Why accountants should master information systems

When I refer to accountants in this context, it does not refer just to 'financial accountants' but also to 'management accountants' and corporate financial analysts, who handle internal corporate data. Of course, external auditors etc are anyways dutybound to evaluate client information systems to decide the extent of reliance on records/nature of assurance they can give, so I do not include them in this. Before understanding the ISACA study material of the ICAI, I felt that information systems was a geeky subject best left to engineers, but then I realized its real importance later. After all, accounting is an information system by itself, and therefore the IT approach to IS is just one aspect(but very helpful too, though it focusses more on automation and lesser on controls which accountants are expected to design).

1. System framework is quite useful for analyzing organization phenomenon. Skills using data flow diagrams etc are quite helpful while designing, auditing and improving systems.
2. To preserve their identity, autonomy and core competence, organizations are a closed system in many aspects. So are accounting systems-closed when it comes to basic principles, but quite open in the adaptation/interpretation of them.
3. IPOS cycle(Input process storage output) misses out in fact that feedback loops lead to output affecting input/virtuous cycles etc. This is true for accounting as well(which has evolved as per the way various users accounted their transactions).
4. Once we define the system boundary, we are much closer to defining the problem and our focus.
5. Example of buffer is cache memory, inventory, queues etc. This concept helps while scheduling work during peak seasons.
6. Way to decouple databases(lessen need for communication) is having common database standards, which is exactly what is done by many organizations(auto generated invoices between partners sharing same standards).
7. ERP is a more subtle form of putting in best practices, which can improve controls and performance substantially.
8. Post Implementation reviews like in PDCA cycle must to see how to get better next time, especially in the project management scene of IT. Those lessons useful for audit/control.
9. Outsourcing needs among other things, source code escrow, risk/controls and metrics for SLA. These should involve the finance function as well.
10. User signoffs not just CYA(cover your a**), also way to ensure buy in/proper needs built in etc

There can be tomes but this is all for now.