HI5019 Accounting Information System (AIS) For Business & Enterprises Assignment Sample

Table of Contents

Introduction:

Purpose & Scope of Accounting Information System (AIS) For Business & Enterprises:

Understanding of Accounting Cycles & Management Reporting Information Systems (MRIS):

Understanding of E-commerce system to technical and non-Technical Stakeholders.

Systems development methodologies and the role of accountants in system development projects:

Issues faced by Individuals by using information systems & Different Approach:

Question of the Weeks and Their Solution:

Q 1: Week 6, & Solution: to Identify the risks exist in the conversion cycle of Central Production Limited

Conversion Cycle: 

Risk in Conversion Cycle: 

Q2 - Week 7 & Solution: Discuss the internal control weaknesses and risks associated with the above process: 

Q3 - Week 8 & Solution: Depict the association and cardinality for the sales of cars at Elegant Limited based on REA model.

Elegant Limited:

Q4 - Week 9 & Solution: Outline your response to the management’s proposal and mention any concerns you might have.

Explanation:

Q5 - Week 10 & Solution:

A) How the system analysis should be performed

B) Method recommend to Illustrious Limited for system analysis.

References

Introduction:

Purpose & Scope of Accounting Information System (AIS) For Business & Enterprises:

We are in a modern capital market, where investor’s dependent on the suitable and easy form of information from audit reports to plan for their future investment. All around the world work is done through entities and groups of people, they work together to gain their objectives. In completing its work, an entity or group of people uses labor force, materials, try to know the basic information of handling, recording and book keeping of their business so they manage to arrange in proper ways.

Accounting is rightly term as business communication language. It communicates the business operations with parties who have some part in business. To work effectively, organization need information to make judgments and that information is provided by accounting system. Business persons like to understand accounting principles so they can ensure that, their finance and material are properly tracked and managed. Alike cost principle, matching principle, monetary assumption and materiality.

As per the American Institute of Certified Public Accountants:

“Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the result thereof.

Understanding of Accounting Cycles & Management Reporting Information Systems (MRIS):

A transaction cycle is an interconnected series of transactions between companies. Which includes Sale cycle, Purchase cycle, Payroll cycle, financial cycle. A critical position of the accountant is to format an excellent set of parameters, structures, and built-in controls for each of these accounting cycle, to reduce fraud possibilities, and to making sure that processes are performed as accurately and steadily as feasible.

MIS provides inner administration with different motive economic reviews and records wished for decision-making details such as forecasts, deviation analyses and performance reports. “Boonmak, Supattra.”Accounting information systems." (2001).

Understanding of E-Commerce System to Technical and Non-Technical Stakeholders.

Organization is special and a program must be designed uniquely to address the needs of Particular needs and expectations of the company. In this Institutional Framework, The system is defined a communication channel forced to close to the needs and wishes of the users (of the output).

Systems Development Methodologies and The Role of Accountants in System Development Projects:

Device architecture is a fairly modern way of addressing the issue of A company. As just that, in the experimental stage the production of successful structure. A several specific standards to obey and basic knowledge and expertise have an important role to play in deciding the consistency of the resulting product. “Rushinek, Avi, and Sara Rushinek”. An auditor can assess the process of development of the system in two ways. One, as a system-development team member (Hannye 1977). Another, when the phase of system development is tested during a post facto evaluation capability. The two audit methods have different aims and then use various approach to obtain evidence (Parker, 1977).

Issues Faced by Individuals by Using Information Systems & Different Approach:

Computer networks now bring us a new definition to "real-time. “With computerized applications, real-time occurs as incoming data is transmitted within millisec, so that it becomes practically automatically usable as suggestions to the device in which it falls. Statistical data techniques, defined by massive electricity computing and large capacity for storing information, allow the manufacture of reviews combining the organization's exclusive views, contributing to its increased competitiveness. “Rom, Anders, and Carsten Rohde”

Question of the Weeks and Their Solution:

Q 1: Week 6, & Solution: to Identify the risks exist in the conversion cycle of Central Production Limited

Conversion Cycle

Conversion Cycle is the cycle which track records for the arrangement of crude material to completed products. Below are the best possible procedures & Perspective’s.

1. Triger by branch of a service center (Keeper source of raw),

2. Manufacturing leader reviews the request to be completed and contains up-and - coming requests suggesting any further requests.

3. It will slip and explicitly post online request to chiefs tab & bookkeeper tab.

4. Manager take items as well as issue to assemble department (his position also gives abundant supply of material requirement).

5. Period + Job all finished sales of cards submitted to the accountant.

6. Keep updating the WIP as stock in books once requisition is finished by Accountant.

Risk in Conversion Cycle:

After the material has been received and charged to FG as stock in journals. Danger is detriment of assets in stock holding excessive amount, even though material threshold is low down after such a particular level instant button alternative, which warns the dismissal of product. Decide on the future requirement as per the consumer proposal in side (great command established).

Work order to virtual manager, all leader gets their production request no. (to be done on the web)-strong control set up.

Manager at hand, put the item requirement (and if there is any need for endless supply-" NO More Permission "is given to store official. Here danger is moderate over order far above the Order suggests by the formation dept.

Development leaders themselves are preparing for job tickets ("NO AUTHENTICATION")- even though tickets are completed by development leaders themselves, regulation of information data is ineffective, or their affirmation is insufficient.

Accountant gets to decide the WIP, FG of its proposal for both the crude information obtained as a job card, usual method, material order danger is book keeper just need to verify identity obtained from the created authoritative L2 as opposed to keeping the quantities of the activity themselves.

Upwards, capturing the degree of danger at various stages in the Central Formation Limited technique described above is anything but challenging. “Kamali, A. (2019)”.

Q2 - Week 7 & Solution: Discuss the internal control weaknesses and risks associated with the above process:

Weaknesses in internal regulation and the associated threats are as follows:

No clear division of roles-the accounting clerk is the one who collects the voucher for the report and documents the transactions inside the framework. He is the one conducting weekly reconciliation, too. There seems to be an elevated risk of content misstatements due to inability to identify and redress mistake or deception, without adequate division of duties. Assets can also be subject to fraud or misappropriation Because of a lack of division of responsibilities.

The clerk does not conduct any headway to recording financial transactions-the accounting clerk might have paired and evaluated the particulars for each invoice towards its relevant documents before recording. Without any formal evaluation, there seems to be a higher risk that balance sheets will not be recorded in the financial statements at correct amounts e.g. Documented obligations weren’t appropriate due to unsent stocks, assets are overestimated due to its non-received real goods, etc. There is indeed a possibility that transfers will not be reported at the appropriate accounting date, because the clerk will not check the information of the origin paper.

Neither any review is conducted upon its work produced either by clerk-as no supervision nor evaluation is conducted, there seems to be a higher risk that perhaps the clerk might well record fictionalized transactions, such as fictionalized sales, fictionalized cash disbursement, etc., which might lead through material mistakes in the financial statements.

In Above Process Following are the Risk Associated.

There seems to be no task distribution- Richard does such an approach to dealing with purchase requisitions, sales invoices and invoices from the suppliers.

The cycle is vulnerable to theft and flaws as Richard has had to handle so much of his own work. He could lose any of the data in the course of reconciling the subordinate accounts to the control accounts.

Also there is risk of info confidentiality- data from organizations should be treated confidentially and data must stay confidential. “Chalmers, K., Hay, D., & Khlif, H. (2019)”.

Q3 - Week 8 & Solution: Depict the association and cardinality for the sales of cars at Elegant Limited based on REA model.

Elegant Limited:

Depiction of the Association and Cardinality for the sales of cars:

Association: For a car to be priced at Elegant Limited, a connection between Elegant Limited and many of its customers (private customers and investors) must be created. A car sale means the transfer of economic resources. While Elegant Limited exchanges cash receipts for the cars, The customers swap cars for their currency. The deal of cars involves two wealth and resources that are swapped in a business event among two market participants (Elegant Limited and customers).

Dimensionality: Two elements which are the exchange of resources are involved in every one of the economic events regarding the sale of cars to clients as well as the amount of payment from customers. In the economic event, cars and cash are also the components which show their dimensionality. Those are regarded as business hub.

Explanation:

The REA Model is an instrument used to design business functions. A case in the selling phase will be the "sales of vehicles," which will allow the vehicles to be issued for "money collection," the second thing. Such two things are related in return for payment as a cash refund happens, and vice versa. The REA system was first developed as a standardized accounting method by William E. McCarthy in 1982. Affiliation mediates the association that happens when an incident occurs. At least two people, the giver and the recipient, are affected by any case. Two retail investors are involved for a monetary event involving resource exchange to happen. Or else there could be no transaction. The car seller (Elegant Limited) and the purchasers (both private and investor clients). For example, rational numbers relates to the aspects that make up an economic event. Car sales and cash receipt are financial events occurring in a business relationship between Elegant Limited and Clients. The aspects that make up the events are the exchangeable resources (cars and cash). “Kharmoum, N., EL Bouchti, K., Ziti, S., & Omary, F. (2019)”.

Q4 - Week 9 & Solution: Outline your response to the management’s proposal and mention any concerns you might have.

The answer "only if an auditor is free to fulfill his duties should the audit contract be accepted. An auditor must not be stressed, but independence should not exist."

Explanation:

In the simple terms of database server, massive data storage, that would be used to gather in the same company from either a variety of sources. The DTC is being used as a designer (OLAP frameworks), since the data structure can be focused on a transfer. At the moment it is also easier for entities to end a relationship or evaluate and selecting the optimal information with complete data.

Creating a full depot: However, it is highly doubtful that each of you will receive your data at the same location will appear to be the strongest versatility to provide a server for a database.

Various advantages of data management are set out below:

Saving time: In the firm's simplicity of obtaining data from various sources at either the data center, which means neither time is lost to get news from other sources.

Greater confidence: The data is immediately transmitted to the data center in such an orderly system, instead of being substituted by human intervention, because you would be quite assured that the info is clean and simple, full and precise.

Increasing awareness: The store design features the data and information, and thus can be gives clues.

Increasing reliability: When an association role is combined, it will be much easier to handle individuals who enter the results. System that allows full adaptable security, enabling people to access and lock all of the systems.

Storage: This is the structure's base and the store resides there. The internal server is the internal computer of the company's office, and the database is a digital storage system which depends on remote server.

Software: This is a useful feature of interior style for cloud storage. Central planning and visuals are commonly isolated between two groups.

Human resources: For a feasible instance, that's the component of data warehousing which is absolutely vital. You must to consider making use of new conditions in your company to keep your store running.” Crane A, Matten D, Glozer S, Spence L. Business ethics”.

Q5 - Week 10 & Solution:

A) How The System Analysis Should Be Performed

Illustrious Limited:

I understand and empathize with MD. He stated "We've been thru these kinds of projects previously, and therefore what often tends to happen seems to be that we don't get the new system we're assured. Conversely, we even get a customized bit like the old system." The assumption of his argument is there is something lacking throughout the way the CIO as well as her team handled system infrastructure projects beforehand.

And the CIO accepted the MD 's claims by making sure "that this instance does not happen." as in previous, the program engineering department had failed to recognize "what goes well and what doesn't." That shouldn't be the issue with every successful system growth. Early study or review will expose the needs of consumers and then perform a detailed examination of the program until the design processed.

B) Method Recommend to Illustrious Limited for System Analysis.

Rather than the Waterfall methodology I would recommend SCRUM the system design task is a coordination task with ruck. The group is made responsible and SCRUM takes advantage of iteration to accomplish excellently-defined objectives. The SCRUM system "starts with a basic assumption, beginning with what could be expected or understood before monitoring progress and adapting when appropriate," in order to meet user-defined objectives.

Explanation:

System training is a way which obeys a system cycle (SDLC) methods and incorporates such seven steps: requirements specification, system analysis, system design, growth as well as coding, testing, implementation and paperwork, and assessment and promote.

SCRUM is an SDLC framework that implements "a series of meetings, resources, and tasks which work together to help departments organize and coordinate their work." SCRUM has also been defined as "an efficient way to handle the project," particularly software creation for its "adaptive and scalable methods."

On the other hand, the waterfall model follows linear process stages of origination, formation, analysis, design, construction, testing, deployment and maintenance, and that each process relies on the results of the preceding phase. Its why "in the development of software, it appears to be some of the extra incremental and adaptable methods, as starting to work mainly in one path. “Kieser, Alfred”.

References:

Boonmak, Supattra. "Accounting information systems." (2001).

Rushinek, Avi, and Sara Rushinek. "EDP system development methodology: Auditability and control." International Joint Conference on Theory and Practice of Software Development. Springer, Berlin, Heidelberg, 1985.

Rom, Anders, and Carsten Rohde. "Management accounting and integrated information systems: A literature review." International Journal of Accounting Information Systems 8.1 (2007): 40-68.

Kamali, A. (2019). Technology Trends in Materials Management: A Systematic Review of the Use of Technology in Materials Management to Achieve Competitive Advantages. Xlibris Corporation.

Chalmers, K., Hay, D., & Khlif, H. (2019). Internal control in accounting research: A review. Journal of Accounting Literature, 42, 80-103.

Kharmoum, N., EL BOUCHTI, K., Ziti, S., & Omary, F. (2019). DESCRIPTIVE ANALYSIS OF BUSINESS VALUE MODELS’TRANSFORMATION IN MDA APPROACH. Proceeding of” 3rd Scientific Days of Applied Sciences, 7(3), 71-78.

Crane A, Matten D, Glozer S, Spence L. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press, USA; 2019.

Kieser, Alfred. "Why organization theory needs historical analyses—and how this should be performed." Organization science 5.4 (1994): 608-620.

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