01. Introduction Pertemuan 01-02 Matakuliah : Manajemen Kinerja Sistem Komputer Tahun : Feb - 2010
Assurance service can help business managers by : 1. improving information relevance 2. improving information reliability, and 3. demonstrating compliance with laws, regulation, and contracts.
Figure 1.1 A decision model : Information, Decisions, and Outcomes Figure 1.1 diagrams the essentials of a decision model based on a measurement system. The first three boxes in figure 1.1 show the basic elements of real-word conditions of interest to the decision maker (RWC), the business management systm's quality (Q), and a displayed signal or report of the obtained by the system (Y).
Assurance service AICPA defining assurance services as "independent professional service that improve the quality of information, or its context, for decision makers". The quality of information for decision making is improved by using measurment methods taht better represent what the desision maker wantas to know about real-word conditions (information relevance) and by raising the decision maker's confidence that the stated methods have been carefully applied and results truthfully displayed (information reliability or credibility). Management, as decision makers, can benefit from purchasing assurance service that improve the quality of information for their own decisions and others within the firm.
Internal Control Internal control has been defined as : a process, effected by an entity's board of direcdtors, management, and other personnel, designed to provide reasonable assurance regarding the achiement of objectives in the following categories : Effectiveness and efficiency of operations Reliability of financial reporting Compliance with applicable laws and regulations. Internal control is broader than merely measuring and monitoring day-to-day activities.
Assurance services and Information Quality Figure 1.2 Information Quality Assurance services Figure 1.2 lists six broad information assurance services classified by whether the service improves information relevance, reliability, or both. Decision Relevance Analysis Decision relevance analysis improves information quality by providing measurement methods and other information that help decision maker from a better mental image of real-word conditions about which he or she wants or needs to know. Auditing Auditing, broadly defined, improves the reliability of information as perceived by the decision maker. Audits of financial statements (e.g., Y in figure 1.1) are the most common and widely known attestation service , and GAAP comprise the measurement criteria. Finally, assurers can improve decision context by assisting in the integration and interpretation of information from a variety of sources and the elimination of irrelevant information.
Information Assurance Demands Figure 1.3 Information Assurance Demands by Management To inform and protect management Management wants information assurance from or about four parties : suppliers, employees, costomers, and competitors. To inform others Management needs to assure lenders that its financial information is reliable, that is has complied with lending aggrement terms, and that there are sufficient asstes to cover its debts. To comply with legal requirements There are statutory, regulatory, and contractual requirements taht management provided assured information, such as audited GAAP-based financial statements, to regulators, lenders, and stockholders.
Assurance Employment Contracts Figure 1.4 Assurance Contracts The assurer as Originator An information originator who prepares or analyzes information for management as an independent contractor. The assurer as Investigator An information investigator who examines an explicit or implicit assertion about a real-word condition or process and and reports finding directly to management as either an employee or an independent contractor. The assurer as Certifier An information certifier who, as an independent contractor hired by management, examines management's assertion and then represents to an outsides party that the assertions comply with the stated measurement criteria.