants should focus on producing financial statements and leave the design and production of managerial reports to information systems specialists. What are the advantages and disadvantages of following this advice?

Answer 1

Answer:

If the accountants of an organization are to concentrate only on financial information then there will be no advantage. The both party (organization and the accountant) might suffer if this happened.

Moreover, it would be very costly to have two systems rather than one that captures and processes operational facts at the same time as it captures and reports financial facts.

The main disadvantage of this is that accountants would ignore much relevant information about the organization's activities. To the extent that such non-financial information (e.g., market share, customer satisfaction, measures of quality, etc.) is important to management, the value of the accounting function would decline.

Explanation: