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Acoff's Management Misinformation Systems

Autor:   •  September 29, 2017  •  1,735 Words (7 Pages)  •  421 Views

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Fifth Assumption: “A manager doesn’t have to understand how his information system works, only needs to know how to use it”

Askoff claimed that a manager “must understand their MIS” of they limit their ability to operate effectively and maintain control. To have an effective information systems infrastructure, management must thoroughly understand the various systems that are being utilized. Not understanding the MIS limits the ability of management to manage the systems. Management needs to understand how to effectively enter and retrieve data, pull reports, analyze information and troubleshoot problems as they arise. USML states that when management understands, and is involved, in their information systems, the systems effectively enables business process such as, total quality management and global expansion. On the contrary, when managers do not understand IS, millions of dollars are wasted on ineffective systems (2015). In Ackoff’s example, a system malfunction went unnoticed for over a year and cost the organization an additional $150,000 a month (Ackoff, 1967).

CPA Vision Project of 2025

The CPA Vision Project of 2025 leveraged visions, from over 75,000 comments made by various CPAs in multiple sections of accounting practitioners, policy regulators and known leaders, in order to emphasize key trends and challenges and identify some concerns that the accounting profession area will face leading up to 2025. Research from various accountants, accounting firms, and accounting professors, shows that the field of accounting will continue to grow in the future and will have to be able to respond competitively to the changing view concerning political, economic, social, technological and regulatory fronts. The CPA Vision Project highlights the importance of understanding technology and using it to increase efficiency and provide up-to-date and real-time information to management. A key component of this is for CPA’s to stay abreast of current technology and how to use it to increase transparency and expansion of services. CPA’s must be dedicated to “lifelong learning”. As regulations, standards, social media and technology changes, a CPA must change with it. This includes an understanding of international policies and procedures as most large corporations have global operations. One of the key aspect that the Vision discusses is, CPA’s being the “trusted advisor”. Management needs to be able to trust the words and actions of the accounting professional. This expands beyond being ethical and having integrity, to being able to solve complex problems and providing sound advice (Nilsen, 2011).

Technical Accounting Skills

Information systems have a growing impact on accounting professionals and management teams. Information systems provide accountants with a lot of information. Accounting professionals need to know how to package and present this information to managers in a timely manner that will assist management in making effective decisions.

In addition to accounting core competencies, accountants should possess good communication and critical thinking skills. A good CPA will possesses great leadership skills along with the ability to effectively forecast. They should be able to use of a variety of accounting software programs such as Sage and QuickBooks. Accountants will also have the technical skills to produce and analyze various spreadsheets, financial statements. As well as journalizing financial transactions, and reconcile account balances. An accountant should be able to build strategic relationships and understand new concepts and technologies that can help or hinder their ability to provide effective information (Nilsen, 2011).


Ackoff, R. (1967). “Management Misinformation Systems,” Management Sciences 14, no 4 (December 1967). The institute of Management Sciences, Providence, R.I.

Srinivas, H. (2015) "Information for Decision-making". GDRC Reseaarch Output E-002. Kobe, Japan: Global Development Research Center. Retrieved from

Stahl, B.C. (2006). “On the Difference or Equality of Information, Misinformation, and Disinformation: A Critical Research Perspective” (Volume 9), Centre for Computing and Social Responsibility, De Montfort University, Leicester, UK

CIMA. (2008).“Improving decision making in organizations: Unlocking business intelligence”. The Chartered Institute of Management Accountants

Nilsen, K. (2011). “CPA Horizons 2025: A Road Map for the Future” (December 1, 2011), Journal of Accountancy

UMSL, University of Missouri, St. Louis (2015). Why General Managers Need to Understand Information Systems. Retrieved from


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