9
Accounting
can
be
defined
as
the
process
of
identifying,
measuring,
recording
and communicating economic information
to permit informed judgments and
economic
decisions
by
users
of
the
information
(Hoggett,
Edwards
&Medlin
2006,
p.
8).
From this
definition,
it
could
be
perceived
that
accounting
is
an
information
system in
its
own
nature
since
it
consists
of
various
systematic
processes that integrate one another to fulfill its particular purposes, which are to
attain sound management on the economic and financial information.
According to Laudon and Laudon (2004, p. 8), information is data that have been
shaped
into a
form
that is meaningful
and
useful to human beings.
It could also
be defined as intelligence that is meaningful and useful to persons for whom it is
intended (Wilkinson et al. 2000, p. 5). Information is very valuable for users
in
terms of decision-making, along with its improvement.
In
term of
system,
McLeod
and
Schell
(2001,
p.
9)
describes
it
as
a
group of
elements that are integrated with the common purpose of achieving an objective.
Another recognizes a system as a unified group of interacting parts that function
together
to
achieve
its
purposes (Wilkinson et al.
2000,
p.
6). The
primary
characteristic
of
a
system
that
could be derived
from these definitions
is
that
it
contains a group, whose elements
interact one
another and function together
to
achieve
its purposes,
in supporting
the accomplishment of one’s (in this case,
it
would be the company) objectives.
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