Active role in developing new software program

Assignment Help Financial Accounting
Reference no: EM133209440

In 2020, Simpson Trucking Ltd, a national trucking company, identi?ed the need for a new software program to help improve the ef?ciency of its trucking business. After the company's CEO, its internal auditor, accounting department and operation management departments speci?ed the requirements for the new software system, Simpson Trucking Ltd enlisted ABCD So?ware Ltd to develop the new software program. Other than advising ABCD Software Ltd on the company' s requirements for the new software, Simpson Trucking Ltd 1was not involved in the subsequent design and development of the new software. Both companies agreed that payment was due only once the software program had passed its initial set-up stage. Six months years later, ABCD Software Ltd integrated the new software into Simpson Trucking Ltd's operation after which Simpson Trucking Ltd made full payment to ABCD Software Ltd and turned off the old system. During the first few months of operating the new system: it became apparent that it was not ?t for purpose because important internal control functions were absent. Ultimately, these problems have led to dissatis?ed customers, with some having stopped doing business with Simpson Trucking Ltd.

With reference to the information provided above, discuss why and how Simpson Trucking Ltd's auditors should have played a more active role in developing the new software program.

Reference no: EM133209440

Questions Cloud

How much is total liabilities : On January 1, 2021, Faith D. Nakpil established FDNACCT Company, a laundry business. How much is the total liabilities at January 31?
Social performance of social enterprises : Do you think the introduction of social progress credits would improve the social performance of social enterprises in South Korea?
The underlined entity is reporting entity : The underlined entity is the reporting entity. Disclose the details of the contingency in the notes to the financial statements.
Australian stock exchange : One year ago, Peter Pan Ltd hypothetical company listed on the Australian Stock Exchange began to provide its financial statements in XBRL
Active role in developing new software program : Discuss why and how Simpson Trucking Ltd's auditors should have played a more active role in developing the new software program.
Russia illegal annexation of crimea : Russian cyber-attacks against Ukraine have persisted ever since Russia's illegal annexation of Crimea in 2014.
Integrating cloud computing solutions : Could you please describe two benefits of integrating cloud computing solutions for a business?
Evaluate two procedures used for financial statements : The following are three different scenarios in which you need to evaluate two procedures used for financial statements.
What is amount of bond amortization : What is the amount of bond amortization for each six month period?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the amount of the annual depreciation

Determine the amount of the annual depreciation. -  Determine the book value at the end of the tenth year of use.

  What is the accounts receivable balance for sunny company

What is the accounts receivable balance at December 31, 2020? During the year ended December 31, 2020, Sunny earned sales revenue of P 537702500

  What the unadjusted cash balance per bank statement amounted

What The unadjusted cash balance per bank statement amounted to. Cash balance per bank statement 283,000 Proceeds from bank loan 200,000

  What is the ratio of market value per share

Compute book value net worth per share - What is the ratio of market value per share to book value per share?

  What is common-size percentage of the accounts receivable

Long-term debt of $1,400, accounts receivable of $320, and total equity of $1,000. What is the common-size percentage of the accounts receivable?

  Difference between a cash budget and statement of cash flows

Explain the difference between a cash budget and statement of cash flows? Which one is more important

  Dividends declared goes to the common shareholders

GHI Company has the following stock outstanding: How much of the $200,000 of dividends declared goes to the Preferred Shareholders? How much of the $200,000 of dividends declared goes to the Common Shareholders?

  Determine which equipment should the company purchase

Cash outflows for equipment Y are $18,000 in year 0, and $10,500 per year for year 1, 2 and 3. Determine which equipment should the company purchase?

  What is the cost to the financial institution

Suppose that company Y declares bankruptcy at the end of year 6, when the exchange rate is $0.80 per franc. What is the cost to the financial institution

  Calculate margin and net income and return on equity

For the year ended December 31, 2013, Ebanks, Inc., earned an ROI of 12%. Sales for the year were $150 million, and average asset turnover was 2.5. Average stockholders’ equity was $50 million. Calculate E banks, Inc.’s return on equity. Calculate E ..

  Identification of several factors of

identification of several factors of materiality.materialityanbspidentify several factors considered by an accountant

  What gross profit on project a to be recognized would be

Using the percentage-of-completion method of revenue recognition, gross profit on Project A to be recognized in 20x8 would be?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd