Reference no: EM132383110

ACT304 Accounting Information Systems Assignment - SEMESTER 2, 2019 - College of Business and Law - Charles Darwin University, Australia

ASSIGNMENT PROJECT DETAILS -

Assignment Project Objectives - This assignment is set to provide students with an opportunity to:

• Design an accounting information system to support a relatively small business system with some e- commerce capabilities,
• Document it using a narrative description, and document systems flowchart,
• Identify and analyse measures that are in place to control the system and its data.
• Recommend additional controls to improve operational and information system effectiveness.

Overview -

Your group (of three members) will learn about and propose a design of part(s) of an accounting information system (e.g. accounts payable, general ledger) or a system closely related to the AIS (e.g., sales, human resources). Your first task is to determine which business scenario (from one of the business environments provided on the ACT304 Learnline site) your group will use. And then determine which interactive parts (sub-systems) of an accounting information system you will design.

By the end of week three, your tutor will allocate your to a group with three members and assign your group to a business scenario. Your tutor also will determine the sub-systems to be analysed by your group. Once your group, business scenario and sub-systems are known, you will plan your work as a group for the project.

Next, you need to gather information about the industry of the firm indicated in the case study (business scenario). You should conduct both a manual and an on-line literature search to find recent, relevant articles in newspapers, trade journals, general business periodicals, etc. Examine the Web sites (if they have one) of potential competitors, an industry association etc. The purpose of this review will be to help you understand the operational and strategic challenges which affect how the firm's AIS is used by accountants and managers in the organisation. Your studies in ACT202 will provide part of the basis for your understanding of these issues. On an ongoing basis, you should also read relevant periodicals in case a relevant current article discusses the firm's industry.

The information you gain from your literature search will form the basis of your understanding of the AIS requirements and form the basis of your AIS design. Then you will prepare the first section of your assignment report that describes the client's organisation and its industry and document the AIS (including a system narrative and a document/system flowchart) and compare AIS design with the generic AIS described in the text. As part of the AIS design process, you will identify suitable software application(s) to support your system design. Normally suitable software application(s) are identified after the system has been designed and system specifications are identified. However it may be possible to integrate the process of application selection and design as an iterative process.

You will next identify, describe and analyse the application and pervasive controls related to this AIS. As the case study will have some necessary constraints that will prevent you designing a perfect system, you will need to identify control weaknesses and inefficiencies and what recommendations or design changes you would suggest to improve the efficiency and effectiveness of the AIS, if some or all of the constraints are reduced. Finally, you will complete and submit your report.

Collaborative learning is emphasized in this project. Your individual efforts and skills should complement other members of your group of 3 students. The final product should be better than the output of a single individual!

Planned use of non-organisation sources: Do a preliminary consultation with a reference librarian to identify relevant sources of information about the industry of your case study's firm. Describe in detail the specific data sources you plan to search to learn about your firm's industry. Include trade journals and web sites. Do not state that you will search on "Lexis-Nexis" or "the Web" or "relevant trade journals." Instead, note which Web sites, which specific trade journals, etc. Identify sources that will also help you understand the particular accounting cycle you will examine or typical packages for this system (e.g., text, other sources).

Detailed Description of the Requirements -

There are three parts to consider for this assignment.

Part 1: Project plan

1.1 Group Member Responsibilities

Develop a clear understanding of how each member will contribute to the work of the group, communicate with one another, and ensure a quality product throughout the entire project. This section will require the group to set specific dates for completion of each part. Each student should be allocated one of the sub-systems (three sub-systems in total) identified and contribute to each of the requirements1 of this assignment, as they are related to the sub-system allocated to the student.

Describe specific mechanisms that will ensure that:

i. the group does not rely excessively on any one individual,

ii. controversial issues receive adequate discussion of appropriate points of view,

iii. ongoing work is appropriately reviewed and revised well ahead of due dates, and

iv. the collective efforts of the group yield a better outcome than individuals working alone.

Mechanisms for group communication and coordination should be specific and unambiguous (e.g. all members agree to check their e-mail three times daily; use of a telephone calling list, etc.). Mechanisms

for analysis, review and quality control should also be specific and unambiguous. These mechanisms would include (but not necessarily be limited to):

• mechanisms for dispute resolution with the group (egg majority vote, 3rd part arbitration etc.).
• mechanisms for ensuring deadlines for individual efforts are met.
• the manner in which workloads will be redistributed in a timely manner if individuals cannot meet their agreed obligations to the group effort.
• the manner in which the quality of individual input is analysed/assessed and if necessary, improved upon on a timely basis.
• the file naming conventions to be used by individuals and by the group.
• the manner in which assignment documents will be managed in order to facilitate updating and access by various group members.
• the manner in which assignment documents and data will be protected from loss or corruption.

Successful completion of the following activities is necessary for a well-managed project:

Define: Identify project goals and objectives.

Plan: Identify and sequence project activities.

Organize: Assign work packages (some to individuals, some to sub-groups, some to the entire group).

Control: Establish status reports and a mechanism to monitor quality and progress against scheduled deliverables.

Close: Prepare and present the report to the client.

Please note that the name and ID of each group member should be included on the first page of your assignment report, followed by the name of the case study company that was used for the assignment.

1.2 Executive Summary (1 page):

Your executive summary should provide an overview of the entire document and highlight a key message, such as actions you are urging that your client to take. There is no single format, but one appropriate way to organize an executive summary might be as follows (do not exceed 1 page):

• Professional assignment. This should answer the following questions: (Who are you? What was your assignment? What tasks did your group perform?)
• Purpose of the document ("This report describes our findings and recommendations...")
• Results (what your group observed/found)
• Conclusions (your group's assessment of the system's strengths and weaknesses)
• Recommendations

Part 2: System Documentation and Analysis

Preparation: Your group should meet several times to discuss the sub-system descriptions, narratives, documentation, the interactions/interdependencies and information flows between the sub-systems. With the intention of ensuring consistency between sub-systems and in the overall systems documentation and overall quality of the report.

It is expected that each student in a group will focus on one of the sub-systems being analysed, (along with contributing equally to those elements of this deliverable that are not specifically part of a specific sub-system and supporting other group members in the analysis of the other sub-systems being analysed by the group).

Detailed description of the requirements for this section are as follows:

2.1 Organisation/Industry Description (approx. 1 page):

Describe the products/services sold by the firm. Describe the firm's industry, primary competitors, etc. Include an organisation chart showing the intended major reporting relationships that you will design into your group's system. Discuss significant industry trends and competitive/operational challenges (e.g., slow growth, new competitors, new regulations, etc.) Cite all sources used (including trade journals, general business publications, Web pages, and primary sources). The project should be properly referenced using an accepted reference technique accompanied by appropriate bibliography and literature review at the end of section 2.1.

2.2 Describe the purpose and key features of each relevant part of the AIS as designed. (approx. 3 pages).

Describe how each of the proposed AIS sub-systems contributes to organisational goals. On the organisation chart, show how the department(s) in which each AIS sub-system is used relate(s) to the larger organisation. Describe each sub-system's major functions, typical transactions, reports produced, and frequency of transaction and master file updates (approx. 1 page per sub-system).

2.3 Discuss how your system addresses the main issues specific to e-business systems: (approx. 1 page).

Identify the main issues that are specific to e-business processes/activities/systems (as opposed to "traditional" business processes/activities/systems). Discuss how your system design addresses these issues.

2.4 Describe how each of your proposed AIS sub-systems will provide data for managerial decisions. (approx. 1 page per sub-system)

Describe the typical managerial decisions supported by each of the proposed sub-systems and what other data and/or information is needed for these decisions in addition to that supplied by the system.

2.5 Document the system using narrative and flowcharts (6 pages)

• Prepare a two pages narrative describing the operation of each of the sub-systems under review, it's data flows, processes, forms, files and reports. Prepare a Level 0 Logical Data Flow Diagram, decisions (2 page)
• Prepare a Document systems flowchart which is consistent with the Level 0 Logical Data Flow Diagram and Narrative (2 page)

Part 3: Internal Controls Analysis and Documentation, and Recommendations

Preparation: Your group should meet once or two times to discuss the controls (or lack of controls) that you designed in your firm's system, prepare a control matrix describing them, analyse their effectiveness and efficiency. Identify if your system has "built-in" control deficiencies. Then prepare the documents listed below.

Detailed description of the requirements for this section and the draft report are as follows:

There are no recommended or suggested page lengths for this section. The page lengths are entirely dependent on the elements discussed. However it is expected that you will be relevant, clear and concise in your discussions.

3.1 Partial Control Matrix: include at least 5 existing control plans and any ("missing") control plans for each subsystem examined. These control plans should relate to the "key" or "main" objectives of each of the relevant parts of the client's sub-system under review. As the case study will have some necessary constraints that will prevent you designing a perfect system, you will need to identify control weaknesses and inefficiencies inherent in your design and what recommendations or design changes you would suggest to improve the efficiency and effectiveness of the AIS, if some or all of the constraints are reduced.

3.2 Control Matrix Explanation:

Describe how each control plan helps (or would help) achieve system goals.

3.3 Control Analysis:

Discuss the overall adequacy of controls used in each sub-system under review. Discuss the efficiency and effectiveness of controls (if an operations or information system goal has no plan listed under it on your matrix, why not? Does an expensive control support a single goal? Is this appropriate, in your judgment?. Are there control deficiencies in your system design due to cost effect constraints, software incompatibility with your preferred system etc.? If so why is this appropriate, in your judgment? Discuss the mix of preventive, detective, and corrective controls. Form a conclusion as to the quality of the controls, based on the system's environment and user needs.

Accounting Information Systems - Business Case -

Requirements: As per the assignment requirements, you are required to develop, document and analyse the appropriate business processes and activities to support the proposed business.

Important to note that your group is required to develop, document and analyse a NEW business, NOT any existing system that might be inferred from the business case details.

When you have advised the lecturer of your preferred business (from the selection of businesses provided), the lecturer will advise you of which of the sub-systems your group is to develop, document and analyse.

Possible Sub-Systems are:

• Sales
• Purchasing
• Inventory
• Receiving
• Shipping
• Asset Management
• Payroll

The following information is provided as a substitute for the first point of contact with your "business client".

Treat this information in the same manner as you would if you are being introduced to your client or have just had a physical visit to the client's premises.

This information is usually part of the initial "getting to know you" introduction to the client.

Attachment:- Accounting Information Systems Assignment Files.rar