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THE ROUTLEDGE HANDBOOK OF
ACCOUNTING INFORMATION SYSTEMS
The Routledge Handbook of Accounting Information Systems is a prestige reference work offering
a comprehensive overview of the state of current knowledge and emerging scholarship in
the discipline of AIS.
The pace of technological-driven change is rapid, and this revised edition provides a
deeper focus on the technical underpinnings and organisational consequences of accounting
information systems. It has been updated to capture the changes in technology since the
previous edition. It now includes chapters and scholarly thought on artificial intelligence,
predictive analytics and data visualisation, among others. Contributions from an interna-
tional cast of authors provide a balanced overview of established and developing themes,
identifying issues and discussing relevant debates. The chapters are analytical and engaging.
Many chapters include cases or examples, and some provide additional resources for readers.
The chapters also provide a reflection on where the research agenda is likely to advance in
the future.
This is a complete and indispensable guide for students and researchers in accounting and
accounting information systems, academics and students seeking convenient access to an
unfamiliar area, as well as established researchers seeking a single repository on the current
debates and literature in the field.
‘This book provides a good introduction to AIS and the contemporary research that is being
done on it. Given the growth and influence of AIS on our daily lives, as touched on within
the chapters, it is timely that such a book be produced.’
— Stephen Jollands, University of Exeter, UK
‘Finally a text that addresses the organizational aspects of AIS! Covering the most recent
insights from multiple knowledge domains – change, integration, implementation, it is all
there!’
— Hanno Roberts, Norwegian Business School, Norway
THE ROUTLEDGE HANDBOOK
OF ACCOUNTING
INFORMATION SYSTEMS
Second Edition
PART 1
The accounting information systems discipline 7
v
Contents
PART 2
Organisational effects of accounting information systems 75
PART 3
Controlling accounting information systems 239
vi
Contents
PART 4
Future directions of accounting information systems 301
Index 363
vii
FIGURES
viii
Figures
ix
TABLES
x
CONTRIBUTORS
Benoit A. Aubert is a Professor at HEC Montreal (Canada) and a Fellow of the CIRANO
(Center for Interuniversity Research and Analysis on Organizations). His previous roles in-
clude Director of the Rowe School of Business at Dalhousie University and Head of the School
of Information Management at Victoria University of Wellington (New Zealand). His main
research areas are risk management, innovation, outsourcing and business transformation.
Jean- Grégoire Bernard is a Senior Lecturer at the Victoria School of Business and Gov-
ernment at Victoria University of Wellington in New Zealand. His research focuses on
issues pertaining to digital innovation, online communities and online disinformation. His
work has been published in Social Media + Society, Information Technology for Development,
Communications of the Association for Information Systems and the International Conference on
Information Systems.
Dr. Bibek Bhatta is a Lecturer in the areas of accounting and finance at Queen’s University
Belfast. Bibek worked in commercial banks for more than five years before completing his
PhD in finance. His banking experience centres mainly around credit analysis and credit
control. He has delivered lectures in finance in both developed and developing countries.
xi
Contributors
His research interests lie in international investments, corporate governance, corporate fi-
nance and fintech.
Sharlene Biswas is a Lecturer at the University of Auckland Business School. She teaches
courses on management control systems, cost accounting, and performance measurement
and evaluation and has research interests in innovation practices and family businesses.
Dr. Malcolm Brady is an Associate Professor at DCU Business School, Dublin City Uni-
versity, where he teaches business strategy to undergraduate, masters and executive students.
He researches in the areas of business strategy, business processes and business models draw-
ing on game and institutional theory. He has a particular interest in health and education
sectors.
Dr. Noel Carroll is a Lecturer in Business Information Systems at NUI Galway and Pro-
gramme Director for the MSc in Information Systems Management (ISM). He is also a
researcher with L ero – the
Irish Software Research Centre. His research interests include
seeking ways to support organisations in developing transformation strategies, for example,
large-scale agile transformations, digital innovation and health informatics for multination-
als, SMEs and start-ups. He enjoys exploring new (interdisciplinary) theoretical perspectives
around managing and sustaining transformation processes. Noel has edited special issues,
published, chaired and reviewed for leading international journals and conferences in his
field.
Further details are available here: https://w ww.nuigalway.ie/business-public-policy-law/
cairnes/ourstaff/noelcarroll/.
Dr. Peter Cleary is a Senior Lecturer in Accounting. He has been lecturing at Univer-
sity College Cork (UCC) in Ireland in the area of Management Accounting since 2002. A
graduate of UCC and a qualified Chartered Management Accountant (ACMA), Dr. Cleary
has worked for organisations in both Ireland and the USA prior to becoming an academic.
Dr. Cleary completed his doctoral dissertation at the University of Limerick in 2007 which
focused on the role of management accounting in k nowledge-intensive firms. He regularly
presents his research at both national and international conferences. Dr. Cleary is currently
the Academic Programme Director for the BSc (Accounting) degree at UCC.
Brenda Clerkin has over 14 years’ experience working in practice with a Big 4 professional
services firm before her career in academia. Her experience spanned from small and me-
dium enterprises, based in the UK and Ireland, to large multinational organisations across
a number of different industries. Her interests are in Accounting, Auditing, Data Analytics
and Ethics.
W. Alec Cram is an Assistant Professor in the School of Accounting & Finance at the
University of Waterloo, Canada. His research focuses on how information systems control
xii
Contributors
Christoph Eisl is Professor for Controlling and Head of the Master’s degree programme
Accounting, Controlling and Financial Management. His teaching and research activities
focus on controlling and performance management, business planning, information visuali-
sation, digital accounting and accounting education.
Robert D. Galliers is the University Distinguished Professor Emeritus and former Provost
of Bentley University and Professor Emeritus and former Dean of Warwick Business School.
He was the founding E ditor-in-Chief of The Journal of Strategic Information Systems up till the
end of 2018 and was the President of the Association for Information Systems (A IS), of which
he is a Fellow, in 1999. He received the AIS LEO Award in 2012. His work has been cited
over 15,000 times according to Google Scholar.
Markus Granlund is the Dean and Professor of Accounting at the Turku School of Eco-
nomics, University of Turku. Markus’ key areas of expertise are strategic financial man-
agement, information system solutions and strategic management. His research has been
published in highly respected scientific journals, and he is also an award-winning manage-
ment educator. Markus has long been involved with various development projects in com-
panies and the public sector. He also holds a number of positions of trust in the university
sector, foundations and companies.
Steven A. Harrast, PhD, teaches accounting information systems and data analytics in the
School of Accounting at Central Michigan University. He received his PhD in 1999 from
the University of Memphis and is a frequent publisher and speaker on information technol-
ogy topics.
xiii
Contributors
Peter Hofer is Professor of Managerial Accounting and BI at the University of Applied Sci-
ences Upper Austria in Steyr. His main research areas are information design, u
ser-centred
Big Data visualisation and managerial accounting. He is the author of several publications
in these research areas and also speaker on conferences for researchers and practitioners.
Peter Hofer is also a Lecturer at the Management Academy in Linz (LIMAK) in the field of
Cost Accounting and Cost Management. Before his academic career, he has worked as an
accounting manager in the automotive industry.
Esperanza Huerta is a Professor in the Department of Accounting and Finance in the Lucas
College of Business at San José State University. She does research on data science, h
uman–
computer interaction, automated internal controls and blockchain. Her publications have
appeared in major journals and conferences in the Accounting Information Systems area.
Scott Jensen is an Associate Professor in the School of Information Systems & Technology
at San José State University focusing on big data and has published in international confer-
ences and journals such as the Journal of Information Systems. Prior to his PhD in Computer
Science, he worked for over 15 years in software development and professional services at
Big 4 accounting firms.
Carina Knoll is an aspiring researcher in the field of Digital Accounting at the University
of Applied Sciences Upper Austria. With a background in sociology and management, her
interests are the humanist implications of the digital transformation in accounting and audit-
ing. In this, she looks at new job roles, tasks, team compositions and educational avenues in
the larger financial service sectors.
Prof. Dr. Othmar M. Lehner works in the fields of A I-based accounting and impact
investing. As Professor of Accounting and Finance in London at the Middlesex University,
and in Helsinki at the Hanken School of Economics, with an additional background in in-
formation sciences, he uses his knowledge to drive forward the field through h igh-impact
publications, keynotes at global industry events and through consulting in the banking and
investment industry. He is also the Director of the Hanken Center of Accounting, Finance
and Governance in Helsinki.
xiv
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different content
Whatsoever is not a living creature, is not a man,
Therefore, Every stone is not a man;
And thus much seems sufficient for the nature of syllogisms; (for
the doctrine of moods and figures is clearly delivered by others that
have written largely and profitably of the same). Nor are precepts so
necessary as practice for the attaining of true ratiocination; and they
that study the demonstrations of mathematicians, will sooner learn
true logic, than they that spend time in reading the rules of
syllogizing which logicians have made; no otherwise than little
children learn to go, not by precepts, but by exercising their feet.
This, therefore, may serve for the first pace in the way to
Philosophy.
In the next place I shall speak of the faults and errors into which
men that reason unwarily are apt to fall; and of their kinds and
causes.
CHAPTER V.
Erring & 1. Men are subject to err not only in affirming and
falsity how denying, but also in perception, and in silent
they differ. cogitation. In affirming and denying, when they call
Error of the
mind by any thing by a name, which is not the name
itself, thereof; as if from seeing the sun first by reflection
without the in water, and afterwards again directly in the
use of words, firmament, we should to both those appearances
how it give the name of sun, and say there are two suns;
happens.
which none but men can do, for no other living
creatures have the use of names. This kind of error only deserves
the name of falsity, as arising, not from sense, nor from the things
themselves, but from pronouncing rashly; for names have their
constitution, not from the species of things, but from the will and
consent of men. And hence it comes to pass, that men pronounce
falsely, by their own negligence, in departing from such appellations
of things as are agreed upon, and are not deceived neither by the
things, nor by the sense; for they do not perceive that the thing they
see is called sun, but they give it that name from their own will and
agreement. Tacit errors, or the errors of sense and cogitation, are
made, by passing from one imagination to the imagination of
another different thing; or by feigning that to be past, or future,
which never was, nor ever shall be; as when, by seeing the image of
the sun in water, we imagine the sun itself to be there; or by seeing
swords, that there has been or shall be fighting, because it uses to
be so for the most part; or when from promises we feign the mind
of the promiser to be such and such; or lastly, when from any sign
we vainly imagine something to be signified, which is not. And errors
of this sort are common to all things that have sense; and yet the
deception proceeds neither from our senses, nor from the things we
perceive; but from ourselves while we feign such things as are but
mere images to be something more than images. But neither things,
nor imaginations of things, can be said to be false, seeing they are
truly what they are; nor do they, as signs, promise any thing which
they do not perform; for they indeed do not promise at all, but we
from them; nor do the clouds, but we, from seeing the clouds, say it
shall rain. The best way, therefore, to free ourselves from such
errors as arise from natural signs, is first of all, before we begin to
reason concerning such conjectural things, to suppose ourselves
ignorant, and then to make use of our ratiocination; for these errors
proceed from the want of ratiocination; whereas, errors which
consist in affirmation and negation, (that is, the falsity of
propositions) proceed only from reasoning amiss. Of these,
therefore, as repugnant to philosophy, I will speak principally.
A sevenfold 2. Errors which happen in reasoning, that is, in
incoherency syllogizing, consist either in the falsity of the
of names, all premises, or of the inference. In the first of these
of which
make always cases, a syllogism is said to be faulty in the matter
a false of it; and in the second case, in the form. I will first
proposition. consider the matter, namely, how many ways a
proposition may be false; and next the form, and
how it comes to pass, that when the premises are true, the
inference is, notwithstanding, false.
Seeing, therefore, that proposition only is true, (chap, III, art. 7) in
which are copulated two names of one and the same thing; and that
always false, in which names of different things are copulated, look
how many ways names of different things may be copulated, and so
many ways a false proposition may be made.
Now, all things to which we give names, may be reduced to these
four kinds, namely, bodies, accidents, phantasms, and names
themselves; and therefore, in every true proposition, it is necessary
that the names copulated, be both of them names of bodies, or both
names of accidents, or both names of phantasms, or both names of
names. For names otherwise copulated are incoherent, and
constitute a false proposition. It may happen, also, that the name of
a body, of an accident, or of a phantasm, may be copulated with the
name of a speech. So that copulated names may be incoherent
seven manner of ways.
where there are manifestly these four terms, the hand, touching the
pen, the pen, and touching the the paper. But the danger of being
deceived by sophisms of this kind, does not seem to be so great, as
that I need insist longer upon them.
Of the fault 12. And though there may be fallacy in equivocal
which terms, yet in those that be manifestly such, there is
consists in none at all; nor in metaphors, for they profess the
equivocation.
transferring of names from one thing to another.
Nevertheless, sometimes equivocals (and those not very obscure)
may deceive; as in this argumentation:--It belongs to metaphysics to
treat of principles; but the first principle of all, is, that the same
thing cannot both exist and not exist at the same time; and
therefore it belongs to metaphysics to treat whether the same thing
may both exist and not exist at the same time; where the fallacy lies
in the equivocation of the word principle; for whereas Aristotle in the
beginning of his Metaphysics, says, that the treating of principles
belongs to primary science, he understands by principles, causes of
things, and certain existences which he calls primary; but where he
says a primary proposition is a principle, by principle, there, he
means the beginning and cause of knowledge, that is, the
understanding of words, which, if any man want, he is incapable of
learning.
Sophistical 13. But the captions of sophists and sceptics, by
captions are which they were wont, of old, to deride and oppose
oftener faulty truth, were faulty for the most part, not in the form,
in the matter
than in the but in the matter of syllogism; and they deceived
form of not others oftener than they were themselves
syllogisms. deceived. For the force of that famous argument of
Zeno against motion, consisted in this proposition,
whatsoever may be divided into parts, infinite in number, the same is
infinite; which he, without doubt, thought to be true, yet
nevertheless is false. For to be divided into infinite parts, is nothing
else but to be divided into as many parts as any man will. But it is
not necessary that a line should have parts infinite in number, or be
infinite, because I can divide and subdivide it as often as I please;
for how many parts soever I make, yet their number is finite; but
because he that says parts, simply, without adding how many, does
not limit any number, but leaves it to the determination of the
hearer, therefore we say commonly, a line may be divided infinitely;
which cannot be true in any other sense.
Conclusion. And thus much may suffice concerning syllogism,
which is, as it were, the first pace towards
philosophy; in which I have said as much as is necessary to teach
any man from whence all true argumentation has its force. And to
enlarge this treatise with all that may be heaped together, would be
as superfluous, as if one should (as I said before) give a young child
precepts for the teaching of him to go; for the art of reasoning is not
so well learned by precepts as by practice, and by the reading of
those books in which the conclusions are all made by severe
demonstration. And so I pass on to the way of philosophy, that is, to
the method of study.
CHAPTER VI.
OF METHOD.
1. Method and science defined.—2. It is more easily known concerning singular,
than universal things, that they are; and contrarily, it is more easily known
concerning universal, than singular things, why they are, or what are their
causes.—3. What it is philosophers seek to know.—4. The first part, by which
principles are found out, is purely analytical.—5. The highest causes, and
most universal in every kind, are known by themselves.—6. Method from
principles found out, tending to science simply, what it is.—7. That method of
civil and natural science, which proceeds from sense to principles, is
analytical; and again, that, which begins at principles, is synthetical.—8. The
method of searching out, whether any thing propounded be matter or
accident.—9. The method of seeking whether any accident be in this, or in
that subject.—10. The method of searching after the cause of any effect
propounded.—11. Words serve to invention, as marks; to demonstration, as
signs.—12. The method of demonstration is synthetical.—13. Definitions only
are primary and universal propositions.—14. The nature and definition of a
definition.—15. The properties of a definition.—16. The nature of a
demonstration.—17. The properties of a demonstration, and order of things to
be demonstrated.—18. The faults of a demonstration.—19. Why the analytical
method of geometricians cannot be treated of in this place.