Reference no: EM132364745

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 or a system closely related to the AIS (e.g., sales, inventory). 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.

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. 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.

Detailed Description of the Requirements:

Part 2: System Documentation and Analysis

Preparation: 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. 1 page per subsystem).
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.

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 Context Diagram, a Physical Data Flow Diagram and 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.